Exerpt from SpeedWealth by T. Harv Eker
What happens if you try to build a house on a weak foundation? The house eventually cracks or caves in. That’s why before you can build a big house, you must build a solid foundation. The business equivalent to building a solid foundation is called “CREATING A SYSTEM.”
Since the word “system” is a generic term, let’s define what it means for business purposes: A business system is a “repeatable process that produces a profit.”
The idea is to systemize your business so that you can effectively and efficiently sell and support your product or service in larger quantities as you grow. What if a tree grows tall without firm roots? All may be well when things are calm, but with the first big wind storm, it topples over and dies. It’s the same in business. If you try to expand but have no effective system in place, the business is doomed. I call this the “Expansion Dilemma.” You’ve probably heard of businesses going well until they tried to expand. Then all of a sudden they’re in trouble. Now you understand why. They grew beyond their effective means of support, their roots, their foundation and their system (if they had one at all).
So how do you create an effective business system? Rule number one: Keep it simple. Business is simple. People are complicated.
Any business should consist of only three parts: Marketing; Production; Administration.
You must design specific “processes” for each of these three areas so they run smoothly, almost automatically. The idea is to create a business that works like a well-oiled machine – a MONEY MACHINE!
Your system must be organized, it must produce a profit, and it must support rapid growth. Finally, and this is essential, if you want to create wealth quickly, your system must be a repeatable process that CAN WORK WITHOUT YOU! Why? Because in order to create wealth you cannot have a ceiling on your income. Your earnings must be unlimited. If you’re the major “cog” in the machine, then you’re automatically the major “clog” in the machine.
If you have to be physically present for your business to work, it can only grow to the extent that you can personally handle. It doesn’t matter how brilliant and energetic you are, you still only have 24 hours in a day! And besides, what good is creating wealth if you’re going to kill yourself in the process? You must be the co-ordinator, the conductor of the orchestra.
Even though the conductor may be a master at playing an instrument, he don’t because if he did, no one would be leading the orchestra. It can be quite a challenge for a small business owner to “conduct the orchestra” on a full-time basis, but this position is absolutely necessary if you’re serious about creating wealth quickly.
Every large corporation has a president or CEO whose sole position is to hold the vision, co-ordinate all the parts, develop opportunities for growth, and search for ways to increase profits. It becomes a chicken-and-egg question. Was the position created because the corporation grew, or did the corporation grow because they created this position? My bet is the latter. I’m not saying you can’t continue to do all the other tasks, but your primary responsibility is to work on the business, instead of in the business.
Your business cannot be dependent or limited by any one person, especially YOU.
Build your business as if it were to become a successful franchise organization, even if you have no intention to franchise. Imagine your business will be the prototype for one hundred more locations or that your sales process is going to be repeated 10,000 times – but WITHOUT your direct involvement! Set up the system, a business MODEL THAT WORKS. Train someone else to manage the day-to-day operations, while you concentrate on growth.
The system gives you freedom - First, in terms of TIME. With a system, you get to relax, play, and be with your loved ones, all while your business is running, growing, and producing big profits! Having an effective system working “instead” of you, is vital to “enjoying the journey.”
Second, in terms of MONEY. With a strong system in place, you will have two options. One, you’ll be able to hand over the reins of authority and have an excellent passive income while you golf, ski, meditate, or do whatever else you like. Two, you can “cash out” and become an instant millionaire.
In any of these cases, because you’ve created a “system,” you win!
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