Notes from E-Myth Revisited

 

The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It

If your business depends on you, you don’t own a business – you have a job. (and you’re working for a lunatic)
The purpose of going into business is to get free of a job so you can create jobs for other people.

A business that "gets small again" is a business reduced to the level of its owner’s personal resistance to change – its owner’s comfort zone. (works and waits for something positive to happen)

Your business is not your life.

Your business is something apart from you, with its own rules and its own purposes. An organism that will live or die according to how well it performs its sole function : find and keep customers.
The primary purpose of your business is to serve your life (not vice-versa)

Typical owner of a small business prefers highly skilled people because he believes they make his job easier – he can simply leave the work to them.
Unfortunately then the business grows to depend on the whims and moods of its people.
If they’re in the mood, the job gets done. If they’re not, it doesn’t.
In this kind of business, "How do I motivate my people?" comes up : "How do I keep them in the mood?"
It is literally impossible to create a consistent result in a business that depends on extraordinary people.
When you intentionally build your business around the skills of ordinary people, you will be forced to ask the difficult questions about how to produce a result without the extraordinary ones.
You will be forced to find a system that leverages your ordinary people to the point where they can produce extraordinary results over and over again.

Most small businesses are started by people who are skilled at something and who enjoy doing that thing. When these people strike out on their own, they tend to continue doing the work they are skilled at, and ignore the overarching aspects of business. Without clear goals and quantification benchmarks, they soon find themselves overworked, understaffed, and eventually broke.

Every business owner needs to simultaneously be an entrepreneur, a manager and a technician. The technician is the worker-bee, the manager makes sure operations and finances run smoothly. The entrepreneur formulates the goals, and steers the business in the direction needed to reach those goals. Of these three personalities, the entrepreneur is key- -without it, the technician will work to death or bankruptcy. As the business grows, the business owner will need to draw away from the technician work and manager work and delegate this work to others.

Reference

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