In 1986, Michael E. Gerber gained notoriety from his bestselling book, The E-Myth – Why Most Businesses Don’t Work and What to Do About It. Since then, the Wall Street Journal has named it the number one business book of all time. In the book, Gerber explains that most start-ups are bound to fail because they are started by “technicians,” or the people who know how to do the technical work, rather than by “entrepreneurs,” those who know business itself. In another word; you can say systemization is automation – the process by which you automate your business.
How Business Systemization Works
For a business to thrive, it must move past relying on the “technicians” that own the company. A great example of business systemization at work is franchising. Franchises are essentially prototype businesses that use well-documented systems in their daily operations. Franchises use written manuals to describe in minute detail how the company should be run. Spending the time to create a business that can run by itself is accomplished through business systemization.
Creating a systemized business that is capable of running without you is something most business owners often dream about. You need to commit to building your business into something incredible. While systemizing a business the right way does take time, the hard work you put in, will provide you with an end result that is life changing for both you and your business.
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Benefits of Implementing Business Systems
One of the best things that you can do for your business is to implement business systems. When you properly design and apply them, they will provide your company with many benefits. If you want to create a high potential company, you need to build viable systems that will allow your business to run without you. With the right business systems in place, your company will gain the following benefits.
- Meet and Surpass Customer Expectations
Using a systematic approach to your marketing efforts will allow you to monitor the expectations and satisfaction of your clients. The subsystems that you put in place will analyze, measure, compare and provide you with possibilities for making a specific conclusion about what your customers want and what they don’t want. This will provide you with constant information about what you need to improve.
2. Produce Consistent Results
Systemization will allow you to repeatedly produce the same and better results every time. When you implement business systems, you can ensure that your employees will complete each task with the same consistent results, every time. Business systems will ensure quality in the completion of every task, every time, with the same quality as before.
3. Improve Employee Performance
Business systems will allow your employees to complete the same job in less time, increasing their productivity. As their productivity increases, so will their performance. The goal of business systems is to allow for the proper education and opportunities for all employees so that they can complete their work more effectively and efficiently.
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4. Reduce Costs
When you don’t have to repeat activities several times to complete them, you will dramatically reduce your costs. Documented systems help to reduce costly mistakes and improve the quality of work that your employees accomplish.
5. Increase Profitability
With documented systems in place, you will see a marked improvement in your productivity and performance. This, in turn, will help to reduce the costs associated with running your business, increasing its profitability. Meeting and surpassing the expectations of your customers will help to build customer loyalty and increase referral rates, which have a direct impact on your company’s profitability.