Storen Financial Book Studies Can Help Us Bolster Businesses
In a continual effort to expand our expertise, some members of our team recently participated in a book study, where we read and discussed Michael Gerber’s The E-Myth Revisited – Why Most Small Businesses Don’t Work and What to Do About It. Reading this book was a great way to learn more about how to bolster businesses from the owner’s perspective and deliver top-notch services that help them to succeed.
In this book, Gerber walks readers through the life cycle of a business, from the time of entrepreneurial infancy to adolescence to the mature entrepreneurial perspective, all the while discussing how to see your business as an extension of who you are in order to equip yourself with the tools necessary for success. Here are some key aspects of this book that business owners should know…
The Three Roles of a Business Owner
A business owner must be three people in one – the technician, the entrepreneur, and the manager. Most new business owners are often doers, i.e. technicians within a special field such as landscapers, plumbers, accountants, or lawyers. A technician has the special skills needed to start the business, but where most of them often struggle is when they must serve as both the entrepreneur (the visionary) and manager (the planner) of the business.
Any entrepreneur will have the drive to learn more and adapt to the changes needed. At the same time, the manager will maintain the order necessary to achieve results in a successful company. Essentially, you must be able to create a business model that merges these three roles to drive the business, sustain it, and execute the services promised.
The Franchise Prototype
Make sure you “work on your business” and not “in your business,” Gerber says. Being able to replicate your model is more important than the model itself. You must be able to do what you do the same way, each and every time. This includes organized processes with documentation and routinized work. Pretend your business is the prototype for many others just like it, regardless of whether you plan to franchise it.
The Business Development Program
As your business evolves, you’ll want to consistently refine it to strengthen longevity. Using a “Franchise Prototype” mindset, you should follow a seven-step process to structure your business. These steps include…
- Primary Aim – What you want to achieve
- Strategic Objective – The direction of your business and how to get there
- Organizational Strategy – The process for which you build roles, testing, and documentation
- Management Strategy – Replicating a predictable experience for those you hire
- People Strategy – Creating an environment “in which doing it is more important to your people than not doing it.”
- Marketing Strategy – Understanding the customer and developing the prototype based on their needs
- Systems Strategy – Developing hard systems, soft systems, and information systems that deliver results to the customer
Gerber’s The E-myth Revisited – Why Most Small Businesses Don’t Work and What to Do About It is a must-read that has impacted small business owners and aspiring entrepreneurs since its publishing in 1995. Our team is grateful to have added Gerber’s knowledge to the arsenal of resources we use to help owners achieve their personal and business goals.
Implement E-Myth Principles with our Business Advisory Services
Need help implementing Gerber’s approach? Our Business Advisory Services offer a comprehensive approach focused on planning and strategy. Topics may include incorporating best practices for running your business, understanding your financials, and capitalizing on tax efficiencies, all with the goal of seeking to maximize profitability. (Click here to learn about our Business Advisory Services.)
Interested in learning more about how to get started? Contact us now to schedule an introductory call. (Click here for contact information.) Or interested in learning more about other Business Services? (Click here to learn more.)
Blog by Erika Lewis – Business Services Director
Learn more about Erika and the rest of the Storen Financial team here.