The E-Myth Contractor Quotes

“The E-Myth says that only by conducting the business of Contracting in a truly innovative and independent way will a Contractor ever realize the unmatched joy that comes from creating a truly independent business, a business that works without you rather than because of you.”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“The value of your Equity is directly proportional to how well your business works. And how well your business works is directly proportional to the effectiveness of the systems you have put into place, upon which the operation of your business depends.”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“By identifying the money sources inside and outside of your business, and then applying these methods, you are better able to control the Flow in your business. But what are these sources? They include how you: Plan a project Buy materials Compensate your people Plan people’s time Estimate a job Sell a job Manage a job Collect receivables”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“You must be able to forecast the Flow. You must have a Flow Plan that helps you gain a clear vision of what’s out there next month and the month after that.”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“Your Income Statement tells you (1) how much money you’re spending and where; and(2) how much money you’re receiving and from where. Flow gives you the same information as the Income Statement, plus it tells you when you’re spending and receiving money—that is, Flow is an Income Statement moving through time.”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“Knowing where the money is and where it will be when you need it is a critically important task of both the Contractor-as-Employee and the Contractor-as-Owner.”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“dependability of your business. 6. If your Customer is Traditional, you have to talk about the financial competitiveness of your business. Additionally, what your Customers want is determined by who they are. Who they are is regularly demonstrated by what they do. Think about the Customers with whom you do business. Ask yourself: In which of the categories would I place them? What do they do for a living? For example: If they are mechanical engineers, they are probably Neutral Customers. If they are cardiologists, they are probably Tactile. If they are software engineers, they are probably Experimental. If they are accountants, they are probably Traditional. But don’t take my word for it. Make your own analysis. CONFUSION 2: HOW TO COMMUNICATE EFFECTIVELY WITH YOUR CUSTOMER The next step in the Customer Satisfaction Process is to decide how to magnify the characteristics of your business that are most likely to appeal to your category of Customer. That begins with what marketing people call your Positioning Strategy. What do I mean by positioning your business? You position your business with words. A few well-chosen words to tell your Customers exactly what they want to hear. In marketing lingo, those words are called your USP, or Unique Selling Proposition. For example, if you are targeting Tactile Customers (people), your USP could be: “Superior Contracting, where the feelings of people really count!” If you are targeting Experimental Customers (new things), your USP could be: “Superior Contracting, where living on the edge is a way of life!” In other words, when they choose to do business with your company, they can count on your job being unique, original, on the cutting edge. Do you get it? Do you see how the ordinary things most Contractors do to get Customers can be done in a significantly more effective way? Once you understand the essential principles of marketing The E-Myth Way, the strategies by which you attract customers can make an enormous difference in your market share. When applied to your business, your Positioning Strategy becomes the foundation of what we at E-Myth call your Lead Generation System.”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“CONFUSION 5: HOW TO DEAL WITH CUSTOMER DISSATISFACTION If you have hit each step to this point, customer dissatisfaction will be rare. But dissatisfactions will happen. Here’s what to do about them: 1. Always listen to what your Customers are saying. And never interrupt while they’re saying it! 2. After you’re sure you’ve heard all of your Customer’s complaint, make absolutely certain you understand what he or she said. You could ask, “Can I repeat what you’ve just told me, Mrs. Jones, to make absolutely certain I understand you?” 3. Secure your Customer’s acknowledgment that you have heard his or her complaint accurately. 4. Apologize for whatever your Customer thinks you did that dissatisfied him or her even if you didn’t do it! 5. After your Customer has acknowledged your apology, ask exactly what would make him or her happy. 6. Repeat what your Customer told you would make him or her happy, and get his or her acknowledgment that you heard it correctly. 7. If at all possible, give your Customer exactly what he or she asked for! But what if your Customer wants something completely unreasonable? If you’ve followed my recommendations to the letter, what your Customer asks will seldom seem unreasonable. That’s assuming you’ve got the right Customer. CONFUSION 6: WHO TO CALL A CUSTOMER At this stage, it’s important to ask some questions: Which types of Customers would you most like to do business with? Where do you see your real market opportunities? Who would you like to work with, provide service for, and position your business for? A Tactile Customer for whom people is most important? A Neutral Customer for whom the mechanics of how you do business is most important? An Experimental Customer for whom cutting-edge innovation is important? A Traditional Customer for whom low cost and certainty of delivery are absolutely essential? In short, it’s all up to you. No mystery. No magic. Just a systematic process for shaping your business’s future. But you must have the passion to pursue the process. And you must be absolutely clear about every aspect of it. Until you know your Customers as well as you know yourself. Until all your complaints about Customers are a thing of the past. Until you accept the undeniable fact that Customer Acquisition and Customer Satisfaction are more science than art. But unless you’re willing to grow your business, you better not follow any of the above recommendations. Because it will definitely grow.”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“CONFUSION 1: WHAT DOES YOUR CUSTOMER REALLY WANT? Your Customers aren’t just people; they’re very specific kinds of people. Let me share with you the six categories of Customers as seen from an E-Myth marketing perspective: (1) Tactile Customers; (2) Neutral Customers; (3) Withdrawal Customers; (4) Experimental Customers; (5) Transitional Customers; and (6) Traditional Customers. Your entire marketing strategy must be based on which types of Customers you are dealing with. Each of the six customer types buys products and services for very different, and identifiable, reasons. And these are: 1. Tactile Customers get their major gratification from interacting with other people. 2. Neutral Customers get their major gratification from interacting with inanimate objects (a computer, a car, information). 3. Withdrawal Customers get their major gratification from interacting with ideas (thoughts, concepts, stories). 4. Experimental Customers rationalize their buying decisions by perceiving that what they bought is new, revolutionary, and innovative. 5. Transitional Customers rationalize their buying decisions by perceiving that what they bought is dependable and reliable. 6. Traditional Customers rationalize their buying decisions by perceiving that what they bought is cost-effective, a good deal, and worth the money. In short: 1. If your Customer is Tactile, you have to emphasize the people of your business. 2. If your Customer is Neutral, you have to emphasize the technology of your business. 3. If your Customer is a Withdrawal Customer, you have to emphasize the idea of your business. 4. If your Customer is an Experimental Customer, you have to emphasize the uniqueness of your business. 5. If your Customer is Transitional, you have to emphasize the dependability of your business. 6. If your Customer is Traditional, you have to talk about the financial competitiveness of your business. Additionally, what your Customers want is determined by who they are. Who they are is regularly demonstrated by what they do. Think about the Customers with whom you do business. Ask yourself: In which of the categories would I place them? What do they do for a living? For example: If they are mechanical engineers, they are probably Neutral Customers. If they are cardiologists, they are probably Tactile. If they are software engineers, they are probably Experimental. If they are accountants, they are probably Traditional. But don’t take my word for it. Make your own analysis.”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“CONFUSION 2: HOW TO COMMUNICATE EFFECTIVELY WITH YOUR CUSTOMER The next step in the Customer Satisfaction Process is to decide how to magnify the characteristics of your business that are most likely to appeal to your category of Customer. That begins with what marketing people call your Positioning Strategy. What do I mean by positioning your business? You position your business with words. A few well-chosen words to tell your Customers exactly what they want to hear. In marketing lingo, those words are called your USP, or Unique Selling Proposition. For example, if you are targeting Tactile Customers (people), your USP could be: “Superior Contracting, where the feelings of people really count!” If you are targeting Experimental Customers (new things), your USP could be: “Superior Contracting, where living on the edge is a way of life!” In other words, when they choose to do business with your company, they can count on your job being unique, original, on the cutting edge. Do you get it? Do you see how the ordinary things most Contractors do to get Customers can be done in a significantly more effective way? Once you understand the essential principles of marketing The E-Myth Way, the strategies by which you attract customers can make an enormous difference in your market share. When applied to your business, your Positioning Strategy becomes the foundation of what we at E-Myth call your Lead Generation System.”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“CONFUSION 3: HOW TO GET YOUR CUSTOMER TO BUY If your Marketing Process begins with the identification of who your Customer is, followed by your Positioning Strategy to attract that Customer to your door, this Benchmark calls for the creation of an organized Selling Process. It’s what we at E-Myth call your Lead Conversion Process. This is the system through which you consistently assure your customers that, indeed, your business was created just for them. And just like your USP, your Lead Conversion Process demands that you organize just the right words in just the right order, to support your Customers’ need for congruity. In this case, congruity means consistency—meaning that the script your salespeople use is congruent with the promise your USP made. And it’s done in exactly the same way each time. While your USP makes a promise to your Customers, your Lead Conversion System helps your prospective Customers understand exactly how you intend to keep that promise when they buy your services. CONFUSION 4: HOW TO KEEP YOUR CUSTOMER HAPPY Let’s say you’ve overcome the first three confusions—now how do you keep your Customer happy?”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“CONFUSION 4: HOW TO KEEP YOUR CUSTOMER HAPPY Let’s say you’ve overcome the first three confusions—now how do you keep your Customer happy? Very simple…just keep your promise! And make sure your Customer knows you kept your promise every step along the way. In short, giving your Customers what they think they want is the key to keeping your Customers (or anyone else, for that matter) really happy. If your Customers need to interact with people (high touch, Tactile), make certain that they do. If they need to interact with things (high-tech, Neutral), make certain that they do. If they need to interact with ideas (in their head, Withdrawal), make certain that they do. And so forth. At E-Myth, we call this your Client Fulfillment System. It’s the step-by-step process by which you do the job you’ve contracted to do, and deliver the product you’ve promised. But what happens when your Customers are not happy? What happens when you’ve done everything I’ve mentioned here, and they are still dissatisfied?”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“CONFUSION 5: HOW TO DEAL WITH CUSTOMER DISSATISFACTION If you have hit each step to this point, customer dissatisfaction will be rare. But dissatisfactions will happen. Here’s what to do about them: 1. Always listen to what your Customers are saying. And never interrupt while they’re saying it! 2. After you’re sure you’ve heard all of your Customer’s complaint, make absolutely certain you understand what he or she said. You could ask, “Can I repeat what you’ve just told me, Mrs. Jones, to make absolutely certain I understand you?” 3. Secure your Customer’s acknowledgment that you have heard his or her complaint accurately. 4. Apologize for whatever your Customer thinks you did that dissatisfied him or her even if you didn’t do it! 5. After your Customer has acknowledged your apology, ask exactly what would make him or her happy. 6. Repeat what your Customer told you would make him or her happy, and get his or her acknowledgment that you heard it correctly. 7. If at all possible, give your Customer exactly what he or she asked for! But what if your Customer wants something completely unreasonable? If you’ve followed my recommendations to the letter, what your Customer asks will seldom seem unreasonable. That’s assuming you’ve got the right Customer.”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It

“CONFUSION 6: WHO TO CALL A CUSTOMER At this stage, it’s important to ask some questions: Which types of Customers would you most like to do business with? Where do you see your real market opportunities? Who would you like to work with, provide service for, and position your business for? A Tactile Customer for whom people is most important? A Neutral Customer for whom the mechanics of how you do business is most important? An Experimental Customer for whom cutting-edge innovation is important? A Traditional Customer for whom low cost and certainty of delivery are absolutely essential? In short, it’s all up to you. No mystery. No magic. Just a systematic process for shaping your business’s future. But you must have the passion to pursue the process. And you must be absolutely clear about every aspect of it. Until you know your Customers as well as you know yourself. Until all your complaints about Customers are a thing of the past. Until you accept the undeniable fact that Customer Acquisition and Customer Satisfaction are more science than art. But unless you’re willing to grow your business, you better not follow any of the above recommendations. Because it will definitely grow.”
― Michael E. Gerber, The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It