©1995 Michael E. Gerber
There are a few basic ways to achieve financial independence. One of the most common ways is to own your own successful business. If you decide to acquire or start your own business you are an entrepreneur. As an entrepreneur the first thing you should do is read this book. Then you might want to read its predecessor, The E Myth, written 15 years before this one, in 1980.
It is hard to say enough about this little book. In a short review it is almost impossible to do it justice. Gerber approaches small business like a Ninja warrior, MBA and Olympic Athlete combined, and then some. He approaches small business fundamentals from all sides and does it well.
Using a fictitious story about helping a woman transform her small pie baking business from the near failure it has become to a success is the platform from which he launches you into a vivid description of how to organize, manage and operate a small business.
Gerber uses the concept of the “turn-key” business model used in franchises. He advises small business people to create a business that is so well designed and operated that anyone could be easily trained to take it over and operate it. There are two reasons for this.
First, most small business owners become veritable slaves to their business. They become consumed in the tactical operations of the business, doing all the work all the time, and neglect the strategic thinking that successful business requires. As a slave to their business they come to loathe it and at some point shut it down to escape the enslavement if it does not otherwise fail.
A franchise styled business on the other hand is not dependent on any one person or skill set. It can be duplicated over and over and anyone can run it. This frees the owner and enables the owner to operate the business, expand the business, manage the business, or sell the business and in this freedom he frees himself from the tyranny of the typical small business.
The second reason to adopt the franchise model is that is works. By comprehensively standardizing and organizing every aspect of the business it works like a well oiled clock. You do not have to ever sell it. You can operate it or manage it as long as you like. However, absent the feeling of being bound to it you are free to run it in the best possible manner and in that to insure success.
The bottom line for Gerber is that “your business is nothing more than a distinct reflection of who you are”. “If you are disorganized, your business will be disorganized. * * * (i)f your business is to change — as it must continuously to thrive — you must change first”.
If you even think you would like to acquire or start your own small business, or if you have one and would like to improve it or free yourself from it, read this book. It is worth every penny.
This book is dense. It has more useful information – information that makes you think and upon which you can act, then most books you will read. How much I highlight lines in a book is a good gage of how much good content it contains. There is hardly a page in this book that my highlighter missed.
Rating: Over all this is a very good book and very useful. I highly recommend it.
Wishing you success and prosperity,
Daniel R. Murphy
Helping People Learn to Build Wealth
Daniel R. Murphy
Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.