How Your Business Can Benefit from a Turn-key Model
Can your business really benefit from a turn-key model? If providing your customers with the same high-quality experiences to increase sales, the answer is yes! According to Michael E. Gerber author of The E-Myth Revisited, finding a turn-key solution to address unique business needs works. You’ll succeed in creating a “…money machine. An absolutely predictable little business that does what it promises to do every single time.” In fact, Gerber says we are in a “Turn-Key Revolution.” One that has the power to transform any size business. It saves businesses “from a condition of chaos…to a condition of order, excitement, and continuous growth.” And if you’re ready to jump onboard this idea of building a balanced and successful model of business, custom software can get you there. Think of it as a turn-key software solution that will not only benefit but also grow your business!
How a turn-key operation works
Owners who find themselves in a business that depends on their daily hands-on participation are not really running a business. They need to view their business differently and see their “business as a product.” It’s the difference between working on their business versus working in it. A turn-key business is just like it sounds. Turn the key, and it runs, seemingly by itself. Think of a well-tuned car that runs consistently day after day with a push of a button (or key). It’s designed to not only go the distance but can provide a predictable mode of transportation to reach your destination.
Like a car, custom software can take your business the distance to meet your goals. But unlike a car, custom software can be designed to specifically meet your business’ unique needs and can be updated as your business grows. It can help your own business benefit from a turn-key model.
Why a turn-key model is successful
It’s really about consistency and the ability to give the customers what they want every time. Gerber uses McDonald’s as the best example of this type of system and concludes that Ray Kroc, its founder understood what it takes. “The true product of a business is the business itself,” Gerber writes. And Kroc knew that it wasn’t the burger, it was the business itself. So, he developed a “foolproof, predictable business.” It’s a system so solid, anyone can run it. Unlike a traditional business that improved through daily trial and error, this system has already done the testing to predict the best and most efficient ways to run.
That’s the goal behind custom software. It takes all the possible scenarios and ensures a consistent outcome regardless how many different products or paths a customer may choose. Through best practices, your unique custom software will drive a smooth operation that has thought of more possible situations than most people could dream of.
The role of operating systems
Running a business efficiently is the “key” in the turn-key model. Look deeper into this successful model of business and you’ll find a fool-proof operating system. According to an Inc article franchises are “much more likely to survive than any other type of business.” And the top of the list of components needed for a successful prototype are the processes (#1) and systems (#2). It’s crucial to start by streamlining your current inefficient processes to reach the goal of automating work flow. Then use technology and custom software to create well-designed and predictable systems. But it doesn’t stop there. For example, McDonalds changed the way people ordered food and began wrapping food to go to reduce costs. In addition, they streamlined how food is prepared and updated processes to become operationally efficient. Every aspect of the operation was evaluated and updated, working in sync with each other.
Of course, the processes in place do need to complement each other and must be integrated if it is to run like that proverbial “well-oiled machine.” Therefore, Gerber stresses the importance of integrating activities including “innovation, quantification, and orchestration.” They are all necessary as a foundation to your prototype. And custom software can help integrate your processes and systems to keep thing running smoothly with every transaction.
What’s your system strategy?
Are you looking towards the turn-key model to benefit your business? Having the right tools is not enough. You need to put a system strategy in place. It will need to encompass all your systems (hard, soft, and information) and integrate with your other business strategies. Innovative and successful business leaders understand the importance of all systems and how they affect each other. It’s about allowing for adjusting when trends change. For example, McDonalds found that it needed to transform itself with a “radical adjustment of the company’s product portfolio to emerging food industry trends.” Choosing technology and software options that integrate well with current systems and yield with changing trends and updates are part of a successful strategy.
Start with a new lens
Want your business to run itself? Begin by looking at ways to streamline current processes, reduce costs, and update product and services. View your business from all angles and think of what it would be like to duplicate the business from location to location. But what makes it so successful? Does it really run itself? Do you have to be on the premises for your business to reach its objectives? At Bitbean, we use our Shifting Perspectives™ approach to help businesses answer these questions and find the right solutions.