Let’s quickly dispel a myth about “The E-Myth Revisited”. The “E” in the title does not refer to electronic and it’s nothing to do with the dot com bubble. In this case the “E” stands for entrepreneur and the myth that the book examines is that small businesses are started by hordes of eager entrepreneurs searching for profits. But don’t let that stop those of you who don’t work in, or own, small businesses and have no intention of ever doing so, stop reading this article! The ideas that Gerber puts forward to help the non-entrepreneurs survive business start-up and achieve growth are just as applicable in larger organisations.
Technicians vs Businessmen
What Gerber starts out with is the point that most new businesses are started
by “technicians” who are good at their job (be it hairdressing,
programming, marketing or whatever) but have got tired of “The Boss”.
They start businesses where they (specifically they) do what they are good
at. Unfortunately this is not the same as running a good business and invariably
they end up going belly up.
Business Model
What “The E Myth Revisited” is really about is instilling the
right commercial mindset and providing some extremely useful processes to
ensure business survival and growth. It is fascinating that the first recommendation
is to treat the business as if you were going to franchise it. That means
accurately defining the business model and then describing in detail the key
systems (e.g. management, sales and marketing) in a format that almost anybody
could follow. Over time this allows the owner or owners to pass over the technician
roles and concentrate on the strategic ones. It is important to note that
Gerber stresses the need for vision in articulating the business model. Systems
and processes are not just work sheets or rotas but paths towards achieving
the vision – this should be something that employees can buy into and
believe in.
Of Interest?
The format of the book is interesting. It’s part story
and part business manual. The story element will be familiar to anyone who
has looked into life coaching. It can be a little mawkish but I guess that
the emotional element does at least make it realistic. The business manual
part focuses on more detailed information on defining the key systems mentioned
earlier and making them fit for your situation. Most of them are very interesting
and highly thought provoking.
The combination of strategy and practicality is highly appealing. It might be an eye-opener for anybody thinking of setting up on their own. Definitely recommended reading.
Return to the main Arrowsmith Marketing Business Book Competition page
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