Has your business ever thrown up? That’s what happens when you take in bad inventory and you have to return it to suppliers, or worse, you make a bad product and your customer is not pleased. My last article talked about the 3 Core Functions your business needs: Sales/Marketing function = Respiratory System; Operations function = Digestive System; Finance function = Cardiovascular System.

This article will focus on the importance of your Operations function in your business body . . . Food = Supply!

Keep your business from throwing up. Keep your Digestive System strong!

Business Stomach Bug!

My son had the stomach bug this past Monday night, which made for a long night and doing a lot of cleaning (Yuck!). This “bug” is spread through anything you put in your mouth that has the virus on it. If your food has contact with this virus, you will get sick!

When your business takes in inventory (supply) of poor quality to create your products, your business will throw up. Poor quality can take various forms such as defective materials, materials with impurities (viruses that will do harm), or low-grade materials (junk food). Poor quality materials has the effect of giving your operations digestive problems. Poor quality materials may be cheaper, giving a short-term perspective of profit; but in the long term, it’s more hurtful for your business body because it actually wears down your operations due to more work or a slow erosion of your system. In the human body, your digestive system has to work a lot harder when you take in bad food, eventually affecting the rest of your body and the longevity of your life (also affects your blood (cash) flow as explained in my previous post).

If you’re a service company, most of your inventory comes in the form of information from your clients or suppliers. You take information (food) to create your service.

Quality Inventory = Quality Business Life

The better quality inventory you take in your business (whether materials or information), the better end product you produce, resulting in happy customers that will come back and/or refer business. The better quality food you take in your human body, the more energy (your food’s end product) you produce, allowing you to serve your purpose in life.

It’s always easier to go the cheap route! But that’s not the best route, unless you want your business body to live a short life, constantly having digestive problems and throwing up bad products. Sometimes when I’m in a rush, I go through a drive-through to grab lunch. It fulfills me in the short term, but I know I just affected my body in the long term.

Don’t Neglect Your Digestive System!

Imagine your business with a great Operations function. You are producing quality products with a high output. Your team is performing well without disruptions in operations. Your customers are happy! Your employees are happy! And long term, your business is living a long productive life. You have a healthy business body, fulfilling its purpose!

How is your digestive system in your business? Is it operating at its peak performance or are you having disruptions?

When is the last time you looked at the quality of your inventory that you use to create your product or service?

Take a look at your Operations function to determine the causes of your digestive problems.

To gauge the health of your company take the Organizational Checkup! For more information on creating a healthy business lifestyle, read about the Entrepreneurial Operating System (EOS).

My next blog will be a deeper dive on your Respiratory System – your Sales/Marketing Function. Remember . . . Oxygen = Clients!

To Your Business Health!

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