Do systems give scaling business infinite returns?

Nov 19, 2021
 

Do systems give scaling businesses infinite returns? Is that the key? A system's the key to infinite returns? Is that even possible? I want to share a little story.

I was building out a system for a gentleman this morning who was doing the billing himself doing the invoicing himself.

And this meant that an invoice would maybe take an hour, like as like, how long is that bad now? Like, okay, great, right.

But notice that was an hour of his time.

And he's the business owner, like he's got a bunch of other stuff to do.

The interesting thing is that a lot of the work was relatively mundane, it could be done by essentially anyone if they could follow instructions, Do this, do this, with a couple of decisions in there that He had to make.

But He was doing all the work.

And so He would do an hour's worth of work.

And at the end of that an invoice would be generated, which was great.

Why is that great? Well submit that He got paid.

And that's important in business because you don't get paid, hey, you go bankrupt.

That's not so good.

So I helped him out.

My, hey, let's build this out for you.

Tell me what you're doing? What? What are we? What are we trying to achieve here? How do we do it documented it out? Now? Did I do it in ultra fine detail? No.

Did I get him to record a 40 minute video of everything getting being done? No.

I was like, you know, the first thing we want is a rough outline of a system that works.

And as far as like, look, this probably won't work.

When we document Yeah, to say, hey, this errors here, there's some sequencing errors.

There's problems here.

And we're only going to find that out when it gets done.

But the first step was to at least get something down, get a rough draft, it may not be the most elegant, beautiful system of all time, but it was a rough draft, it was a starting point.

And from there, as He begins to run that system, then the improvements are going to come it's like Oh, actually, that should go there, that piece there, that step that actually goes below this one, or if I set up this way, we'll get that done more effectively.

And so the first time through, it might take an hour and a half, even two hours, what took one hour now takes two hours on top of the efforts to actually build the system in the first place.

But then the interesting thing starts to happen.

Instead of taking two hours, it takes an hour and 15.

And then it takes 45.

And then it takes 20 minutes.

And what took an hour now takes 20 minutes if He does it.

But then the infinite returns come into play.

What about with these instructions, if He could get rid of the work entirely, the work gets done, but He doesn't do it.

What's his return on investment, then? The work is getting done, but he's not doing anything.

That potentially is an infinite return for him.

Sure, He might have to pay his team to do the work, and that's fine.

But looking at it from his perspective, he's getting an infinite return.

Now, this particular time, now freed up from relatively low paid work, maybe 10 $15 an hour, maybe 2030.

If you're in Australia, or New Zealand, because we pay so much to our people, it's very expensive here.

But the value of his work, learning another client's or working on a high level strategic decision that opens up another half a million million $2 million worth of revenue.

Which would you rather be doing the $15 an hour or the $500,000? Deal? Hopefully you're saying, Yeah, I want the 500,000 I want the 2 million deal.

You're not going to get that if you're feeling in every invoice.

Because you don't know how to get the work done by others.

That's what systems really do systems give you the power to hand that work off.

So you don't have to do it.

But the work still gets done.

I hope you're getting this I hope you're seeing the power of systems here.

It's like, oh, the work that you're doing can get done by other people.

And you are now free to do high level work.

And you're also free to maybe spend some time with your family.

How would that be like Oh, guess what? I'm at home at 4pm.

I'm at home at 5pm not working at 11 not working at 2am not working at 3am trying to catch up on the infinite amount of work.

Every time you bring on new client more work gets generated.

This is a losing proposition.

You must work out how to get your team to do the work.

And one methodology is you manage people.

But you will end up with errors because people are error prone.

People are not perfect machines.

They're really great at a whole bunch of stuff, particularly if you give them instructions and say, Hey, follow the instructions.

But if you say, hey, sought this out, just get me this result, but you never make the effort to document or record or even have a framework for how you do that work, then you will continue to struggle.

Alright, that's all I got for you today.

If you need some help with your systems if you'd like, you know what, I would like an infinite return on investment, then head over to systemio.dev.

Look forward to seeing you on tomorrow's episode as we continue this journey into the power of systems to create results.

See you then.

Discover How MANAGING PEOPLE INSTEAD OF PROCESSES Is Costing You CONSISTENT PROFITS THAT FLOW EVEN WHEN YOU'RE ON VACATION...

 

...and Find out the 4 Simple Strategies BUSINESS OWNERS Just Like You are using to MAKE MORE MONEY WITH LESS STRESS, MORE TIME AND ARE NO LONGER SLAVES TO THEIR BUSINESS...

 

Even if you have NO IDEA HOW TO RUN SYSTEMS right now!
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