Business Systems and Automation

Giving life to your business….

The biology of business….

I was a Bio major before I dropped out of school.  It was one of those subjects I found useful and interesting, so of course I aced it.   (The boring classes were my downfall.)  Unfortunately I didn’t know anything about investing or business at the time.  It wasn’t until much later where I could see some striking similarities between the natural world, and the business world.  My background in Bio has shaped how I view economies, markets, business, money, and trade.  In reality, human beings are just another animal in the ecosystem, going about their lives trying to fulfill their needs.

The biggest take away from my studies in biology was the appreciation for systems.  Think about how the human body works.  Every function in your body is carried out by an automated system.  Your brain unconsciously controls your breathing, your heart rate, your temperature, your hormones, and so forth.  When these systems become compromised, the body starts to suffer, or even die.

Now, think about your ideal business, or any investment for that matter. If a body can’t sustain itself for without working systems, what does that tell you about a business?  It probably means that the business will have to stay on life support (you showing up every day), or it just dies.

Breathing life into your business….

A lot of start-up entrepreneurs start out with little more than a product and a sales pitch thinking they can wing it along the way. It never occurs to them that you actually give life to a business with systems.  Even if you’re just branding yourself and selling your personal services, systems are still required.

  • You’ll need Standard Operating Procedures in order to ensure that you are carrying out all necessary tasks to keep your business working.
  • You’ll need a list process where you take in new leads, manage relationship details, follow up, convert, and provide ongoing support.
  • You’ll need tracking and metrics as feedback to let you know what messages or campaigns work best at driving in business.
  • You’ll need contracts, and/or insurance to protect yourself from worst case scenario.
  • You’ll need a bookkeeping system to track income and expenses, monitor the profitability of your business, and comply with tax requirements.

Are you seeing where I’m going with this?  Systems aren’t for bigger businesses.  They are the skeletal system of your business.  When your business grows, your systems grow with it still performing the same essential functions.

A business that lacks systems is essentially a business on life support. No business should stay in this stage for very long.  Preferably, you should be identifying the needs of the business, and the systems that meet them before you even start.  That way the feedback you get from your market will only result in tweaking rather than having to totally revamp your business.

Think in terms of systems if you want to be a successful business owner.  Whether you choose to build and run those systems yourself vs outsource them is completely up to you.  But they need to be addressed.  Otherwise you should probably just go out and get a job where all the hard work is done for you.

Not sure where to get started? Take a look at how we begin to construct our overall wealth plan of action.

About The Author

herbertkoehler

I am a college drop out who found my passion as an investor. I love the many facets of finance, investing, and business. But even more than that, I love sharing what I learn with others.

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