10 Ways Business Systems "Indirectly" Increase Profit!
Last week we talked about the direct ways in which effective business systems increase profit. That would be enough to convince any rational person that this endeavor is a must for every business owner and entrepreneur. However, let's see if we can uncover more ways that well-designed business systems can boost your bottom line.
Systems Provide Hidden Financial Benefits
Below are some of the indirect financial benefits you will derive from your commitment to system development.
- Effective systems enable a business to run without constant hands-on involvement of owners (owners can spend more time growing and improving the business).
- Consistent and reliable systems delight customers and turn them into raving fans (customers who have a great buying experience keep coming back, and tell their friends).
- Efficient systems increase sales throughput and the velocity of cash flow (good cash flow helps every system operate better and more profitability).
- Smooth-running systems create a positive and productive work environment where employees are happier and stay longer (less employee turnover decreases cost and increases customer satisfaction).
- A systematic work environment is an organized work environment--cleaner, safer, more efficient--and one that raises morale and attracts quality people (a great place to work is essential to having a culture of excellence).
- Measured systems produce a results-driven workforce that lowers operating cost and boosts performance (high productivity maximizes profit).
- Effective systems give your organization a competitive edge (your product or service is better (fewer mistakes/defects/let-downs), faster (shorter response/delivery time), and cheaper (quality plus speed equals low cost). You become the "best deal!"
- Exceptional systems enable you to differentiate yourself in the marketplace (you attract more customers by standing out like a "purple cow in a field of brown cows" - Seth Godin).
- Systems that achieve intended results are business assets, like equipment, and add long-term value to your company (a completely systemized business sells for top-dollar).
- An organization built with effective systems becomes a prototype for replicating or franchising the business in other locations (exponential growth is possible).
While some system improvements generate large financial returns, most add incrementally to the bottom line. The accumulation of small improvements can have a dramatic effect on business profit--enough to rescue an ailing company or help a good company become great!
I'll say it again, effective business systems pay for themselves many times over. The question is not whether you develop systems, but what new systems or improvements will have the most immediate financial impact.
Learning the Master Skill of system development will take you farther and faster than any other method of building and growing a successful business. There really is no other way!
Wishing You Prosperous Times,
Ron
P.S. - All the tools you need can be found at BoxTheoryGold.com.
If, you haven't already, check out my previous article. 10 Ways Business Systems "Directly" Increase Profit.