Presentation is loading. Please wait.

Presentation is loading. Please wait.

Semester 1- Class 2 Intro to Emyth (Organization of Your Business)

Similar presentations

Presentation on theme: "Semester 1- Class 2 Intro to Emyth (Organization of Your Business)"— Presentation transcript:

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

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

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

4 Observations on Small Business Owners
1. Work too hard for the money they make 2. Business Owners are doing the Wrong work in the business 3. Result is - Chaos, Unpredictability, and Failure. 4. Information abounds - yet the business fails.. Notes

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

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

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

8 The E Myth Small Business should be started by Entrepreneurs risking capital to make a profit. (Fact is businesses are started for far different reasons) How do we Overcome the E Myth? A 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. Notes

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

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 Set Goals Accountability on Progress Mentoring Notes

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

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

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

15 Systems This is a base measurement of all that goes on in the company
When there is a problem, look at the system before blaming people We do not have to reinvent the wheel all the time Eliminates going to the Owner for Everything Notes

16 Goals Written Measurable Realistic
Create a Movement in You or Your Company Notes

17 E Myth (Small Business) Personalities
3 Distinct Job Types Entrepreneur Manager Technician 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. Notes

18 The Technician Is a doer If you want it done right, do it yourself
Happiest when working Knows you can’t do two things at once Likes to control flow of work Thinking isn’t work…. And is unproductive Notes

19 The Entrepreneur (Leader-Visionary)
Turns trivial conditions into opportunities The Dreamer and Catalyst for Change Needs control Lives in the world of “what if” and “if when” Creates Havoc because of need for change People are problems that get in the way of his dream Notes

20 The Manager Pragmatic Craves order Clings to status quo
Sees problems not opportunities Creates neat rows of widgets that entrepreneur creates Cleans up Entrepreneur’s Mess Notes

21 Stages of Business Infancy Adolescent Mature
We’ll Talk about each Stage Notes

22 A Real Business APL Landscape
Business 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. Notes

23 Introduce Wayne Real Person Landscaping Business – 17 years
Not making much money Two Years behind with Tax Returns No Records – Just a Shoe Box Wore out from the Grind Ready to Quit Notes

24 Infancy stage of Business
Technician Stage of Business Work long hours every day Work comes and is too much. Work each day on who screams loudest. Always behind Not enough time to bill - Vendors calling for pay Household has no money Notes

25 Adolescence Stage Stage where business has to get help
They hire people but do not have direction Wayne had 8-10 workers Missing the Manager Hat Working Harder and making less money Notes

26 Three Choices in Adolescence
Get smaller - one employee and eventually close doors Add more employees and go busted Continue as IS and maybe Survive but get BURNED OUT WAYNE SURVIVED FOR 17 YEARS AND WAS READY TO QUIT Notes

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

28 Going for Broke-Turn over Management
Demand for Services is larger than can be handled Hiring someone to handle the business Hiring an Employee to run the business – be the owner so the owner can be a technician Won’t work!!!

29 Company is growing or Shrinking
Either you do the job of the owner or??? Cannot abdicate your role in a true company Business or Job???

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

31 E Myth Entrepreneurial Model
How did we get Wayne to Maturity Stage??? Look at the business itself as a product competing with other businesses. NOT looking at what’s done in the business but HOW it is done. Notes We need to find a business model that satisfies all three of our personality needs.

32 Entrepreneurial Perspective
How must the business work? What work must be done? System for producing results for customer and profit for owner Looks at the future(Technician looks at the present)

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

34 Mature Model has parts of Entrepreneur – Technician - Manager

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

36 Franchises Trade Name Franchises Business Format Franchise
Coca Cola - Cadillac Business Format Franchise An entire system of doing business TRUE PRODUCT OF THE BUSINESS IS THE BUSINESS ITSELF.. THE HAMBURGER WASN’T THE PRODUCT - THE BUSINESS WAS.. Notes

37 Business Format Franchises
95% Success Rate in 1st Year 75% Success Rate for Business Format Franchises in 5 Year Period Notes 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.” MAJOR QUESTIONS ARE: 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??? Notes

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

40 Your Business in Not Your Life!!!
A 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.. Notes

41 End Class 2 Next Meeting October 6 at 8 am
Reach Chap 7-9 in Emyth Revisited A. Create an Organizational Chart?? B. Who is/are your manager/s? C. Who are your technicians?? What do you do in the company??

Download ppt "Semester 1- Class 2 Intro to Emyth (Organization of Your Business)"

Similar presentations

Ads by Google