http://sproutsocial.com/insights/e-myth-principle-social-media/
Some good old boys swear by the E-Myth, any thoughts on this?
I’m looking for some fresh ideas on business expansion, I’d like to bounce some ideas with some other free-thinking colleagues. Hopefully the experience is positive.
I don’t think the article is accurate. The e-myth is about structuring a business. The article implies that it is about marketing, networking or how to choose what business to start. The e-myth still applies today with out systems it is difficult to provide a consistent product and service. What kind of fresh ideas are you hoping to find.
I actually just read E-myth this Fall. Here’s my analysis of the article.
Point 1: “The e-myth is wrong because nowadays you can learn anything thanks to the Internet.”
Completely irrelevant; in fact, the arguments made agree with the e-myth. The book says that a technician-owner needs to learn how to run a business, not just do the technical work. Whether or not there’s an internet didn’t change that timeless fact, and the internet simply means there’s less excuse not to do so.
Point 2: “Powerful tools now exist, many of them free.”
In this section they didn’t even say one word about how that means the e-myth is wrong. Again, if anything, it supports the book because the e-myth is all about setting up systems to run your business instead of you trying to tackle everything on your own or passing the buck on a capable employee, who will only get overwhelmed just like you were.
Point 3: “The e-myth is wrong because of social media and networking, and the franchise model is out of date.”
Again, the e-myth’s main point is that business owner’s need to run their business, rather than working it like a job, and that the key to doing so is to create systems. Can social media and networking be integrated into your marketing system? Duh. That’s exactly the type of thing the book is encouraging you to do! As for the argument on franchises, is that system out of date? Of course franchises aren’t out of date just because we have the internet. The two aren’t mutually exclusive. Furthermore, the book wasn’t pushing you to start a franchise; it was turning your attention to how franchises systemize everything and encouraging you to do the same. This helps you not only not get bogged down, it makes training far easier, gives the customer a consistent experience, and makes your business far more saleable.
I believe the article wasn’t legitimately trying to help the reader; it was simply trying to sound smart and progressive so it’s author could sell their marketing services. They would have done way better by showing how new technology actually compliments the indisputable principles of the e-myth. For me, the author of the article lost all credibility and actually came across as rather incapable of logical thought.
How does everyone feel about having two minor owners beneath the primary owner, almost like a sole proprietorship with multiple owners and having one do the residential and one do the commercial. I’m ready to expand I’ve hit a threshold. Im thinking of making two partial owners with monthly bonus checks that don’t go through payroll based on the amount of labor they perform and they will grow with the business. One will handle all the commercial and one will handle all the residential.
When necessary they will be able to hire low wage helpers underneath them. Any thoughts on this. This should keep taxes and workers comp reasonably lower then if I paid two guys 20/hr through payroll. Also if they are say 1% owners they will have less reason to leave the company and be my competition and eliminate some turnover hopefully.
I think that lady needs to re-read The Emyth. She missed the point, completely over her head
She has clearly never run a successful business or any business for that matter. As WVWindow washing pointed out her points actually confirm the Emyth principle that one needs to learn the management side and entrepreneurial side of business to he successful.
The other point I would make is that it’s one thing to read a book about something. It’s a whole different thing to have actually done it. Reading a book about business does not make you a business. Emyth is not a book writing company or they don’t sell information. They are a business coaching and development company. They don’t just give you information. They walk you through real life challenges your business faces and coach you through the process of growing tour business. You learn hands on in your own business while they walk you through growing your business to the next level. That is not reading a book or “Googleing it” at all. Doesn’t even come close.
There are aspects about business and leadership that cannot be taught or learned on paper. You can communicate the principles but your will never truly grasp the fears and anxieties of owning a business and the courage it takes to succeed until you are under the pressure of having to succeed and your family and the families of your employees counting on your leadership and success.
My opinion is that this lady needs to sit down and let some business owners write her next article.
I know of a company that does something like that. But he owns 100% of the company and pays them percentage like owners. He will not give percentage away because he fronted all the money to start with instant fleet.
That’s similar to how Outback pays their top guys. Each restaurant has a “managing partner” who basically runs the show like a GM/owner combined, and compensation hinges mainly on the profit/loss for that location.
