Build Sustainable Systems

In “Build Sustainable Systems,” the second chapter of “Unlocking Scale” the focus shifts to the development of efficient, scalable systems within an eCommerce business. The chapter argues that success in business hinges on creating repeatable, automatable processes to manage recurring tasks, allowing entrepreneurs to focus on strategic growth rather than constant problem-solving.

Key points of the chapter include:

1. The Nature of Business as Repetition: The authors emphasize that most business activities are repetitive. Recognizing this allows entrepreneurs to establish systems that manage these repetitive tasks efficiently.

2. Definition of a System: A system is a planned method to handle recurring business activities. It’s more than a checklist; it’s a repeatable, automatable process with a feedback loop for continuous improvement. A system includes a clear goal, an ordered operation, and measurable results.

3. Evolution of Systems: Systems often arise from problem-solving. When issues occur, documenting and automating the resolution process can prevent similar future disruptions.

4. Creating Effective Systems: The chapter guides on creating effective systems, which should be scalable and automatable, ensuring they remain efficient as the business grows.

5. Case Studies and Practical Examples: The authors use real-life scenarios from their business, Resident Home, to illustrate how systems can be implemented in various aspects of a company, such as ad creation and problem diagnosis.

6. Overcoming the Proficiency Trap: The chapter warns against over-focusing on areas of personal expertise at the expense of other crucial business aspects. It encourages a balanced approach, achieving competence in all areas before focusing on specific strengths.

7. The Two Essential Systems: The chapter identifies two fundamental systems in eCommerce: the external (customer) system and the internal (business) system. The external system deals with customer acquisition and sales, while the internal system handles operational aspects like inventory management and order fulfillment.

8. Minimizing Leaks in the System: A significant part of system efficiency is about minimizing ‘leaks’ – areas where potential revenue or efficiency is lost. This includes everything from addressing abandoned shopping carts to optimizing shipping costs.

9. Exercise for Self-Assessment: The chapter concludes with an exercise for readers to assess their current systems across various business areas and identify where improvements are needed.

In essence, “Build Sustainable Systems” underscores the importance of systematization in every aspect of an eCommerce business, offering a roadmap for entrepreneurs to build a foundation for scalable, sustainable growth.