The E-Myth Revisited by Michael Gerber
May 28, 2009I 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.
I’m Interested in your thoughts.. Does 37signals or E-myth have the right philosophy for business start-ups today?
The E-myth model is more of an extension of an already successful company.
In my world licensing and franchising comes in the end, not in the beginning. You need to have a proven concept first in order to entice licensees to go along with you.
And with proven concept I don’t mean having billions in revenues, more of selling 10 to 20 products or services and then leverage on that. Creating an operating team and then have the company making an annual profit for at least 1 year. Then you will be able to apply Mr. Gerbers method much more simpler.