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What Is A Business System And Why Is It Important?

Written by: Kelisha Mills, Executive Contributor

Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.


What is a Business System, and what types are there?

A business system is a set of related components and knowledge that work together to perform a specific function. Business systems can be categorized into six types:

  1. Inventory Management Systems

  2. Accounting Systems

  3. Human Resource Management Systems

  4. Operations Management Systems

  5. Sales and Marketing Systems

  6. Corporate Strategy Systems

Why Having Systems in Your Company Is Important for Business Functioning

Systems are the backbone of any company. If you don't have systems, you can't effectively manage your company. Systems are not just tools to help you manage, and they're not just for big companies either. They can be used by everyone in a company, no matter how small or large it is, to ensure that company functions properly.

At the end of the day, there are many benefits to creating systems in your company: they make things run smoother, they help employees know what needs to be done, and they help ensure that your customers are happy with your services and products.

Being an entrepreneur for over 13 years, I have learned the importance and advantages of implementing a solid system in my business. Here are 6 advantages I can share.

Advantages of Using Systems in Your Company

Systems promote Consistency and Processes for Smooth Operations.

A process is a series of actions that are coherent and logical. Processes should be documented, well-defined, and monitored to ensure they are being followed.

Processes are often used in the workplace to promote consistency and reduce the number of mistakes people make. For example, to have a successful design meeting, all participants should research the topic before coming into the meeting, have a clear understanding of what they want to accomplish in the meeting, take notes during the meeting so everyone knows who said what and how it will be translated into actionable items.

A system is defined as a set of connected things or parts forming one larger whole. Systems can be formalized through processes or informalized through rules. For example, In order to have a successful and well-organized marketing campaign, there needs to be an organized system in place. This gives you the ability to better cater to the needs of your customers by targeting certain demographics with the appropriate tools and resources.

Business Systems create Increased Efficiency and Productivity.

Business systems and strategies are a crucial part of any company. They can enable companies to operate more efficiently, improve their productivity, and ultimately increase the bottom line.

Business Systems Simplify Management

Business systems have been around for many decades. They have been used to improve efficiency and reduce the workload of managers.

Business systems are created by developers to help a company automate manual tasks, streamline internal processes, and manage the overall workflow. These automated tools can help minimize errors and save a company money on labor costs.

Systems create Reduced Employee Turnover.

Agencies and companies will be able to hire for a more stable workforce by implementing systems that reduce turnover.

The adoption of systems will help organizations create a more stable workforce, which in turn will lead to reduced turnover. This is because the system will be able to provide employees with feedback on their performance on a regular basis, and not only when they decide to leave the company. This way, organizations would determine who has been underperforming and can take action before it’s too late.

Systems create More Chances of Successful Innovation.

In order to innovate, we need new product ideas. Systems help us generate more creative ideas.

There are two types of innovation in the workplace. There are incremental innovations and disruptive innovations. Incremental innovations are changes to existing products, while disruptive ones are completely new products or services. The more systems we can use to generate creative product ideas, the better chance of success we have for developing a new product idea that will disrupt an industry.

Systems generate More Time and Money to Concentrate on What Matters Most in the Business.

One of the downsides of business is that it can take a lot of time to do things. It can be difficult to know what will make the most positive impact on your business. This is where systems come in. They provide an ideal way for people to spend their time by generating content for you and freeing up your time.

I have used my 13+ years of entrepreneurship to create a custom Business System in ClickUp, which is an online platform that combines all of your daily processes in one place. I have a special offer for a limited-time exclusive for Brainz Magazine readers. Connect with me in my DM’s.

Follow Kelisha on her Facebook, Instagram, Linkedin and visit her website.


Kelisha Mills, Executive Contributor Brainz Magazine

Kelisha Mills is a wife, mom of 4, author, speaker, and Entrepreneur (BSc. Entrepreneurship) for over 13 years. Kelisha specializes in life makeovers for mom entrepreneurs, helping them gain the clarity and confidence they need to find symmetry to run a successful business and have quality time with their families.



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