If you love business and are, or are considering, starting a business, the book E-Myth by Michael Gerber (sketched below) is a must-read.
Gerber is a master of teaching business who has taught thousands of business leaders.
Here are some key takeaways from The E-Myth Revisited:
1) The Entrepreneur
Blind Spot: Most people are problems that get in the way of the entrepreneur.
2) The Manager
The Manager chases after the Entrepreneur to clean up their mess…for without the Entrepreneur, there would be no mess!
3) The Technician
1) Infancy Stage
In Infancy, you (the founder) ARE the business. You’re often working 10+ hours a day and absolutely nailing your business. You’re likely mostly being the Technician described above.
How do you know if you’re in Infancy?
Answer: If you were removed from the business, the business would disappear.
So, you don’t want to be an Infant very long.
Infancy ends when you decide that your business can not continue to be run where it’s nearly 100% dependent on you (many owners quit in their Infancy stage).
If you don’t quit your biz at this point, you move on to the Adolescence stage.
Adolescence begins when you decide to get some help.
This is often precipitated by a crisis in the Infancy stage. 😉
Gerber cautions that a major mistake many entrepreneurs make during Adolescence is that when they make their first hire they Manage by Abdication (handing off an assignment and running away) rather than Manage by Delegation.
And Gerber points out that when you Manage by Abdication, the person/people you hired will begin dropping some balls…you may start to notice that:
The reason: because you didn’t teach your new hire well enough!
You weren’t being a good “Manager.”
And then the Technician in you jumps back into action…micro-managing every part of the business process to fix the product, the marketing, the customer service.
Before you know it, you are back doing all the work again…being the “Technician.”
At this point, a business usually faces 3 scenarios…they:
But there is hope, Gerber points out, and that’s the highest level of a business performance.
So how do you become a “Mature” business? Simple…you start out that way!
Gerber points out that IBM’s Tom Watson attributed the following to IBM’s success:
“I had a clear picture of what the company would look like when it was finally done”
“I then asked myself how a company which looked like that would have to act.”
“…we began to act that way from the beginning.”
“In other words, I realized that for IBM to become a great company it would have to act like a great company long before it ever became one.”
These moves by an “Entrepreneur” at the beginning of a business are thus quite key.
Gerber then recommends a series of tips/approaches to how an Entrepreneur can design a business from the ground up as one that will become mature and successful. They include: