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Michael Gerber’s E-Myth Revisited

Loralie Evangeline P. MirandaAGSB MBAH Entrepreneurship

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E- Myth False Assumptions of Success:

Desire to own a business + capital + knowing target amt. of profit

DisasterExhilaration, Exhaustion, Despair

Entrepreneurial Seizure

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E- Myth Attempts to put order into Chaos Wants to revive small business

worldwide Small business are a good testing

ground for innovations

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Roles of an Entrepreneur Technician Manager Entrepreneur

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Phases of Business's Life Infancy (Technician’s Phase) Adolescence (getting help) Beyond the Comfort Zone Maturity and the Entrepreneurial

Perspective

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Turn key Revolution Transformation on the way business are

managed

Development of successful businesses

Eg. Franchise

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Franchise Phenomenon The business format franchise spun off

from the earlier franchise format called "trade name " franchise.

entitles the franchisee to marketing rights & owning rights to his entire business system as well.

It is anchored on the belief that the real product of a business is its sales technique rather than what it sells.

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Standards for Franchise Prototypes

Allows testing of the business system before it becomes operational

1. Build a model that will provide prospective clients, suppliers, creditors, and employees continuous value and even exceed expectations.

2. Build a model that is user-friendly, meaning a model can be functional even to people whose skill level is low.

3. Build a model that is free of defects. 4. Build a model that is equipped with Operations Manuals. 5. Offer your clients a model that is guaranteed to provide

consistently predictable results. 6. Build a model that will make use of similar colour, dress

and facilities code.

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Business Development It is a dynamic process Equips the entrepreneur to pre-empt the

changes happening around 3 Elemental Stages

1. Innovation - creativity2. Quantification – impact measurement3. Orchestration – narrow your choices

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Business Development Program These are the questions: 1. What is your primary aim? 2. What are your strategic objectives? 3. What is your organizational strategy? 4. What is your management strategy? 5. What people strategy should you apply? 6. What is your marketing strategy? 7. What is your Systems Strategy?

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‘‘The problem with most failing businesses I’ve encountered is not that their owners don’t know enough about finance, marketing, management and operations -- they don’t, but those things are easy enough to learn -- but that they spend their time and energy defending what they think they know. The greatest business people I’ve met are determined to get it right no matter what the cost.’’

-- Michael Gerber