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Working on your business, not in it
The Entrepreneurial Myth
The E-Myth, or “Entrepreneurial Myth” states that most businesses fail to achieve their potential because most business owners are not entrepreneurs; they are technicians suffering from an “entrepreneurial seizure.”
Entrepreneur Manager Technician
In order to create a truly successful business, you’ve got to go to work on it, not just in it. That is the revolutionary idea and message that was first introduced in the best-selling business book: The E-Myth Revisited: Why Most Small Businesses Don’t Work and What To Do About It, by Michael Gerber, author and founder of E-Myth Worldwide
Leadership Lead Generation Lead Conversion Client Fulfillment
The Seven Centers of Management Attention model will help you see your business as a high performance machine. And seeing your business as one system – the product – will dramatically change your perspective and your life as a small business owner.
or they wanted to make more money or have more personal time. All rights reserved. the Entrepreneur.The E-Myth Point of View Page 1 The E-Myth Point of View “This is not a call to do battle. How to feel. including photocopy. or accountant). author and founder of E-Myth Worldwide. dentist. they would know how to build a business in their particular field of expertise. Most business owners are too busy working in their business and not on it and eventually run the business and themselves into the ground. . auto mechanic. and 80% of the remaining never make it to their 5th anniversary. Many believed that since they understood the technical work of the business (like being an electrician. Copyright © 2005 by E-Myth Worldwide. think. electronic or mechanical.” The Entrepreneurial Myth Most small business owners will tell you that one day they realized they didn’t want to work for someone else. you know how to run the business! It explains why 40% of the small businesses started each year fail. recording. you’ve got a job! In order to create a truly successful business. without permission in writing from E-Myth Worldwide. No part of this publication may be reproduced or transmitted in any form or by any means. The “E-Myth” or “Entrepreneurial Myth. That is the revolutionary idea and message that was first introduced in the best-selling business book: The E-Myth Revisited: Why Most Small Businesses Don’t Work and What To Do About It. then you haven’t got a business.” — Michael Gerber Introduction If you’re like most small business owners. more humanly than our existing skills and understanding allow. Each personality has a purpose and vital role to play. or any information storage and retrieval system. and thus decided to start their own business thinking it would provide those things. That is the fatal assumption — that because you know how to do the work of the business. you’re too busy running your business to truly enjoy the fruits of your labor. There are three primary ways of relating to work that are fairly universal. It is a call to learning. Think of them as three separate personalities. not just IN it. by Michael Gerber. and act differently and more productively. The Three Business Personalities Why do so many business owners fall into this trap? The answer lies within each of us. And if you can’t safely leave your business for a couple of days or a week. you’ve got to go to work ON it. the Manager and the Technician.” states that most businesses fail to fulfill their potential because most small business owners are not entrepreneurs but rather technicians suffering from an “entrepreneurial seizure.
and shapes the business. delivering service. such as building products. but if you think of yourself as a Technician — if you function in your business as a Technician — your thinking is shortsighted. lenders. . No part of this publication may be reproduced or transmitted in any form or by any means. Most small business owners find themselves spending very little time doing the work of the Manager or the Entrepreneur — work that can be leveraged. doing the administrative or support work. Entrepreneurs are dreamers who focus on the future (time). strategic.” The Manager’s work is both tactical and strategic. free from the constraints of a “boss. The work of the Entrepreneur is visionary. Sound familiar? Copyright © 2005 by E-Myth Worldwide. He invests in the training of his employees to operate and innovate those systems and asks. finding new customers. the work of the Entrepreneur consists of these accountabilities: to develop the vision for the future of the business. and to communicate that vision with conviction and passion to all who need to hear it. vendors. or “how can I produce more so I can earn more?” In other words. answering the phone. money is about cost control and increasing profits. ordering supplies. Efficient production and delivery of service are his key areas of interest. The Technician associates money with income. is how you end up doing business? You may be an expert at the work you do. Ultimately. Can you see that how you think about business. so for the Manager time equals money. It is the Technician who is tempted to open his own business because he believes he can do it better and any way he pleases. To the Manager.The E-Myth Point of View Page 2 Entrepreneur Manager Technician The Technician performs work that is direct and hands-on. employees. or any information storage and retrieval system. All rights reserved. unlike the Technician whose focus is on his own production. The Entrepreneur is most concerned about the performance of it — the business. without permission in writing from E-Myth Worldwide. Each of the three personalities within you thinks differently about the business. The Technician’s relationship to time is focused on effort and how much can be accomplished or produced within the time allotted. and doing the books. but is focused on getting results through others. The Manager is concerned with developing systems that consistently produce outstanding results. and your prospects limited. including customers. Rather. investors. electronic or mechanical. the Technician is focused on trading time for money. Notice that to the Technician. including photocopy. and the community. “How can we be more productive?” The focus is on the collective work of the team. and are impatient to achieve their vision. Money to the Entrepreneur is about building equity and getting a good return on his investment. recording. The work is strictly tactical. their days are spent doing endless tasks like opening the office. “work” is about what they can do personally.
This requires that you see yourself as the leader of the business. time and time again. Even if you never plan to open another location. not people-dependent. hard look at yourself. you must take a good. (2) the business is there to serve your life. the business cannot be dependent on you. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means. but also leading the creation of a world-class company. fundamentally focused manner. between the most strategic and the most tactical. Let’s explore what it means to lead. You need to develop a successful “way” to do business — your company’s way. electronic or mechanical. As a leader. . You have to get out of the way. The second essential skill is discrimination. doin’ it” will never get you where you want to go. and be willing to develop the skills that will ensure your success. The most effective conceptual framework for building a successful business is to view your current operation as the prototype for a large number of franchises or turnkey operations just like it. everything begins to change because you begin to change. and (3) to have a life. When you hone this skill. One that makes sense. you can’t even begin to do things in a determined. where you are. your company must be systems-dependent. Organization Innovation Communication Copyright © 2005 by E-Myth Worldwide. Once you’ve begun to develop the ability to concentrate. as well as changing personal patterns or unproductive habits that may be getting in your way of achieving The 5 Essential Skills results. not just the highest paid employee! When you begin to take on the mantle of leader. The Five Essential Skills As the leader of your company. You must develop systems that enable your employees to run the operations of the business. Shift your relationship to the business to one that is healthier and more profitable by understanding that (1) the business is not your life (although it may feel that way much of the time). quality experience to your customer. not only leading others to a common goal. assess your strengths and weaknesses. The skill of concentration is the ability to focus your attention now. you must be committed to learning. Concentration is focus. doin’ it. Developing the following five skills are essential to becoming a powerful leader of your business Concentration Discrimination The first is concentration. or any information storage and retrieval system. Discrimination is how you choose between this and that. recording. The skill of discrimination needs to be practiced so that you begin to intentionally choose to do the most important things for the most important reasons. “Doin’ it. In other words. without permission in writing from E-Myth Worldwide. this perspective will help you create a business that delivers a consistent. you can tap into more focused energy. including photocopy. You have to move to a different business model. you need to decide what you’re going to focus on.The E-Myth Point of View Page 3 The Franchise Prototype: Thinking Like an Entrepreneur So what is a Technician to do? Stop thinking about the technical work and start thinking about the company you are creating. Without the skill of concentration.
it is your job to develop inspiring communication skills. you need to create order and predictability so you can successfully grow the company without chaos. All rights reserved. And seeing your Copyright © 2005 by E-Myth Worldwide. . recording. and effective starting point for planning and executing new strategies. Thinking of your business in the context of these key functions enables you to view it systemically. it is helpful to have an entrepreneurial model that provides a framework for your business development. Simply put. the building of a world-class company will be much more difficult than it needs to be. Together these functions Lead Generation make up the Seven Centers of Management Attention model. Seven Centers of Management Attention In order to work on your business. including photocopy. something significant and meaningful.The E-Myth Point of View Page 4 The third skill is organization. Marketing. and Client Fulfillment. They are Leadership. the fifth essential skill is communication. Now that you can concentrate and discriminate. and orchestration are known as the Business Development Cycle. People want to be inspired. The Seven Centers of Management Attention is the E-Myth model. precision. Without the ability to communicate with clarity. you can begin to innovate. Innovation is the skill through which you turn wrong action into right action. without permission in writing from E-Myth Worldwide. electronic or mechanical. No part of this publication may be reproduced or transmitted in any form or by any means. quantification. If you look carefully at any business. Now that you’ve begun to concentrate. The Seven Centers of Management Attention model will help you see your business as a high performance machine. Money Management Leadership Client Fulfillment Lead Conversion This model is used to help you organize your thoughts around how to develop your business as you work through Mastery Impact! It provides an intelligent. Collectively innovation. There are also key functions that focus primarily on the care and development of the business itself. your business is one system with seven major subsystems. It is a powerful business model that effectively demonstrates the integrative nature of all the primary systems in a business. organization is the skill of turning chaos into order. finally. The fourth skill is innovation. As you progress through the Mastery Impact! program. They are Lead Generation. or any information storage and retrieval system. They want to be a part of something important. As the leader of your company. your E-Myth Business Coach will guide you on the development of these skills. passion and purpose. and Management. discriminate and organize your world. Money. logical. you will notice that there are key functions that focus directly on Marketing interacting and serving customers. In other words. And. Lead Conversion. Innovation involves creativity and a commitment to continuous improvement.
including photocopy. not just IN it. When taken to heart and practiced every day. but from the day you sell all or part of the business. Here’s to more life and creating a business that works! Copyright © 2005 by E-Myth Worldwide. the E-Myth Point of View is the perspective that your business should work for you. Your biggest payout won’t come from your salary or dividends. rather than you working for it. and increasing profits because those profits will provide a predictable return on their investment. using your business as the prototype and organized by the Seven Centers of Management Attention will help you gain the objectivity you need to work on your business. without permission in writing from E-Myth Worldwide. To achieve this perspective. you have to work ON your business. Investors will pay a healthy premium for a business that produces consistent. discrimination.” But it’s really “intelligence equity” — the value you add to the business by finding faster.The E-Myth Point of View Page 5 business as one system — the product — will dramatically change your perspective and your life as a small business owner. and communication. recording. No part of this publication may be reproduced or transmitted in any form or by any means. . All rights reserved. Most people think of this as “sweat equity. You’re on the Right Path In a nutshell. remember that as an entrepreneur you are committed to building a business that is not only profitable. organization. predictable experience for your customers as well as a dynamic environment for your employees. and leadership requires that you practice concentration. your business will create a consistent. They will sustain you as you work through Mastery Impact! and beyond. electronic or mechanical. but also marketable. predictable. The strategic view of building a franchise. That requires leadership. Finally. and less costly ways to do the work. innovation. or any information storage and retrieval system. Built on systems. easier. the principles of The E-Myth Point of View will guide your work as an entrepreneur and help you achieve a new level of success and happiness in your business and your life.
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