More on this book
Community
Kindle Notes & Highlights
Read between
November 14 - December 4, 2022
A Mature company is founded on a broader perspective, an entrepreneurial perspective, a more intelligent point of view. About building a business that works not because of you but without you.
The Entrepreneurial Perspective sees the business as a system for producing outside results—for the customer—resulting in profits.
The Entrepreneurial Perspective envisions the business in its entirety, from which is derived its parts.
To The Entrepreneur, the present-day world is modeled after his vision. To The Technician, the future is modeled after the present-day world.
created but of the customer for whom the business is to be created. It understands that without a clear picture of that customer, no business can succeed
is to provide our inner entrepreneur with a model of a business that works, a model that is so exciting that it stimulates our entrepreneurial personality—our
He began to think about his business like an engineer working on a pre-production prototype of a mass-produceable product.
The point is: your business is not your life. Your business and your life are two totally separate things. At its best, your business is something apart from you, rather than a part of you, with its own rules and its own purposes. An organism, you might say, that will live or die according to how well it performs its sole function: to find and keep customers.
1. The model will provide consistent value to your customers, employees, suppliers, and lenders, beyond what they expect. 2. The model will be operated by people with the lowest possible level of skill. 3. The model will stand out as a place of impeccable order. 4. All work in the model will be documented in Operations Manuals. 5. The model will provide a uniformly predictable service to the customer.
6. The model will utilize a uniform color, dress, and facilities code.
You need to create the very best system through which good attorneys and good physicians can be leveraged to produce exquisite results.
How can I give my customer the results he wants systematically rather than personally? Put another way: How can I create a business whose results are systems-dependent rather than people-dependent? Systems-dependent rather than expert
4. All Work in the Model Will Be Documented in Operations Manuals
5. The Model Will Provide a Uniformly Predictable Service to the Customer
Little things that are meaningless from a practical point of view may have great emotional meaning through their symbolism. Images and colors are often great motivating forces
• How can I get my business to work, but without me? • How can I get my people to work, but without my constant interference? • How can I systematize my business in such a way that it could be replicated 5,000 times, so the 5,000th unit would run as smoothly as the first? • How can I own my business, and still be free of it? • How can I spend my time doing the work I love to do rather than the work I have to do?
determining how many people came in the door before the Innovation was put into effect; (2) determining how many people bought products and what the dollar value of those products were before you changed the words and what you said to produce those sales; (3) counting the number of people who came in the door after you changed the words; (4) counting the number of people who purchased something; (5) determining the average unit value of a sale; and (6) determining what the improvement was as a result of your Innovation? These numbers enable you to determine the precise value of your
...more
The need for Orchestration is based on the absolutely quantifiable certainty that people will do only one thing predictably—be unpredictable. But for your business to be predictable, your people must be. Then what? Then the system must provide the vehicle to facilitate predictability. To do what? To give your customer what he wants every single time.
Because unless your customer gets everything he wants every single time, he’ll go someplace else to get it!
“Quality is just a word, and an empty word at that, if it doesn’t include harmony, balance, passion, intention, attention.
To imagine that someone will walk through your door with the intention of buying your business—but only if it works.
1. Your Primary Aim 2. Your Strategic Objective 3. Your Organizational Strategy 4. Your Management Strategy 5. Your People Strategy 6. Your Marketing Strategy 7. Your Systems Strategy
You’re telling them the story of your life. How would you like that story to go? That’s your Primary Aim. What would you like to be able to say about your life after it’s too late to do anything about it?
“The difference between a warrior and an ordinary man is that a warrior sees everything as a challenge, while an ordinary man sees everything as either a blessing or a curse.”
What do I wish my life to look like? • How do I wish my life to be on a day-to-day basis? • What would I like to be able to say I truly know in my life, about my life? • How would I like to be with other people in my life—my family, my friends, my business associates, my customers, my employees, my community? • How would I like people to think about me? • What would I like to be doing two years from now? Ten years from now? Twenty years from now? When my life comes to a close? • What specifically would I like to learn during my life—spiritually, physically, financially, technically,
...more
“What truths are your curtain hiding from you? What misunderstanding keeps you where you are, in the past, in the dark, shrouded in your limited beliefs, shrinking from the world, from the light on the other side of the curtain?
‘Your arrows do not carry,’ observed the Master, ‘because they do not reach far enough spiritually.’ Eugen Herrigel Zen and the Art of Archery
Your Strategic Objective is a very clear statement of what your business has to ultimately do for you to achieve your Primary Aim.
It is the vision of the finished product that is and will be your business.
Your Business Strategy and Plan are also useful for marketing your business to those who are important to you: your banker, your investors, and your strategic alliances in the business community.
But gross revenues alone are not enough. You also have to know what your gross profits are going to be, your pretax profits, your after-tax profits.
Strategic Objective is: What will serve my Primary Aim? The first question about money then becomes: How much money do I need to live the way I wish? Not in income but in assets. In other words, how much money do you need in order to be independent of work, to be free?
An Opportunity Worth Pursuing is a business that can fulfill the financial standards you’ve created for your Primary Aim and your Strategic Objective.
Does the business I have in mind alleviate a frustration experienced by a large enough group of consumers to make it worth my while?
So when you ask, “Is this business an Opportunity Worth Pursuing?” the only way to tell is to determine how many selling opportunities you have (your customers’ demographics) and how successfully you can satisfy the emotional or perceived needs lurking there (your customers’ psychographics).
When is your Prototype going to be completed? In two years? Three? Ten? • Where are you going to be in business? Locally? Regionally? Nationally? Internationally? • How are you going to be in business? Retail? Wholesale? A combination of the two? • What standards are you going to insist upon regarding reporting, cleanliness, clothing, management, hiring, firing, training, and so forth?
How many potential buyers are there in the territory in which they’ve decided to do business? Is the population growing? What is the competition? How are widgets priced and how are they selling? Is there a future for widgets in the territory? What is the anticipated growth of the territory? Any zoning changes expected?
Murray also agrees to create a questionnaire and mail it to a sample of their Central Demographic Model consumers to find out how they feel they’re treated by other widget companies.
Jack agrees to pull together the preliminary financial data needed to secure a loan from the bank—an operating pro forma and a cash flow projection for the first year of operation.
Strategic Objective has indicated how they will be doing business (one location, assembling and selling widgets and widget-related accessories to a specific consumer within the territory described
Organization Chart will require the following positions:
President and Chief Operating Officer (COO), accountable for the overall achievement of the Strategic Objective and reporting to the SHAREHOLDERS who include, on an equal basis, Jack and Murray. • Vice-President/Marketing, accountable for finding customers and finding new ways to provide customers with the satisfactions they derive from widgets, at lower cost, and with greater ease, and reporting to the COO. • Vice-President/Operations, accountable for keeping customers by delivering to them what is promised by Marketing, and for discovering new ways of assembling widgets, at lower cost, and
...more
This highlight has been truncated due to consecutive passage length restrictions.
Organization Chart
The next job jack and Murray take on is writing a Position Contract for each position on their Organization Chart.
A Position Contract (as we call it at E-Myth Worldwide) is a summary of the results to be achieved by each position in the company, the work the occupant of that position is accountable for, a list of standards by which the results are to be evaluated, and a line for the signature of the person who agrees to fulfill those accountabilities.
Next come the three Vice-Presidential positions: Marketing, Operations, and Finance.
COME AND SEE OUR TURN-KEY OPERATION. COME AND SEE OUR MONEY MACHINE. NO EXPERIENCE NECESSARY. JUST AN OPEN MIND AND A WILLINGNESS TO LEARN.
“What you’re saying is that I need to create an Organization Chart for All About Pies as it will look when it’s done, seven years from now, rather than the way it is now?”
“This is our Operations Manual. As you can see, it’s nothing but a series of checklists. This one is a checklist for setting up a room.” He opened the book to a yellow page. “This group of pages is yellow. Everything in the Manual is color coded. Yellow has to do with Room Setup. Blue, with Guest Support Services. For instance, when we light your fire at night, put the mints on your pillow, and so on.
