Page 117 - merged.pdf

CHAPTER 4 BUILDING A BUSINESS THAT WORKS... WITHOUT YOU

• Creating a Financial Management system
• (i.e a measurable standard for profit margins,
revenue growth, profit growth, cash flow etc...)

• Creating a Human Resource system
• (i.e. system for selecting, recruiting, training,
remunerating and retaining chefs, cooks, waiters,
managers etc...)

• Building the Brand's Image (Branding)
• Creating new product offerings
• Business expansion & replication
• Research new potential markets
• Sourcing new locations
• Opening new stores/offices or franchising

* Creating a system involves developing a system of standards,
processes and procedures for getting the work done.

At the start-up stage, you should spend no more than 60%
of your time working IN your business, while spending 40%
of your time working ON the business. You have to find ways
to delegate part of the operational work to employees whom
you have to leverage on. A great way to get started, if you
have very little capital, is to hire free lancers, university interns
or to rope in partners whom you can offer shares to. This is
exactly how I got started.

As time goes by and you start creating a steady cash flow
that allows you to begin hiring more employees, you must
begin to let go more of the operational work and concentrate
on the strategic work. Eventually, your goal must be to focus
90% of your time on working ON the business and less than
10% working in the business. What enabled McDonalds to
grow from just one tiny restaurant into the largest franchise

108 SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES