5 Reasons You Need Business Systems To Grow

Whether or not your business grows and how well it does depends on your business systems.

When we recommend that business owners create systems, they see it as one of those activities to do just for the sake of it.

They don’t see the importance because they’re used to working in their businesses.

But it is difficult to grow a business, and a lot more difficult growing a business that lacks a system. 

A business without a system depends on you – the owner and other people to function. 

Your business suffers if you are absent for a day or if a critical employee leaves.

To grow a business without a system, you would work extra and still not get the financial freedom you want.

The worst part is you cannot sell it even if they want to since it still depends on you. Unless you are there, it all crumbles and all your hard work would be for nought.

What is a Business System?

A business system is a collection of processes, tools and resources that work together to achieve a specified end goal.

It is easier to visualize a business system if we look at a restaurant as an example. It takes so many things to produce a meal that is the end product of a restaurant; you need a chef, you need ingredients and tools, but you also need to engage in various activities such as baking and cooking.

It is a collection of all these processes and resources that makes it possible for the restaurant to produce a meal that is consistent in taste and quality every time.

The goal of a business system could be to increase profit, productivity or lower costs. Whatever it is, the business owner must clearly define his objectives.

Making a business work requires a variety of business systems and subsystems. A marketing and sales system, an operations system, a production system, and a financial system are some examples of broad business systems.

Why A Business System Is Important To Growth

There are a few benefits to gain when you put in place efficient systems for your business.

1. Deliver Consistent Results 

Have you eaten at a restaurant and enjoyed the meal only to go there again and order the same meal but get something different? That happened because the restaurant lacked a system. 

A business with a system would deliver consistent results every time. That’s because it has a documented process of producing your meal that brings the same results no matter the chef.

This is important to growth because it causes your business to maintain a standard that customers will associate your business with no matter how big it gets.

2. Build People-Independent Business 

As a follow-up to the point about consistency, the business system does not rely on people to deliver great results.

If your best chef leaves your business, if you do not have a proper system, your meals will taste terrible, and you will have to find another great chef to restore the taste. 

But that is not the case with a business with systems, the restaurant would produce the same taste to your clients whether you’re there or not or whether someone in a critical role quits. 

So, having systems protect your business relying on an individual to achieve its growth goals and the shocks that come with it.

3. Grow With Ease 

Many businesses can not grow because they rely on the owner to scale. But the problem is that the owner is limited and cannot work for the many hours necessary to grow the business. 

This is where business systems come in. With business systems, your business can accelerate growth because it can work even when the owner takes a break, gets ill or even dies. It makes growing easy and fast.

An example of a business that has done this is McDonald’s.

4. Creates Extra Asset 

The truth is that a business system is an asset to the business. The billion-dollar franchise market is a testament to that fact. 

Your business can leverage its system to gain more revenue needed to fuel growth by selling that system as a franchise to others who may want to replicate your success.

5. Build A Better Business 

A business that runs on systems is generally better off; it enjoys lower labour costs, higher productivity and profitability. That is why such enterprises are more attractive to investors. 

They easily attract capital because investors know that they can depend on the system to enjoy returns on investment and growth than on people – no matter how fantastic they are.

Establishing a business system is the obvious solution to many problems plaguing small businesses today. 

Do you want to increase your profit, grow your business, or create one you can take a break from without crumbling down?

Create a business system.

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