What Is a Business System and Why Do You Need One?

System and procedures are the essential building block for our companies. Every area of your business is a process that can be managed and improved by applying correct principles.

What are Business Systems?

Business systems is a process that connects an organization’s intricate parts and interrelated steps to work together for the achievement of the business strategy. When you apply principles to systems and procedures that deliver value to our customers it forms a business system.

Lack of system for Business Growth

Why Business Systems Are Often Overlooked:

Business system is the most overlooked aspect when running a business. The two major reasons why business systems are overlooked:

  1. Basically business systems are back office functions. Some people consider business systems as boring compared to sales, marketing and other functions. Building business systems may be boring but an amazing business system can help run a business successfully and profitably. E.g. McDitable and successful.
  2. onald’s operations covers everything from hiring to product delivery to customer interaction and hence its multi-billion dollar business is profBusiness systems are neglected due to its perceived lack of urgency. In a business, there are many things to do like sales, marketing etc. As the business owners have scarce time, business systems are left out in a corner.

The need for systems in your business:

  1. It builds a valuable asset:

    A good cash flow is always welcome by your business. One day you may want to sell your business at a good price which requires you to build the value of the business inorder to get the biggest pay. It can only happen if there is a system that can continue running even without you.

  2. Leverage and scalability:

    Systems help businesses to expand. You can leverage your business in other areas as well or franchise the rights to your business system. Many fortunes have been made this way.

  3. Consistency:

    Every business requires consistency to provide a better customer experience. For example Mcdonald’s provides a very consistent customer experience anywhere you go.

  4. Lower Labor Cost:

    When you and your staff don’t have to waste time and effort to innovate things time and again, this improves your efficiency and productivity by reducing your labor costs.

You’re Business and You:

There is a thin line between YOUR business and YOU. Supposedly you travel for months overseas and after coming back you see that your business sales have dropped or it’s not the same as you left it. This implies you are the business. A proper business system will not require your presence at all times.

The only way is to structure the business process. So a lack of systems may not stunt your business growth and cost you a fortune.