Book Summary : The E-Myth Revisited

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 theentrepreneur 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.

By: Regine P. Azurin and Yvette Pantillahttp://www.bizsum.com"A Lot Of Great Books....Too Little Time To Read"
Free Book Summaries Of Latest Bestsellers for Busy Executives and Entrepreneurs Mailto:freearticle@bizsum.com

BusinessSummaries.com © Copyright 2001- 2005, BusinessSummaries.com -Wisdom In A Nutshell

Regine Azurin is the President of BusinessSummaries.com,a company that provides business book summaries of the latest bestsellers for busy executives and entrepreneurs.

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Book Reviews Information:

Related Articles

Ideas Are Free - A Book Summary
Without great ideas, no organization can stay afloat, much less flourish. Managers and top executives are constantly struggling to come up with big ones - creative marketing strategies, ingenious cost-cutting schemes and other corporate solutions that will save time and money and improve productivity.
Pariah - Book Review
"Pariah, written by multi-talented artist and author Timothy Goodwin, is a science fiction, fantasy novel that incorporates some very clear ideas to what is wrong with today's world. The characters are colorfully portrayed and the battles were very well written.
Story Structure - Three Heroes
Three Heroes Story Structure follows the Hero's Journey mould but distinguishes itself by making both the hero and the shape shifter both likeable and deserving of the final prize.The Classic Hero's Journey also makes the shape shifter likeable and deserving of the prize but in Three Heroes, we get more of the Shape Shifter's back-story and surprisingly little of the Hero's.
Going Deeper - Book Review
Going Deeper by Jean-Claude Koven is certainly a nicely presented, hard-cover book. This fiction fantasy has an obvious inclination to aid readers who are embarking on their personal spiritual quest.
Book Review: Seth Godin - All Marketers Are Liars
Let me start with a small disclaimer: I am a HUGE fan of Seth Godin, and have been ever since he wrote Permission Marketing and probably always will be. Seth has a very unique take on traditional marketing (he thinks it's dead) and I agree with him.
The Rich Jerk - A Study in Anti-Marketing
I've always been fascinated by "anti-marketing", and how powerful its effect can be if done properly, so when I stumbled upon The Rich Jerk salesletter, I was immediately intrigued.I'll admit, I'm one of those people who *never* reads a salesletter when I am considering buying something (I do read them when researching techniques, but that's another story), but from the moment I read The Rich Jerk's headline, I couldn't keep from reading the entire thing.
A Monster Named Criney who Makes Kids Whiney - Review
Excellent! The best children book of this genre that I have had the pleasure to review!A Monster Named Criney Who Makes Kids Whiney by Heather Zuckerman can be classified as a juvenile fiction geared for children aged between three and seven. Mood-setting bright color full pages greet the reader upon opening the durable cover.
Are You Using Both Sides of the GoogleCoin?
By now most of you realise that Google can give our websites the ability to appear within their results pages using a Pay Per Click model (PPC). This is called Google Adwords Hopefully, you will also be aware that that Google offerswebsite owners the ability to display these PPC results ontheir own websites.
E-books in Your Life
E-Books are making a big impact in the way we read, write and use books. There is nothing holding back an expert with years of experience on a particular field to write about all the ins and outs, trade secrets, strengths and weaknesses of the industry.
My Dad Wears Polka-dotted Socks! - Review
"Bright colored sheets just inside the sturdy book cover certainly set the mood for this excellent book geared for children between the ages of 4 and 8.The main character is a young boy who is desperately fretting over the class reaction to his strange family.
How Would You Move Mount Fuji? - AchieveMax® Top Ten Book Review
For a number of reasons, today's hiring managers from Wall Street to the Silicon Valley are totally restructuring their approach to interviewing job prospects. Few will admit it has anything to do with the fact that our litigious society makes it very difficult to ask almost any personal question of today's job applicant.
Book Excerpt: Give Me a Home Where the Dairy Cows Roam -- 5
May-Day!The school bus had long since disappeared over the last hill toward the main road one afternoon when I set my books on the kitchen table and hurried into the living room to talk to my mother.Mom was sitting in her favorite easy chair by the picture window, and her crutches were laid neatly on the floor next to the chair where she could reach them.
What Really Works - AchieveMax® Top Ten Book Review
If you watch television, read the newspaper and/or magazines, frequent the Internet, or simply move in any kind of a business circle, you must have, at one time or another, pondered the following:Why do some organizations consistently outperform their competitors?What do managers at the best companies know-and do-to keep their organizations on top?When it comes to implementing management practices that can propel a company to lasting success ..
Pandemonium - Book Review
"Within the first few pages, I was engrossed and deeply moved by Apina Hrbek's eloquent writing skills. Tears of compassion were in my eyes at several points in this moving story of survival.
Inspiration for the Fired Soul
You're Fired! is a book that tackles the real story's behind these two little words that pack so much punch.This is an Ebook that gets people motivated and inspired to take a different approach to being fired.
King Bartholomew and the Jesters Riddle - Review
King Bartholomew and the Jester's Riddle by Pina Mastromonaco is a wonderful, fun book with a humor level perfect for children aged four to eight. Entertaining riddles entice readers to try to guess the answer while enjoying the tale.
Book Review for The Margaret Ellen, A Karen Cobia Mystery by RC Burdick
I've discovered a new favorite author, and his name is RC Burdick.The Margaret Ellen is an ocean-drenched mystery, filled with vibrant characters, palpable sea breezes, and spine-tingling suspense.
Jesus and the Gnostic Cathars
These are some of the highlights of a connected story of Milesian/Phocaean/ Phoenician architects who allow 'his'-story to confuse the masses. It is still going on and we must try to change it.
Book Summary: The Rebel Rules
What does it take to get in touch with your inner rebel and run a business on your terms? Today's Information Age has spawned a number of rebel business leaders, from Virgin's Richard Branson to The Body Shop's Anita Roddick -and to Joie de Vivre Hospitality's boy wonder - the author himself - people who have the passion, instinct, agility and vision to rewrite the rules of business so it is ethical, respects diversity, and means more to people than simply turning a profit.So what exactly is a rebel?1.
The Southwest Airlines Way - AchieveMax® Top Ten Book Review
Over the years, several books and countless magazine and newspaper articles have been written about Southwest Airlines. Numerous MBA programs highlight the Southwest structure, its culture, its CEO, its low fares and other reasons as to why it is the bright spot in an otherwise dismally performing industry.