Systems are worth their weight in gold.  Creating your own home business system will pay dividends for years to come if you set it up correctly.  I’m not just talking about automation, but the way you create your system for growth and improvement.

So what makes a good home business system?

Having a home business can be a great thing, with so many advantages, however if you don’t set  up a system of working efficiently as well as one which maximises your income, you could be headed for failure instead of success.

A system is like having a plan or written down goals, where you are always striving to improve it.  It helps you work more efficiently and effectively and for me, it helps me overcome procrastination.

If you’ve ever read The E-Myth by Michael Gerber then you will have an idea of what a system is.  Although Gerber advises creating a system (aka a business) that will work without you in it, pretty much like Tim Ferriss’s The 4-Hour Workweek you need to start somewhere and often when starting your own home business system, money, time and childcare can limit the speed of your progress.

You need to start with a plan or goal for your system.   Afterall you cant create a system if you aren’t sure what that system is supposed to achieve.  Here you can start with a small system or several small systems that feed into your main home business system like cogs in a wheel.  Often it’s easier to start with a small cog, and get that system working efficiently to have a better perspective on how the whole system works.  Making sure of course that each small cog is in alignment with your main objective.

For example, if your main system is to create $10k/month passive income and the first system you want to work on is getting clients to work with, one on one, then this goes against your overall objective.  This doesn’t mean that you can’t take on clients like that, especially if you need the money, but remember that your ultimate goal for your system is to earn $10k/month passive income.  Therefore this shouldn’t be part of your system for perfecting, eventually working on your system consistently, will mean that you can eventually phase out taking on clients because the system that you’ve set up will be working and achieving your initial goal.

Once you have your ultimate goal for your main system, you can start to create the inner systems that will help you achieve your main goal.  You will often find that once you have perfected one of the smaller systems, that you can then take that knowledge and system and “rinse and repeat” it with your other systems.

Taking the $10k/month example, you may decide that part of this involves creating a niche website, promoting affiliate products.  As you work on perfecting this system, you will see your passive income increasing and you may well decide to take this system and replicate it on many more websites, or you may decide to branch out into Squidoo or other web 2.0 websites and do the same there.  The basic system will be the same but there will be different actions you will need to take to perfect it for a different platform.

Eventually, as your home business system starts achieving it’s main goal and you have the money to reinvest into your system, you can outsource many of the tasks, knowing that by investing $x in outsourcing your return will be $x+y, making a nice profit and return on the time you spent creating your system, which will be bringing you in a passive income for many years to come.

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