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Semester 1- Class 2 Intro to Emyth (Organization of Your Business) Copyright 2007 Duane Hoversten – Instructor South Central College.

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Presentation on theme: "Semester 1- Class 2 Intro to Emyth (Organization of Your Business) Copyright 2007 Duane Hoversten – Instructor South Central College."— Presentation transcript:

1 Semester 1- Class 2 Intro to Emyth (Organization of Your Business) Copyright 2007 Duane Hoversten – Instructor South Central College

2 Do You like your Business Now?? Does it Give you what you want in Life??.. Money Time Satisfaction

3 E-myth Revisited by Michael Gerber.. Insight into Small Business

4 Observations on Small Business Owners z1. Work too hard for the money they make z2. Business Owners are doing the Wrong work in the business z3. Result is - Chaos, Unpredictability, and Failure. z4. Information abounds - yet the business fails..

5 More Observations on Your Business. It is You.. zIf your thinking is sloppy - your business will be sloppy. zIf you are disorganized, your business will be disorganized. zIf you are greedy, your employees will be greedy. zIf you lack direction on how to improve your company, your company will not improve and will lack direction.

6 Fatal Assumption zIf I understand the technical work of a business, I understand the business that does technical work.

7 The Facts zSBA – 80% of Small Businesses fail within 5 years (50% in 18 months) zFranchises have a 95% Success Rate in 1st Year zFranchises have a 75% Success Rate for Business Format Franchises in 5 Year Period

8 The E Myth zSmall Business should be started by Entrepreneurs risking capital to make a profit. y(Fact is businesses are started for far different reasons) zHow do we Overcome the E Myth? yA Turn-Key Franchise Business can be created by using a Systemized Process of installing Systems in Business. By Using the Ideas of a Turn Key Business with a Systemized Process, you create a vitality and sustainability in any company.

9 What do We Change in Your Business?? zYour Business is a Reflection of You!! We need to: Change your Skills and Attitude Set Goals with Accountability Create a Turn Key Business

10 Changes for Your Business Have you Work On the Business Not in It Getting you – the owner/manager doing the right things in your business Getting the right people in your Business Concentrating on Systems

11 Goals zSet Goals zAccountability on Progress zMentoring

12 Turn Key Business zYour Business should run by itself if you are gone a month zYour Business becomes saleable when you have a Turn Key Business zYou have time to Work on Your Business

13 Doing (the Owner) the Right Work in your business zDo Not Run to the Post Office Daily zYou are worth $50/hr - $1000/ hr zDo the work that the Owner should be Doing zSet the Culture in Your Company

14 Right People in your Business zGood People do Not make Good Bookkeepers zGood Bookkeepers make Good Bookkeepers and we would like them to fit into the culture of our Company

15 Systems zThis is a base measurement of all that goes on in the company zWhen there is a problem, look at the system before blaming people zWe do not have to reinvent the wheel all the time zEliminates going to the Owner for Everything

16 Goals zWritten zMeasurable zRealistic zCreate a Movement in You or Your Company

17 E Myth (Small Business) Personalities 3 Distinct Job Types yEntrepreneur yManager yTechnician 3 Way Battle on how to handle each problem - The best personality does not always surface and win. IT IS BEST TO HAVE DIFFERENT PEOPLE FILL THESE SEPARATE JOBS.

18 The Technician zIs a doer zIf you want it done right, do it yourself zHappiest when working zKnows you cant do two things at once zLikes to control flow of work zThinking isnt work…. And is unproductive

19 The Entrepreneur (Leader-Visionary) zTurns trivial conditions into opportunities zThe Dreamer and Catalyst for Change zNeeds control zLives in the world of what if and if when zCreates Havoc because of need for change zPeople are problems that get in the way of his dream

20 The Manager zPragmatic zCraves order zClings to status quo zSees problems not opportunities zCreates neat rows of widgets that entrepreneur creates zCleans up Entrepreneurs Mess

21 Stages of Business zInfancy zAdolescent zMature Well Talk about each Stage

22 A Real Business APL Landscape zBusiness we are going to Talk about is Wayne. Landscape Solutions Staff Profile Wayne Anderson has been owner/manager of APL for 24 years. He is active in the sales and design process. Wayne has been involved in the green industry for 27 years starting out in lawn service and eventually focusing solely on landscape installations. Wayne was an active foreman until He earned his degree in business management at Ridgewater College and continues his involvement with the college by giving lectures to students. He is dedicated to continually growing APL, with emphasis on quality and innovative installations.

23 Introduce Wayne zReal Person zLandscaping Business – 17 years zNot making much money zTwo Years behind with Tax Returns zNo Records – Just a Shoe Box zWore out from the Grind zReady to Quit

24 Infancy stage of Business zTechnician Stage of Business zWork long hours every day zWork comes and is too much. zWork each day on who screams loudest. zAlways behind zNot enough time to bill - Vendors calling for pay zHousehold has no money

25 Adolescence Stage zStage where business has to get help zThey hire people but do not have direction zWayne had 8-10 workers zMissing the Manager Hat zWorking Harder and making less money

26 Three Choices in Adolescence zGet smaller - one employee and eventually close doors zAdd more employees and go busted zContinue as IS and maybe Survive but get BURNED OUT zWAYNE SURVIVED FOR 17 YEARS AND WAS READY TO QUIT

27 The Comfort Zone zMost businesses get outside their comfort zone zBusiness or Job?? zThe Business no longer shines zMost businesses focus on the product or Service not how the company does business Osborne – Computerland – Circuit City

28 Going for Broke-Turn over Management zDemand for Services is larger than can be handled zHiring someone to handle the business zHiring an Employee to run the business – be the owner so the owner can be a technician zWont work!!!

29 Company is growing or Shrinking zEither you do the job of the owner or??? zCannot abdicate your role in a true company zBusiness or Job???

30 Maturity Stage zCompanies who know how it got where it is and know where it is going.

31 E Myth Entrepreneurial Model zHow did we get Wayne to Maturity Stage??? yLook at the business itself as a product competing with other businesses. yNOT looking at whats done in the business but HOW it is done. We need to find a business model that satisfies all three of our personality needs.

32 Entrepreneurial Perspective zHow must the business work? zWhat work must be done? zSystem for producing results for customer and profit for owner zLooks at the future(Technician looks at the present)

33 Entrepreneur vs Technician vs Manager Point of Views zFuture vs Present zWhere we will be not where we are zEntrepreneur visions and the Technician only knows what he can touch and see

34 Mature Model has parts of Entrepreneur – Technician - Manager EntrepreneurTechnicianManager

35 Use the Turn Key Franchise Idea zThe Franchise Phenomena zMcDonalds - The most successful small Business in the world.

36 Franchises zTrade Name Franchises yCoca Cola - Cadillac zBusiness Format Franchise yAn entire system of doing business yTRUE PRODUCT OF THE BUSINESS IS THE BUSINESS ITSELF.. yTHE HAMBURGER WASNT THE PRODUCT - THE BUSINESS WAS..

37 Business Format Franchises z95% Success Rate in 1st Year z75% Success Rate for Business Format Franchises in 5 Year Period McDonalds: cleanliness - satisfy the customers every time Learned at Hamburger U

38 Business Format Franchise Proprietary Way of Doing Business that differentiates every Extra-ordinary business from one of its competitors. How do we build businesses to make that idea work for us? How do we make businesses that work predictably and profitably every day? How do we get business owners in control of their business rather than the businesses controlling the owner/manager??? MAJOR QUESTIONS ARE:

39 We Created a Turn key Business for Wayne zCreated goals zCreated Organization Structure zHired a bookkeeper zCreated schedule zDid last two years taxes zCreated paperwork to track jobs zCreated paperwork to track work on jobs

40 Your Business in Not Your Life!!! zA Business Owner must understand that the primary purpose of a business is that it serve him/her not that he/she serves the business. Work on the Business Not in the Business..

41 End Class 2 zNext Meeting October 6 at 8 am zReach Chap 7-9 in Emyth Revisited yA. Create an Organizational Chart?? yB. Who is/are your manager/s? yC. Who are your technicians?? zWhat do you do in the company??

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