Tips to Run Your Business Like a Real Business - Systems

Friday, January 30, 2009

A business is a business, you should run it like one. Most small businesses stay small because they fail to correctly manage their business.

Here are some tips to manage your business by.

1) Business are inter-connecting systems. Your business is one big system wether you realize it or not. How efficiently that system is, is up to you.

Just like any system, there's inputs and outputs. You input cash, work, employees, and you output product, services, satisfied customers and hopefully profits. The faster you start treating your business as a system the better. Once you treat your business like a system you can form that system into a lean mean profit generating machine.

Eventually the system can run itself.

2) Metrics, metrics, the results is in the metrics. How do you know if you are successful? What is your metrics and standards to know that you are having a good day. A good week?

You need to keep score. You have to know if your business is doing well or not in key areas of your business. For example an important metric to keep track of is conversion percentage. How many prospects actually becomes customers?

Once you start keeping track of your key numbers, you can come up with strategy in order to increase those numbers.

3) Have business goals, and let everyone know about it. If matrices is the scoreboard then having business goals is like the state championship. What are you shooting for? If everyone knows the goal of the business and the company for that year, everyone will work harder and there will be more teamwork.

4) Accountability is who solves the problem when problem arises. If something breaks and no one fixes it, that's a problem. If a customer have an issue, and no one takes care of them, that's a huge problem. There can be accountability without blame. If there is something wrong, usually it's a systems failure not a human failure.

Some one should be in control of the situation at all times. There should be someone accountable for any given situation or potential problem.



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