Do You Have A System?

Do You Have a System?



When some small-business owners hear the word system, they think, "That's only what big companies use." But every company, whether big or small, has a system.

A great example of how a system works is the human body. The skeletal system holds the body up and the respiratory system delivers oxygen to the blood so that the blood can deliver oxygen to the rest of the body. If the respiratory system is not working, neither will the skeletal system, or any system for that matter. All the systems in the body work together.

The same is true when it comes a business system. Without a sales system to get new business, there would be no need for an accounting system to collect account receivables, etc.

Every successful business has a system and subsystems that keep it functioning. It's important to realize what systems you have in your business for a number of reasons.

1. Accountability . When you have a system, you know who is supposed to do what. So when something goes wrong, you simply look at the system and determine who is responsible, or whether a new system should be established.
2. Management. When a system is in place, you don't have to micro-manage or hold everyone's hand. The system is there to guide your employees.
3. Profitability. Getting your systems to work in conjunction with each other can affect your bottom line. For instance, if your marketing system works in conjunction with your inventory system, you'll know exactly how much of one product you will need. If not, the marketing department would put a product on sale, but the inventory department would run out of the product. As a result, the customers would get frustrated and choose to go elsewhere next time.
4. Time to sell . If, one day, you are looking to sell your business, the prospective buyer will no doubt be interested in your business systems and how effective they are.

Solid Oak Consulting can help you define or refine your business systems. For more information, please contact me at SolidOakConsulting.com