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Can You Explain How To Create A Business System?

 

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Read Transcript for “Can You Explain How To Create A Business System?”

 
Everyone wants to reduce the amount of work they have to do in their real estate business. The way to do it is by implementing systems.
 

Jean: “You’re always talking about systems. Could you tell me what a business system is and how it can help my business? Also, how can I create my own business?” – Jean from Springfield, Illinois.

 
Joe: Jean, let me explain it this way: first of all, 90% of all brand new businesses fail in the first year but 90% of all new franchises succeed. Why is that? Franchises have businesses in place.
 
Joe: Let’s take McDonald’s for example (everybody knows about McDonald’s). You go into a McDonald’s and it doesn’t matter if you’re in a Paris McDonald’s or a Des Moines, Iowa McDonald’s or an Indianapolis McDonald’s – they all work pretty much the same. They have the same systems that they use for each of their stores.
 
Joe: They have a system for making a Big Mac. They say, ‘You put the burger on and press this button and when that buzzer goes off, you flip the burger, then when it buzzes again, that burger’s done and then you put it on the bun (and you use this kind of bun).’
 
Joe: They’ve got little pictures on the wall for the people that are making these things that show them exactly what they need to do. It’s like a little comic book that they have to follow to do this process. It just goes through it, i.e., ‘Put the special sauce on,’ ‘Put the lettuce on,’ ‘Put them in this kind of box,’ ‘Wrap them up and put them in this kind of container,’ ‘If there’s this many hamburgers, you put them into this type of sack,’ etc. It’s very detailed stuff.
 
Joe: Also, keep in mind that McDonald’s has a 200% employee turnover ever year, so they have to take really low level skill people that have never done this before and have them work at a very high level. What you get at McDonald’s is very consistent. You may not like the food but the food is consistent – it’s the same every time that you go there, at least mostly.
 
Joe: So that’s what you’re trying to do with a system – you’re trying to make a lower level skill person be able to perform on a high level and that way, you can delegate that work to someone else, instead of doing it yourself.
 
Joe: Systems are very important to a business. If you implement systems – if you use the “Push Button Method”, if you use the “Millionaire Matrix”, all of the different systems that I’ve got, i.e. the ‘Stupid Proof’ system, the ‘Snowball Effect’ – all of these different systems that make your business work as a real estate investor and as a real estate agent, your business will be much more stable.
 
Joe: It’ll also be something that you can sell later because you don’t have to be in it; you can extract yourself from the process and you can work a whole lot less. So I hope that helps. Bye bye.

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