Most business owners start a business to make money, focusing on selling products/ services to generate income. However, the business remains dependent on the founder for survival, i.e. it’s a “Company of One”, and the owner is stuck with a job after years of hard work. The solution is to build your business from the onset with the intent to sell it. Michael Gerber’s best-selling “The E-Myth” and “The E-Myth Revisited” focus on helping business owners to think differently about their business. This book takes it beyond the E-Myth (Entrepreneurship Myth) to focus on how to start and build a scalable business that can be sold. In this summary of Beyond the E-Myth, we’ll give an overview of the key components to build a saleable company.
GROWING FROM 1 TO 1,000
Ultimately, a successful business is not one that sells a lot of products or services; it’s one that is such a great product in itself, that people want to buy the entire business. In short, your business is your primary product, and a great business is one that can scale without its founder.
You need not actually build a company of 1,000 employees, but you must demonstrate that your company has the capability of growing to 1,000 people and beyond. Building your business from this perspective means an entirely different business model, from the products/ services you offer, to the clients you serve and the way you operate. Rather than try to fix the company you already have, Michael Gerber suggests that you apply his framework to a “NewCo”, i.e. to create a new business that’s designed from the onset to grow from a Company of 1 to 1,000.
To stand out from the crowd, you must be able to answer this question, “What does my company exist to do, and why?” This will encompass 4 aspects: your Dream, Vision, Purpose and Mission. In every entrepreneur, there are also 4 personalities: The Dreamer, Thinker, Storyteller, Leader. Combined, they hold the answer to the key question above. A large part of the book is dedicated to explaining these 4 components, which build the foundation of your enterprise.
• The Dreamer and The Dream: Your Dream is the great outcome that your company will create. Specifically, you must consider 2 sets of customers – your retail customers who buy your products and services, and the strategic customer who will buy your business.
• The Thinker and The Vision: The Vision is the form your company must take (including how it how it thinks, acts, and looks), to deliver that great outcome of your Dream.
• The Storyteller and The Purpose. Your Purpose is the big result that you’ll deliver for your Most Important Customer, and the reason why your company is valuable.
• The Leader and The Mission. Your Mission to bring the Dream, Vision, and Purpose to life, and involves creating the turnkey operating system that makes it possible for your company to operate successfully, in a duplicable way.
In a nutshell:
• The Client Fulfillment system is about developing your “how-to” manuals and software. It involves getting to know your clients better than they do, so you can uncover solutions they can’t find themselves. Help them identify their gaps, show how to close it, and capture that process.
• The Client Acquisition System is about attracting potential clients, with a compelling story, leads generation and conversion.
Assuming you’ve completed all the parts above, you’re now ready to replicate your Franchise Prototype, and ensure that it can continue to evolve dynamically.
• Your Client Fulfilment System is like the hub of your business wheel, while your turnkey Management System is the supporting software which keeps the the hub and spokes spinning. It includes 4 key components – innovation, quantification, orchestration and continuous improvement.
• Your Dream, Vision, Purpose and Mission (from Part 1) stem from who you are, and forms the DNA of your company and enterprise. Your turnkey Leadership System in turn inspires every person in your organization to discover the leader in themselves. In the book, Gerber touches on how such leadership is manifested in the organization.
OTHER DETAILS IN “BEYOND THE E-MYTH”
This is more of a conceptual than “how-to” book. The book ends with a promotion of “The Program”, which will take you through the process outlined in this book, to identify your Dream, Vision, Purpose, Mission, and grow your enterprise from a Company of One, to 1,000 or more. For more details, please visit emyth.com, get the book or our Beyond the E-Myth summary bundle. Do check The E-Myth Revisited summary for more powerful ideas on how to grow a duplicable business that can outlive you.
Build a sale-able business that can run without you!