How to Scale Your Business With the E-Myth Mindset

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Transcript:

Today I want to briefly discuss one of my favorite books: The E-Myth Revisted. I keep it near my desk at all times, and if you haven't read it, you need to right now.

E-Myth is a mindset book that will help you take a fresh look at your business, especially as you begin to build it out and scale it. The E-Myth, or Entrepreneurial Myth, says that most new businesses are not started by entrepreneurs who set out to build a strong business but by technicians who enjoy the hands-on work themselves.

Because of that natural bias, most business owners focus on working in their business when really they should be working on their business.

There is, however, a simple and effective way to offset the E-Myth tendency. Instead of looking at the business as a one-off operation, the owner should consider the business to be a prototype for a large number of franchises that will be added at a later stage.

By adopting that mindset, the business owner will not only participate in the business as a technician but will also act as a manager (putting systems in place and controls and as an entrepreneur (having a vision of how the business can create sustainable added-value for all key stakeholders).

A business that is built and managed by someone who combines the approach of the technician, the manager, and the entrepreneur will have a far greater chance of future success that one guided by someone thinking like a technician alone.

If you don't have time to get to the book right now, try to internalize the following the basic concepts and principles of the E-Myth:

• Most new businesses are started by technicians - people who are skilled at what they are doing.
• Technicians assume they understand how a technical business works. In reality, they never do.
• Building a business takes three skill sets: (1) The Entrepreneur (2) The Manager (3) The Technician.

Businesses generally go through three phases of growth:

1. Infancy - When the technician runs the entire show.
2. Expansion - When better management skills are required.
3. Maturity - Where an entrepreneurial perspective is needed.

Don't hesitate to ask me any questions you might have about The E-Myth Revisted. It is a fantastic resource for business building.