The E-Myth revisited
Technician, Entrepreneur, Manager
The reason most small businesses don't work is that they are run by a "Technician", someone who knows how to do the technical work involved in a job, without much thought to two other, equally important roles described in the book, the "Entrepreneur" and the "Manager". These are not separate people, but distinct elements of our personalities. In other words, while we might be biased towards one, and to successfully run a small business, they must all play a role.
· The Technician is someone - a bicycle mechanic, computer programmer, cook, who is an expert in his or her craft. This often leads these people to go into business for themselves. They’re good at what they do, and they know it, so why not reap the rewards of their labor? The technician is happiest doing the work they are good at and ignoring the rest, which is, in the end, a recipe for failure.
· The Entrepreneur is the dreamer, the one who sets out to do something new, who reaches for the stars. The Entrepreneur lives in the future, thinking about what could be (rather than in the present). The Entrepreneur is often frustrated by how slow the world seems to move.
· The Manager is the detail-oriented one, who dots the i's and crosses the t's, the one who remembers to pay the bills, and wants a well-organized world with no surprises; a world where things happen in an orderly, predictable manner.
All of these components are necessary in the founder of a business: without the Entrepreneur, you might as well keep working for someone else as a Technician. Without any technical ability, the Entrepreneur must rely on others to get anything done, and without the organizational abilities of the Manager, the other two would probably find themselves with the electricity in the office turned off because they had other things to do than pay the bills.
Say Goodbye to your business
If the business is to thrive, it must move beyond the founder. A business that is dependent on the founder and their abilities is not really a business, but rather a very burdensome job for founder. Every time you are out sick or take a vacation or are otherwise absent, the business suffers because of it.
A real business is one where the founder has created a system so that the business can run itself without their constant presence. The book describes this as the "Franchise Prototype". The inspiration for this comes from franchise businesses such as McDonalds, Subway, Burger King and so on, where there are manuals describing in minute detail how to run the business, so that customers will have the same experience the world over. The book does not suggest that you necessarily try and create a business to be franchised, just to treat it as if it were in some critical aspects: you need a well-documented system to run the business. Instead of running the business (fixing bicycles, writing computer programs, cooking), you need to work on the business - you need to spend time creating a business that is an entity that can operating and thrive on its own.
Aims, Objectives, Opportunities
The book says in order to make your business work; you must have a "Primary Aim" in life, not business, but your life. Without that, your business may come to consume you.
Your "Strategic Objective" is what you want to do with the business in order to fulfill your "Primary Aim" in life. This could be simply to sell the business on for a million dollars after 10 years, or develop a business that generates $100,000 in annual revenue without your involvement, or whatever else will allow you to live your life as you see fit. There are several important considerations, the first of which is money, and how much if it you are aiming to make.
The second thing to consider is whether a given opportunity is, as the book says, an "Opportunity Worth Pursuing"; something that can meet your financial needs, first and foremost. The key question to ask is: "does the business I have in mind alleviate a frustration experienced by a large enough group of consumers to make it worth my while?" Another key consideration when determining what kind of business you’re in is to look not at the thing you sell, but the feeling you create for your customers about your product and business. An insurance company sells you a financial instrument, but the feeling they are really selling is "peace of mind". A flashy car is more than just a bunch of metal and plastic, it's an image, and a feeling.
The reason most small businesses don't work is that they are run by a "Technician", someone who knows how to do the technical work involved in a job, without much thought to two other, equally important roles described in the book, the "Entrepreneur" and the "Manager". These are not separate people, but distinct elements of our personalities. In other words, while we might be biased towards one, and to successfully run a small business, they must all play a role.
· The Technician is someone - a bicycle mechanic, computer programmer, cook, who is an expert in his or her craft. This often leads these people to go into business for themselves. They’re good at what they do, and they know it, so why not reap the rewards of their labor? The technician is happiest doing the work they are good at and ignoring the rest, which is, in the end, a recipe for failure.
· The Entrepreneur is the dreamer, the one who sets out to do something new, who reaches for the stars. The Entrepreneur lives in the future, thinking about what could be (rather than in the present). The Entrepreneur is often frustrated by how slow the world seems to move.
· The Manager is the detail-oriented one, who dots the i's and crosses the t's, the one who remembers to pay the bills, and wants a well-organized world with no surprises; a world where things happen in an orderly, predictable manner.
All of these components are necessary in the founder of a business: without the Entrepreneur, you might as well keep working for someone else as a Technician. Without any technical ability, the Entrepreneur must rely on others to get anything done, and without the organizational abilities of the Manager, the other two would probably find themselves with the electricity in the office turned off because they had other things to do than pay the bills.
Say Goodbye to your business
If the business is to thrive, it must move beyond the founder. A business that is dependent on the founder and their abilities is not really a business, but rather a very burdensome job for founder. Every time you are out sick or take a vacation or are otherwise absent, the business suffers because of it.
A real business is one where the founder has created a system so that the business can run itself without their constant presence. The book describes this as the "Franchise Prototype". The inspiration for this comes from franchise businesses such as McDonalds, Subway, Burger King and so on, where there are manuals describing in minute detail how to run the business, so that customers will have the same experience the world over. The book does not suggest that you necessarily try and create a business to be franchised, just to treat it as if it were in some critical aspects: you need a well-documented system to run the business. Instead of running the business (fixing bicycles, writing computer programs, cooking), you need to work on the business - you need to spend time creating a business that is an entity that can operating and thrive on its own.
Aims, Objectives, Opportunities
The book says in order to make your business work; you must have a "Primary Aim" in life, not business, but your life. Without that, your business may come to consume you.
Your "Strategic Objective" is what you want to do with the business in order to fulfill your "Primary Aim" in life. This could be simply to sell the business on for a million dollars after 10 years, or develop a business that generates $100,000 in annual revenue without your involvement, or whatever else will allow you to live your life as you see fit. There are several important considerations, the first of which is money, and how much if it you are aiming to make.
The second thing to consider is whether a given opportunity is, as the book says, an "Opportunity Worth Pursuing"; something that can meet your financial needs, first and foremost. The key question to ask is: "does the business I have in mind alleviate a frustration experienced by a large enough group of consumers to make it worth my while?" Another key consideration when determining what kind of business you’re in is to look not at the thing you sell, but the feeling you create for your customers about your product and business. An insurance company sells you a financial instrument, but the feeling they are really selling is "peace of mind". A flashy car is more than just a bunch of metal and plastic, it's an image, and a feeling.
Driven - larry h. miller
When he was sixteen years old, Larry Miller came home one night to find his possessions sitting in three bags on the porch of his darkened house. The door was locked. Out of those troubled, humble beginnings rose a man whose influence has touched thousands, perhaps even millions. From parts manager to general manager to dealership owner, his rise in the car business was legendary. So was his front-row presence at Utah Jazz games after he bought the NBA team to ensure it would stay in Utah. The incredible scope of his efforts, both as an entrepreneur and as a humanitarian, is difficult to measure. Seven months before Miller passed away, he began working with Doug Robinson on this biography. Written in first person, it presents the many facets of Miller s life and legacy and speaks candidly about the people and circumstances that influenced him. It shares lessons painful as well as joyful lessons he learned from his experiences. A foreword by Utah Jazz great John Stockton, and a moving epilogue by Miller s wife, Gail, round out the picture of a man who was extraordinary and simple, intense and compassionate, visionary and generous and driven.
In my opinion Larry is the single greatest entrepreneur Utah has ever seen. He had an amazing ability to make deals happen. For example, he convinced several local banks to invest millions of dollars in him to purchase the Jazz in only a week! He didn’t have a formal presentation with graphs or income statements. The time just wasn’t there to do that kind of due diligence. What he did have was his track record and the ability to work with numbers. He calculated tons of complex numbers in his head to know exactly how much he needed to borrow and where it was going to go.
I grew up in Utah and so his impact on the community made an impact on me. I am a Jazz fan and so reading about how Utah almost lost the Jazz hits home for me. He never purchased the Jazz thinking this was going to be a good investment. In fact, on paper it would have been a terrible investment. He purchased the Jazz because he wanted the community to be a better place, and it was. During the 1997 finals game where John Stockton hit the three pointer to win the game against the Bulls, there was not a single police call during the game. That’s because the whole state was watching! What an impact for good.
Larry accomplished so much in his life but, he did have some regrets. He worked anywhere from 50 to 60 hours a week and because of that he neglected some important things. The first was his health which latter caused his early death, and most importantly his family. Building an award-winning dealership takes a lot time and so he didn’t spend much time with his family. Larry recounts his wife Gale getting up every morning at 5 am to iron his shirt for the day. Larry said “honey I can iron my own shirt.” Gale replied “I know, but I like seeing you off for the day.” Larry would leave early in the morning and not get home until late that night. He often never saw his children for days at a time.
Despite all the time he spent at work he was a great father and good man. His values and principals drove his actions. He never did anything purely for the money. His main motive was to help people and better the community. Did you know when there would be a terrible snow storm Larry and his son Greg would jump in his large truck and find people who were stuck in the snow so he could pull them out? That’s the kind of man he was. When the Salt Lake Community College came to him asking for a donation to build a new building he expanded the scope of project and paid for the whole thing out of his pocket. He didn’t just offer money he gave his time. During the building of the project he was on the site daily being involved in the project. He loved being involved. Did you know that he spent month deciding on what type of trees should be planted outside the delta center? What multimillion dollar CEO spends months pick out trees? He ended up picking out a type of tree that creates a canopy when they grow together. This way people would have continuous shade in the summer. That’s the type of guy Larry was.
Overall this book was great. I highly recommend it to anyone looking to be inspired. You really get to know Larry and what type of person he must have been. I hope to make a significant impact on my community like Larry did and be driven.
In my opinion Larry is the single greatest entrepreneur Utah has ever seen. He had an amazing ability to make deals happen. For example, he convinced several local banks to invest millions of dollars in him to purchase the Jazz in only a week! He didn’t have a formal presentation with graphs or income statements. The time just wasn’t there to do that kind of due diligence. What he did have was his track record and the ability to work with numbers. He calculated tons of complex numbers in his head to know exactly how much he needed to borrow and where it was going to go.
I grew up in Utah and so his impact on the community made an impact on me. I am a Jazz fan and so reading about how Utah almost lost the Jazz hits home for me. He never purchased the Jazz thinking this was going to be a good investment. In fact, on paper it would have been a terrible investment. He purchased the Jazz because he wanted the community to be a better place, and it was. During the 1997 finals game where John Stockton hit the three pointer to win the game against the Bulls, there was not a single police call during the game. That’s because the whole state was watching! What an impact for good.
Larry accomplished so much in his life but, he did have some regrets. He worked anywhere from 50 to 60 hours a week and because of that he neglected some important things. The first was his health which latter caused his early death, and most importantly his family. Building an award-winning dealership takes a lot time and so he didn’t spend much time with his family. Larry recounts his wife Gale getting up every morning at 5 am to iron his shirt for the day. Larry said “honey I can iron my own shirt.” Gale replied “I know, but I like seeing you off for the day.” Larry would leave early in the morning and not get home until late that night. He often never saw his children for days at a time.
Despite all the time he spent at work he was a great father and good man. His values and principals drove his actions. He never did anything purely for the money. His main motive was to help people and better the community. Did you know when there would be a terrible snow storm Larry and his son Greg would jump in his large truck and find people who were stuck in the snow so he could pull them out? That’s the kind of man he was. When the Salt Lake Community College came to him asking for a donation to build a new building he expanded the scope of project and paid for the whole thing out of his pocket. He didn’t just offer money he gave his time. During the building of the project he was on the site daily being involved in the project. He loved being involved. Did you know that he spent month deciding on what type of trees should be planted outside the delta center? What multimillion dollar CEO spends months pick out trees? He ended up picking out a type of tree that creates a canopy when they grow together. This way people would have continuous shade in the summer. That’s the type of guy Larry was.
Overall this book was great. I highly recommend it to anyone looking to be inspired. You really get to know Larry and what type of person he must have been. I hope to make a significant impact on my community like Larry did and be driven.