Five Advantages of Systems Driven Companies

Great systems are the secret ingredient in your recipe for business success. Once they are put in place, your contracting business will not only increase profit, reduce expenses and scale faster than ever before, but you will also enjoy some key advantages along the way.

Here are five key advantages to systems driven businesses:

  1. Advantage One: Control. Owners become proactive to solving problems and implementing change when systems are put into place. A great information system will give you a ‘dashboard’ view of accurate, real-time data. Owners can then stop guessing and start knowing the right things to do to achieve their goals.
  2. Advantage Two: Reduced time investment and capital costs. This allows business owners to become proactive instead of reactive. The key to this advantage is that information systems should not be complicated or hard to use. They should also be integrated in one place, so you can easily see the big picture and then drill down into details.
  3. Advantage Three: High Performers. Systems transform average employees into high performers.  Systems break procedures down into step-by-step instructions allowing employees to achieve predictable and measurable results. Owners will enjoy increased productivity, reduced turnover and higher quality people seeking positions at their company when systems are put in place to offer employees guidelines, deadlines and rewards.
  4. Advantage Four: Protection. Not only do great systems prevent a disproportionate reliance on people, but they increase company stability. A systemized work process allows a new employee to quickly adapt and effectively fill the gaps; therefore if an employee leaves, they don’t take a piece of the company with them.
  5. Advantage Five: Scalability. Great systems create equity acquisition interest in your company. Companies looking to purchase contracting businesses pay a premium for the predictability, replication and scalability advantages that a systems driven business provides.

Resources and Starting Points

Start the systems process by adapting a ‘systems’ mindset. See every aspect of your business as something that can be broken down into a set of step-by-step instructions others can use to achieve predictable and measurable results. Once you do this, figuring out what systems to put in place and how to prioritize their implementation will be much easier for you to figure out and schedule.

I would also suggest reading The E Myth Revisited: Why Most Small Businesses Don’t Work and What to do About It, by Michael E. Gerber. This is will give you a nice summary of the 3 types of systems that exist in small business and how you can fit these types of systems into your operations.

Implementing systems takes a lot of research, time and expense, so be prepared, it’s not easy- but I can assure you, it is all worth it in the end.


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