This article is based on
following book: The E-Myth Revisited Why Most Small Business Don't Work and What to Do About It By Micheal Gerber Published by Harper Business, 2003 ISBN 0967450659 278 pages Ever wonder why most small businesses-- no matter how huge effort they put in their endeavor--still fail? Micheal Gerber reveals
answers in this book. Accordingly,
future of small businesses revolve in only three philosophies:
e-myth (entrepreneurial myth),
turn-key revolution, and
business development process.
The E-myth
The e-myth, or
entrepreneurial myth, evolved from one very fatal assumption-- that
success of every business is simply achieved by summing up
following: an entrepreneur's desire to own a business plus
certain amount of capital he puts in plus
knowing
amount of targeted profit.
Little did
entrepreneurs know that this assumption spell DISASTER rather than SUCCESS. Entrepreneurs need to learn to focus more on
business—the people involved in it and
phases it normally undergoes. Knowledge on these can save small businesses from experiencing entrepreneurial seizure—a stage wherein an entrepreneur goes through feeling of exhilaration, exhaustion, and despair.
Small businesses basically consist of three main characters namely:
technician (the doer and builder),
manager (the planner), and
entrepreneur (the dreamer, visionary). Moreover, small businesses have different life phases. These are: infancy (the technician's phase); adolescence (getting some help phase); beyond
comfort zone; and, maturity and
entrepreneurial perspective.
The Turn-key Revolution
As implied by
term itself, Turn-key Revolution speaks of
distinct transformations on
way businesses are managed and should be managed. One very prominent example is
introduction of McDonalds
idea of business format franchise to
business world.
The business format franchise has set dramatic turn around on
future of small businesses. Here,
franchisor entitles
franchisee to owning rights to his entire business system. This format is anchored on
belief that
real product of a business is its sales technique rather than what it sells.
The Business Development Process
The business development process is
response to
unending dynamism of
business world. It equips
entrepreneur with
necessary tools to preempt
continuous changes happening around. The process is comprised of three elemental stages: innovation, quantification and orchestration.