8. Finds and keeps customers
Follows rules and standards
1. Use the people with the lowest level of skills
necessary to operate the system
2. Must stand out as a place of impeccable
order
3. Documents all work in the system
4. Uniform color, dress, and facility code
9. Trade Name franchise
Owner capitalizes on the name.
Business Format franchise
Owner capitalizes on the name and
PROCESSES.
11. 1. Provides consistent value to all stakeholders
beyond expectations.
2. Systematized for people with the lowest
possible level of skill.
3. Stands out as having impeccable order.
4. Model is documented in an operations
manual.
5. Provides predictable value to the customer.
6. Standardizes the appearance of the
employees & facilities.
12. How can my business work without Me?
How can my employees work without my
constant supervision?
How can I be free from my business?
How can I do work I love to do rather than
what I have to do?
13. Innovation – Implementing creative new
ideas that help your business.
Quantification – Keeping track of the
numbers.
Orchestration – Creating order and
predictability for you and your customer.
14. Can be:
a better product
a better package
a better production system
a better business system
a better marketing system
a better financing system
15. Gather data to determine the precise
value of the innovation
Measure what you do so you know what
works
Make only one change at a time
16. The elimination of discretion or choice from the
operation level of your business
Orchestration is integrity
Orchestration is consistency
Orchestration does not remove initiative of your
people
let them introduce innovation
try it
quantify it
measure results
decide what to do
17. 7 Steps
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
18. What do I wish my life to look like?
How do I wish my life to be on a day-
to-day basis?
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?
19. How would I like people to think of me?
What would I like to be doing 2, 5, 10
years from now? When my life comes to a
close?
How much money will I need to do the
things I wish to do? When will I need it?
20. A list of standards
1. Money Standard
2. An Opportunity Worth Pursuing?
3.When will prototype be ready?
- Where is the business going to be - local,
regional, national, international?
- How are you going to do business – Retail,
Wholesale, both?
- What are your standards regarding: reporting,
cleanliness, clothing, etc.?
21. Determine what has to be done…then
decide who is going to do it.
You fill the roll until you can “franchise”
that role for someone else to do just like
you did it.
22. Getting everyone in the same role to
perform the same task at the same level
time after time.
Increases predictability for you.
Increases predictability for your
customer.
Allows measurability.
23. Explain WHY.
Teach your employees.
Create a “Game” with:
- Clearly defined structure (rules)
- Structure through which employees can
test themselves.
24. WHAT DOESYOUR
CUSTOMERWANT?
Don’t presume that you know what the
customer wants.
Learn your customer demographics
Psychographics
25. Develop a Selling System that focuses on
customer needs and is the same every
time.
Develop information systems that collect
data to allow measurements against
benchmarks.
26. Your business is a tool.
Use your business to create the life you
want.
27. Systems are not bad.
They create value for the customer.
They provide structure for your
employees.
They let the business be the product
rather than you.
By do those things, the business is more
valuable to you and most of all to a buyer!
28. Does every business do this?
No!
Do all successful businesses do this?
No!
Should all businesses do this?
Yes!
29. Does it matter if the business is a start-up
or a mature one or somewhere in
between?
No!
Is this like a business plan?
Yes
30. 99% of small businesses suffer from
some of the ailments in this book.
YOU ARE FOREWARNED!
If you come across one that is suffering,
you probably can’t change everything at
once…therefore, multiple engagements!
Editor's Notes
This book speaks in general terms about a specific problem that is inherent in MOST small businesses.
This is not a problem to many small business owners.
Gerber is ultimately selling his services with this book.
This book is his opinion…not fact. Some points are debatable.
Entrepreneur
Visionary
Dreamer
Lives in the future, never in the past, rarely in the present
Manager
Realist
Orderly
The entrepreneur creates the things, & the Manager puts them in rows.
Technician
Likes to do one thing at a time.
Unless the Technician is working on making something, he is wasting time.
Technician
To be their own boss.
READ pages 27 & 28 & 29
Gerber writes, (they experience) “A terrible sense of loss-not only the loss of what was closest to them, their special relationship with their work, but the loss of purpose, the loss of self.”
Business is successful, creating more work, making it harder for the owner to let the Manager and the Entrepreneur out.
The owner works more and more and MORE trying to keep up.
…And how to get the customers to buy it.
“If your business depends on you, you don’t have a business, you have a job. And it’s the worst job in the world because you are working for a lunatic!”
“The purpose of going into business is to get free of a job so you can create jobs for other people.”
Use car dealerships and Jimmy Johns as examples of both.
Pages 99 to 108.
Business Development Process ---- Adapting for Success
Quantification – It allows you to measure the success of the innovations. How many of you have known a really successful salesperson? I have and they know all the numbers. Look at Monical’s use of numbers. Look at Good’s lack of use of numbers.
Gerber says, …The primary Aim is the vision necessary to bring your business to life and your life to your business. It provides you with a purpose. It provides you with energy. It provides you with the grist for your day-to-day mill.
**Gerber notes that the money standard implies not only revenue & income but Business Value as a portion of your net worth.
Gerber refers to a game, but never really makes the analogy much clearer. I think of a game as something that can be won or lost. I suppose winning is being successful and losing would be getting fired!