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Semester 1-Class 2 Intro To Emyth (Organization of Your Business)
Semester 1-Class 2 Intro To Emyth (Organization of Your Business)
E-myth Revisited
by Michael Gerber ..
Observations on Small
Business Owners
1. Work too hard for the
money they make
2. Business Owners are
doing the Wrong work
in the business
3. Result is - Chaos,
Unpredictability, and
Failure.
4. Information abounds
- yet the business fails..
More Observations on
Your Business. It is You..
If your thinking is sloppy - your
business will be sloppy.
If you are disorganized, your
business will be disorganized.
If you are greedy, your
employees will be greedy.
If you lack direction on how to
improve your company, your
company will not improve and
will lack direction.
Fatal Assumption
If I understand
the technical
work of a
business, I
understand the
business that
does technical
work.
The Facts
SBA 80% of Small Businesses fail
within 5 years (50% in 18 months)
Franchises have a 95% Success Rate
in 1st Year
Franchises have a 75% Success Rate
for Business Format Franchises in 5
Year Period
The
Myth
Goals
Set Goals
Accountability on
Progress
Mentoring
Systems
This is a base
measurement of all that
goes on in the company
When there is a problem,
look at the system before
blaming people
We do not have to reinvent
the wheel all the time
Eliminates going to the
Owner for Everything
Goals
Written
Measurable
Realistic
Create a
Movement in You
or Your Company
3 Distinct Job
Types
Entrepreneur
Manager
3 Way Battle on how to handle each
Technician
problem
The best personality does not always
surface and win.
IT IS BEST TO HAVE DIFFERENT
PEOPLE FILL THESE SEPARATE JOBS.
The Technician
Is a doer
If you want it done right,
do it yourself
Happiest when working
Knows you cant do two
things at once
Likes to control flow of
work
Thinking isnt work.
And is unproductive
The Entrepreneur
(Leader-Visionary)
Turns trivial conditions into
opportunities
The Dreamer and Catalyst for Change
Needs control
Lives in the world of what if and
if when
Creates Havoc because of need
for change
People are problems that get in the
way of his dream
The Manager
Pragmatic
Craves order
Clings to status quo
Sees problems not
opportunities
Creates neat rows of
widgets that
entrepreneur creates
Cleans up
Entrepreneurs Mess
Stages of Business
Infancy
Adolescent
Mature
Well Talk about each Stage
Staff Profile
Wayne Anderson has been owner/manager of APL for 24 years. He is
active in the sales and design process. Wayne has been involved in the
green industry for 27 years starting out in lawn service and eventually
focusing solely on landscape installations. Wayne was an active foreman
until 2003. He earned his degree in business management at Ridgewater
College and continues his involvement with the college by giving lectures
to students. He is dedicated to continually growing APL, with emphasis on
quality and innovative installations.
Introduce Wayne
Real Person
Landscaping Business 17
years
Not making much money
Two Years behind with Tax
Returns
No Records Just a Shoe Box
Wore out from the Grind
Ready to Quit
Adolescence Stage
Stage where business
has to get help
They hire people but
do not have direction
Wayne had 8-10
workers
Missing the Manager
Hat
Working Harder and
making less money
Three Choices in
Adolescence
Get smaller - one employee
and eventually close doors
Add more employees and
go busted
Continue as IS and maybe
Survive but get BURNED
OUT
WAYNE SURVIVED FOR
17 YEARS AND WAS
READY TO QUIT
Company is growing
or Shrinking
Either you do the job of the owner
or???
Cannot abdicate your role in a true
company
Business or Job???
Maturity Stage
Companies who know
how it got where it is
and know where it is
going.
Entrepreneurial Perspective
How must the business work?
What work must be done?
System for producing results for
customer and profit for owner
Looks at the future(Technician
looks at the present)
Entrepreneur vs Technician
vs Manager Point of Views
Future vs Present
Where we will be not where we are
Entrepreneur visions and the
Technician only knows what he can
touch and see
The Franchise
Phenomena
McDonalds - The
most successful
small Business in
the world.
Franchises
Trade Name Franchises
Coca Cola - Cadillac
Business Format
Franchises
95% Success Rate
in 1st Year
75% Success Rate
for Business
Format Franchises
in 5 Year Period
McDonalds: cleanliness - satisfy
the customers every time
Learned at Hamburger U
Created goals
Created Organization Structure
Hired a bookkeeper
Created schedule
Did last two years taxes
Created paperwork to track jobs
Created paperwork to track work on jobs
Work on
the
Business
Not in the
Business..
End Class 2
Next Meeting October 6 at 8 am
Reach Chap 7-9 in Emyth Revisited
A. Create an Organizational Chart??
B. Who is/are your manager/s?
C. Who are your technicians??