Friday, 29 January 2016

How to build a sucessful business system

A system is a set of things working together as part of a mechanism or an interconnecting network; a complex whole(Business Dictionary).

Types of system includes business system, information Technology system, artificial intelligence system, computer system etcetera.

A  business system is an independent units or departments interacting with each other as a whole.
Robert Kiyosaki in His book Rich Dad Poor Financial quadrant explained the various income segment
1. Investment
2. Employment
3. Self Employment
4. Business

They are different skills required to be successful in each of these segment. Hundreds of people are doing excellently well in each of these segment.

However, the best segment is  'business' because its supports system. With a good business structure, the business can function without the owner.

This article will explain the various steps in building a successful system, the importance of having a functional system.

Every business is divided into departments or units. Human Resource, marketing and sales, finance, procurement etcetera.

The essence of business system is to make these various units work independently  and efficiently even when the owner is unavailable.

Building effective business system is more challenging to small business owners unlike big business that already have a functional system.

Four vital things are required for any business system

A Business
An established business is required to build a successful business system. Every successful entrepreneur has a product(s) or service(s). Mostly start with a passion to solve problem, create opportunities or make business process easier.

Robert Kiyosaki on his  blog rich dad explained the three ways of becoming a business owner:

1. Mentoring
A mentor is a source of inspiration- a guardian. The alternative to a mentor is to get a good MBA from a prestigious University, work for a big company Maybe  For a decade or less and launch a business.

2. Franchise
Simply buying an existing business is a way of building a successful business system. A franchise is a proven and tested system. 
Buying a Franchise helps to reduce the time in starting from scratch. It also help in securing credit facilities from financial institutions since most banks only give loan to an existing business. Franchise is not recommended if you want to build a unique business with your own strategy.

As an advise, before subscribing to a Franchise, you need to do a personal check to confirm that the other franchise are doing well and as well maintained highest standards. For instance, there is a food chain in Nigeria, was once the best but now, it's almost been destroyed by franchising. The other franchise sells expired  food which automatically affects the entire brand.

3. Network marketing
Popular brands seldom run network marketing system. However, when they do, either offline or online, could be rewarding.
It is another way of building a successful business system with one time fee or startup capital.
Network marketing like every other business requires patience, persistence and good business strategy to breakeven.

Business Owner
Someone that owns the idea, invest time, money and tirelessly market the idea. A business system thrive with the business founder.
The mistake many business owner make was to try to build a system without them been part of the system especially in the startup phase.
The early stages of the business requires The close supervision of the business owner at least for the first year. The owner can move to another business after successfully created functional units.

The business owner will have to trust someone to manage the business.
People that have issues with trust can never build a successful business system.
Internal control should be put in place to control fraud.

Building successful system requires a good leader. A leader knows how to delegate task.

How to build a successful business system
Building a successful business starts and ends with the owner.
The owner wants to build something that can work in his absence, something that work even without a particular employee.

The main advantage of a successful business system is that it is structured in such a way that it doesn't place much importance on an individual.

As stated earlier, business system is important to small businesses as most big and medium companies already has a funtional structure.

A business is a functional structure that is made of resource used in  achieving set goal. The resources  includes both human and material.

A successful business system requires an automated processing and proper delegation

Automated accounting, payroll, inventory and a work environment where everyone understand their duties and responsibilities and work as a leader-follower in their various role.

Some business run on manual system instead of automated process. Building a successful business system in such business requires exceptional leadership skills with excellent task delegation skill.

Smart employees with wicked intention can also break automated process. Therefore, the business owner must be ready to technically supervise the entire automated process.

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