BUILDING A BUSINESS SYSTEM AROUND YOUR IDEA (Conclusion) SYSTEMS MANAGEMENT AND THE PRODUCT Systems management-it basically deals with overseeing every other system in the business. A business is a system of systems; it is made up of cashflow system, accounting, receivables, payable, inventory, payroll, human resource, communication, manufacturing, delievery, packaging, etc. A system basically summarises all the ideas concerning how a business handles its operation. A system takes long time to build especially if you are inexperienced, however the simplest way to skip the system building process is to buy a franchise. Talking about franchises, I read somewhere that the McDonalds system of operation is clear and easy to understand that even teenagers who cant make up their own beds understand it and run it successfully! The purpose of creating a system is to ultimately eliminate yourself from the system, so that the business runs without you on daily basis. Product-the product or service produced by the business. The product is the very last thing to be considered when building a system. Many people tend to magnify their product more than anything else. The product needs cashflow to produce it, communication skills to sell it, legal system to protect it and ultimately system of systems to manage it. Investors will not listen to you because you have a great idea. They want to see the financial projections (cashflow), marketing plan (communication), management (system) and protection (legal). I strongly recommend these two books; Before you quit your job by Robert Kiyosaki Good to Great by Jim Collins
Posted on: Mon, 26 Jan 2015 22:05:02 +0000
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