The E-Myth Revisited

"The E-Myth" series of books by Michael Gerber are a must read for any entrepreneur. Gerber observed that most people go into business for the wrong reason. They are skilled technicians - they do a good job of what the business provides to the customer. They believe they can earn more by doing it in their own business than for someone else, so they leave and open their own shop.

They believe they will find more freedom in their business, but discover it is the hardest job in the world, because there is no escape. They are the ones who are doing the work! They are the "business!" But if they are the business, they haven't really created a business at all, they have created a job for themselves!

What you have to realize is that the role of the business owner is to create a business that works independently of himself or herself. If that is the case, there is an "end point" where the business functions independently of the business owner.

At that point, the business owner now has something she did not have before... Choice! Now the owner may choose to sell the business, as it is clearly independent of the owner operationally, or, he or she may decide to take advantage of a cash generating machine and continue in the business, safe in the knowledge that there is ample time for other projects.

Another key point to breaking out of the e-Myth trap is that the business can now be replicated, allowing for expansion, or possibly even franchising. Successful entrepreneurs often use the time they gain by not working IN the business to now work ON the business, devoting energy to innovation within and expansion.

This is where we can help. We have been there before and can help you juggle your three roles of: Entrepreneur, Manager, Technician.

Then we will help you build an organizational chart to document the business organization, with such responsibilities as chief executive, marketing, accounting, finance, and production possibly all being filled by one person at the beginning. Gradually, the business owner tests, measures and documents the procedures for each position and replaces himself or herself until he or she isn't really needed at all in the day-to-day operation.

At the end, you will be able to do what it takes for a technician to become a successful business owner -- stop doing work “in” the business long enough to focus “on” the business in the roles of the entrepreneur and the manager.

We will help you find the time needed to create the systems to drive value in your organization. and then create a plan using a seven step process:

 

1. Primary aim: Not for the business; what you want from life.
2. Strategic Objective: What you want the business to do for you.
3. Organizational Strategy: Define how the different departments and systems will look and interact with each other.
4. Management Strategy: How the business will be managed to produce optimal results?
5. People Strategy: How to hire, train, maintain, and get the best from your staff.
6. Marketing Strategy: How to consistently get the right new clients and give them what they want.
7. Systems Strategy: How to make your systems work for you: capital, people, ideas, communication, financial and other information.

 

Then we will come back as often as you need to revisit the E-Myth principles, and to help you keep your organization on track.