It’s 2016 and I finally finished the first post of a new content series: Book Summaries!
Today, I’m going to introduce a new format where I will be talking about favorite books and what I’ve learned from them. In order to keep the length acceptable, I will only focus on a selection of the most important key elements.
This episode is about:
The E-Myth Revisited
Why Most Businesses Don’t Work And What To Do About It.
Know Your Roles: Technician, Entrepreneur & Manager
If you read the book, especially at an early stage in your startup career,
I’m sure you appreciated the personality model of Michael E. Gerber.
Gerber mentions that there are three main roles in entrepreneurship, which are essential traits of our personality.
In order for your business to be successful, you need to learn how to leverage all three of them.
Here’s a quick summary of all three personality types:
Most people are familiar with the “Technician” – after all, we tend to start our career embracing this particular role.
The “Technician” is an expert at his craft and knows how to leverage his skills to produce results.
He loves what he does but he isn’t interested in statistics, charts and other analytical aspects – which ultimately leads to failure in a company without the:
The “Entrepreneur” takes pride of his visionary approach and is always trying to improve his way of working, as well as searching for new trends.
He’s an explorer of the uncertain, lives in the future and he never heard of the term “impossible” before.
The “Manager” hates surprises. He is interested in organizing the company as best as possible in order to avoid potential problems or solving existing ones early. The “Manager” connects the dots and makes sure that everything goes according to plan.
As mentioned in The E-Myth Revisited, all three personality types can be found within ourself.
However, we need to learn how to use them in conjunction if we want to be successful.
The Franchise Prototype
Another useful aspect, discussed in The E-Myth Revisited, is the independency of your startup.
A company that is entirely dependent on it’s founder and his skills will not thrive and expand.
Even worse: A lot of tasks will most likely end up on your own desk, preventing you from taking care of more important elements of your company.
To further highlight this problem, The E-Myth Revisited dedicates an entire chapter to the Franchise Prototype. As a founder, you should focus on creating a system that runs by itself without your interference.
It’s important to mention though, that the book does not suggest you to necessarily franchise your business but rather focus on the key elements.
That way, you will set a clear goal:
Work “on” your business not “in” your business.
This mindset is mandatory if you want to embrace the “Entrepreneur” and “Manager” in order to move past the “Technician”.
The Franchise Prototype will also help you to establish a model for your company.
Every company should align with the following attributes:
- Provide consistent value to your customers.
(Customers love it when they know what to expect from you and your product/service.
Meet their expectations!)
- The less skills your workers require to maintain the business routine, the less you are dependent on special and rare knowledge. (This attribute can prevent a lot of potential threats to your startup)
- Document every business move in an operations manual. (This will help your workers to understand the importance of each process in the value chain and act accordingly.)
- Set standards and stick to them. (This will help you to further establish your brand.)
Innovation, Quantification, Orchestration
I loved this concept from the first time I’ve read about it in The E-Myth Revisited.
While the idea itself is not new, the book really brought it into perspective.
According to The E-Myth Revisited, you will need to always look for new improvements.
Developing a sixth sense for “Innovations” is a vital skill if you want to succeed long-term.
If you don’t carry a notebook or some other recording device, you should definitely consider it.
Creating an “idea dumb” is not just a great way to organize (and most importantly remember) your thoughts:
Furthermore, you can keep track of ideas that have the potential to turn into innovations.
Once you try a new idea, it’s equally important to measure it’s success.
If you don’t track your new innovations, there is no point in establishing them in the first place.
After all, how are you supposed to determine if they are effective or not?
That’s why “Quantification” will help you to focus on results instead of turning it into a guessing game.
As soon as you determined, that an innovation works, you will need to integrate it into your business.
It has to become a standardization process, in which innovations become an element in the:
“Standard Operating Procedure”
From that point on, you will need to “Orchestrate” those new ideas.
Do you have a “primary aim”? In this particular case, The E-Myth Revisited is not refering to entrepreneurship but life. The reason is simple:
If you don’t have a primary aim, your business will most likely consume you, instead of the other way around.
Another term used in The E-Myth Revisited, is the “Strategic Objective”.
Your business should help you to accomplish your primary aim.
For most people, this could be an exit strategy where you would eventually sell your business for a lot of money. For some, it’s simply a business that compliments their interests and life choices.
Whenever you are thinking about launching a new business, you should always ask yourself:
Is this an “Idea Worth Pursuing”?
Or in other words: A business model that meets your financial needs.
Always remember that you are not just selling a product or service but a feeling.
The feeling you create for your customers with your product solution.
This approach will also help you in regards of branding.
As mentioned earlier, I wanted to focus on a small selection of important lessons that I’ve learned, reading The E-Myth Revisited.
There are so many other interesting and important topics covered in this book but I hope that you either learned something new from this post or might be inspired to revisit this classic yourself sometime.
Did you read The E-Myth Revisited? What did you find most valuable?
Let me know in the comments below!