One of the most challenging aspects of business ownership is management. According to Michael Gerber “There is a myth in this country – the E-Myth – which says that ….
Myth: businesses are started by entrepreneurs risking capital to make a profit.
In his landmark book, “The E-Myth” Gerber expressed the belief that this myth is the biggest factor contributing to the “devastating rate of business failure in America today.” He went on to say that a franchise-like model is the answer to this dilemma. That is because franchises have about a 95% success rate, compared to other business which have about a 95% failure rate.
His follow-up book, The E-Myth Manager, elaborates on the human element in the management equation. Lance Winslow adds his perspective in the following article.
The Myth of Management – Become an E-Manager, Book Review
Just the other day, I was talking to an acquaintance, a successful small business entrepreneur who is working hard as our economy recovers from the recession. Although the economic situation in his region is not so bad compared to other regions, it is not breaking the speed barrier either. So what can he do to improve cash flow, become more efficient, and be ready to go as the economy recovers?
Indeed these are all good questions. If you have similar questions, there is a very good book I’d like to recommend for all those small business entrepreneurs who never got an MBA, and why that’s really okay. In fact, I was recently talking with an acquaintance about this book while reviewing his business model and market segments and how this advice might help him with his business. The name of the book is;
“The E-Myth Manager – Why Management Doesn’t Work – and What to Do About It,” by Michael E. Gerber (same authors as the famous E-Myth), Harper Business Book Publishing, 1998, 230 pages, ISBN: 0-88730-840-6.
The author explains that you can have the best MBA degree from the top college in the nation, and you can be a great technician, strategist, manager, and become an emperor in your mind commanding authority where ever you go, but that’s just not enough. This book is great because it goes into all aspects of the business; management, marketing, strategy, organization, accounting, people, and production.
Now then, I also recommend that you read Michael Gerber’s first book; “the E-Myth” and use it to help streamline your company, make it more efficient, and improve your business processes so it can run by itself and like a Swiss timepiece. Then, you should read “The E-Myth Manager” because it takes people to run a business, and even if you have the perfect system, you also need to understand how to lead people, and make it all work. You must manage every part of your business, and make sure every part is working.
In many regards a small business is much like a car. If the spark plugs are fouled, you’re not getting good ignition, and even if you put in higher octane gas, change the oil, make sure you’re getting proper coolant, and drive the car carefully, it still will not fire on all cylinders all the time the way you expect. Indeed, I think that’s what Michael Gerber is getting at, and I think you should read the book if you, much like my acquaintance, wants to win as our economy exits the recession. Please consider all this and think on it.
Lance Winslow has launched a new provocative series of eBooks on Business Concepts. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net
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