to Succeed in your Small Business
Revolutionary way of thinking that every small business owner must start with
from Epinions.com 04/04 enhanced by Peter/CXO Wiz4biz 05/13
Author Michael Gerber created the E-Myth in 1986 which has revolutionized the way of thinking about the Small Business. He states that small businesses in America do not work, but that the people who own them do. The owners of small businesses work far too much, for the return they receive. He states that it’s because they are doing the wrong work – which results in chaos.
What is the E-Myth? 1 million start-up businesses, 40% will be out of business in the first year, and 80%, if they succeed, will fail in the next 5 years. Author Gerber gives four profound ideas to help the Small Business succeed:
1) There is a myth called the “E-myth” (entrepreneurial myth) that says that small businesses are started by entrepreneurs risking capital to make a profit.
2) There is a revolution going on today in the Small Business
3) At the heart of the revolution is the Small Business Development Process, which is critical to your success in Business.
4) The Business Development Process can be systematically applied by any small business. This process becomes a predictable way to do business.
A business must change (be dynamic), and the first change is your idea of what a business is. Small businesses are not started by entrepreneurs. Many think because they understand the “technical” aspects of a business, that they can run the business. Not true, the two are very different. Knowing how to run a business is totally different.
Who Starts a Small Businesses? Those who go into business for themselves become 3 people in 1. The problem is that there is a conflict between the three:
1) Technician – the doer who lives in the present and only wants to make the present product perfect. He is annoyed at being interrupted with new ideas and those who waste their time thinking of them. Customer is always the problem, if they don’t like my product.
2) Manager – pragmatic, orderly planner, predictable & sees the problems, organized, lives in the past, clings to the present (status quo), frets on any faults and who’s purpose it to impose order on technician’s work.
3) Entrepreneur – Innovator, creator who thrives on change, lives in the future, dreams & has a Vision of the future. Customer is always an opportunity. He states that the typical small business person is 10% entrepreneur, 20% manager, and 70% technician.
There are typically Three (3) Phases to new businesses:
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