Effective Business Systems are Your Greatest Asset!
A recent email from Linkedin posed the question, “What is the most important asset of your business?” There were twenty-four responses elaborating on such things as the business owner, the customer list, the brand, the business model, the marketing strategy, and even less tangible things like attitude and creativity. However, the number one response was “people”—customers and employees.
Who among us would not agree that people and relationships are of tremendous importance to the success of our business?
However, I would disagree that people are the most important asset. Here’s why.
In the strictest sense, assets are tangible items on a balance sheet that can be bought, sold and controlled. They include such things as cash, inventory, intellectual property, buildings, equipment, or even a client database.
However, “people” come and go, and you have no control when one these valuable “assets” decides to say goodbye and walk out the door. It is a mistake to build a business that is dependent upon individual people, especially superstars!
Your Most Valuable Asset
In my opinion, your most important assets are the effective business systems you have created that can consistently achieve desirable results. A system for catching fish is more valuable than any individual fisherman. A system for winning at sports is of greater value than any one player. A system to make money in business transcends the value of any single customer or employee.
Think about it. If you were going to buy a business and it had mature systems for marketing, hiring, accounting, and producing quality products and services—systems that get results day in and day out, and constantly produce a monthly profit—wouldn’t that be a strong incentive to make the purchase?
Michael Gerber, author of E-Myth Revisited said, “Organize around business functions, not people. Build systems within each business function. Let systems run the business and people run the systems. People come and go but the systems remain constant.”
Yes, people are often the most important component within your business systems; however, the systems are your most important asset. Valuable people are those that can help you create or improve the systems.
Invest in Business Systems
A business that succeeds primarily from the talents of its valuable people is always one step away from losing its “assets.” On the other hand, a business with effective systems has assets that are secure regardless of what individual people choose to do.
If you don’t believe that successful business systems are your most important asset, just ask a franchise owner. That’s what they paid a lot of money for.
Wishing You Prosperous Times,
Ron Carroll
P.S. – Manage and protect your greatest business assets with Box Theory™ software. Go to www.BoxTheoryGold.com/pricing.
Effective Business Systems are Your Greatest Asset!
People are Your Most Important Business Asset—Not Really!
A recent email from Linkedin posed the question, “What is the most important asset of your business?” There were twenty-four responses elaborating on such things as the business owner, the customer list, the brand, the business model, the marketing strategy, and even less tangible things like attitude and creativity. However, the number one response was “people”—customers and employees.
Who among us would not agree that people and relationships are of tremendous value to the success of our business?
However, I would disagree that people are the most important asset. Here’s why.
In the strictest sense, assets are tangible items on a balance sheet that can be bought, sold and controlled. They include such things as cash, inventory, intellectual property, buildings, equipment, or even a client database.
However, “people” come and go, and you have no control when one these valuable “assets” decides to say goodbye and walk out the door. It is a mistake to build a business that is dependent upon individual people, especially superstars.
Your Most Valuable Asset
In my opinion, your most important assets are the effective business systems you have created that can consistently achieve desirable results. A system for catching fish is more valuable than any individual fisherman. A system for winning at sports is of greater value than any one player. A system to make money in business transcends the value of any single customer or employee.
Think about it. If you were going to buy a business and it had mature systems for marketing, hiring, accounting, and producing quality products and services—systems that get results day in and day out, and constantly produce a monthly profit—wouldn’t that be a strong incentive to make the purchase?
Michael Gerber, author of E-Myth Revisited said, “"Organize around business functions, not people. Build systems within each business function. Let systems run the business and people run the systems. People come and go but the systems remain constant.”
Yes, people are often the most important component within your business systems; however, the systems are your most important asset. Valuable people are those that can help you create or improve the systems.
Invest in Business Systems
A business that operates from the talents of its valuable people is always one step away from losing its “assets.” On the other hand, a business with effective systems has assets that are secure regardless of what individual people choose to do.
If you don’t believe that successful business systems are your most important asset, just ask a franchise owner. That’s what they paid a lot of money for.
Wishing You Prosperous Times,
Ron Carroll
P.S. – Manage and protect your greatest business assets with Box Theory™ software. Go to www.BoxTheoryGold.com/pricing.