The E-Myth Revisited
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Some day the entrepreneur inside you will try to open a business! Also some tips here apply to businesses of all sizes, and even to technicians turned into managers inside a big company.
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The E-Myth Revisited
- 1. The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do about It Jonas Flesch me@jonasflesch.com
- 4. How do you imagine an entrepreneur?
- 5. The reality Most entrepreneurs are not like that
- 6. Who are the “entrepreneurs”? The barber opens up a barber shop. The hairdresser starts a beauty shop. The computer programmer opens a software company. The Fatal Assumption is: if you understand the technical work of a business you understand a business that does that technical work.
- 7. You can be more than one person The entrepreneur. The manager. The technician.
- 8. The entrepreneur Who decided to open a business Is the dreamer Turns the most trivial condition into an exceptional opportunity Lives in the future Most people are problems that get in the way of the dream
- 9. The manager Who organizes everything Lives in the past Where the entrepreneur sees the a opportunity, the manager sees a problem Runs after the entrepreneur and cleans the mess
- 10. The technician “If you want it done right, do it yourself” Lives in the present Tries to do as much work as possible Is a individualist “Two things can’t be done simultaneously, only a fool would try”
- 11. The reality The typical small business owner is 10% entrepreneur 20% manager 70% technician
- 12. The race for power The entrepreneur wakes up with a vision The manager screams “Oh, no!” But they have no power, they together are only 30% So, who is in charge? The technician is in charge!
- 13. Businesses phases Infancy Adolescence Maturity
- 14. The infancy The technician phase You are the business! You start to have more work that you can do You fill your day with “work” Avoids the challenge of learning how to grow a business
- 15. The adolescence You decide to hire someone Someone with experience Someone that will let you do want you want to do – technical work Usually someone to take care of the books To do what you don’t want to do You will tell him your secret: that you don’t know what you’re doing!
- 16. The adolescence You use another management style: Management by Abdication Sooner or later things will start to go wrong You will ask “how did that happen?” You have three choices: Getting smaller again Going for broke Adolescent Survival
- 17. The maturity Understand that you work is creating the support that your business need to grow Have an clear idea of where you want your company to be Work every day to close the gap between what the company is and what you think it should be
- 18. The “turn-key revolution” The franchise phenomenon "The Most successful Small Business in the World" - McDonald's The franchise prototype Even if you will not franchise your business Defined processes
- 19. The model The model will provide consistent value to your customers, employees, suppliers, and lenders, beyond what they expect The model will be operated by people with the lowest possible level of skill The model will stand out as a place of impeccable order.
- 20. Create a model of your business All work in the model will be documented in Operations Manuals The model will provide a uniformly predictable service to the customer The model will utilize a uniform color, dress and facilities code.
- 21. Orchestration If everyone in your company is doing it by their own discretion, their own choice, rather than creating order, you're creating chaos. People should follow processes If you haven't orchestrated it, you don't own it!
- 22. Quantification How many people entered in your store? What they bought? How many in the morning In the afternoon? How many people call your business each day? How many call to ask for a price?
- 24. Do your business plan You already know that Mike and Bob were right: business plans are important
- 25. THANK YOU!
- 26. Presentation analysis Please tell me what I need to improve! People liked my PowerPoint theme last time, so I repeated it Point A: Who is the entrepreneur?/Data about small businesses Point B: How to organize a small business in a way it works
- 27. Presentation analysis WIIFY: Some day the entrepreneur inside you will try to open a business! Also some tips here apply to businesses of all sizes, and even to technicians turned into managers inside a big company Flow: Tried to go into the phases of a new business – pretty hard in 15 minutes