How to build a business system

Is it really possible to develop a skill into a visible and tangible success? The answer is yes. Next, learn how to do this with everyone:

Through continuous non-stop duplication to enhance the core competitiveness. Discover important criteria. Let the time listen to you - not against you. Take advantage of the size effect. Achieve 60% effect on it. Create flexibility. Create good luck for yourself.

Keep repeating your core competencies by repeating

In the first chapter we discuss the need for constant repetition. This repeatable business system centers around your core competencies: the things that are best for you, the cornerstone of entrepreneurship, and personal influence and ultimate outsourcing allow you to develop your core competencies into one potential Unlimited company. One of the core features of all of these startups is that they find ways to keep almost everything alive and again.

Discover important criteria

The most successful companies are repeatable formulas because there are often relationships that determine the success of the entire company. It is important to find these key points so you can focus and improve on them. In his book Focusing on Success: A Growth Strategy in a Time of Chaos, Zook makes a very compelling case for a similar view. He pointed out that most companies are unaware of the importance of core functions and do not realize that they will be more successful in focusing on those key points of 80% return to the organization.

Healthcare venture investor Ross Jaffe, Ph.D., believes entrepreneurs need to understand "company physics": a key driver of sales and profits in a company. He emphasized that the most successful entrepreneurs have ideas or technologies and know how to reconcile the systems and know where to devote their time and energy to getting more rewards.

In "From Good to Great," Jim Collins posits a stronger view of the standard's importance, which he calls the "denominator." Collins found that "every concept of a single 'economic denominator' is achieved by every company that excels at excellence:

Consider the following question: If you have chosen a unique fixed ratio, the profit (cash flow) per unit of x, which variable x will have the largest, most significant effect on your economic engine over time as the system increases Lasting effect? This question gives us a deeper understanding of the principles of economic operation within an organization.

Do you need to set the only denominator? No, but setting the only denominator out of your predicament by relying on three or four denominators allows you to look deeper. The denominator problem as a mechanism allows you to more deeply identify the key drivers in your economic engine.

When you start a business, you must recognize the core criteria that determine the success or failure of your business. This is important for the following reasons:

If you have not yet identified these key points, then you are not ready to start a serious business.

It is important to prioritize your time and energy.

If your standards are not properly set up, it is likely to ruin your future.

Let the time listen to you, not against you

Once we are profitable, we will no longer fight against time. We turn time into our advantage, and most companies do not fail, they just do not have time. Past startups race against time - either by balancing cash flow before companies run out of money or by making big strides to persuade more investors to fund the company's next round of growth.

If you can make a profit from your company right from the start, or you can make a profit quickly, you will defeat the enemies of all startups - time - and turn it into enemies. Once you are self-sufficient, you certainly feel the constant pressure on your development company. However, you can focus on the opportunity to develop the company rather than brainwash your company's survival issues.

With limited investment, ultimate outsourcing, and winning customers before the formal job is rescinded, the three-point formula helps the company generate cash flow as quickly as possible and is the first step in building long-term viability.

Use of scale effects

One of the core questions at the start of a business is: can a company achieve economies of scale? First, size is a bit of a misuse of words, meaning different in different situations. In the previous book, we discussed the importance of enterprise scalability. Where scale means that businesses can grow relatively easily, it means that as you grow, you do not have to hire extra employees, do the job with quality assurance, and increase your business without adding complexity to your business.

The concept of scale effect is different. First of all, it refers to the extra value that businesses get when they reach a certain size. One of the entrepreneurial successes is the selection of market segments that enable economies of scale. In order to achieve economies of scale, you need to become the largest entrant? Do not. You have to rule your market it? Do not. You just have to have real influence over other companies in the business chain.

Achieve 60% effect on the line

Perfect is the best enemy.

- Voltaire

Solitary entrepreneurs must focus on time. The 60% rule is actually a matter of time allotment. In simple terms, the 60% rule that the best solution is to automate everything except core business with cheap, plug-and-play services, even if they only hit 60% of your expected target. This means that it is better to automate an activity cheaply than you personally, even though automated services can only achieve 60% of the expected results. Similarly, this law includes the viewpoints described in Chapter 2, "The Law of Success," that pay-for-custom client software makes little sense when it comes to getting cheap, suboptimal alternatives from the outside.

The power of this seemingly simple rule is incalculable. In fact, adherence to these rules is extremely important to the success of your business to under-funded entrepreneurs. When I started looking for a cheap ASP platform for Speed ​​Anywhere, one idea emerged: I found that each service typically met 60% of my needs. And I am very confident that if I spend my time researching the services provided by these ASPs, I can do a lot easier and will probably meet 90% of my needs. However, I soon realized that this was precisely the trap I had tried to avoid.

Yes, I can take charge of the specific operation. And, yes, I can do a better job than the cheap hosting ASP platform I plan to use. But I also want to connect 10 or more ASPs. If I outsource everything, the result may be the expected result of only 60% for each. However, in that case I can use a very cheap automatic operating system. Most importantly, I can free up my time and energy and focus on the target market, which is the basis for my company's competitiveness. If I focus on building a customer base on the target market, I'll find a solution that will make a huge difference to my career - 300% or more.

There's a trade-off here: If I implement these activities myself, I can do them better. But there is a multiplier effect right away: as soon as I take charge of some of these activities, my time will be completely taken up and I will not be able to focus on those activities that have made my career soaring. In each of these areas, I might get 10% to 20% better auto-functional results than the existing ASP services, and the size of the related companies does not change much. My conclusion is to discard these benefits and focus on activities that yield greater returns. Once again, focusing on high impact points also applies to solo entrepreneurs. By deciding where to get the maximum profit and sales, I play a personal influence. These activities deserve time and effort. As long as everything else is working properly, it takes more than you have to spend time and energy on the pursuit of perfection.

Create flexibility

The rapid changes in today's business environment mean you actually have to learn to plan in an uncertain environment. This is not a paradoxical rhetoric. Actually this is a better planning method!

The way to plan for a dynamic market is to create great flexibility in the company structure from the very beginning. This is why another ASP model has become a strong support structure for entrepreneurs. ASP is usually customized on a monthly basis. As the company grows, this gives you great flexibility in the evolution of your company structure. If you find you need an additional support service, you can get it right away. In the meantime, if you find that an existing service is not necessary, you will not be bothered by expensive rents or long-term contracts. A plug-and-play business structure is inherently flexible.

Create good luck for yourself

Opportunities favor those who have prepared minds.

-Louis Pasteur

Louis Pasteur says opportunities favor people who are prepared. Indeed, the more we think about it, the more likely we are to be "lucky". If you put spare wheels and jacks in your car, you can replace the spare wheel in time as the tire leaks, rather than waiting for hours on the road to wait for support.

For start-ups, you are fortunate enough to be prepared, coupled with opportunities.

This article link address: http://www.techcrunchchina.com/5345