Starting a company can be outright tough. The mere thought of starting a business puts fear into the mind and eyes of most people. But for some of the most eager of entrepreneurs, it lights a fire of excitement. However, there are times when getting that business up and running to operate in a manner that puts cash in your pocket while allowing the owner to slowly but surely work less but maintain or even if done right – increase how much he is making from his business.
Here is one of the best ways to determine your business is on the right track to achieving the time and financial freedom you are after.
Operational Systems Are Set In Place
The only true value of a company, especially one that does not present something completely brand new to the market place, such as a home services business, the real value within these companies comes from the little factories of a business that are created by the owner.
“Systems are incredibly beneficial for efficient operation and also if and when an owner wants to sell their business.” said a Dallas lawn care provider who is a stickler with business systems. In addition to operating efficiently, you also get the added bonus of a higher value of the “worth” of your business to a prospective buyer for when it comes time to sell it for a nice lump sum payout. From there you would have the choice to possibly retire completely, depending on how young and ambitious you are (age is relative with this) or use it to fund your next business. Or a mixture of both, becoming more of an investor in businesses as opposed to actively working within your business.
What Are Operational Systems?
If you are new to entrepreneurship or owning a business, you may be wondering what “systems” even are? They are simply just protocols for when things occur in your business. Every well structured business on the planet has them in place.
Take Starbucks for example. Despite them having dozens of different drinks on their menus, plus the endless combinations of available customizations that can be done with those drinks, your order comes out nearly perfect every time. How? Systems in place. Their team has done the homework to ensure that once an order is placed, the key people for fulfilling that order ring in the cash register, then a barista begins making it by grabbing the base ingredients, which are strategically placed throughout the coffee bar’s back area by design. And usually within less than a minute, your custom drink is ready.
It is easier said than done. The even of Starbucks getting your drink completed correctly in such a short time is a result of thousands of hours of testing different strategies, protocol and more, then assessing the data of what works best, then adjusting some more, and continue tweaking until they have it right. To this day they probably still test certain things. And it is not just limited to the “front lines” of a business like a coffee shop or a lawn service. Systems are in place at the headquartered office as well! Procedures and protocols are set up for maximum efficiency in all departments: legal, administrative, accounting, tax, management and more.
Here’s an instructional video on how to build and implement systems in your business:
Bottom line, systems in place build successful companies.
We are all about sharing the successes and specific insights of what those people did to achieve those successes on our website. We have a boat load of content that is going to be shared and we are very excited to share it. We know first hand how tough it can be for a person to figure out a way to map out their goals for their life when it comes to financial wellness. Our website is all about sharing things related to that. We have interviewed dozens of business owners and each article we share here on the blog with be a specific thing they did to get where they are now and tips for a person who may have been in their shoes years ago. Helpful tips for optimizing, avoid pitfalls, steering clear of financial issues, planning accordingly, setting up systems with a business to ensure it operates efficiently and eventually without the owners’ presence, and so much more.
Stay tuned and Merry Christmas!