The E-Myth by Michael Gerber outlines a business development process for creating a franchise prototype. It involves balancing the entrepreneur, manager, and technician personalities. The process has 7 steps: defining a primary aim and strategic objective, creating organizational and management strategies, developing a people strategy, designing a marketing strategy, and integrating all systems through a systems strategy. The goal is to create a fully functioning business model that can be replicated as a franchise and provide business owners with the life they desire.

1. THE E-MYTH BY
MICHAEL GERBER
A Special Report by Mariko Franca

2. Table of Contents
I. About Michael Gerber and the E-Myth
II. 3 Personalities
III. Franchise Prototype
IV. Business Development Process
V. Summary

3. Michael Gerber & the E-Myth
Part 1

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. The
Photo from http://www.michaelegerber E-Myth Revisited, The E-Myth
companies.com/about-michael/bio/
Optometrist, The E-Myth Architect

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. The Sad E-Story
The 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. 3 Personalities
Part 2

8. The 3
ENTREPRENEUR
Personalities - 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. 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. Franchise Prototype
Part 3

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. Business Development Process
Part 4

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. Systems Strategy
Marketing
Strategy
7 Steps in Your
Business People Strategy
Development Management
Program Strategy
Organizational
Strategy
Strategic
Objective
Primary
Aim

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. 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. 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. 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. 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. 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. 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. 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. Summary
Part 5

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. The End
Source:
Gerber, M. (2007). The e-myth revisited:
Why most small businesses don’t work and
what to do about it. HarperCollins e-books