Using the E-Myth #2
to Succeed in your Small Business
– a Revolutionary way of thinking that every small biz owner should start with
from Epinions.com 04/04 enhanced by Peter/CXO Wiz4biz 05/13
There may be up to Eight (8) Phases of new businesses:
1) Infancy – owner & business are more or less the same [but you also may have 1-2 Partners] This phase ends when the business has to grow and bring on more Partners, Managers.
2) Adolescence – you go into this stage when you have gone beyond your expertise (or even familiarity), where you need help to make sure the function is done right – without you spending a lot of time learning it.
3) Young Adult – you have your Team together and launch and have a growing business.
4) Young Maturity – you are growing rapidly and now you are seeking funding to take you to expantion, multiplying your efforts.
5) Maturity – you are growing & expanding still and still coming up with new ideas to enhance your product or develop new products.
7) Middle Age – you’ve lost some of your edge. You’re not innovating very much and are trying to coast on your present products.
8) Senior Senility – your market share & sales are going down and you’re doing desperate measures to try to save your company, but nothing seems to work.
If you have a big Vision of what you want to do, get others to join it, then have them follow it, you can keep innovative and keep going thru the early stages on your enhanced or new products – again & again – which is more productive in creating new sales.
Examples: There are three very successful companies (that we’ve all heard of), who seemed to start at the Maturity phase from the beginning, and this is partly why they succeeded. The three are: McDonalds (Ray Kroc), Disney (Walt Disney), and Fed Ex (Fred Smith).
McDonalds. Ray Kroc (in his 50s) sole Milkshake machines in 1952. He noticed the McDonald brothers kept ordering & ordering more MS Machines, so he went out to California to find out why. They had perfected an automated system to deliver Burgers & Frys + Milkshakes – cheap & fast. Ray convinced them he could create a franchise for them. He sold franchises and McDonalds grew like a weed. [Later he bought them out for $2million.] He had perfected the franchising model which made McDonalds so successful. “Lesson” Create a system to deliver inexpensive, consistent products that could be made & delivered by anyone.
[McDonald’s continued in Premium Content + How to build a Franchise]