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The E-Myth by Michael Gerber

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A special report about the E-Myth of Michael Gerber.

The E-Myth by Michael Gerber

  1. 1. THE E-MYTH BYMICHAEL GERBER A Special Report by Mariko Franca
  2. 2. Table of ContentsI. About Michael Gerber and the E-MythII. 3 PersonalitiesIII. Franchise PrototypeIV. Business Development ProcessV. Summary
  3. 3. Michael Gerber & the E-Myth Part 1
  4. 4. About Michael Gerber  A legend of entrepreneurship  “World’s #1 Small Business Guru” by INC. Magazine  Started 40 years ago to help business people who has technical skills but few business skills  Author of 14 E-Myth books i.e. ThePhoto from http://www.michaelegerber E-Myth Revisited, The E-Mythcompanies.com/about-michael/bio/ Optometrist, The E-Myth Architect
  5. 5. What is E-Myth? ENTREPRENEURIAL MYTH “Small businesses are started by entrepreneurs risking capital to make profit.” Belief in this leads to small business failure Fatal Assumption “If you understand the technical work of a business, you understand a business that does that technical work.”
  6. 6. The Sad E-StoryThe Employee The Owner ??? Good at  Knows technical technical work work Has problem with  Does not know work (i.e. Boss) how to do other Entrepreneurial parts of the Seizure business  Fatal Assumption
  7. 7. 3 Personalities Part 2
  8. 8. The 3 ENTREPRENEURPersonalities - Visionary - Lives in the future - Innovator - Creative personality - Craves control MANAGER TECHNICIAN - Pragmatic - Tinkers - Lives in the past - Lives in the present - Planner & - Happy to be organizer working on one - Clings to status thing at a time quo - “How to do it” - Craves order
  9. 9. Goal for the 3 Personalities: Forge ahead into new areas BALANCE of interest Results in an incredibly competent individual Can be found in the Franchise Prototype Solidify Do base of technical operations work
  10. 10. Franchise Prototype Part 3
  11. 11. Franchise Prototype• The secret behind the success of the Business Franchise Format o Franchisor lends its name and an entire system to the franchisee• The working model of the franchisor’s dream• Where all assumptions and ideas of the franchisor is tested to see if it can be used in the business• Produces the system that makes a business successful• Follows the Business Development Process
  12. 12. Business Development Process Part 4
  13. 13. Business Development Process• A continuous process involved in building the Prototype of a business• Has 3 distinct yet integrated foundation: BDP Innovation * Quantification * Orchestration
  14. 14. Systems Strategy Marketing Strategy7 Steps in Your Business People Strategy Development Management Program Strategy Organizational Strategy Strategic Objective Primary Aim
  15. 15. 1. Your Primary Aim• Vision• Provides you with purpose & energy• Answers the ff. questions: What do I value most? What kind of life do I want? What do I want my life to look or feel like? Who do I wish to be?
  16. 16. 2. Your Strategic Objective• What your business has to ultimately do for you to achieve your Primary Aim• Your list of standards to measure progress o Money – i.e. gross profit, pre-tax income o Others
  17. 17. 3. Your Organizational Strategy• Organizational Chart COO o Should show all work/functions when the business has reached its VP Fin VP Opns VP Mktg full potential o Shows accountability A/R Mgr Prod Mgr Sales Mgr• Operation Manual o Contains the how to of A/P Mgr Svc Mgr Ads Mgr the different functions in the org chart Faci Mgr
  18. 18. 4. Your Management Strategy• Requires creation of the Management System o Your management strategy o Does not depend on highly competent managers o The solution to the problems you encounter from your people o The more automatic, the more effective your Franchise Prototype will be because your ordinary employees can produce the results you want
  19. 19. 5. Your People Strategy• The way you communicate your business to the employees• Forming a relationship with your employees starting at the Hiring Process• The way you as the business owner acts• Important because “The system produces the results; your people manage the system.”
  20. 20. 6. Your Marketing Strategy• All about your customer• Should satisfy your customer’s Unconscious Customer B Mind Customer Customer• Two pillars: A C o Demographics o Psychographics Mrkt• Market research is vital & Strategy to be done by all levels in the org chart
  21. 21. 7. Your Systems Strategy• 3 Kinds of Systems: Hard Soft Systems Information Systems • Animate, Systems • Inanimate, living things • Provide info nonliving • Ideas about the things interaction between HSs & SSs
  22. 22. 7. Your Systems Strategy• Example: If your salesman (soft system) wears a blue uniform (hard system) to work, is he able to bring in more sales (information system) than if he wore brown?• Should ensure that all other the others systems are integrated• The success of the Franchise Prototype depends on this integration
  23. 23. Summary Part 5
  24. 24. For a small business to succeed…• Be an entrepreneur, a manager, and a technician.• Create a system for your business that works so perfectly other people wants one just like it.• Create it in such a way that when you sell it, it will provide you with the life you want.
  25. 25. The EndSource:Gerber, M. (2007). The e-myth revisited:Why most small businesses don’t work andwhat to do about it. HarperCollins e-books

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