Is Building a System Worth Your Time?
Published on August 17, 2016
Published on Wealthy Affiliate — a platform for building real online businesses with modern training and AI.
I define a successful business system as a series of repeatable processes or steps that consistently deliver desired results leading to net profits.
Is the time spent building systems worth it for you? Hopefully, the following will help you decide.
Businesses with Systems are Worth More
If you want to be able sell your business at some time, you need systems and standardized processes to increase your business value. The classic example is McDonald's. Do individual's buy a McDonald's franchise for the food or the systems?
If you said the food, I feel really sorry for your taste buds. :)
Are All Staff Readily Replaceable?
With a good business system, there are zero individuals that cannot be replaced. This includes the owner or operator of the business.
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Being able to replace individuals is critical when the time comes to sell a business. Most buyers do NOT want to have hire the previous owner as an employee or consultant for continued successful operation of the business.
Is the System Repeatable and Leverageable?
With great systems, one can reapply the system to another niche or business and get similar results.
Assume you have a system for building out and monetizing a niche. If that system allows you apply the same steps to building other niches with similar positive net profit results, then you can repeat the process or even better pay others to perform steps of the system to make far more income. Great systems allow leveraging of both time and money.
Note that it is next to impossible to leverage a system where specific individuals are integral to the success of the system.
Is the System Simple?
Incredible systems are simple, leverageable, and do not require active owner involvement. When the majority of teenagers can be trained to perform any step in your system, you have achieved simplicity.
Consider the value of most major franchises. Why are they often worth more than a million dollars each? The answer is that they have an incredible system backing the franchise.
So now the critical question, will building an incredible system help you achieve your desired success?
Your comments are welcome :)
Rich Fulton
BizMaker
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