Twitter Summary: Stop thinking you can do better than your boss just because you can do the technical work!
Background
My brother-in-law owns an real estate data services company and I was talking to him a few months ago about some of the new blogging ideas I have been having. He stopped me mid-sentence and asked, “Have you read the E-Myth yet?” I hadn’t, so he added, “Stop reading whatever else you’re reading and read this immediately. Then let’s talk.” I took his advice to heart and I’m glad I did. This book has completely changed my paradigm when it comes to conceptualizing effective organizations. A lot of how I view leadership and efficiency has now changed.
The E-Myth, by Michael Gerber, stands for the entrepreneurial myth. To sum up what Gerber means by the E-Myth I’ll use his own words. The E-Myth is a “misunderstanding about who goes into business and why.” Gerber goes on to say there is a fatal assumption that “if you understand the technical work of a business, you understand a business that does that technical work.” This is the foundation of what Gerber calls the E-Myth – just because you know how to do the technical work doesn’t mean you know how to run the business.
Upcoming Posts
Here is a list of the ideas I found most valuable from the the book. I plan on writing future posts based on these ideas in the coming weeks.
- Delegation vs Abdication
- Build a business that works without you by creating systems.
- The system helps ordinary people do extraordinary things.
- The degree to which people follow your system depends on how well you’ve communicated your vision and how much they buy into it.
- Your business should provide unique access (to information, people, activities, etc) that no one else is offering.
Questions for you: Do you ever feel like you have fallen victim to the e-myth? That you could manage the business you work for better because you know how to do the grunt work? Or have you already started your small business because you know the technical side, but now you’ve found yourself possibly in over your head? What have your experiences been like?
Next Weeks Post: One of the first principles Gerber talks about is how managers far too often in a small business, or any business for that matter, abdicate their duties instead of effectively delegating them. There’s a difference and I’ll explain that next.
I’ve had a few small businesses (clothing, graphic design). I also have numerous friends who have started their own successful businesses. I’ve watched them grow and I’ve watched them fail. I was fortunate enough to have my friend’s father, whom was the VP of Liberty House give me some really sound retail advice. I like my 9-5, but have always dreamed of having some outlet where I could turn my creative skills into additional cash with minimal effort. I’m still looking for this vehicle.
I most recently taught microenterprise start-up classes with an economic development program. I helped people with sewing skills, handyman skills, interpretation skills, and things like that make a little extra dough. I would help them write business plans, register their businesses, pay taxes, write off expenses, and such. The first thing I had my students decide was what the goal of their business was. Is your business a hobby, or is your business a “business”? Two very different things that when the moons align can be both, but often times is not. Once you answer this question you can set some realistic goals and estimate the level of risk you are willing to take.
I’m curious to hear what your business venture is about. I’ve done some consulting in this area and if you want an outsiders perspective I’d be more than happy to lend an ear. Aloha!
Yes!! I had no idea you’d done all that awesome stuff. Hopefully some of the stuff from E-Myth gets the juices flowing for new ideas for us both and leads to some exciting prospects.