In the eighties, management expert Michael Gerber coined a phrase that became popular across the world: “Work on your business, not in your business”. A lot of us were very excited to hear that.
I still am. However, I saw a few people send their business bankrupt and then blame Gerber’s maxim. Let me make it clear: it wasn’t Gerber’s fault. His ideas were sound then and now. What these leaders overlooked was the word “Work”. WORK on your business…
Over the ensuing decades, I saw some leaders turn their back on their business by appointing an ineffective manager who ran the business into the ground.
And the “Work” that was supposed to happen? It didn’t happen either. The systems urged by Gerber failed to materialise.
Another of Michael Gerber’s maxims was:
“Systems run the business. People run the systems.”
This is what these leaders were supposed to do: find or design profit systems for their businesses. Without profit systems, a business is highly susceptible to the winds of change, especially the market.
Some businesses generated large sums, often from income generated by the leader, but turnover and profit are different things.
- Without financial foundations, cash flows in… and then flows out.
- Without marketing systems… there is little generation of new business.
- Without a hiring system… little is done to find, develop or retain winners.
- Without MODERN training systems… mediocrity becomes the norm.
- Without monitoring systems… warning signs aren’t detected.
These are some of many systems a real estate agency needs to maximise profit.
Big profit requires comprehensive profit systems.
How would you rate your profit systems?