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Book Summary : The E-Myth Revisited

This article is based on the following book:
The E-Myth Revisited
Why Most Small Business Don't Work and What to Do About It
By Micheal Gerber
Published by Harper Business, 2003
ISBN 0967450659
278 pages

Ever wonder why most small businesses-- no matter how huge
effort they put in their endeavor--still fail? Micheal
Gerber reveals the answers in this book. Accordingly, the
future of small businesses revolve in only three
philosophies: the e-myth (entrepreneurial myth), the
turn-key revolution, and the business development process.

The E-myth

The e-myth, or the entrepreneurial myth, evolved from one
very fatal assumption-- that the success of every business
is simply achieved by summing up the following: an
entrepreneur's desire to own a business plus the certain
amount of capital he puts in plus the knowing the amount
of targeted profit.

Little did the entrepreneurs know that this assumption
spell DISASTER rather than SUCCESS. Entrepreneurs need
to learn to focus more on the business—the people
involved in it and the phases it normally undergoes.
Knowledge on these can save small businesses from
experiencing entrepreneurial seizure—a stage wherein an
entrepreneur goes through feeling of exhilaration,
exhaustion, and despair.

Small businesses basically consist of three main
characters namely: the technician (the doer and builder),
the manager (the planner), and the entrepreneur (the
dreamer, visionary). Moreover, small businesses have
different life phases. These are: infancy (the
technician's phase); adolescence (getting some help
phase); beyond the comfort zone; and, maturity and the
entrepreneurial perspective.

The Turn-key Revolution

As implied by the term itself, Turn-key Revolution
speaks of the distinct transformations on the way
businesses are managed and should be managed. One very
prominent example is the introduction of McDonalds
the idea of business format franchise to the business
world.

The business format franchise has set dramatic turn
around on the future of small businesses. Here, the
franchisor entitles the franchisee to owning rights to
his entire business system. This format is anchored on
the belief that the real product of a business is its
sales technique rather than what it sells.

The Business Development Process

The business development process is the response to the
unending dynamism of the business world. It equips the
entrepreneur with the necessary tools to preempt


the
continuous changes happening around. The process is
comprised of three elemental stages: innovation,
quantification and orchestration.

The business development program requires the following
aspects to be defined:
Your Primary Aim. The owner's primary aim should center
on what he really wishes, needs and wants for his life.
Defining this will push the owner to pursue his defined
entrepreneurial dreams.

Your Strategic Objectives.

This contains standards that help the owner achieve his
goals for his business. This should answer the question:
What purpose will this serve my primary aim?

Your Organizational Strategy.
Business owners should learn how to appreciate the value
of organizational structures. Some points to consider
are organizing around personalities, organizing your
company, and position contract.

Your Management Strategy.

As the owner you should recognize the truth that the
successful implementation of a management strategy is not
dependent on the people who could implement it but on the
system instead.

Your People Strategy.

This refers to the approach you take towards your people
and their work. To make people appreciate the work they
do, you should make them understand the idea behind each
of their task assignments.

Your Marketing Strategy.

Here is the stage where all attention suddenly shifts
from owner to the customer. You set aside your personal
goals first and start focusing on the customer's needs.

Your Systems Strategy. There are three kinds of systems
in a business: the hard systems, the soft systems and
the information systems. The hard systems refer to all
those in your business that are inanimate and has no
life. The soft systems refer to all those that could be
living or inanimate. The information systems are
everything else in the business that provides you with
data relating to how the two earlier systems interact.

By: Regine P. Azurin and Yvette Pantilla
http://www.bizsum.com
"A Lot Of Great Books....Too Little Time To Read"
Free Book Summaries Of Latest Bestsellers for Busy
Executives and Entrepreneurs

Mailto: mailto:freearticle@bizsum.com
BusinessSummaries is a BusinessSummaries.com service.
(c) Copyright 2001- 2005 ,BusinessSummaries.com -
Wisdom In A Nutshell

About the Author

Regine Azurin is the President of BusinessSummaries.com, a company that provides business book summaries of the latest bestsellers for busy executives and entrepreneurs.

 

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