Why Business Systems are Crucial to Success

Business systems are systematic frameworks designed to manage an organization’s policies, procedures and processes and promote continual improvement within. Business systems are crucial to success as they enable you to reduce costs, boost revenues and achieve growth.

A business is not profitable when it live solely in your head. Systems within an organisation ensure knowledge retention, business continuity and employee retention.

Creating effective business systems is the only way to attain results that are consistent, measurable, benefit customers and workers, and yield an expected profit.

Like a recipe, its component parts and interrelated steps work together for the desired outcome. A business system consists of a procedure, process, method, or course of action designed to achieve a specific and predetermined result.

The two most important factors of implementing systems and processes in your business are efficiency and accuracy. This is what enables employers to monitor and manage their staff whilst staying connected to the operational strategies of the business.

Source: Dale Beamount – Blueprint for Business Success

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The goal of these systems in place is to create a business structure that can run without you being there. As E-Myth author Michael Gerber stated, “the business owner must work ON the business, not just IN the business.”

Systems will literally make your business transparent, allowing you to clearly see the root cause of problems and their obvious solutions. Quickly eliminate customer complaints, operational waste, mediocre performance, worker turnover, unnecessary costs, poor cash flow, slow sales growth, small profit margins, and daily frustration.

Think to yourself each time you complete a task, ‘Will I have to do this task again? If yes, build a system.” The time taken to create a record of the processes and procedures will save endless time and resources later down the track.

Reasons why Business Systems lead to success:

  1. Consistency – a procedure or process that can be followed by every member of staff and without risking misinterpreted word of mouth explanations. The individual who is in charge of that task has written the system, therefore the process is tested to achieve the desired outcome.
  2. Team Empowerment – Mundane and repetitive tasks can be automated through systems and achieved efficiently, saving up time and resources to focus on more rewarding tasks.
  3. Employee Productivity – This will also help to improve your employees’ performance and productivity, by allowing them to complete their tasks faster and more effectively.

A quote from successwise further breaks down the importance of systems, “Without business systems, you don’t own a business – you ARE the business. If you want to double revenue, you need to double the hours you work. Since you only have so many hours in a day, that limits how fast and how big you grow.’ By automating, delegating, and systemizing your business activities and business functions, you gain leverage, which is the key to creating and scaling a high growth organization.”

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