Tweet

Business systems and planning

Written by: Michiel Jonker

Article Overview: I am constantly startled by the fact that there are businesses out there with the most simple products/services AND who are making money like you won't believe it!

Business systems and planning

I am constantly startled by the fact that there are businesses out there with the most simple products/services AND who are making money like you won't believe it!

Simple concepts which bring in MILLIONS for their owners and shareholders. Like hamburgers (e.g. McDonalds) and pawnshops (e.g. E-bay)! I think you will agree with me that anyone would easily be able to duplicate a McDonald hamburger recipe. It is not that unique!

What is it which differentiates McDonalds from the small hamburger business at the corner (which sells, in many cases, even BETTER hamburgers)? And we can apply this example of hamburgers to ANY type of business. What is the difference? After all, a hamburger is NOT rocket science!

SYSTEMS and a simple BUSINESS PLAN!

EXCELLENT business systems. McDonalds and E-bay have excellent business systems in place. For this reason they have grown big (remember, most big corporates have started as small businesses too).

McDonalds has systems in place to effectively and efficiently conduct business and to grow. From the process (system) of making hamburgers to the selling process (and everything in-between from HR administration to marketing to branding to real estate administration). Nothing else.

An overall system which is duplicated across the world.

Do you agree?

Let me ask you (taking the hamburger business as an example again): Why is it that a small business owner would prefer to prepare the hamburger patty by himself rather than hiring an employee to do it (and by the same token getting many employees to duplicate his/her business model over and over, e.g. by opening many shops)?

I think many owners would say that they want to make sure the patty is well prepared and that nobody spits on it!

Again, we can apply this typical answer to many other types of businesses as well.

Please understand that I do not want to oversimplify the matter by saying we should only hire enough personnel (though we know that teams are much more effective than one-man shows)! Small and medium business owners can do so much more today (AND with a smaller number of personnel) by only implementing high-tech solutions like computerized systems (e.g. by using an auto responder program, one is able to answer many e-mails from clients without even reading it!).

However, your HR system is only one of your necessary systems. There are many more systems to consider (depending on your type of business). Part of implementing the necessary systems in your business, are the following IMPORTANT aspects in business:

Thorough planning

Thorough PLANNING

THOROUGH BUSINESS PLANNING

And yes, your entrepreneurial skills will get you very far... BUT an organized business, based on sound planning and systems, will reach the top! You will then be able to sell ice to Eskimos!

Most of us marvel at business success stories. Let us take Donald Trump for instance. What would you say made him a successful business person? In my opinion, one thing stands out:

His risk awareness.

He is constantly asking the forbidden question (i.e. the question most small and medium business owners refuse to ask):

"What are the risks and how can I manage it?"

He does not take anything for granted at all. NEVER.

Let us learn from him. And let us learn from McDonalds and E-bay. You can sell simple products and services AND make millions if...

You are organized and have done your planning AND risk planning ahead of time AND on a regular basis...

Related Articles
  Inventory Management - Automated Systems
  An exit strategy? I just got started!
  How much Planning is enough - Use Lean and Standardize
  The Power of Productive Team Meetings
  How to Increase Your Team\'s Performance and Profitability Through Effective Meetings

Article Tags: Business Plan, Business Planning, Business Systems



Related Forum Posts
Re: Is A Business Plan A Waste Of Time? - Business Plan or generally work plan (to do list) improves the quality of my work at least 4 times. I have seen the positive results of planning and focus in my online business. And I know from my past experience how uneficient your business can be when you are not doing planning. So I agree that there is a relationship between entrepreneur success and planning.
New Small Business Topic - Hello everyone, I'm on the lookout for new topics to add to my site. We just launched a Franchising section and are planning Human Resources section. Do you have any thoughts for a new section? Here's a list of what we currently have: Angel Investors Branding Bank Loans Business Coaching Business Plan Franchises (New) Insurance Legal Marketing Public Relations Sales Small Biz Loans Venture Capital
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Re: Is A Business Plan A Waste Of Time? - I feel that you don't really need one. I didn't write one down when I first started, but I have made various planning and decision-making spreadsheets along the way. I also think that a business plan is a HUGE waste of time IF you never take action. The step that most people fail on is failure to get started. Sitting around and planning won't ever get you anywhere. I would say implementation is more important than planning.
What Kind Of Internet Biz Do You Want To Have? - Hello and welcome to the forum! The advice we give really depends on what you are planning to do as well as your level of experience... Are you planning to take orders for products that you will stock, pack and ship yourself? If so, signing up with Paypal would be a good start. Or are you planning an affiliate site, where you take a commission on sales you generate without having to handle the goods yourself? Or a mixture of both? Are you planning to design your website yourself? Are you working within a fixed budget? (The good news is that some of the best methods of marketing a website are quite cheap or even free - if you are prepared to do the work required!) Good luck! David H.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Work Life Balance: Adding White Space

Working Across Borders

How To Be Happy at Work? Acknowledge Yourself

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.