A couple of weeks ago we have been discussing leverage as a strategy for growing your financial and career success exponentially. We also started looking at some specific forms of leverage such as mentoring. In this edition, it is very important to look at business system as a wealth multiplying leverage. Truth is, if you have a system, you own your business. If you don’t have a system, your business owns you.

What is a system? defines it as “a set of rules, an arrangement of things, or a group of related things that work toward a common goal.” defines system as “a collection of elements or components that are organized for a common purpose.” A business system, therefore, is the value-added chain, which describes the value-added process that must be followed to produce the desired business results.  A process is just a routine, that is, a pattern of activities that are carried out in a coordinated manner to achieve a specific aim.
Decades ago, it was mainly human beings that constituted the major components of the business system, and ran virtually every aspect of the business. But in the contemporary world, the digital age, entrepreneurs use technology to create significant value in their businesses. That makes a business system today “a combination of people and automated applications organized to meet a particular set of business objectives.” But the business systems must be well-designed; the right people (smart, creative, collaborative, etc) must be put in the right place.

Yes, great systems place value on both people and automated applications. They are organized around business functions. That’s why Michael Gerber advises that, “Build systems within each business function. Let systems run the business and people run the systems.” Remember that people may come and go but systems remain. When business system actually runs your business, even in your absence, the business still gets going.

Other advantages you’ll derive from a business system include the following:
(i)           Elimination of waste of resources and inefficiency.
(ii)          Saving of time, getting more done (more productivity) within a far shorter time. Clients want speed of delivery of result.
(iii)        Reduction of costs, increase of sales and cash flow, and rapid growth of business.
(iv)        Increased customer satisfaction on a consistent basis, and wealth multiplication.
We can also apply systems leverage to our personal life. I also look at a system as an establishment of a repeatable process of getting things done to achieve a desired goal. I think that this quote from John C. Maxwell lends credence to the fact that we can systematize our life.  “You’ll never change your life until you change something you do daily. The secret of your success is found in your daily routine.”

We can systematize our life by establishing daily habits of when to wake up in the morning, how many hours to put into work daily, when we actually start and end work, when to go to bed in the night, when to sit up to read for our personal development and sharpening of our business skills, when to send e-mails, when to browse the Net, when to go to Church, when to pray, when to socialize, and so on. 
If you have a system of good habits, you control your life; but if you don’t have a system of desirable habits, your life controls you. A systems approach to your business and your life put you in control of your business and your life.