Efficient Business Systems: 6 KeyBenefits of Efficiency

Nicole Georgiev
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    The goal of any business owner is for their business to be efficient and prosperous in order to reach its full potential. The key to a successful restaurant business, or any business for that matter, is to develop efficient business systems with your team members and your business plan, to work for the long run. 

    These systems will allow you to continuously attract and retain customers-perhaps on social media-with great customer service that improves your customer relationship management plan. With the right tools and software, you will have the opportunity to automate your processes and operate efficiently, as well as boost productivity. This will set you up for success in real time. 

    If you’re wondering how to run your business more efficiently, this article covers it all–starting with the basics of business systems, and even management software tools. 

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    What Are Efficient Business Systems?

    Efficient business systems refer to the processes, practices, and procedures in place that are applied to specific business activities in order to achieve results. They create shortcuts that ensure processes are completed correctly and efficiently. 

    Different areas of your business have different systems. This includes creating marketing strategies, applying inventory management techniques in your warehousing facilities, and making sales. 

    Business systems are designed to connect different elements and departments of a business. This way, they can work together and efficiently achieve business objectives.

    Types of Business Systems

    When opening a business, it’s possible to systemize practically anything. This is true when opening a restaurant, opening a coffee shop, opening a food truck, opening a grocery store, opening a bakery, and a ghost kitchen

    There are four common business systems that ensure you’re running a successful restaurant business. Focusing on these business systems increases the likelihood that you hit the ground running from day one. 

    The four types of business systems are: 

    1. Marketing system. This business system generates a consistent lead flow for your business.
    2. Administration system. This includes reception, accounts, and human resources. It supports other business functions. 
    3. Sales system. The goal of this system is to help nurture leads by following up with them and converting them into paying customers.
    4. Fulfillment system. The fulfillment system, such as eCommerce fulfillment, is completed in exchange for customer payment. Payment options include ACH payment, eCheck, and recurring payments - all of which are contactless payments.  

    6 Benefits of Having Efficient Business Systems

    Business efficiency systems are designed to provide solutions for organizational problems. Small businesses and startups are eager to win. In order to do that, they must get simple tasks done consistently, which is possible with business systems.

    Effective and efficient business systems provide countless benefits to the business itself, the staff, and customers. Here are six major benefits:

    1. Ensures clear staff expectations. Business efficiency systems allow staff to have a better understanding of company expectations. This is true in terms of results and behavior.
    2. Promotes greater efficiency. Routine and repetitive tasks are ones that business systems manage. Business and restaurant technology automates these tasks to improve efficiency. As a result, staff, including wait staff and bar staff, will allocate less time and effort to these tasks. This saves the business money in terms of overhead expenses, labor cost, and restaurant expenses
    3. Streamlines processes. By streamlining business processes, you reduce redundancies while ensuring optimal resource utilization. This can maximize company profits, including the restaurant profit margin. Profit margin can be calculated using a restaurant profit and loss statement
    4. Allows for business monitoring. With business efficiency systems, it’s possible to monitor and control different aspects of the business without having to micromanage. This includes monitoring the different types of inventory and inventory turnover with the help of a SKU number or UPC code. It’s possible to create your own with a SKU generator or look them up with a SKU number lookup system. This also includes a UPC code lookup system. Familiarize yourself with SKU rationalization while you’re at. 
    5. Ensures consistent tasks. It’s possible for businesses to obtain consistent results by having a system that ensures employees are completing tasks the same way each time, including those in a bar operations manual. This increases productivity and allows you to serve customers while making more money.
    6. Facilitate business growth. Implementing the proper business systems will grow your business. Business efficiency systems allow you to proactively solve company growth issues by automating certain tasks such as restaurant operations.

    How to Create an Efficient Business System

    The key to running a successful business is understanding how to run your business more efficiently. Most businesses need to accomplish daily tasks to function properly. In order to thrive, businesses must complete those daily tasks quickly and efficiently. 

    Maximizing efficiency within your business is possible by modifying the existing business systems and processes. This also means keeping up with restaurant technology trends, supply chain management trends, eCommerce trends, and DTC trends. These trends tend to improve productivity and efficiency. 

    Here are ways to create an efficient business system:

    1. Identify the existing position of your business
    2. Determine possible solutions for problems
    3. Systematize the solutions
    4. Test the system and obtain feedback
    5. Train employees on the new system
    6. Review results, refine, and repeat

    Identify the Existing Position of Your Business

    In order to build efficient systems, you have to know where your business stands. Allocate time to evaluate different aspects of your business that are underperforming. Focus on discussing these problems with your employees, without worrying about potential solutions. 

    The goal of this evaluation is to let it all out, including the bad side of your business such as production or shipping issues and low profits. Pay attention to aspects such as the food distribution channels for your restaurant, wholesale marketing plans, delivery route management practices, and inventory carrying cost

    Determine Possible Solutions for Problems

    Once you identify the position of your business and its existing problems, it’s time to suggest potential solutions. It’s best to have your employees take part in this process. As a business owner or restaurant manager, it’s ideal to accept every idea and recommendation. Properly researching each potential solution is key to success. 

    Systematize the Solutions

    Narrowing down your solutions will give you an idea of where to start. Ask yourself the following questions: 

    • Which solution(s), if implemented, will lead to the best results?
    • Which solution is easiest to explain?
    • What solution(s) will cost less to implement?

    Once you’ve narrowed down the best possible solutions, you’re ready for the next stage. This involves creativity and patience. Turn at least one of your solutions into a repetitive system. This can be done through the use of restaurant tech and software, such as some new technology in restaurants

    Test the System and Obtain Feedback

    Testing a new business system and obtaining feedback will allow you to evaluate your success. This allows you to understand whether the system works efficiently. The testing process will also provide you with an opportunity to refine it before final implementation. 

    Train Employees on the New System

    Once the new system is decided on, it’s time for training. This includes updating the restaurant training manual to reflect the new systems in place. Working on alcohol server training, wait staff training, and other employee training takes time. Patience during this process is key, regardless of how simple the new system is.

    Review Results, Refine, and Repeat

    After implementing the new business systems, it will come time to review the results. During this process, you’ll have the chance to refine anything. Keep in mind that efficient systems perform better with time. Repeat this process with each new business system. 

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    Frequently Asked Questions About Efficient Business Systems

    What Are the Key Elements of a Business System?

    The key elements of a business system include processes, organization, data, and tools. These elements are essential in order to manage a business system effectively and efficiently. 

    What Are Common Business Systems?

    The common business systems include: 

    • Payroll. Automated payroll systems, like a bar POS, save time and money, especially if your staff needs to be paid regularly. 
    • ERP. Enterprise resource planning systems help manage supply chain operations, accounting, and project management processes. 
    • Lead generation. In order to make money, a business needs to make sales.
    • Inventory management. These processes along with restaurant inventory software will ensure proper stock level maintenance. ERP systems are also crucial. Look into the ERP meaning to see how they help with the inventory process.
    • Operations. Operational tasks, such as inventory control and warehouse outbound process flow, have to be executed or updated regularly. Automating them makes it easier. If you're in eCommerce, learn more in our eCommerce business guide.

    Why Do Businesses Need Efficient Business Systems?

    Businesses need efficient business systems to find the cause of problems along with their ideal solutions. Such systems are useful for keeping communication records, operational data, revision histories, and documents. 

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