The Only 2 Systems You Need To Start A Business

Key Concepts

• Lead Generation System: A process for acquiring potential customers who are willing to pay for a product or service.
• Delivery System: A process for fulfilling the promised value to customers.
• Revenue First Approach: Prioritizing customer acquisition and revenue generation before implementing extensive systems.
• Scaling: Expanding a business, often through the implementation of systems, once a certain level of demand and revenue is achieved.

Core Business Systems for Startup

The fundamental principle for starting a business, according to the speaker, is to focus on the two most critical systems:

1. Lead Generation System: This system is designed to attract individuals who are not only interested in paying for your offerings but actually do so. The primary goal is to secure paying customers.
2. Delivery System: This system ensures that you consistently provide the value you have promised to your customers.

The speaker emphasizes that these two systems are the only ones that truly matter when initiating a business. The focus should be on finding customers willing to pay and then delivering an exceptional experience for them.

The Role of Systems in Business Growth

The speaker argues that systems are not a prerequisite for starting a business but rather a tool for scaling it.

• Over-systemization Paralysis: Many entrepreneurs fall into the trap of over-systemizing their business prematurely, often due to exposure to business literature and content. This can lead to paralysis and hinder progress.
• Revenue Precedes Systems: The core argument is to "get revenue first." Systems should only be considered when the business has achieved a level of revenue and customer demand that makes it impossible to fulfill without them. This point is reached when there is "so much revenue coming in and so many customers that you can't possibly fulfill on all the demand that you have."

Conclusion

The primary takeaway is to prioritize acquiring paying customers and delivering excellent value. Extensive systemization should be deferred until the business has demonstrated revenue and faces challenges in meeting demand, at which point systems become essential for scaling. The advice is to avoid getting bogged down in complex systems at the outset and instead focus on the fundamental actions that generate income and customer satisfaction.