In other words how to create a business that works efficiently and profitably.
Here is the one way you can create a streamlined business operation that reaches its full potential. It requires the thoughtful development of effective systems and processes that make it possible for you to identify, develop and keep new customers while retaining your existing customers. Creating and developing new business systems in support of a specific business is the art of business engineering. The process requires innovation and creativity as well as organization and logic. The development of systems to support your business and ensure its profitable operation is the primary task of a business owner.
A fully functional efficient, profitable systems should contain the following:
Process should be simple and duplicatable. They seek to eliminate idle time, mistakes, downtime, unnecessary movement, bottlenecks, and inventory buildup. You make money when your systems are sustainable and function efficiently.
Generally, a system requires all of the following and more to function smoothly and profitably; checklists, forms, reports, equipment, software and other technology and mechanization as required, supplies, tools, people, and other resources.
People are generally the most important as well as the most costly part of the business system. It is important to select the right person for the right job and to ensure that the person selected receives the proper training to achieve the desired outcome. Effective business systems leverage ordinary people to produce extraordinary results.
Good systems minimize errors, waste, and duplication of efforts and constrained costs. Products or services are delivered as promised and free of defects; they meet or exceed customer specifications and expectations which makes quality control an integral part of the system.
Efficient business systems have short lead-times and high flow-through by minimizing bottlenecks and “speed bumps” out of the process. They run fast enough to deliver on-schedule or by deadlines. Speed creates higher employee productivity and work satisfaction, increased capacity for sales, faster invoicing and cash flow cycles, happier customers who will buy again, and overall lower costs.
As a business owner, you cannot manage what you cannot measure. Continuous measurement and feedback drive all process improvements and enables timely adjustments to increase your profit. Examples of this could include cashflow, number of employees, man hours expended in work, number of miles driven versus revenue earned from miles, cost differential between purchase and sale, individual’s employee productivity standards. These are just a few. Strive to improve on yesterday’s performance everyday.
The “Can I” concept is one that can be employed in any business and represent constant and never ending improvement.
|When you carefully incorporate the above concepts in your business development process, more than likely you will see increased profit, greater customer satisfaction, increased employee enthusiasm and performance. I’m sure that you would agree that these would be remarkable results over past performance. You will have an organization of excellence, and on-track to reach your full potential.
– RICHARD PHIPPS