1. E-myth Revisited
by Michael Gerber
Special Report by Jan Vincent
The entrepreneurial myth: the myth that
most people who start a small business
The fatal assumption that an
individual who understands
the technical work of a
business can successfully run
a business that does that
4. Most small businesses fail because they are run
by Technicians that do the technical works of
the business. Small business owners should
learn also how to be Managers and
Are people who know the technical works. They
are expert in their skills while ignoring the
rest. The Doer.
Masseuse, Cashier, Computer Programmer, Clerk
Reason why most small business owners fail
The visionary, the Dreamer, The
strategist, The Energy behind the every
It lives in the future and happiest when he
construct images of “what-if” and “if
The organizer, The manager lives in the past and
calls for order.
The managers makes order and cleans the
8. To successfully run a small business one should
constant change responsibility as
Technician, Entrepreneur and Manger.
Failure comes in when we are too focused being
one especially being a Technician and
disregarding other roles.
9. Phases of the Business
10. Phases of the Business
• The infancy phase of the business is easy to
spot as owner and the business are one an the
same thing. The Business is often time named
after the owner. The Technician’s Phase
• Adolescent phase – time that owners ask for
help. Usually someone with experience.
• Mature Phase – The Entrepreneurial
perspective. Mature business has clear vision,
mission and set of values.
11. Franchise Prototype
Once the small business thrives, the scope of
the business owner increases. To continue
that business and further expand it should go
Franchising provides the franchisee with an
entire system of doing the business
12. Franchise Prototype
This time the business
owner doesn’t only sell
the products, he is
actually selling a copy of
Enables an entrepreneur to
work on his business
rather than in it.
13. The Model
• It provides consistent value to your customers
• It should not require brilliant people to
work. The system is what takes ordinary people
and enables them to consistently do high quality
• Everything should be in the operations manuals.
• Uniformly predictable service to the customer.
• Utilize a uniform color, dress and facilities code.
14. Business Development Process
Creativity thinks up new things while innovation
does new things.
Innovation is the heart of the every exceptional
A business should continuously innovate to stay
ahead of competition.
15. Business Development Process
Begin by quantifying everything related to how
you do business
This will enable a business to determine its
effectiveness in every strategy it takes
16. Business Development Process
Orchestration is doing small things consistently
within standard and looking its effects as part
of the whole picture of the company.
Is the elimination of discretion or choice at the
operating level of your business.
17. Business Development Program
Is the vehicle through which you can create
your Franchise Prototype.
18. Business Development Program
• Your Primary Aim
• Your Strategic Objective
• Your Organizational Strategy
• Your Management Strategy
• Your People Strategy
• Your Marketing Strategy
• Your Systems Strategy
19. Primary Aim
Primary is the vision necessary to
bring your business to life and
your life to your business.
It answers the questions: What do
I value most, What kind of life
do I want? What do I want my
life to look like, to feel like?
It is not your business, but your
20. Strategic Objective
• Is a statement of what you want your business do
for you to achieve you Primary Aim.
• The first standard is Money. It is the quantity you
need so that you can live the life you want to
• Second Standard is Opportunity Worth pursuing.
It is the business you want to set up that will
generate the money and in the long run will give
you your primary aim.
21. Organizational Strategy
• Small start up businesses are encouraged to
formulate an organizational chart.
• It would be much easier for a company if
duties and responsibilities are defined.
• If in case in the future, it would be much
easier to determine where they need
additional man power.
22. Management Strategy
• Setting up a system wherein people believes is
more important than having the highly
sophisticated people in the company.
• It would serve as the solution to the problem
of the unpredictability of your people.
• Aka Operations Manual of the company or
23. People Strategy
• Give enough reason for employees to accept
by “doing it” is more important by “not doing
• Formulate a game wherein it would motivate
the employees to perform their best.
Everyone should agree with the game. Ex.
Incentive schemes, Employee of the month,
24. Marketing Strategy
• What a company thinks or
know doesn’t matter to
• People buy feelings rather
than the commodity.
• Determine Primary Target
25. Systems Strategy
A system is a set of things, action, ideas and
information that interact with each other, and
in so doing, alter other systems.
Includes Hard Systems, Soft systems, and
26. Systems Strategy
• Hard Systems – the physical things that will make
work easier. Ex. Machines, car, etc
• Soft systems – People systems. These are
framework that would guide people how are they
going to work with excellence. Ex. SOPs
• Information systems – systems to gather
information and interpret it to aid decision
making and performance evaluation. Ex. MYOB