Michael Gerber explains to us how to approach business growth. See it as if it were a franchise opportunity and why 80% of small businesses fail. His Business Development Process is a method for creating turn-key systems. It produces predictable results. It also allows an organization to grow in a sustainable way.
The E Myth was originally published in 1986 and was revised and updated in 1995 by Michael Gerber.
He outlines the differences between running a business and getting technical work done. He demonstrates how to set up a corporation that relies far more on technology than on people. The one that can be handed over to anyone with the appropriate instructions.
Having good technical abilities does not imply that you understand how to run a company.
Eighty percent of new businesses fail during the first five years. This is due to too much time spent working in the business and not enough time spent working on the business. The entrepreneurial myth was addressed by Gerber. People believe that being good at technical skills is the same as being good at operating a business. This is completely incorrect.
When all you know how to do is prepare wonderful cuisine, your restaurant is destined to fail. That is because you have no idea how to hire, outsource duties, manage people, or expand a business!
The Turn Key Revolution
A turn-key revolution is an act of setting up your firm. Such that you have methods and processes in place for a consistent, successful, and organized way of doing business. The business should be reliant on processes rather than people. Your business is the product that you’re selling. Not the consumer product that your company sells.
You should document everything that goes into the business.
From marketing, creating new products, sales, bookkeeping, everything. The goal of the Turn Key revolution is to build your business into a franchise.
Having a franchisable business can make you not stay in it forever. If you are people dependent and you’ll die, the business will collapse with you. But if you are system-dependent, it will still continue to live.
When starting a franchise, you must have systems in place from start to finish. It should outline what should be done at each stage of the business. And also as remedies to any difficulties that may arise. Customers, employees, and lenders must all receive consistent value from the model. It must be operated by those who have the bare minimum of skills. It may appear callous, but you must make people expendable. You must include yourself in them. All of the things you do must be documented in the operations manual.
The Entrepreneur, The Manager, and The Technician
Every business person must adopt the roles of three people. The entrepreneur, the manager, and the technician.
The visionary is the entrepreneur. The one who dreams. The driving force behind the transformation. Most people, in the eyes of the entrepreneur, are problems that get in the way of his or her goal.
The Manager is a realist. He meticulously planned, organized, and clings to the status quo.
The tension between the Entrepreneur’s vision and the Manager’s pragmatism is the foundation of all outstanding works.
The Technician is the one who gets things done. He is happiest when he is working right now. For him, thinking is not work; rather, it is a hindrance to effort. Only ten percent of small business owners are entrepreneurs. Twenty percent are managers, and seventy percent are technicians.
There are three stages of a business:
Infancy: The infancy stage is when the company is focused on the owner’s desires. What they should focus on is what the company needs to grow and prosper. When the owner can no longer keep up with demand, supply or quality suffers. Businesses either fail or succeed at the end of this stage. When the boss understands that things can’t go on as they are, infancy comes to an end. This is where many people opt to leave if they are still simply a technician.
Adolescence: Many small business owners hire a second technician to assist them. They manage, but, by abdication rather than delegation. The owner reclaims part of their time by delegating more responsibilities to the new employee. However, the work’s quality begins to deteriorate over time. Suddenly, you realize that no one cares as much about your company as you do, or is ready to work as hard as you are.
Maturity: Your company is mature when it has a clear goal and purpose. The owner must handle the entrepreneurial part of running a firm. It is by appointing managers to carry out the company’s goal. And also to supervise the technicians who perform the task.
A successful business owner is equally a technician, manager, and entrepreneur. You can’t be a technician in the whole run. You can’t just rely on the people you hire to run the business. You must focus and make the business everything that you want it to become. make an effort and take your time to make it system-dependent so you won’t just rely on one person or yourself.
The mature stage is having a clear vision of the future in place. And also an operations manual is built around every part of your organization. This business development approach may be used in any industry. It will relieve you of the burden of being the primary salesperson. Including other positions like a marketer, bookkeeper, designer, product developer, and so on.
About the Author
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Inc. Magazine calls him “the World’s #1 Small Business Guru”. He is an entrepreneurial and small business thought leader. He has changed the lives of millions of small business owners. And also hundreds of thousands of companies worldwide for over 40 years.
Michael E. Gerber is the author of the NY Times mega-bestseller, for two consecutive decades. “The E-Myth Revisited” and nine other worldwide best-selling E-Myth books concerning small business entrepreneurship, leadership, and management.
Additionally, Michael E. Gerber has written 19 industry-specific E-Myth Vertical books. They were co-authored by industry experts, for Attorneys; Accountants; Optometrists; Chiropractors; Landscape Contractors; Financial Advisers; Architects; Real Estate Brokers; Insurance Agents; Dentists; Nutritionists; Bookkeepers; Veterinarians; Real Estate Investors; Real Estate Agents; Chief Financial Officers; and soon to be, HVAC Contractors and Plumbers.
His mission is “to transform the state of small business worldwide.”
Source: Michael E. Gerber Companies
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Books by the Author
The E-Myth (1986) ASIN B004KIC420
E-Myth Vertical Series
Source: Michael Gerber From Wikipedia, The Free Encyclopedia