Full disclaimer, this idea for this type of post came from Derek Sivers Book page where he posts extensive notes on books that he has read. Below is a shorter version of a similar concept. The E-Myth has actionable strategies for mastering your business. Grab a copy here
To start, this book says that most companies are not started by Entrepreneurs. That is the “E” Myth. Most companies are started by technicians. These people are expert at their craft, but not necessarily good at running a company. This book provides a framework for people to see their company from all perspectives and create a business that is great.
It’s not about what you know, it’s about your desire to know more
Everything is a reflection of you
Your business, your perspective on life
If you are chaotic, your business will be and you will see chaos in the world
We can’t change the world by starting “out there” .. you have to start with yourself
Most businesses aren’t started by entrepreneurs.. they’re started by people that have an entrepreneurial seizure — one day, something happens that makes them want to stop working for someone else
The fatal assumption: if you understand the technical work of a business, you understand a business that does technical work
Your friends will say “you’re so good at __ start a ___ business”
Typical person who goes into business is 10% entrepreneur, 20% manager and 70% technician
Infancy stage ends when you realize you can’t keep operating like you are, something needs to change, business usually ends here
Then, you hire someone. It’s all great. They’re doing work, hiring more people and you finally have time. It’s all wonderful until they start messing up. Customers are unhappy. Then one day, your first hire quits and you’re left with no one.
You didn’t hire the wrong person, you just didn’t set them up to succeed.
Technicians focus on refining skills and making something
Entrepreneurs focus on what the customer needs
The business format franchise revolutionized business. The product isn’t the brand name, it’s the system.
Your business should be a prototype of future franchises of your business
“The true product of a business is the business itself”
You should make your business system dependent, not people dependent
Business Development process:
Innovation →Quantification →Orchestration
try something → measure it → keep doing it/ make it a habit
“The difference between great people and everyone else is that great people create their lives actively my while everyone else is created by their lives, passively waiting to see where life takes them next. “
“It’s not your business you have to fear losing. It’s something much bigger than that. It’s your Self. “
Strategic objective: goal for where you want your business to end up
The system will become your management strategy
Your chance to set up your new hire’s success is during the first encounter. You have to set expectations, missions, etc..
“Conflict without will creates frustration”
Everything is a system. Make your business a system. Make your business so simple and easy to run that anyone could replicate it. The McDonalds model shows that by creating a great system you can run a business without hiring good people. This makes you system dependent and not people dependent.
Thanks for reading! Hope this was valuable. See you again soon
Thanks Zack! As someone who works with and teaches aspiring Entrepreneurs, this summary opens my eyes to a different viewpoint on the origin of new businesses. As with any text, this reflects Michael Gerber’s view and must be kept in mind. I’m leery of any broad stroke statement about % of typical businesses that are this or that! That said, many of his ideas are worth listening to and learning from.
I like the idea of your summarizing the book and sharing your thoughts. I know you, I don’t know all the other people commonly quoted on the back of this type of book! Thanks for taking the time to read it and write this up!