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The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It
by Michael E. Gerber
by Michael E. Gerber
I skimmed this book five years ago after hearing about it from some North Point staff members. I thought I understood the basic ideas, so for the last five years the book sat on my shelf. Until this week. I had a chance to listen to the book this week, and will likely add it as required reading for all our new staff members.
Great lessons:
1) Most people get into business (ministry?) because they like doing something and wish they could do it for themselves. Naively, they think they'll have more flexibility or earn more of the profit. Seldom do they consider the start-up costs, the risk and the need for discipline or systems. These people, says the author, are technicians. They have a technical skill, e.g., baking pies (preaching) but lack either the management tools or the margin to initiate improvements and grow the business.
2) As a result, most--up to 80%--of new business start-ups fail, and fail miserably.
3) Enter systems. Systems allow one to scale and automate and refine in a way that a single individual often cannot. Imagine, says the author, designing a business model that can be replicated 5000 times! Engineer as much of the operations as possible to be fool-proof. Break down the components into small pieces that can be managed by someone with very little innate ability and/or training.
4) Be cautious of talent. Too often, hiring "talented" managers can screw up the system because they begin to turn dials and make changes. It may seem counter-intuitive, but these self-starters can really cause big problems quickly. They have a role, but it's in the R&D department, not on the execution side.
5) Turn training into a game. Make it fun for new staff to learn what is expected.
6) Measure everything . . . so you can diagnose more efficiently.
7) Script everything . . . so you can more easily achieve consistent/predictable results, and maintain the agreed-to standard.
8) Check-lists are common-sense necessary for anything you plan to do at least twice. Get over the feeling these are for idiots; they ensure that they right things are done in the right order.
9) There are sales techniques (scripts) that work. Period.
10) This is a book I'll probably add to my "Every January" list for the next few years alongside Acts, The Effective Executive, Getting Things Done, The Art of War, etc.
Great lessons:
1) Most people get into business (ministry?) because they like doing something and wish they could do it for themselves. Naively, they think they'll have more flexibility or earn more of the profit. Seldom do they consider the start-up costs, the risk and the need for discipline or systems. These people, says the author, are technicians. They have a technical skill, e.g., baking pies (preaching) but lack either the management tools or the margin to initiate improvements and grow the business.
2) As a result, most--up to 80%--of new business start-ups fail, and fail miserably.
3) Enter systems. Systems allow one to scale and automate and refine in a way that a single individual often cannot. Imagine, says the author, designing a business model that can be replicated 5000 times! Engineer as much of the operations as possible to be fool-proof. Break down the components into small pieces that can be managed by someone with very little innate ability and/or training.
4) Be cautious of talent. Too often, hiring "talented" managers can screw up the system because they begin to turn dials and make changes. It may seem counter-intuitive, but these self-starters can really cause big problems quickly. They have a role, but it's in the R&D department, not on the execution side.
5) Turn training into a game. Make it fun for new staff to learn what is expected.
6) Measure everything . . . so you can diagnose more efficiently.
7) Script everything . . . so you can more easily achieve consistent/predictable results, and maintain the agreed-to standard.
8) Check-lists are common-sense necessary for anything you plan to do at least twice. Get over the feeling these are for idiots; they ensure that they right things are done in the right order.
9) There are sales techniques (scripts) that work. Period.
10) This is a book I'll probably add to my "Every January" list for the next few years alongside Acts, The Effective Executive, Getting Things Done, The Art of War, etc.
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