A system can be defined as a series of repeatable activities aimed at achieving a given purpose.
Okay, back up. I am beginning to sound like a schoolteacher. This does not make the above statement any less true though.
Even in our personal lives, there are activities we perform every day to ensure that we are physically and psychologically ready for the day. These activities could include jogging every morning, light exercise, taking health drinks among other things.
Successful people do not live their lives as if it is a coin toss. They always try, in their lives and businesses, to carve out a methodical procedure or process for living to the optimum. Successful people do regularly what failures do occasionally. (Tweet that!)
Building effective systems in your startup will provide a number of benefits to your business, employees and customers. These benefits, however, can only come if the business systems are properly designed and implemented.
So if you are among the group of entrepreneurs/business owners that think that running and growing a successful business is all about hiring people and barking out orders, you are doing yourself a disservice.
Here is a peek at some of the benefits of putting up effective business systems in your startup.
- Your startup will have consistency in productivity
When your employees have a set of directions to guide them, it increases the quality and quantity of the work they do because they will be able to complete tasks faster and easier.
If there is no predefined procedure in place for carrying out specific tasks in the workplace, your employees will not be as productive as they ought to be. They will find themselves spending more time thinking about the best way to achieve the task rather than actually doing it. Believe me, you don’t want that because it will grossly affect their productivity, which in turn affects the quality of your product/service.
So as you build your business, make sure you build a system too, else your productivity level will never be as high as you want it to be.
2.Your startup will be run on minimal cost
Mistakes are costly – literally speaking – in life and business. Mistakes are an inevitable part of business but with the right business systems in place, they are reduced to the barest minimum.
Let’s say you have a paint production factory, and you have already built a system for your paint production detailing the quantity of the particular raw material that will be used to produce a particular volume of paint. Let’s also assume that you have a system with specific details on what raw material to add into the production plant at every given point. These measures will ensure that the mistakes made during the actual production process is minimal.
I remember when I worked in a paint production company some years ago. I had just worked for a few months and I was required to take charge in producing a particular batch of pain because the production manager was not around. I was able to execute that task successfully simply because there was a system in place.
This same principle applies in every aspect of your business. If you want to avoid mistakes and reduce cost, build a system, and train your employees to follow them. If you do so, you will almost never spend beyond your allocated budget.
3. You will be able to discern if and when you need to hire more staff
When a particular activity in your business always falls short of the quality expected of it, you can be tempted to think that the employee in charge of the said activity is not up to the task. Or that more hands are needed to achieve the expected quality.
Having a good system in place for each task will help you to easily discern if what you need are new hires – or a new system. You will most likely make the mistake of hiring too many people if you have no business system. And we all know the cost of hiring new people, don’t we?
4. You will achieve scalability
Having one employee performing a task in his own way is not scalable. But converting the key activities in your startup into systems or processes with steps that can be easily repeated by others gives your business the option to scale up.
The value scalability gives your business becomes more obvious if and when you begin to think of expanding your business through franchising for example. The efficiency of your business will be an attracting factor for people who want to use your business brand name to launch their own businesses.
But this can only be possible if you have a system in place.
5. You will have time to work on growing your revenue
Once effective business systems are put in place your business activities will be performed nearly on auto-pilot. This is the most important reason you need to build a system. Your employees will not need to spend much time and energy in performing their duties. And you will not spend much time trying to manage and supervise them.
Time spent away from supervision translates to time spent working on other services that directly add value to your business. It will also help you get that much needed occasional time off.
6. You will definitely see an increase in profit over time
This is an offshoot of all the reasons mentioned previously.
When you avoid unnecessary mistakes, always get the hiring process right and achieve scalability, your business obviously will not have to spend money unnecessarily, and this translates to more profit for you. This is especially true because you will have more time to work on value-adding services as mentioned in the previous point.
You will not be spending time patching up the business like a sinking ship that you are trying to keep afloat.
Truth is every business owner will like to succeed in business. No one wants to run a sinking ship. But let’s face it, if you really want your startup to grow and not remain stunted, then you must invest your resources into building a system that will stand the test of time.
Do you have more reasons to share with us? Write in the comment section below and let us glean from your wisdom.
And please make sure you share this post with your friends. And as you do that, kindly subscribe to the MSC newsletter so you can be notified once a new post is published.