ne of my goal with this new blog is to organize my thoughts and knowledge. The E-Myth Revisited by Michael Gerber is a recent book I listened. So I will start with it.
My biggest takeaway from this book was that most people start business to create a job for themselves. For example, a person who enjoys baking may start a cake shop. The problem with this approach is that one is working in the business, not on it. The right way to start a business is with a goal of eliminating one’s job. For example, the person above should figure out a way to hire someone else to do baking.
This was a slightly hard lesson to digest because as programmer, I have often dreamed about starting consulting business. Mostly, so that I get to work with more interesting technologies.
The other lessons were:
Create a business that can be easily franchised. In order for a business to be franchisable, it needs processes and systems. So document and create repeatable processes. You may never want to franchise, but well-established processes will help a business run smoother.
This was another interesting way to figure out what sort of business one should pursue.
Another interesting idea presented was to write down all positions you see your business will need eventually. Draw organization chart. Then start hiring for each position. Initially, you will be filling all these positions, from CEO to lowest ranking worker. Your goal should be to work in each position, systemize it, and hire someone else. You should start filling positions at the bottom of chart first, slowly moving up as you systemize each position.
One last point, many first time business owners manage by absenteeism once they hire someone. This usually doesn’t end well as employees then have no idea if they are doing good or not. Before you hire someone, their position should have well defined criterias to measure against. And you should actively review work done by your direct reports.
If you like to read this book, you can purchase it here using my Affiliate Link: