Book Summary: The E-Myth Revisited
By: Regine Azurin
This article is based on the following book:
The E-Myth Revisited
Why Most Small Business Don’t Work and What to Do About It
Harper Business
ISBN 0-88730-728-0
288 pages
Ever wonder why most small businesses-- no matter how huge
effort they put in their endeavor--still fail? Micheal
Gerber reveals the answers in this book. Accordingly, the
future of small businesses revolve in only three
philosophies: the e-myth (entrepreneurial myth), the
turn-key revolution, and the business development process.
The E-myth
The e-myth, or the entrepreneurial myth, evolved from one
very fatal assumption-- that the success of every
business is simply achieved by summing up the following:
an entrepreneur’s desire to own a business plus the certain
amount of capital he puts in plus the knowing the amount of
targeted profit.
Little did the entrepreneurs know that this assumption
spell DISASTER rather than SUCCESS. Entrepreneurs need to
learn to focus more on the business—the people involved in
it and the phases it normally undergoes. Knowledge on these
can save small businesses from experiencing entrepreneurial
seizure—a stage wherein an entrepreneur goes through feeling
of exhilaration, exhaustion, and despair.
Small businesses basically consist of three main characters
namely: the technician (the doer and builder), the manager
(the planner), and the entrepreneur (the dreamer, visionary).
Moreover, small businesses have different life phases.
These are: infancy (the technician’s phase); adolescence
(getting some help phase); beyond the comfort zone; and,
maturity and the entrepreneurial perspective.
The Turn-key Revolution
As implied by the term itself, Turn-key Revolution speaks of
the distinct transformations on the way businesses are
managed and should be managed. One very prominent example
is the introduction of McDonalds the idea of business format
franchise to the business world.
The business format franchise has set dramatic turn around
on the future of small businesses. Here, the franchisor
entitles the franchisee to owning rights to his entire
business system. This format is anchored on the belief that
the real product of a business is its sales technique rather
than what it sells.
The Business Development Process
The business development process is the response to the
unending dynamism of the business world. It equips the
entrepreneur with the necessary tools to preempt the
continuous changes happening around. The process is
comprised of three elemental stages: innovation,
quantification and orchestration.
The business development program requires the following
aspects to be defined:
Your Primary Aim. The owner’s primary aim should center
on what he really wishes, needs and wants for his life.
Defining this will push the owner to pursue his defined
entrepreneurial dreams.
Your Strategic Objectives. This contains standards that help
the owner achieve his goals for his business. This should
answer the question: What purpose will this serve my primary
aim?
Your Organizational Strategy. Business owners should learn how
to appreciate the value of organizational structures. Some
points to consider are organizing around personalities,
organizing your company, and position contract.
Your Management Strategy. As the owner you should recognize
the truth that the successful implementation of a management
strategy is not dependent on the people who could implement it
but on the system instead.
Your People Strategy. This refers to the approach you take
towards your people and their work. To make people appreciate
the work they do, you should make them understand the idea
behind each of their task assignments.
Your Marketing Strategy. Here is the stage where all attention
suddenly shifts from owner to the customer. You set aside your
personal goals first and start focusing on the customer’s needs.
Your Systems Strategy. There are three kinds of systems in a
business: the hard systems, the soft systems and the information
systems. The hard systems refer to all those in your business
that are inanimate and has no life. The soft systems refer to
all those that could be living or inanimate. The information
systems are everything else in the business that provides you
with data relating to how the two earlier systems interact.
Summary By: Regine P. Azurin
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