www.CoachKevin.com

 

There are many books that people say you “should read”.  If you are currently running (or would like to be a partner in) any other business, you must read the E-Myth or the E-Myth Revisited (updated version) by Michael Gerber.  The E-Myth for Physicians is a valuable version of the same book for any accountant or professional to read.

 

The E-Myth revisited will help you understand why your business works well in the areas that it does.  It will also help you see why you get so frustrated with your business at times.  Another bonus is that it is not only an easy book to read, but it is also very interesting as it is presented as the real life story of an entrepreneur.

 

In this summary, I’ll review some of the key points from this book that illustrates how to have your practice run like a well-oiled machine.

 

The Entrepreneurial Myth

 

Most people who start their own business are very good at the work they do.  One day, they decide to open their own business and live out part of the North American dream of being their own boss.  Their mission is to conquer the world and somewhere on their path attain business success and freedom.

 

Between 2 and 24 months down the road reality hits…things are a lot tougher than they had believed (or dreamed).  The business owner is not swimming in riches – actually they do not even have time to swim as they are working 10, 12, 14, 16 hours a day, 6 or 7 days a week.

 

What went wrong?  Well, first or all, these business owners are not alone…Most new businesses face this problem.  And, 80% of them are out of business within the first five years.  The problem is that most people that start a business are great “technicians”.  For example, a CGA is great at doing personal tax returns and year-ends, a cabinetmaker is great at building and installing cabinets, and a mechanic is great at diagnosing and repairing cars.

 

Being a great “technician” is valuable but it is not enough to be successful in business – actually, it is just enough to get you started.

 

Three Key Roles:  Entrepreneur, Manager & Technician

 

The challenge for most technicians is that they need to learn two new roles in order to be a successful.  These roles are the “entrepreneur”, the visionary and risk taker, and “manager,” the person that systematizes and keeps everything running smoothly.  The role they know from their experience is about getting the actual work done, but it represents only one third of what they need to be good at.  This is why most technicians get very frustrated in their businesses.  It is interesting to note that most technicians that start a business have little entrepreneurial or managerial experience.

 

The good news is that the experience needed is readily available and easily learned, especially if you start by reading The E-Myth.

 

 

 

 

Four Stages of a Business:  Infancy, Adolescence, Comfort Zone, and Maturity

 

Successful business owners gain a respect for and spend time on each of the three key roles.  In order for a business to evolve from infancy towards maturity, the owner needs to get people and systems in place to cover off the responsibilities that they do not have the time, desire, or skills to take care of.

 

This is simple in concept, but for may business owners the shift from “I can do it all myself” to “I need help to get this business running well” can be a very tough one.  Truthfully, some CGA’s and other business owners have not been able to let go and trust others enough to make the transition.

 

Working on Your Business, Not in It

 

You’ve heard these words before and The E-Myth is where they originate.   This principle sums up what it takes for a technician to become a successful business owner.  Stop doing work “in” the business long enough to focus “on” the business in the roles of the “entrepreneur” and the “manager”.

 

In order to work “on” the business, time is needed and often to have time, help is needed.  In order for help to be effective, good systems are needed.  In order to create good systems, you need time and help.

 

Six Guidelines for Systematization

 

The ideal business easily creates predictable results.  This is why franchises like McDonalds tend to be successful, not because of the food but because they have consistent marketing, the right look, food service, and cleanliness.

 

The E-Myth suggest six guidelines:

 

1. Consistent value delivered to your consumers
2. Low level of skill required by employees because of simple and effective systems to follow
3. Impeccable order in your business
4. Everything is documented in a Systems Manual that everyone uses
5. Uniform, predictable delivery of the service
6. Uniform, colour of facilities, marketing and dress of uniforms

 

Seven Steps to Systematized Business

 

Start with a Plan

In order to create a business that can survive and thrive on its own and allow you to have a life at the same time, systems need to be in place.  This is the focus “on” the business part.

 

Here are the seven steps Michael Gerber recommends:

 

1. Your primary aim:  Not for the business but what you want from life
2. Strategic Objective: What you want the business to do for you
3. Organizational Strategy:  Define how the business and different departments and systems will look and interact with each other
4. Management Strategy: How the business will be managed to produce optimal results – another system!
5. People Strategy:  How to hire, train, maintain, and get the best from your key assets:  staff
6. Marketing Strategy:  How to consistently get the right new clients and give them what they want
7. Systems Strategy:  How to make the three types of systems work for you:  hard-equipment, soft-people, ideas, communication, information-data, financials, and other information

 

The key point of this book is that to be successful at running a business, you must be more than a good technician.  When you learn the roles of the entrepreneur and manager, your business will run better. When you systematize all parts of your business, it will run better.  And, when you hire other people to operate those systems for you (and to improve the systems), the business runs better again.  The ideal outcome and what I work on with many of my clients is to take this to a level of mastery that allows your practice to run “effortlessly and flawlessly without you”.

 

If you want help on making your practice run better with you running around less, buy this book and study it.  If you want one on one coaching or help to optimize your business, call me.

 

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Kevin Lawrence is a business coach, speaker and agent of change, who is driven by a relentless passion for helping entrepreneurs and business leaders get what they really want, in business and life. He deeply believes that entrepreneurs can have tremendous business success along with an enriching, adventurous and fulfilling lifestyle, taking a ‘have your cake and eat it too’ mentality to an entirely new level.

 

With more than a decade of hands on experience as a business coach to hundreds of entrepreneurs and business leaders across Canada and the United States, Kevin is an expert at helping clients overcome major obstacles, deal with tough decisions and capitalize on new opportunities to achieve breakthrough results. His strategies, style and savvy approach have helped his clients increase revenue, profitability and productivity; build higher caliber teams; attract ideal (and eliminate headache) clients; and, reduce stress levels and hours worked so that they are freed up to live their personal version of outrageous quality of life.

For more information, visit www.CoachKevin.com or call 1-877-564-6224

 

Copyright 2005-2006, SGI Synergy Group Inc. & Kevin Lawrence