How long will it take to develop my business to the point where it works without me?
Hello, my name is Brett Olson. I have been in business for 3 years, a start up Finance Broking business in Perth, Australia. I saw your seminar a couple of years ago, and signed up for the quick start program. I joined the Mastery Coaching program with a 3 year view to be free of the business, I am currently 1.5 years into the Mastery program. My question is, what sort of time frame can I expect to have the business at a stage that it will work without me? I currently do 1 hour of Business Development from 8am to 9am each day before I commence to work in the business and it is taking forever.
Michael Gerber's Reply:
Dear Brett -- Yes, it can be a wearisome thing, can't it? But there is no answer, Brett, to how long it will take. Some go faster, some slower. What many clients have done to speed up the process is to hire someone specifically to take on the task. After all, if you spend your time growing the business, they can spend their time systematizing it, and the energy created will take you exactly where you want to go. Think of that person as your "business development specialist." You both meet with your coach, and once the two of you agree on what you are about to roll out, your BDS will do the work. Best to you, Michael
How to ask someone to be your mentor
Hi Michael, My name is Rama Myers and I have just started a design and branding business. My goal is to build up the business until it reaches a stage where it does not require me. Through reading your books I know I can but would benefit greately from some mentor support. What is the best way to approach someone to request they mentor me? I hope to have a couple of mentors from whom I can learn different things.
Michael Gerber's Reply:
Hello Rama - The best way is to just ask, but know that finding a mentor and convincing him or her to help you is as difficult as finding a great customer and asking him or her to buy -- time, money and motivation are the critical drivers of the decision. So, ask yourself, why would someone agree to spend time mentoring me? What's in it for them? Why would they take the time away from all the other things they need to do? What am I going to do in return for their help? I know this sounds crass, Rama, but self interest being what it is you must develop a strategy for selling yourself to the mentors you want, and then try it out on people you know who will give you constructive feedback. All My Best, Michael
I'M THE BUSINESS
Hello, my name is T. Deon Cohen, and I own and operate a barbershop and Barber school. I feel like I’m there all the time. How can I organize the shop so it can run without me?
Michael Gerber's Reply:
Hello T. Deon.
Thank you for the question. The answer is not as simple as the question. But, let me suggest it like this. Your company is really three things. The first, at the lowest level, is what I call The Practice. The Practice is where the Technician lives and works, the one who cuts the hair, the one who does the bookkeeping, etc. In order to "get out of your business" you need to systematize that work so you can train someone else to do it other than you.
The second part of your Company, I call The Business. The Business is an aggregate of the Practices you have within it. In other words, three Technicians all cutting hair make three practices, the sum total of which is The Business. The Business possesses a Management System through which to manage the Practices within it.
The Third Level of your Company is what I call The Enterprise. The Enterprise is the aggregate of the number of Businesses that comprise it. Say you have five Practices in a Business, and you create three Businesses, each with five Practices...the Enterprise then is the sum total of the three Businesses, each with five Practices for a total of 15 Practices all managed by a Management System which is led by The Enterprise Leadership System. Suddenly, you are at the Top of the Organization, rather than at the bottom of it, leading it forward to grow even more.
Hope that helps, Michael
Starting a free democratic school
Hi Michael
I am starting a free democratic school. I have been reading and thinking about e-myth for about 3 years now. I know that this is the way I want my business to work but I am having difficulty "seeing" clearly what the steps are. My question is Can a school especially one based on democratic principles and child-led learning be build the way you suggest?
What do you recommend as the first step to start doing this?Thanks,
Ginny
Puerto Rico
Michael Gerber's Reply:
Hello, Ginny
First of all, yes, you can use The E-Myth paradigm to build a school, or any other organization for that matter. When you really boil down what I'm saying in E-Myth to its essence, it is that every organization is a System of interconnecting parts.
Your job then is to invent such a System to become what you describe as a Democratic School. Go through the steps described in my book:
- What is your Primary Aim?
- What is your school's Strategic Objective?
- How will it be organized? And so on.
The best way to begin would be to enroll in one of our services at E-Myth Worldwide. Whichever one you choose, it will take you step by step through the thought process necessary to conceive your school. Thank you for your question, Ginny.
Best, Michael
Establish new business
Dear Michael,
On the 03/09/2006 I sent an email to you and I appreciate your reply. As you mentioned in the email, it makes no difference if I am a cook or not.
Michael, as you know a cook is a business’s technician. They will control the business if the owner is not a cook. I would love to hear from, regarding the this matter, because the restaurant is my dream.
By the way, I recently made a new friend, who has a bakery manufacture overseas, he is going to supply the products and provide the method of making bread, cakes and pastries. I am interesting to establishing a bakery as well as a coffee shop in Sydney, but I don’t know if it is the right time for me to open a bakery shop ? I passionate about food related businesses.
As I mentioned in the email, I had a watch kiosk for fifteen years, that business was run by my husband and I, we worked so hard for it but we couldn’t make much return. In the end I had to conclude the business.
Now, I want a new life, new opportunity, I want myself and my family to have an enjoyable life. I like to work hard but I want more time and more money to enjoy.
I’d like to have a bakery with coffee in the near future, I want my bakery shop to sell healthy food. In the first year, I am hoping to make $400,000.00 and the second I would look for $600,000.00 and prepare to expand to a second shop, then continue on until the fifth year, I want to 10 shops in one state. I want my bakery become a nationwide chain store and then worldwide.
I understand that if I want to achieve my goal I need to have a business expert and a smart system. Michael, you are my business mentor, are you willing to help me put everything in order and make it happen. I am ready for this challenge, are you?
Thank you very much for your time and I am looking forward to discussing with you, please advise to me on what am I looking for your professional fee?
Best regards,
Bobo Thai
Michael Gerber's Reply:
Hello Bobo - Given my time constraints, I couldn't even begin to provide you with the help you need. What I would suggest instead is that you enroll in E-Myth Mastery Impact. It is the product of 30 years of development, has delivered in its various forms over the years unparalleled success to many thousands of business owners, and would give you the form and structure of assistance you need to go to the next step in the creation and development of your new company.
The question however is not whether the program works -- it does -- but whether you will give it the time and attention it will demand of you to make your venture successful.
Don't hesitate, Bobo, just sign up. And then give it your all.
All My Best, Michael
Business plan and systems development
How to write a business plan implementing the systems?
Michael Gerber's Reply:
Joan -- thank you for your question. To answer it, however, I need clarification. Do you mean you wish to write a business plan for creating your systems? Or are you saying you wish to write a business plan using a business planning "system"? If you will clarify your question for me I will do my best to answer it.
Thank you, Michael
Congratulations!!
Micheal,
I have read E-Myth Revisited twice. E-Myth Contractor a dozen times. Am currently taking the Mastery course with Skip (he is marvelous!!). Just finished listening to your E-Myth Mastery on CD. Was very grateful to hear of your struggles with partners and clients, in fact laughed through most of your '86-'92. It seemed very similar to many of my experiences. We are excited about all the potential the future holds for our company.
Thanks, for persevering and sharing both the good and the bad.
Bob Baker
Michael Gerber's Reply:
Dear Bob -- Thank you for your commitment and the kind words. I wish I could laugh as heartily as you about those tough, tough years. They still sit there deep down inside of me wanting to find a way out.
Fortunately, something else sits there too, a joy, a passion and a pious belief that the creator in me (and in you) is here to do the good works we are called upon to do, and, with good fortune and intense commitment, will find a way. All of the best to you and yours, Bob.
Michael Gerber
employee statement of intent
Dear Michael,
Thank you again for developing such a great system of work that when I wake in the morning I think "What shall I work on today!" I haven't opened my hair salon yet, still (lease problems) but I am frantically working on the business before I open the door.
Do you have an Employee Statement of Intent from you to your staff explaining what you expect from them etc., that we can copy!!? Cheeky of me I am sure but I thought I would ask! I am concerned that if I write certain things in this agreement it could get me in trouble. Look forward to hearing from you.
All the best from chilly London, UK
Charlotte Murray
Michael Gerber's Reply:
Hello Charlotte
Thank you for your kind words and your question. In my book, The E-Myth Revisited, I talk about your Strategic Objective, which is the "statement of intent" for your company, and Position Contracts, which are the "statement of intent" for your people.
The "Position Contract" is more than just a "job description;" it is a statement of work and results expected from an employee and an agreement between your company and your employees which states that they understand their accountabilities and responsibilities and agree to them. I am not sure what the law is in the UK as regards the above, but I do know without making your expectations clear, you cannot expect your employees to know what you expect of them, nor be held accountable for fulfilling your expectations.
So, ask yourself the obvious question: What is my company's long-term aim (Strategic Objective) and what do I expect of my employees (Position Contract) and put both in writing.
Best, Michael Gerber
Attracting Employees
Hello Michael,
In today's tight labor market, how can I succeed in attracting qualified people to my workforce?
Joe
Michael Gerber's Reply:
Hi Joe
Actually today's labor market is about as loose as I've ever seen, but, given your experience I would say this: the way you attract people to your company is to tell them a compelling story about your company, a story that would make them want to be there with you.
Look up the book, Organizing Genius: The Secrets of Creative Collaboration by Warren Bennis. In it, he describes what he calls Great Groups, groups of people who created stunning results. In it, you'll discover the answer to your question.
Best, Michael Gerber
When to be a technician?
I recently met a billionaire CEO that has been on my priority list of top people to meet in '06. I was introduced to her at a networking event. As it turns out the CFO of one of his companies is looking for a personal trainer (one of the premier services that my company offers). The CFO stated the obvious, do a good job for me and this will create a great flood of opportunity with the company (they are developing a chain of spas and may need our collaborative efforts) on future business.
Although I'm sure it would take any trainer I recommend, my dilemma is should I send my best trainer or do the work myself. If I do the work myself One of my many talents as CEO, it may show our company as only a small potato as if I'm doing all the work myself (when in reality I have over 20 trainers.
However, the relationship is important and I know I can build that and get the CFO into great shape at the same time? What would you do?
Michael Gerber's Reply:
Hi Timothy --
I would differentiate the two functions, that of Personal Trainer and that of Business Development/Account Executive. If it makes good business sense to pursue the Strategic Partnership with this Company, then the Senior Account Executive accountable for the account should pursue it. If that is you, so be it.
On the other hand, if the CFO buys the need for a Personal Trainer, then close it and provide that service with the appropriate trainer delivering the service. Obviously, it's important that the CFO receives what she needs, while the company receives what it needs. I would not make the latter dependent upon the former, however.
Best, Michael
Competition
Dear Michael,
The shop I was intending to buy as my first step into my own business fell through due to the landlord asking for an enormous deposit of £45,000. He pushed me out of the running, hence now a big franchise, doing the same business as myself has purchased it. I need some reassurance as I have found another property around the corner for a lot less rent and risk but still great location.
Should I be intimidated by this big company and find another area or see it as healthy competition and really THEY should watch out!? It has knocked me a bit as this is now the 4th shop I have tried to get in the last 2 years and have seen these shops taken over revamped and in business. So I am feeling a bit worn down. Do you have any sage advise please!
All the best and loving the E-Myth thought (and have been passing it on!)
from London England
Charlotte
Michael Gerber's Reply:
Dear Charlotte -- My best advice would be if you wish to start your own business, start it from scratch. First, you get to create it exactly as you want it to be. Second, you haven't the old baggage to move forward with. Third, it's simply more fun!
Best, Michael Gerber
Problems with the Bottom-line pricing grid
I like the structure of the bottom-line pricing grid. However for my particular business I find it hard to apply. The hart of the problem stems from the fact that I have a variable "price per unit". My products are insurance and investment products. The "cost per unit" is dependent on many factors that are unique to each client. If you have any suggestions on how to incorporate the structure of my sales to the "Bottom Line Pricing Grid" or if there is a different type of grid or formula I should be using please let me know. Thanks
Michael Gerber's Reply:
Thank you for asking your question, the response below was written by one of our E-Myth Certified Coaches.
Response:
In order to answer it we must take a strategic look at the purpose of the tool itself. The Bottom Line Pricing Grid (BLPG) is a structured way to think about the pricing question and to test various alternatives, so you can know the affects of changing prices before actually making any changes.
In your scenario, you can use the BLPG in a couple of ways. You already know the price per unit, you just have several units. You can certainly use it on the most common variables, or anytime there seems to be a question about how to price a particular product, but we must keep the big picture in mind as to why this tool exists. The real question to ask here is, "Do our sales & profit margins align with our goals and Strategic Objective?"
Be clear on what your total sales revenues must be, based on your vision. I would start by focusing on your total sales volume targeted for a specific period, what your break even points are, and what your desired profit percentage is. You must quantify the results compared to your goals on at least a monthly basis. Studying that data over time will show you why or why not you are being profitable. You must establish a standard for the minimum profit percentage acceptable per product offered, and then during your Quoting Process you can use the BLPG to help you clarify the profit amount & percentage and if it in in alignment with your standard. If not, then you can alter the price and use the grid to see the new result. It is fairly quick especially if you use it routinely, and you will have pricing certainty and know weather or not you need to change prices.
New Agent
Hello Michael,
I'm a new independent insurance agent for an insurer and I was wondering if it is possible to use your E-Myth System to turn this into a Franchise Prototype?
If so, how because it's just me. I don't have agents. Thank you.
Antonio
Michael Gerber's Reply:
Thank you for your question, Antonio
Yes, you can apply E-Myth to the development of your "franchise prototype" many independent agents have. Just go to E-Myth.com and you will discover the right path to take.
Michael Gerber
Growing pains
Hi Michael-
My brother and I are helping our father expand our businesses. One is a used car dealership, Dacris Auto Sales, Inc., which is not even opened yet and the other is Dacris Auto Body Shop, Inc., which has been in business for 10 years.
We are listening to your CD's and scrambling to try to get organized, out of debt and the dealership up and running. We are hindered financially and my father is up to his ears in debt! With a solid & loyal customer base, we are struggling to stay afloat still, just waiting for business to come in. We just don't know what to do anymore, but we feel so close to the solution, just not within reach of it? Make any sense? HELP!
Michael Gerber's Reply:
Hi Amy --
Oh, how I feel your pain! Listen...this is very important. You cannot help your father without understanding the money and how it's moving through the business...and, most of all, once you find out what your cash flow situation is, having the authority to do something about turning it around. But, mainly, you can't start the new business without fixing the old one first.
What you need to do, Amy, presuming you have the authority to do it, is to sit down with your financial counselor and find out what's going on with the money and then creating a strategy to deal with it directly. And, as I said earlier, until you do that, do not start the new business!
Best, Michael
KIM - OWNER
I have read the E-Myth Revisited 3 times. Each time I read it I get excited and know that I have found my solution to the problems I have with this monster I have created. I have gone step by step to follow the plans you lay out. The store is so different than most. We are a retail cheer leading, school spirit & Sorority store. It is so labor intensive because it not just a retail store; about 80% of our business is team, and group sales which requires fittings, special orders custom work, embroidery and screen printing.
Our clientele is primary the "soccer - cheer" mom type. It also requires payment from public schools by purchase orders. I have created a labor intensive nightmare and because it is so specialized I can't seem to trust or train anyone to assist with the specialty part of it! If I leave for a minute, a team could walk in and want a fitting or prices and my employees are scared to death to be left alone.
I am working 15 hours a day, 7 days a week, and loosing control of everything else. I feel like there are simply so many elements of this business that I can't possibly explain how to do them, let alone have the time to teach anyone else to help! Is it possible that I have created something that is impossible to manage?
Michael Gerber's Reply:
Dear Kim,
Oh, can I feel your pain. And how inadequate I feel to answer it in a way you can hear me. But, let me try. No, you have not created something that is impossible to manage. What you have done is to create something you find impossible to manage, because you haven't built it to be managed; you've built it as a job. A job for you. And as the business grew, and the products and services increased in number and complexity the number of jobs you stood up to do increased proportionately. And everything became more and more complex. Does that sound about right, Kim?Of course it does. So, what to do about it? This is what to do about it.
- Create an organization chart for your company, with each business product (#1 team sales) (#2 Retail sales), etc, etc, representing a separate Division.
- Then create a box at the top of each Division called President with each President reporting to the CEO (You).
- Beneath the President's box in each of the Divisions create an organization for Marketing, Sales and Operations (just a quick fix, mind you; as you analyze the functions in each Division you'll get clearer about the actual functions and your Org Chart will become clearer and more exact).
Once you finish your org chart from management positions at the top to technicial positions at the bottom, you'll begin to get some clarity about the jobs you currently fill. Surprise, surprise! You actually fill most of them! What to do then is: Pick one Division. The most important one. And start from the bottom of the chart to organize the work you do in the lowest position by creating simple check lists for every single task you do. These Check Lists are your first systems.
As you create Check Lists for everything you do, you are then able to move up to the next level in your org chart and replace yourself with a novice, who will then begin to apply the Check Lists to do the work you used to do as you watch them do it. If they've got a problem prorducing the results you want, check the Check Lists first to see how you can improve them. As you improve them, you'll begin to see your Novice's work improve. And that's all there is to it, Kim.
It's painful in one way, but exhilerating in another, in that while you will make mistakes, and while you will get frustrated that it isn't going fast enough, before you know it, you will have arrived at the top of the Division in the President's Position reporting directly to yourself, The CEO! And then you can replace yourself in that position and start all over again at the bottom of the next Division. Before you know it, Kim, you will have built some very reliable systems with very reliable people mastering them. Believe me in this, Kim. It works, all you need to do is to work it. And finally, I would strongly recommend that you enroll in our Mastery Impact Program to get help from a coach who steer you in the right way when you've desperately in need of it.
All My Best, Michael P.S. -- Let me know how this helps!
Licensing our products
Recently we began contract negotiations with a new client that we will be providing our services to: fitness, coaching and wellness programs. The client first requested that we sign a contract giving them full licensure, patent and copyright usage to our services. Our attorney advised strongly against this since she believes this could potentially run us out of business; however on further review we felt that a licensing agreement may be more along the lines of what they are seeking.
What pros and cons should we bear in mind, i.e pricing structure, limitations, strategies, etc. if we begin licensing our product(s) to clients; particularly those products/services that are for we provide online through the internet or other virtual media (by phone)? Please keep in mind these are new innovations and technologies.
Michael Gerber's Reply:
Hello Fran
The question you ask has more to do with how you approach this than it does the issue of licensing. If there has been an interest in licensing your technology and innovations, then I would look at this as an opportunity to dig down deeper into the opportunity it presents, e.g., is our new client the kind of company we wish to license our technology to, and, if so, what would we expect to gain by doing so? In this way you will be focusing your attention on an appropriate question: what role does licensing play in our business development strategy?
On the other hand, if you are concerned you might lose this client opportunity by saying no to their request, I believe strongly that you would be licensing them for an inappropriate reason. My recommendation would be to find out what they really want, and why, and if it is inconsistent with your plans, say no.
Best -- Michael Gerber
Non-Profit E-Myth
Michael
I started a non-profit two years ago that equips leaders to start churches. Our support office consists of two persons.
Tactically, we do two things:
- Select high-potential leaders of new churches through an intensive assessment process
- Coach the leaders to achieve maximum impact.
We have set up a number of systems (we need to set up more, and we definitely are working on it), but it seems that the gift mix and personality of the leader of a new church are much more crucial than the manager of a hotel, restaurant or law firm. What steps can we take to significantly improve the effectiveness of founding pastors?
Michael Gerber's Reply:
Hello Ron, and thank you for your question. Your assessment of what is called for to be a successful founding pastor of a church must include a model against which to compare potential leaders. If you have not already created such a model, I would suggest that you seek out the most successful founding pastors -- as many as you can identify -- and using a psychological profile (there are many already available) determine what tendencies, characteristics, strengths the most successful of them possess, and add that to your assessment process, as well as to your training. Over time, as you improve both systems, you should see a significant increase in your effectiveness.
Best, Michael Gerber "Come Dream With Us - Turning Your Dreams into Reality!"
A Personal message to Michael Gerber
Hi Michael,
I'm trying to find out if/when you will be doing a seminar event in Toronto, Canada. I have recently bought one of your audio books - E-Myth Mastery and am profoundly affected by what I've listened to so far. Realizing that I've spent the last 15 years in my business as a technician instead of an entrepreneur.
What a waste of resources - just doing it, doing doing it...! I'm feeling somewhat like Sarah. Hopefully, it's not too late to turn my business around. Looking forward to meeting you in person at one of your seminars.
P.S. - Any chance of this message being actually read and answered by Michael?
Regards,
Earl Rudolfo
Soon to be E-ntreprenuer
Michael Gerber's Reply:
Hi Earl,
Yes, this is Michael. Too bad you didn't ask sooner, as I was just in Vancouver doing a Dreaming Room for three days. You would have loved it, Earl! Exactly what you need. Go to www.inthedreamingroom.com to find out more. As for Toronto, don't know, but why wait?
Best,
Michael Gerber
Construction Management assistance
Hello Michael,
I've come in contact with several (10-15)small commercial contractors who are looking for a way to get better at operating their businesses. Do you offer any products designed for this market? or how can the current products be used in this market.
Some current problems have to do with improving their ability to find the right opportunity and then estimating/bidding for the business.
There are other challenges these contractors face, i.e. deciding if they will be a self-employed technician, or business minded entrepreneur.
Help.
Michael Gerber's Reply:
Hello J.D.,
Absolutely, yes, we do. Check out E-Myth Mastery Impact!, our world class coaching program. We have worked with countless contractors at every stage of their business and have achieved wonderful success with them.
New Business
Hello,
My name is Greg and I recently created a Home Cleaning Business called Halpen Hand Cleaning Service ( Last name is Halpen) now, what I would like to know or get advice on is, right now it is only me running this business with absolutely NO start up money...that's ok, because I am determined and dedicated....would you still think it wise to register my business this early (I am registering it as a S-Corporation) get licensed, and open a business account even though I have no start up money...
I hope my inquiry is clear.
Thank you!
Michael Gerber's Reply:
Thank you for your question, Greg -- The answer is yes, start your business formally to support your intention to grow it. Take it seriously, and it will take you seriously. Otherwise it is not a business, but a job, which doesn't need a name either. All you would need to do in that case is say: "Greg Halpern at your service." Instead, you gave it a name, which means you intend it to grow.
Start it off with the respect it deserves; a legal, official company. You will never regret having made that decision. All My Best to you and to Halpen Hand Cleaning,
Michael Gerber
New Small Business
Mr. Gerber,
First, I appreciate the time and effort you have put into creating literature and education on repeatable processes in small business. I have read your books, listened to your audio-tapes and also gone through the Embark online course.
I have applied much of your philosophy to a previous company that has been very successful. I am now trying to focus on another company I've started that is focused of providing local soccer players with a year-round supplemental training option that is completely focused on their individual development, as opposed to the focus of most clubs and teams (their focus is on winning).
The marketing and lead generation process has to work at a local level and attract the parents of local players. I'd like to cut to the chase and find an e-myth consultant or other businesses that have created a repeatable lead generation program for a similar kind of business. Can you recommend a resource?
Thanks
Bill Lynch
President
MaxTouch Soccer Academy
Michael Gerber's Reply:
Hello William - I am not certain what you're asking for, is it a lead generation system that someone has developed, or help developing such a system? If the latter, contact E-Myth Worldwide and I'm sure someone will be able to help you. If the former, contact E-Myth Worldwide for an introduction to an existing or former E-Myth client who may be able to help you.
Thanks, Michael
Ron co-owner
Michael, I am a co-owner of a business that we started 8 years ago, from nothing. This year we will have sales around $1.25 Million with about a 32.5% gross profit margin. When we started we were 100% retail with 3 people. Today we are 45% retail, 45% commercial and 10% service with 4 people, which means we are operating 3 types of business at the same time. Each one has its own priorities and demands. Any suggestions on the best way to e-myth this monster???
Ron
Michael Gerber's Reply:
Yes, Ron. Imagine yourself being a holding company with three divisions, retail, commercial and service. Each is headed up (led) by a manager dedicated to the business he or she is accountable for, each reporting up to the CEO. Each has its own financials, strategic indicators, strategy and plan, as well as its own organizational chart and people. You manage them based upon the contribution each is expected to produce for the holding company. In short, each is a small business playing its part in a bigger business. Then you enroll each division head into Mastery, and watch your business grow!
Best, Michael
The E-Mythed Law Firm
Michael -- I am 9 months into my new law practice and have just finished reading E-Myth Revisited. I'm all fired up to set some systems in place, but am still not sure how to "systemize" my role as the attorney/owner. Won't you do an E-Myth for attorneys like you've done for doctors and contractors? Thanks for your work!
Pamela
Michael Gerber's Reply:
Hello Pamela -- Thank you for your kind words. Your question is simply answered. You actually don't need an E-Myth for Attorneys. All you need to do is read E-Myth for Physicians and change the word physician to attorney and you've got it! Try it and see. And if you're not satisfied, let me know and I'll give you further instruction.
All My Best, Michael Gerber
Becoming a certified E-Myth Business Coach
Michael I am 51 years old and based in the beautiful Sunshine Coast area of Australia. I left my Job of 14 years (after a mid life crisis). I am now doing consultancy work for my old employer looking after their computer systems. The money is spasmodic but I have time to think and write.
I get approached from time to time to set up small business computer networks. By the time the business is looking to set up a computer network they are having major problems.
In my experience throwing a computer system into a small business without entrepreneurial attitude by the owner and senior staff is a recipe for disaster. They think that computerizing a messy business will solve their problems but they just end up with a computerized mess and want to blame the systems consultant.
I could just take their money and run, but I want to have half a dozen good clients that I can get return business from while I develop my own business plan for a major public company. I have a wife and house to support.
I purchased your book E-Myth Mastery. I was quite frankly blown away. Finally someone has a holistic approach to the problems of the human condition that seeks expression through economic activity!
I would like to sell them your business model and materials to my clients and charge for my time to coach and set up computer systems while I use your materials to develop my own major business plan.p>
How do I join your team and become a certified E-Myth Business Coach?
Regards,
Shayne Murray
Michael Gerber's Reply:
Hi Shayne
I wish you could, but we are no longer certifying E-Myth consultants. On the other hand, if you go to our website (www.e-myth.com) and look into Embark E-learning, our new " online learning platform"...you'll see that it would be easy for you to do what you want to do simply by having your client buy Embark (you do the same) and you'll immediately see the opportunity it provides you. Through Embark you will be having an E-Myth conversation with your client, while helping them to transform their business. Let me know how it works for you Shayne.
Best, Michael Gerber
Work on business
I just concluded my jewelry business. I would like to open a take away restaurant, but I don't want lock myself in the business. I want work on business as you said in the book. How can I do that, I am not a cook!
By the way, I also want to become a business consultant, would you have any recommend for me.
Many thanks and kind regards,
Bobo
Michael Gerber's Reply:
Hello Bobo
What a wonderful opportunity to start a new life and a new business, both at the same time! I wish I could have had the opportunity to advise every one of our e-myth clients before they opened their doors, rather than after; what an extraordinary difference it would have made. So, here goes, Bobo. It all comes down to the questions you ask yourself now, when you have the chance to ask them, not later after you have started your business, whether it be a restaurant or a consulting business. First question: Why a restaurant? Why a consulting Business? Why any business at all? What difference will either of them make, to my life, the lives of my customers, to the lives of my employees? What do I expect to gain from these businesses when their finally done, and while I am operating them? What is my exit strategy for each? By when? What will be my return on investment from each? Am I starting these businesses because I'm truly passionate about creating a unique restaurant/consulting firm, or simply because it was the first idea that came up for me? You see, Bobo, whether you know how to cook or not makes no difference. You can hire a cook.
What does make a difference is whether or not you are moved to do this because you have an idea you want to pursue, a big idea, a passionate idea, an idea that's infused with life. If you don't, you will never be able to infuse those you hire with your passion, and without your passion, they will feel even less passionate about your business than you do. It will simply come down to survival. And a business that operates simply because the people who work their need a job, and the owner needs the income, is an unmitigated disaster.Ask these questions now, Bobo. And if your answer to both is "I don't know!" then, by all means take the time to discover what you really want to do with the rest of your life, that does have passion, that does have meaning, and does excite you. And, let me know when you find the answer!
Thanks for the question, Bobo. All My Best, Michael Gerber
Where do you start first when trying to re-vamp an existing buisness with E-Myth's strategies
I have been reading the E-Myth Revisited and now I am reading E-Myth Mastery. I really enjoy all the information and now I am wondering where to start. I spend 90% of my time being the technician, so where do I start first? I realize I started my business without much effort in Marketing and Money and have done pretty well, even without a plan. But now the growth is stunted because I am still doing the same thing I did 15 years ago. I need to start from scratch, but if I spend too much time developing my vision, and I continue to work the same hours, and my profits are still at the same level, which is not nearly enough, where do I find the time to start working “on” my business instead of just “in” it? I feel like the lady in the pie shop.
Michael Gerber's Reply:
Roszetta -- I can appreciate your frustration. Finding yourself tied to "doing it, doing it, doing it" without any insight into how to free yourself from the "tyranny of routine" because your life has been organized around the income you create feels hopeless at times to most. But, there is a way, Roszetta. Many thousands of our clients have managed to do it.
Here's what you need to do first. Ask yourself, what one set of tasks in your business take the most of your time and provide the least payback for that time? And then, ask yourself, what set of tasks produce the most in return for your time? Once you have identified the tasks on either end of the spectrum, your job is then to "turnkey" the least productive tasks by creating a small, precise operations manual describing exactly how to do those tasks. Write the manual as though you were writing it for a kid. And once you are certain that the manual describes exactly how to do the work of those tasks, hire a novice and train them exactly how to use that manual to replace yourself in that work.
Oila' Roszetta, you have invented the Rosetta Stone, the magic solution to producing significantly more results at far less cost than you are currently producing them! Because, once you get rid of the low paying work, you can now concentrate on the high paying work, turning, almost immediately, the rut you are living in into a stunningly exciting business development opportunity! There's more, of course, but just focus your attention on what I've told you to do here, Roszetta, and you will experience a miracle. Trust me in this. Countless thousands of business owners have been freed by doing exactly what I've described here to you.
All My Best, Roszetta, let me know how it works. Michael Gerber
I really loved the E-Myth Physician
I am a dentist and we have a lot of variables when it comes to decision making for procedures. Among these are the various clinical judgments we have to make. How would I hope to apply what you write in your book to make this a replicable system when different doctors work differently and use pretty much a subjective form of decision making? Unlike the "McDonalds model" of making fries and burgers I’m in a quagmire as to how to start making our operations manual.
Michael Gerber's Reply:
Hello Ricardo -- Yours is a wonderful question because it provides the answer even as you ask it. What McDonald's did, and what every company must do, is to make the decision -- the choice -- about "how it is best done here" to produce the result we're looking for. That's what you get to do in the formulation of your perfectly branded dental practice, make the choices in each and every case for each and every practitioner in your emerging dental organization for how it does what it does for each and every variable, thereby turning the subjective into the objective. Call the emerging System, "Ricardo's Way" and you get what I mean.
It is done by presuming to know what is best in each and every case. Once you begin, you will actually see how easy it is. Actually, every dentist is doing that when he or she practices. The only difference between the way you do it now and the way I'm describing is that now you continue to make subjective decisions as opposed to objective ones with each and every patient, thereby turning what should be a science into something akin to an art! At least that's what every dentist would tell you, that dentistry is less a science than an art. To produce a perfectly replicable result, however, you do need to choose between one way or the other, and, by doing so, define the standards by which your organization produces the results it becomes noted for. Thanks, Ricardo, all my best figuring it out.
Let me know how it goes, Michael Gerber
Unsuccessful System Implementation
Dear Mr. Gerber, We as www.gemsan.com have adapted your systems into our company in year 2000. Especially in year 2000, everybody working in Gemsan was given seminars about the systems so that 2000 could be stated as "System Development Year" for our company. I was recruited as "System Development Specialist" in year 2003 and still trying to do my job by explaining the importance of the systems and also by helping/coordinating departments create and update their own systems. But for quite some time, I have lost my confidence in the systems. Because, no matter what I do, I can not make people use and create the systems. However, I believe, they made me unbelieve what I'm supposed to do. So I've been thinking on why we can not create a business working on systems with people believing the power of that system. Now I want to ask you if my hypothesis on why we fail on systems is correct or not. 1) You say that your mission is to empower small businesses. However, when the Chairman of our company decided to purchase E-Myth, the company was working with nearly 100 people and with a yearly sales figure of €20,000,000. Could it be possible that, it is easier for companies to build their systems in time while growing but since our company is already grown big, it is now very difficult to create the systems or understand where the company is encountering problems or what the root of the problem is? Actually we already have an ISO 9001 certification since 1994. But it is not making us to operate in a systemic way also. 2) We are in a b2b business. Our customers are also other businesses not end customers. So we are marketing our products to smart customers. They are also trying to reduce their costs and take the most advantage possible by purchasing a product. It is for sure that there is someone who decides on purchasing so by understanding that person's needs, you can address him very easily. Unfortunately, the purchasing decisions are taken together by several people. This makes it more difficult to use your strategies to build Lead Generation and Lead Conversation strategies. 3) We, as Turkish people, are not raised as American people. We like talking other than doing. We like critisising other than correcting. We are raised in a family and always feel and act like a memember of that family, not as an individual. So most of us have no idea about our Primary Aim (PA). I am trying to help some of our people to find their PA but they really don't seem to care about it. Maybe I can not explain them why it is important. 4) I was not working in Gemsan yet when the first implementation of E-Myth systems were cmpleted. So I don't have enough information on the contractor of E-Myth here. But, considering the results of the implementation, I believe These are some of my hypothesis on our unsuccesful effort to create a system based company. I'll be pleased if you can show me a way and enlighten me on how I can create a difference and make people work with systems. Thanks and regards, Aysegul SALICI
Michael Gerber's Reply:
Dear Aysegul
-- Thank you for your thoughtful question. I truly appreciate your dilemma; how to instill in management the necessary zeal for systems development on a continuing basis? I believe the problem stems from a simple misunderstanding. Systems are not the result one wants; improved performance is. In your role as Systems Development Specialist it is assumed that you would perform a staff function to the other departments in your company by creating the systems they need to enable them to function better. Unfortunately, in your role, you neither have the authority to move systems development forward, nor do you have top of mind presence from operating managers and personnel whose primarily concern is producing the results they are accountable for, not creating systems.
Therefore, the only way you could get their attention and interest, is if you demonstrate how the development of systems improves their performance. How innovation, quantification and orchestration are the critical components of a continually improving company, whose results are constantly getting better, and, because "the way we do it here" is documented with authority and commitment (e.g., the Systems through which those results are being produced, allow those results to be faithfully replicated, no matter who is doing the work) the company continues to gain ground in relationship to the competition which is incapable of performing as your company is with integrity.
So, Aysegul, ask your marketing manager if you were able to demonstrate how an innovate system for generating leads better than the leads currently being generated would be of interest to him? Ask your production manager if he would be interested in seeing how a training system to develop his people's skills faster and more efficiently would be of interest to him? Ask your financial manager if he would be interested in seeing how a system might give greater financial awareness to the operating managers in the company? And so forth. In short, focus on results, not on systems, and you will find that people are more responsive to you. To do that, you need to begin to think of yourself not as the Systems Development Specialist, but as the Business Development Specialist in your company, whose focus is always on continuous improvement of the company's performance through innovation, quantification and orchestration, the latter of which is of course the documentation of what works to produce those stunning results the company is focused on producing while continually transforming them into better and better and better ways (systems) of producing them. In short, your message is, a company that refuses to evolve will ultimately die; but a company that fails to document its living intellectual property -- the way it does business -- will never evolve.
Best, Michael Gerber
Trying to implement a System in a partnership
How do I implement a systems approach to the business as only 1 of 3 partners?
Michael Gerber's Reply:
Hello Timothy and thank you for your question. As one of three partners it is critical that you engage your partners in a dialogue to examine each of your aims regarding the Strategic Objective of your company. This for the purpose of coming to agreement about your business development initiatives over the next five years; what results do you wish to create? What do you need to do to create those results? What's standing in the way of achieving the results you want to achieve so each of you gets what you hope to get out of the community efforts? During this process you also must take a look at your company's performance for the past five years. What were your objectives five years ago? Did you achieve those objectives? If not, why not? What is missing in your business that makes it difficult to achieve those objectives, and how do you address that in the future? As you proceed, Timothy, it will become obvious to you all that something is needed in your company to make it easier and more likely for you to produce the results you want. That 'something' is a system. To make that point, part of your exercise would be to read The E-Myth Revisited and share your thoughts about the book and how it applies to your circumstances. Try that and tell me what happens, Timothy.
All My Best, Michael Gerber
ISO Certification
Michael, I loved you book and after reading the book I got the idea on doing an ISO9001:2000 certification for our company processes before thinking about expanding.. What do you think about this?
Michael Gerber's Reply:
I think it will blow your mind, Ralph. The process, I hear, is intimidating at least, overwhelming at most, but will certainly demonstrate to you the reality of a systems-based mindset as well as the value of it. On the other hand, "thinking about expanding" is not something you do or don't do, it's what a business is built to do...to grow. Nor should you stop everything in order to organize everything, the two are one of the same fabric...flow while you grow, grow while you flow. Hope that makes sense. It's much like being a human being; you don't stop growing while you prepare for your SATs. You prepare for your SATs while you grow.
Best, Michael
Too scared to step out onto the stage.
Dear Michael,
I would like to thank you so much for going to the effort to write the book I most recently had the great fortune to read. The majority of your clients would be current business owners, one would assume. My situation is a little different, which is one of the reasons that your wise and informed words should more than likely not have had an impact on me.
Your book, E-Myth Revisited was somewhat of a watershed, an awakening. That said I am not too certain what I will do with this new found knowledge. And I suppose that is what I am trying to get to. From my perspective, and I am sure that this will come as no surprise to you, many of us are too scared to step out from behind the curtains. To step out on the diving board and take that plunge into the deep world of commerce and business ownership and, more to the point, taking control of our lives and the lives that we want to lead rather than the lives that we accept. Because this process takes risk, and with risk comes the fear of loss. And the fear that want others have imposed or suggested about you might come true. People suggesting that I am lazy, that I miss the small detail.
Your instruction to write down my primary aim was considered and acted upon. It took me a lot quicker than I thought and I took the approach that this statement should evolve as and if required, all except the thing about what I want to be doing and saying and thinking about at the close of my life.
At 27 I realize that I passed up many opportunities and not capitalized on those that were presented my way. With work, sport, business relationships and life in general. The one thing that I can always remember imagining was creating, building and running my own business empire. I have somewhat slowly stepped that way all my life really.
I entered real estate at 21 and after 9 months dropped out, not because of failure but because of lack of focus and drive. I spent another four years traveling, playing rugby and working different jobs but always wanted more. I returned to real estate, but this time I combined business sales rather than just property. I now find myself picking up books and thinking all day about buying a business rather than concentrating on my sales job, a bit of a repeat of last time. It's very hard for me to concentrate and focus on my commission job rather than thinking about building a business.
My boss, the same one who employed me the first time has encouraged me to stay on in real estate and can envision a successful career for me in this profession, but my heart is pulling me towards building my own business. I am not sure what my question is, but I know that I need help and quick, otherwise both opportunities are going to suffer again. Do you have any advice?
Frank Walmsley
Michael Gerber's Reply:
Hello Frank, and thank you for your question. If it is any consolation to you, I didn't start my own business, the one you know as E-Myth Worldwide, until the age of 41. My years before that felt very much like the ones you describe, wandering, unsure of who I wanted to be let alone who I was, did well in school, but not nearly as well as I could have done had I focused on the tasks at hand. I was, I know now, a dreamer. In my early years it felt "dreamy" to be inside my head. I had nothing specific that I was called to do, I simply was caught up in my imagination without anything I was passionately interested in focusing it upon. And that was it...there was nothing concrete I was interested in focusing my imagination on creating. Nothing that "called to me" and said, "Hey Michael, this is it!" Do this!
But that's exactly what came to me and led to the creation of E-Myth Worldwide. "Hey, Michael, this is it!"...and everything, the people, the place, the time, the desire, all came together in exactly the right way to make the movement forward possible. Which is to say, what? That you can force that call to happen to you, Frank. You can force it by accepting that that call is waiting there for you right where you are. It is not real estate, no matter what your boss says. If it were, you would have done it by now. So, how do you "force it?" You begin to look around you at the world in which you are living. You begin to look for What's missing in this picture? That if you were to know the answer to that question, would really awaken the passion in you to pursue it further. Your problem, Frank, is that you're caught up in the thought about issues that aren't relevant to you right now...like afraid to take the leap, etc. There is nothing to be afraid of since there is nothing to do right now other than to pursue what's passionately of interest to you, and right now there is nothing. Your job, Frank, is to find something to be passionate about. It's not about starting a small business, it's about creating an enormous passion at the center of your soul. That's all the fuel you'll need to begin the odyssey, Frank. Go to it.
Best, Michael
Skilled or unskilled staff?
The e-myth seems to focus on using unskilled staff to run a successful business system. After 10 years building a web design & development business I have 5 highly skilled staff but despite high revenues I haven't yet achieve sustainable profitability. Without dumbing down my workforce which way do I go to make it work?
Michael Gerber's Reply:
Hello Alan
Great question. Here's the answer. Your "experts'" role now would be altered to include building the System through which significantly less experienced people would be able to produce expert results just as your experts do, but without their capability. In short the System would do it. Short of that, you would alter your business model to make it possible for you to hire "novices" to produce expert results to a new demographic consumer for whom you provide a unique solution to their problems. E.G., you would build an expert system to solve a deeply imbedded problem for which your company would become the unique provider.
Hope that helps, Alan, Michael
Question about Pricing
Hi Michael I own a retail IT store in Australia. My team and I have been coming up with ideas to increase the bottom line. One member came up with the idea of removing price tags from the item in our shop. The idea behind this is to be able to charge certain customers more or less depending on their requirements. The upside would be more profit if it worked correctly but on the downside I could be encouraging a discount culture in my business which I don't want to do. So I was looking for the opinion of an expert which I'm sure you have come across this problem before. I look forward to your response. Kind Regards Cody Heit
Michael Gerber's Reply:
Hello Cody – And thank you for the question. Most definitely, I would NOT follow the advice to take the prices off your products so you can charge whatever you like depending on the customer. Your price should be your price no matter who is buying. What I would do instead is two things; first, raise the prices of your best selling products immediately 10% and see what happens to sales. This is to test the market sensitivity to price. I believe you’ll be surprised that there is little to no price sensitivity. I would also begin to quantify the sales of all your products daily. In other words, test the sales persistency of all of your products to see which you should carry and which not. That will have an impact, obviously, on your profitability, since you will ultimately become very sensitive to what’s turning over and what’s using up valuable space. Additionally, I would also ask you to audit the effectiveness of your merchandising and sales processes, to see how altering them impacts sales, and therefore revenue, and therefore profits. An effective sales process is obviously significantly more profitable than an ineffective one. I would also enroll in E-Myth Mastery Impact! Cody. At the cost of a minimum wage employee, you can’t beat all the insights you will receive by going through our Mastery Business Development Process. It will make all the difference in how you view your business, promise. Let me know how all this works, Cody.
All The Best, Michael Gerber
Working Hard, Getting Nowhere
We are a husband and wife team and own and operate a consulting company. Our plans were to add a sales and management team once we began generated sufficient revenue for salaries. After listening to your e-myth audio series, we realized that we needed to have the right processes in place so our people have the best chance at success. The problem is that we've been working non stop, day and night for the last 6 months on putting 'processes' in place and still don't have anybody working for us. My husband has a full time position with another company and works some lunch hours and evenings to get some things done but exhaustion has set in and we don't see the light at the end of the tunnel. Are we going about this the wrong way?
Michael Gerber's Reply:
If your husband has a full time position with another company, then it sounds like you are not a consulting team, but a consulting solo; which means that essentially you have created a solo practice. To get where you want to go is going to call for three things:
- A clear vision of what you want to create. How is your Practice going to position itself in the marketplace? What is its unique advantage? How does it do what it does, without you, as opposed to because of you?
- Who possesses the expertise to create the process by which you actually do what you do? Is it you or your husband? If he is the one, than you are going to have to write a plan for him to do it, and work your consulting solo practice as you are doing it until he is done creating the first pass of the process.
- It will be your job then to learn the process and test it in your practice. Work on it while you're working in it. Improve the process until you are confident you can teach someone else how to use it. Then recruit your first person and manage his or her use of the process working in tandem with you and your clients.
Wish I could actually do it for you, but let me know how it goes.
Best Wishes, Michael
Struggling Not to Fail
Michael
I own a construction company in Texas. We do commercial and residential construction, all phases. I have been in business off and on for three years. Recently I decided to make it full time. I am having a number of difficulties; the most pressing is lead generation. I have not had the funds to advertise. All funds have been going to insurances, incorporating, equipment, state registration. The jobs I do manage to get are very small in dollar value, with probably less than a 10% return. When I do put out a bid that will generate funds beyond my minimum to cover expenses, they get turned down. I am currently operating in the negative and I do not wish to go out of business. I am currently trying to get a job that is large; I am a small company with two employees not counting me. I am scared and confused. I have read e-myth mastery, but I still have no answers, and no clear direction. I need help and have no idea what to do or where to go.
Michael Gerber's Reply:
The most important thing you could do right now is to contact SCORE in your local SBA office, and to do it immediately. Explain your problem to them. Show them your financials. Find a SCORE mentor who has experience in your business and pose the question to him. It sounds like this is not a new problem, that you have been attempting to "get off the dime" for three years, and have not found the key. You do need immediate help that you can acquire cost free. I am sorry I can't be of any more help to you. If you had more time, you could enroll in an Embark E-Learning course and get help building your lead generation system.
Best Wishes, Michael
Value Proposition / Positioning Difficulties
My company provides specialized software that helps mid-sized firms create web-based operations manuals. We call it a "knowledge transfer system". We've had difficulty selling the product primarily due to the fact that most companies backburner documentation and don't want to do it. Many firms already have policies and procedures but they are typically "a mess" and VERY difficult to follow. As you can imagine, we subscribe to your "systems" philosophy but a lot of our prospects don't. Many prospects either do nothing or think they just need a content management system to "centralize and manage their mess". We, unlike our competitors, focus on usability for increased performance. Unlike generic tools, our software has built-in controls to ensure quality and standardization. But prospects seem to want the path of least resistance. It is very difficult to get through this resistance to "doing it right" and sell the value of our different approach. Thanks, Kathy
Michael Gerber's Reply:
Yes, Kathy, I can understand how painful it must be for you to be a stranger in a strange land, yelling to everyone you see in a language nobody understands or even wants to understand. So, here’s my question: why did you create this software in the first place? You must have discovered that the documentation companies’ use is a mess, and that it is enormously frustrating to their customers? So, what price do they pay for that frustration? In other words, are they losing sales because of their lousy documentation? I doubt it. I doubt that any customer reviews the documentation before they buy, and so the only time it comes up is after they buy, and causes the frustration…so what does the customer do then? And when the customer does that, what price does the firm pay for the inadequacy of their documentation? You need to know the answer to that question!
The price your prospect company pays for their lousy documentation. And that they KNOW that is a price they are paying. My intuition tells me that either they don’t know the price they’re paying, or they don’t know the price they are paying for not knowing the price they’re paying. Therein is your significant selling opportunity. First that you demonstrate to them the price they are paying, and then sell them a service…using your software…that eliminates that problem once and for all, not only for the products they’ve currently got, but for all products they are creating in the future…and then monitor their business for them to demonstrate the impact your service has had on their business…without any effort on their part.
So, turn your product into a turnkey, low cost service. Hope that helps. And let me know what happens.
All My Best
Michael Gerber
Takeover
Dear Michael
I am taking over an existing business where all the staff have known eachother for a long time. Do you have any tips on how to introduce myself to them to "be the boss" and not the enemy? Should I shut the shop for the afternoon? Should I change the name / sign/ etc immediately or be there a week and let things lie? What is the best way to takeover? The shop is a hair salon and I will be working in it as well as running it.Any help really appreciated.Really enjoying the learning.
With thanks in advance
Charlotte Murray, London, UK
Michael Gerber's Reply:
Great question, Charlotte. Here’s my suggestion. Do not walk into your new business with a plan. Walk in with questions, questions, questions. Show your six producers how interested you are in them, in what they do, in how you can help them grow their practices. Spend a lot of time doing this for the first month. Hold a meeting once a week to confirm with them what you’ve discovered from your meetings with them. Ask for their thoughts and opinions about opportunities they see or might know of or have tried to suggest in the past, or would like to suggest for the future. In short, build your plan over the first three months, with your practitioners’ insights and help, while winning them over. The most important thing you can achieve in your first 3 months with your people is inspiring their commitment to you because of your commitment to them. And, then, begin the process of improvement. This will make it so much easier for you, Charlotte.
All My Best,
Michael
P.S. – Let me know how it goes.
Sole Trading and Consultancy Services
Hello, Michael. I have just spent a weekend absorbing E-Myth Revisited, and found it really helpful. I run an Architecture and Construction Consultancy and am currently a sole trader, but I do use Associates for some elements of my work. I can see how I can sub out more elements of my work (in, for example, admininstration), to make my business more efficient. I have resisted growth by employment for some time, for a number of reasons. My question is, can a business be successful if its growth is contained within a sole trader model?
Michael Gerber's Reply:
Hi Jillian,
Yes, a business can be successful “within a sole trader model,” if by successful you mean it will provide you with the return on your investment you are looking for. On the other hand, and since the word ‘success’ is a relative one, there is so much more to be derived from building a company that doesn’t depend upon you to become the chief producer, as you currently are, and, as you are planning, will always be in a sole trader model, which, in E-Myth terms, is called a Practice. What happens when the practitioner in a practice goes away for four weeks? Well, obviously, the practice goes with her! So, while my answer is yes, it is a guarded yes. I would love to know why you have decided to avoid hiring people. By knowing that I could more intelligently respond to the question hidden behind your question…which is, I believe, “Do I need to employ people to be successful?” Hope that helps.
To More Life, Michael
Small Small Business
Michael, I am a one man band, my speciality is Training and I am working with several big manufactures, however I can’t break away. I need them to stay alive however my dream is to stand alone. I want to offer some stuff for nothing to get my name out there hoverer something inside tells me that something for nothing may be worth nothing? Just interested in your thoughts on the something for nothing thing? Bob Moss Australia PS When will you be in Australia next? bob_moss@summit-automotive.com Thanks for the Books & tapes have helped do business better
Michael Gerber's Reply:
Hi Bob – First of all, I’ll be in Australia in September. If you’d like to hear me speak, I’ll let you know whom to contact. Email me directly: mgerber@e-myth.com. As for your question, the answer is no, you don’t have to give your time away to get your name out there, you simply have to get your name out there! How do you do that? By doing radio and other media interviews that will reach your prospective customers attention. So, identify the media most important to your audience, create something to differentiate you from other trainers…something that would grab the media’s attention, such as: Trainer tells why training doesn’t work! In other words, you need to capture your customer’s attention by telling him why training doesn’t work, and then position yourself as the Un-Trainer (just made that up!). In short, you need to capture your audience’s attention and the best way to do that is to tell them something they already know in a way no one has ever told them before. So, look for your point of differentiation, and then sell it sell it, sell it.
All My Best, Michael Gerber
Vision statement
Michael, my husband are the primary shareholders of Waste Associates, Inc. We also hold the positions of President, CEO, VP Operations, VP Marketing, Dir. Account Management all the way down to Filing Clerk ! www.wasteassociates.com. Our initial goal was to generate the revenue that would permit us to bring on a future sales and account manager. Thank you for your E-Myth book.. Since listening to your audio series, we have taken your words of wisdom and have been working everyday and night to develop the processes to succesfully achieve our goal. We have been having great difficulty developing our vision statement. Core purpose / Core values + BHAG (Big Hairy Audatious Goal). We help companies reduce their waste and recycling expenses, manage vendor disposal services, propose cost effective recommendations to disposal needs, address and resolve vendor issues. Simply put, we help companies reduce costs and control future increases. I feel 'saving money' is not a proper core purpose. How could we develop our core purpose without it sounding like a goal or mission statement?
Michael Gerber's Reply:
Dear Anne-Marie,
I can understand why you are confused! All these words to describe something which is really so simple! Ask yourself this question: What did we want to accomplish when we were first inspired to create a waste management business? What moved us to do this? What was the outcome we envisioned? What impact did we want to have on the world? That is (or was) your Core Purpose. Let me know what you come up with.
To More Life,
Michael
Premium Pricing
Hello Michael,
I love your book! I have a business mentor as was suggested by other Pilates studio owners. When I asked him about pricing he (as well as 3 other people) had suggested premium pricing. Charge a fair amount more than my "competition" and deliver more. I do have more to offer but do not wish to price myself right out of business. Your hotel story is a good fit in terms of quality & consistency; I offer both. If others charge $60.00 for a private session, should I charge $80.00? $85.00? He said Premium Pricing has to be a considerable amount more than others. What do you think? Are you familiar with the concept?
Thank you,
Jeanne Zimmerman
Michael Gerber's Reply:
Dear Jeanne,
Your problem is not premium pricing. Your problem is defining a service which clearly rises above your competitors' services, by providing your client with much more than just Pilates. Then, cost out what you are delivering and establish your price based upon your Cost, Your Desired Margin, and the Psychographics/Demographics of your consumer. Then, after you have done all that, test the price by offering it in a number of different ways, a number of times to your Central Demographic Model Consumer and see what happens! In short, there is no such thing as a premium pricing strategy, e.g., creating a premium price in itself will not attract customers to your door. Only the combined and continually refined Visual, Emotional, Functional and Financial components of your business model will do that. Hope that helps you begin to put the pieces together, Jeanne.
To More Life,
Michael E. Gerber
How to implement the E-Myth Contractor into a new business
Michael,
My husband is a Certified Builder and I am an administrator. We have an idea for a new business in New Zealand which we could implement and run on our 4 acre lifestyle block. How do we get all your plans written succinctly so that we can all follow our "job descriptions" within the new company. In other words, where do we start. I am a bit overwhelmed and need direction. Thanks, Kathryn Christensen
Michael Gerber's Reply:
Dear Kathryn,
I know about Overwhelm Kathryn, had it all my life. But of course, I’m always doing more than 10 people can do, so is it any wonder?! Here’s my answer to your question: chill out! The process is so, so simple. If you haven’t read the E-Myth Revisited, do so. You’ll see the process spelled out in seven clear steps. These are: Your Primary Aim; Your Strategic Objective; Your Organization Strategy: Your Management Strategy; Your People Strategy; Your Marketing Strategy, and Your Systems Strategy. What that means is also very simple: Paint a Picture of your company, how it’s going to look. act and feel, just as though you were writing a story about it. Dream with your husband about creating the impossible company that will be stunning to see, to work with and in, to buy from. See it clearly, Kathryn, on those beautiful four acres. See it attracting customers to your door, simply because it is such an idyllic thing you’ve created. Have an artist render a drawing of your store/shops/gardens…whatever it will be when you have made it a reality. You see? Creating a stunningly successful company is like writing a stunningly successful novel – it moves people! So play with what I’ve just said, Kathryn, and write me as you go.
To More Life!,
Michael E. Gerber
How to start my own business?
Hi Michael, I'm a software development project manager on a development center owned by an international law firm. My dream is to have my own business(I know, you must have heard about this thousands of times) but I'm confuse how to start realizing the dream. I'm reading your E-Myth Revisited book now and really interested about it. Hopefully you could give some wisdom and or practical steps on how I should start the dream. I haven't had a clear vision yet up to now except the dream to have my own business. I'm longing for it to happen since I graduated from my college, but haven't had a chance to really take a real steps into it. Would really appreciate your advise on this. I wish that you have a branch office on Jakarta here where I could take the E-Myth Mastery course and have a chance to experience your coaching. I bought the E-Myth Matery book and it's on my list of reading now. In Pursuing the dream, Rustam
Michael Gerber's Reply:
Great question, Rustam.
The way to start is simple: look around you and see where the opportunities lie. There are so many of them. Services that make promises but don’t deliver them. Products that are losing their edge. Other businesses outside of the software industry crying out for innovation. Take just a few of the most immediate needs of consumers, look to see how they’re being satisfied, and look for the edge. In short, as you get started in this process, you’re going to be living in The Dreaming Room…the place inside you where the entrepreneur lives. Looking for opportunities, looking for opportunities. That’s the ticket!
To More Life,
Michael E. Gerber
Founder and Chairman,
E-Myth Worldwide
Non-Motivated partner
Michael,
We've been in business for about 8 years and do a little more than $1.25 million in sales. I can't get my partner excited about anything. I want to use your ideals to reinvent the business. Any suggestions?
Michael Gerber's Reply:
Yes, Ron, it’s time you had a heart-to-heart with your partner before you go any further. You cannot light a fire with wet wood. The conversation should be about your vision for growing the company, and your determination to do it. The question is, what will his role be? The question is also, what does motivate your partner; what’s his life plan, his exit strategy? What if, by growing the company the way you want to, you could provide him with an extraordinary bonus between now and the end when you successfully sell the company? What would the bonus be, what would it take? I believe the reason your partner is luke-cold about the company, is perhaps because he doesn’t imagine it can get much better than it is now. You’ve got to disabuse him of that belief.
To More Life,
Michael E. Gerber
Fitting the E-Myth methodology into my business
Hello Michael,
I own a deli in a rural town. After reading your book I am so keen to implement some of your suggestions. I don't quite know where to start because we have such a varied range of services that we offer, such as groceries, videos and DVD's, take-away foods, cafe, etc. There is usually only one person at a time working. When it isn't me it is my off-sider. I can see big potential in this little shop but need some direction.
Michael Gerber's Reply:
Dear Annyta,
The first place to begin is to shape your company by creating your Strategic Objective; what business are you actually in? Are you in the video business, sandwich business, grocery business, a cafe? Your answer right now is “all of them.” To get out of that quagmire, do an analysis of each product area. How much does each line of business produce for you as a percentage of your total revenue? How profitable is each line of business? The information you uncover will surprise you. And, will help you determine your Strategic Objective. Without focusing your attention on the form your business is to take in the future, you can’t possibly decide the form your business is to take today. And without focusing your attention on the form your business has taken to bring you to where you find it today, you can’t possibly decide where to take it into the future. Complete your analysis, and you’ll discover your next step. Most of all, have fun with it. You’re about to discover some fascinating things about your business.
To More Life,
Michael E. Gerber
Founder and Chairman,
E-Myth Worldwide
Doctor asks how to create McDonalds like efficiency in a medical practice
Dear Michael,
I wanted to write and tell you that the E-Myth concepts and the books you have written have been a great help to me. I’m a doctor in private practice, and your ideas have opened my eyes in many ways. But one thing still is not clear to me, and that is why I am writing to you today.
In the medical profession, diagnosis and treatment decisions often require someone with many years of technical training and experience. Patients who are ill want to see a doctor, not necessarily a nurse practioner, and patients who need surgery want their surgery performed by a qualified surgeon. How, then, can we “McDonald-ize” a medical practice when, for example, no two patients have the same requirements and concerns, even if they are suffering from the same disease?
Looking forward to hearing from you,
Dr. SeshMichael Gerber's Reply:
Hello Dr. Sesh,
Thank you for your excellent question. This is a common concern for many doctors, scientists, engineers, and other highly trained professionals.
The real value of the McDonalds model in a medical practice is in the efficient organization of the work, in the quantification of results in all areas of the business and, most importantly, in delivering a consistent experience to patients.
As the leader of your practice, you need to look for a system-solution to this common frustration. I suggest that you start with an objective approach to organizing the specific work that needs to be completed in order for your patients to receive that unique brand of care and treatment you provide.
For example, start by making a detailed list of the categories of work, or “work functions,” that need to be covered. Under each work function category, create more granular lists that detail the specific jobs or work units that comprise each work function. Then, organize the work function categories by the skill levels that are required to perform them.
After the work functions of your practice have been organized, the second stage of innovation is to create the action plans and systems that detail exactly how each work function is to perform each task. By documenting the procedure for completing each task in a work function category, you can ensure that the expected results are delivered in a consistent and efficient manner.
I think you will find that this exercise will give you a strategic perspective on the necessary work functions and areas of responsibility in your business. It will also give you a better understanding about which functions can be completed by people at various skill levels, including which tasks must be performed by a medical doctor, and which tasks can be delegated to lower level employees. Ultimately, this will lead to more efficient overall work organization, better quantification of results in your practice areas, and a better relationship with your patients.
I hope that I have answered your question to your satisfaction, Dr. Sesh. If you do decide to embark on this strategic task as described above, I hope that you will take a moment to share your experiences with the other members of the community.
To More Life,
Michael E. GerberFounder and Chairman
E-Myth Worldwide
How do I use the "Ask Michael Feature"?
I am very interested in this new feature. I would like to submit a question to Michael Gerber. How does this work?
Michael Gerber's Reply:
Hello Nathan, thank you for your query. All you have to do is fill out the two text fields below and click on "submit". It's as easy as that. I will review all submissions received, and then answer one question per week. My response will be posted here on the Community Connection. If your question is selected, you will also receive my reply by email. Please note that, due to the large number of queries received, it will be impossible for me to respond to all of them.
