The E Myth
Small business have 3 main employees
The Entrepreneur who is the Visionary, Dreamer, Ideas Man
The Manager who Plans, Co-ordinates
The Technician who is the action take and completes all the practical work
So, you have open your business, you are making progress however the workload is simply too much. You hire you first employee and they complete all your admin tasks. Everything going great for a few months however they eventually depart & you discover they have put your data into a program you don’t understand. Everything starts to spiral out of control, you now need to work longer days to sort the mess out while an increase of backlog work is piling. You feel like you are working for a boss again. This is because a technician starts a business therefore all the work relies on him, an entrepreneur creates a system to grown a business.
You need to Systemize the business. It needs so smoothly detailed you can franchise the idea. There is a reason why less than 5% of franchises fail in the first year, bear in mind franchisee also need to pay for the rights ect therefore have a lot higher expenses
The Turn Key Revolution
If you can take one key world from this book its Systemize!
Work on your business not in your business. You can’t focus on the commodity you need to focus on the business… what does this mean you may ask?
Ensure your business is system-centric not people centric by Documenting process of the business including – product creation, testing, marketing, sales, fulfilment. This allows you to remove yourself from the business. Think of McDonalds there are thousands of McDonalds around the world. They feel the same, the operate the same. This allows you to grow rapidly.
1 – Provide Constant Value, beyond what they expect (all stakeholders customers, employees, suppliers, lenders)
2- Model can be operated by people with the lowest possible level of skill
3- Model stand out as a place of impeccable order
4- All work documented in manuals
5 – Predictable services to customer
6 – Model utilize a uniform colour, dress/ facilities code/ walls & invoices
Business Development Process
You need to innovate in order to stay ahead, an example would be in sales rather than the classic,
hi may I help you?
ask have you been her before therefore starting a conversation
either way you can inform the about your special program for new/ existing customers
A great example of innovation if this clip from the founder which is based on the rise of fast food magnate McDonalds
Quantification – You need to ensure you are aware of the impact of the innovation using metrics such as new customers, average spend ect. 99% of business owners do not do this. From the
example of the sales tactic you need to measure what effect it has on your business. You can then tell if you innovation has been successful.
Orchestration – Once an innovation has been implemented, it needs to be done the same way every time. Therefore, creating a predictable service level for the customer.
E.g. if the new sales tactic works use it religiously going forward
Business Development Program
Primary Aim –
Your primary aim is the goal. Note that this if your values, the life you to create not the business.
What do I want in my life?
How do I want to be on a day to day basis?
What I want to be doing two years from now?
Great people have a vision of their lives they practice emulating each and every day.
What does your business have to do to reach your primary aim? Plan and strategize how your business is going to get there and benchmarks / milestones to reach.
Standards of Strategic Objective
1) Money, how big is your vision?
2) An opportunity work pursing? What business your creating, who your customers are is there a market?
3) Where are you going to be located? National/ Local?
4) Retail vs Wholesale? Both?
5) Standards of reporting, clothing, management, training, tidiness
Defining job roles, make a organization structure & at each point labels who is responsible for what job. This allows employees to take accountability, who they report to and makes to workflow run a lot smoother. Michael says even if you are the only person in your business you still need one so when you hire you can fill in the gaps! You can also ensure there are operation manuals for each job role.
AT&T – “The System is the solution”
A management strategy is a set of actions ideas that interacts with each other to ensure you have a great experience every time. A brilliant management strategy isn’t depending on your intelligence anyone should be able to pick up the Manuel and follow.
Operations Manuel – Checklist ensuring the customer has equally brilliant experience each visit, this case he used a Hotel.
The manuals were colour coded e.g. Yellow = Room Set up Blue = Guest Support
When you are at a restaurant, they ask you for your favourite coffee, this is then bought to in the meal but also in the morning when you wake up and added to you repour for future visits
Outdoor Lights dim automatically as the sun goes down
Idea behind the work
Communicate your vision to your employees so they feel they are part of something. Take time to provide formal training to create good relationships in the business where your employees respect you therefore creating an environment where doing a task is more important than not
Your marketing strategy is defining what your customers want. Not what you think they want!
Demographics & Psychographics
You need to know their demographics, who is your customer, what age, whey the live ect
You gain this information by asking them for feedback and offering a freebie/ prize in return
You can then work out your customer’s psychographics, their traits values, personalities, interest, lifestyles.
Key message – If your business depends on you, you don’t have a business, you have a job and it’s the worst job in the world