The E-Myth Revisited by Michael Gerber

I am reading Michael Gerbers book “The E-Myth Revisited” right now.

Michael is very much a proponent for systematizing businesses and I am very much a proponent for that one too.

The whole idea is to build systems inside your business so that everything works the exact same way all the time no matter what. A system that the most ordinary and even low-intelligent people could manage with one hand if they wanted too.

Michael Gerber brings up one obvious point: that their exists more ordinary people than extraordinary people. So he advises you to think “how can I create a business that could be run by teenagers” more or less. Like McDonalds.

So say you have a book store. How could you systematize that store? Well, first of all you could create a nice and cozy image (bookstore decoration) where people can relax. Then you could create a system for how people handling book sales acts and how they should appear (corporate dress necessary, preferably a good looking face with an obligated smile and a standard welcome and good buy phrase etc). You could create a book inventory system so people could find a prefered book genre in milliseconds by just putting up signs  pointing at specific genre areas.

You could create so much that is uniquely your bookstore and what your bookstore  brand stands for. When you have created this “pilot” you could then sell franchise packages of this “pilot” and hand along an operations manual for the franchisee to just follow from A to Z so that the franchisee can then  have the exact kind of bookstore you have and have the exact same results you have in your location.

I find the whole franchisee and licensee model excellent and smart. Why aren’t more entrepreneurs using it?

Also, why would anyone in their right mind want to do things on freehand when they could create routine systems that kicks in everytime certain scenarios happens? I am not a rigid kind of guy, but even I see the relieving idea of this thing. I should actually do this more often myself.

The Money Illusion!

Everyday millions of people go to work. Everyday millions of entrepreneurs work their butt of to build their companies.

Why? Because for them, money is as real as their own lifes.

The missing piece in the equation, something they have all missed to ponder on in their haste, is that money is just an illusion. Nothing else.

Tell me: How do you define money?

Before Nixon money was money, but today money is not money, it is a currency. Something that has a value because of it’s relation to other currencies. A scale game more or less.

But let us move away a little bit from money AND currency. Because these two words can be deceptive if you are in business. As a businessman/entrepreneur you cannot sell yourself to believe in money. To believe in the currency bills you hold in your hand. Those bills are only one way to survive in this world.

The really sharp minds out there knows that you can use many things as currency. You can use a nasty detail about someone else as currency, you can use hard assets as machinery as currency, you can use secret information as a really hot currency etc.

If you are to succeed as an entrepreneur these days, you need to become much more sophisticated and drop the illusions you have that the dollar bill is the only way to move forward and make things happen. The dollar bill is only one tool of many. Not the ONLY ONE.

The dollar bill is only real and the most accepted because we make it so. We believe it should be so and so hence everything evolves around keeping that illusion real.

Play tough on both sides!

Play tough on both sides of the business equation.

One side is the supplier and partner side, the other is the customer side.

By playing tough I mean, play as though you are the boss and that your rules are to be followed everytime. Never play by others rules. Don’t be afraid of alienating suupliers and customers if they do not follow the rules you have setup to do business with you.

I have experienced this time and time again in my own ventures (7 years worth of whole-time entrepreneurial experience), that suppliers will use you if they see a possibility to do so. Customers have the same bad behaviour. If they can scam you and get you to lose money in order for them to gain, they will do it. And why shouldn’t they? I would (hey, I am no saint).

I am now telling you: Play hard, play tough, watch your interests. People who can’t or will not play by your rules are out (see Dan Kennedys NO B.S. book series to get a better understanding about this). Just fire them.

I can’t tell you exactly how many times I have wanted to rip my fucking hair of because of utterly stupid and scamming idiots who want to take advantage of me and actually have been too.

Take my advice, please:

1) Setup a very detailed  filtering process. Setup rules of conduct for suppliers, partners and customers to follow. If they don’t follow suite find new ones.

2) Pay as little as possible for suppliers services/products (though ask for high quality) and charge exorbant prices from customers and only serve those who understands the procedure. Those who actually appreciate your services/products. You only need a couple of returning customers and not 1000 of irritating “know-it-all”.

Don’t be afraid to be who you are and take pride in it. Don’t you dare to feel guilty to demand the price you want. If you feel guilty, slap your own face and wake up and tell yourself that if you need to justify your price to anyone, then kick those people in the ass and never let them approach you anymore. The same goes with suppliers who will not lower prices to suit you and your agenda. Kick those in the face and tell them of and ban them from ever doing business with you anymore, unless they convert and act smart (that is: doing things your way).

This is a revolution people: If you don’t act, others will and you will be the one left sucking stinking toes. Bad luck in that case I guess:).

Take care.

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