With the entrepreneurial fever gripping the ingenious blocks of the nation all over, conventional jobs have never garnered such a notorious perspective before. The inc. effect has definitely inspired many to rethink their ways of financial independence. With scores of literature on personal business ushering in for aspiring entrepreneurs; few offer a decisive read, like the book ‘The E-Myth’ does. Written by the acclaimed author Michael E Gerber, who is respected as ‘the world’s no.1 small business guru’. The celebrated book now has culminated into a series of books on the same subject, the E-myth series.
The book offers an array of invaluable lessons, most novice entrepreneurs generally miss; and why only few are able to establish a powerful enterprise system, while most wrestle with oblivion. The E-Myth, or Entrepreneurial Myth, says that most new businesses are not started by entrepreneurs who set out to build a strong business but by technicians who enjoy the hands-on work themselves. Because of that natural bias, most business owners focus on working in their business when really they should be working on their business. Instead of looking at the business as a one-off operation, the owner should consider the business to be a prototype for a large number of franchises that will be added at a later stage.
By adopting that mind-set, the business owner will not only participate in the business as a technician but will also act as a manager (putting systems in place and controls) and as an entrepreneur (having a vision of how the business can create sustainable added-value for all key stakeholders).
A business that is built and managed by someone who combines the approach of the technician, the manager and the entrepreneur will have a far greater chance of future success than one guided by someone thinking like a technician alone.
Building a business takes three unique skill sets:
1. The Entrepreneur — supplies the vision.
2. The Manager — supplies order and systems.
3. The Technician — supplies the output.
While all three personas want to be the boss, none want to have a boss.
And yet all three skill sets are required nonetheless.
The Entrepreneur turns every trivial matter into a huge commercial opportunity. Entrepreneurs are dreamers that focus on the future. Managers are pragmatic. They bring order and put systems in place. In essence, managers focus on the past, and cling to the
status quo. Technicians like doing things. They live in the present. They are hands-on people who like to get the work done, and who don’t like any interruptions.
Most businesses go through three phases of growth:
1. Infancy — when the technician is to the fore.
2. Expansion — when management skills are required.
3. Maturity — an entrepreneurial perspective is needed.
The technician is the business. If the technician falters
so does the business.
Every business owner has a comfort zone — a collection
of responsibilities which he or she can comfortably handle:
– For a Technician it is how much work he or she can do.
– For a Manager, it is how many people he or she can supervise.
– For an Entrepreneur, it is how many people buy in to the vision.
Once a business grows beyond that comfort zone, there are four
1. Get small again — effectively taking the business back to its infancy again when things were easier. (This is the natural inclination for most Technicians-turned-Owners).
2. Go for broke — try and grow the business fast enough that it will generate enough cash to hire the resources needed to manage
3. Hang in there — in the hope that some sort of order will ultimately emerge from all the chaos and carnage the business has
4. Move the business through to maturity — by the business owner being willing to learn new skills and assume different priorities for the use of his or her time.
A business enters maturity stage when the focus shifts to the customer, from the product or service. From this point on, how business is done gets more attention than what business is done.
‘‘You must analyze your business as it is today, decide what it must be like when you’ve finally got it just like you want it, and then determine the gap between where you are and where you need to be in order to make your dream a reality. That gap will tell you exactly what needs to be done to create the business of your dreams. And what you’ll discover when you look at your business through your E-Myth eyes is that the gap is always created by the absence of systems, the absence of a proprietary way of doing business that successfully differentiates your business from everyone else’s.’’
— Michael Gerber
Michael Gerber states in his book, ‘Awakening the Entrepreneur within’- that every entrepreneur is an inventor but every inventor is not an entrepreneur. Inventor invents products while an entrepreneur invents novel businesses. A simple series purchasing of franchises and other businesses doesn’t really qualify for an entrepreneur. Also, that the measure of the success of an idea is proportional to how rapidly a business manages to grow and mature. Some failing business are hard to detect, as they can always linger on longer than intended and following a hand-to-mouth mechanics- observing a sluggish progress. The success hint of an idea presents itself before the business takes form.
[further information can be obtained from www.e-myth.com]