The Australian Small Business Blog

Tuesday, April 13, 2021

The Five Pillars of Business Success: Pillar 3: Business Systems





                     by Dr Greg Chapman

Last month I covered the second of the Five Pillars of Business Success: Marketing Strategy.

In this post I discuss the third of the Five Pillars of Guaranteed Business Success: Business Systems.

Answer the following questions honestly:

• How many hours do you work a week?
• When was the last time you took an uninterrupted holiday?
• Do your staff have a better job than you?


Now ask yourself:Now ask yourself:

Do I Own a Business or a Job — with Overheads?

Most business owners are micro-managers. They have learnt from experience if they give work to someone else, they mess it up, and then they spend twice as long fixing things. Without a good Business System, the business owner does not own a Business, just a job with overheads! Without a Business System, you will never have a business that runs without you.

A good system is logical and simple to use, and ensures that your customer service levels are always consistent. Some of the other key benefits of a business system, are:

• Enable your business to operate without you
• Turn your business into a money making machine
• Increase business effectiveness and efficiency
• Allow you to develop a saleable asset
• Take out most of the risk of a business, by operating it with proven methods of carrying out its activities
• Allow you to employ staff with lower levels of skills
• Simplify training of staff and speed up the time for them to become productive, profitable employees
• Systems enable you to leverage your time, your effort, your knowledge and your money


Many studies have shown that businesses with weak systems seldom achieve efficiencies above 66%. While 100% efficiency is impossible to achieve, a good system can easily increase efficiency by up to 30%. The financial cost of not having a good business system is obvious. What is not so obvious is the impact of poor systems on your customers. The total profit lost can easily be double this amount when you account for the loss of sales.

A good system guides companies to manage and monitor their activity. It will produce a consistent and predictable return for the money, time and effort invested by an owner. This system will give you control of your business even if you are not there. Your system will be based around policies, planning and procedures in every part of your business that you and your staff will apply every day.

Once your system is implemented, your work will decrease and your results will increase. You will also have created a valuable asset that can operate without you.

When you have a Business System, you have an Exit Strategy!



May Your Business Be –As You Plan it!

https://empowerbusinesscoaching.com.au/empower-consultation-programs-form




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Dr Greg Chapman is the Director of Empower Business Solutions and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success and Price: How You Can Charge More Without Losing Sales.

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Dr. Greg Chapman is also the author of
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