Posts Tagged ‘emyth revisited’

“Most business DON’T work, the people who own them do” Michael Gerber

By Amanda on November 19, 2009 | Category: Blog,Marketing Planning | Tags: emyth, emyth revisited, managment systems, marketing systems | No Comments

A core thread that runs through much of our work with Directors and Business Owners is getting the business to work – developing better management systems and helping people to think and act more strategically, so more of the value can be transferred from the owner to the business.  Michael Gerber is the author of The E-Myth Revisited, which looks at small businesses and entrepreneurs – and why their businesses don’t work the way the owners would like them to.

This is his list of 10 reasons why most business fail:
1. Lack of management systems
2. Lack of vision, purpose or principles
3. Lack of financial planning and review
4. Over-dependence on specific individuals in the business
5. Poor market segmentation and/or strategy
6. Failure to establish and/or communicate company goals
7. Competition or lack of market knowledge
8. Inadequate capitalisation
9. Absence of standard quality programme
10. Owners concentrating on the technical and operational, rather than the strategic work at hand

emyth revisited

Are you a grease monkey?

Having worked with a very large number of businesses, I’d agree with him on all these points. The lack of systems, so that processes can be replicated, and number 4 the running of the business coming down to one person are the keys. And number 10 is where they go to hide.   They understand the technical because the owners are so often ‘grease monkeys.’ A long time ago, the wife of an MD I was working with described him as a ‘grease monkey’ because his entire focus was hands-on, and on the immediate problem.

I also remember numerous visits to one client who would proudly regale me with the triumphs of the week which revolved around all the problems he had solved. He was very puzzled at first when I suggested that things could be better if he didn’t have the problems in the first place – and got rid of the issues that caused them. We made significant improvements once we changed his focus on one-off problem solving.

This applies whatever business you are in – whether you make clocks, design buildings, sell property, design communications, run a restaurant, write software or sell carpets.

Business owners who just love the hands on day-to-day activity (or are caught in a perpetual fire-fight), find it hard to concentrate on developing the systems that prevent problems.

Gearing Up concentrates on helping business owners to create better strategies and systems, to get better market knowledge and to create a brand and products that lead to business growth and sustainability – and to better understand what is driving the business and the people who work in it.

This way business owners can create a successful business that will have real value – and are a whole lot more rewarding to run.

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