Do you own a business or a job?

Business or a jobThis subject really hit home for me recently. Although I do not own a business personally, I see myself as an integral part of PPT Accounting. I recently read “E-myth Revisited: Why Most Small Businesses Don’t Work” by Michael Gerber and this book really hit a nerve with me. He explains the three different types of people a small business needs and how the systems we have in place are very important to the success of any small business and this is only the beginning. If you are in small business and you are yet to read one of the E-Myth book’s, I highly recommend it. Michael has a range of books for specific industries from Accountants right through to Veterinarians.

I wake up every day to help others find the right support and tools to help them succeed in whatever their purpose is, and this book has given me some great ideas and insights on how to help people succeed in their own businesses. As accountants we often hear of the different frustrations from small business owners, ranging from issues with employees to customers requirements and the impact of the economy. The common question is, what do we do about it? Well up until now I have always struggled to find the answers or ideas for these questions but now, after reading Michael’s books, a light bulb has gone off and I am now able to think differently about these issues.

The Entrepreneur seizure

Throughout Michael’s books he refers to the entrepreneur, the manager and the technician. These are three different people needed to run a successful small business. Most often these three different ‘people’ are normally the one person; the business owner.

Michael believes that most people go into small business because of an “entrepreneur seizure” which he believes is when someone no longer wants to work for their current employer. That employee has all the technical skills to do everything the business is doing so they go out into business on their own.

Michael believes that the issues come about when the new business owner goes back to being a technician and ignores the entrepreneur and/or the manager of himself/herself. We need to have a balance between the three states of mind to make sure we are setting a vision, creating benchmarks and processes to meet the vision, along with managing and completing the work on digital marketing.

Without direction from the business owner on where the business should be taking us, we just own a job, “doing it, doing it, doing it” as Michael would say.

These ideas also refer back to my previous posts, Biology and the “Golden Circle”, The “WHAT” – Completion of the “Golden Circle”, The “How” in business and life, The “WHY” in business and life.

McDonald’s

McDonald’s is used so often when we talk about successful small businesses. It started out with Ray Kroc seeing the McDonald’s brother’s hamburger cart back in 1954 and being mesmerised with how efficient it ran and how perfect their chips were every single time (unheard of back then).
Ray Kroc with his McDonald’s restaurant has revolutionised how successful small businesses are now being ran.

The common feedback you will get when you mention McDonald’s is, what does McDonald’s have to do with my business? The answer is simple, everything. This is where the answer lies for every small business to be successful. It does not mean that every small business needs to turn into a franchise (although if that is where you want to go then go for it) but it does mean that if a small business is to be successful they must have a well defined business model with a strategic organisational structure, management, people, marketing and system strategies just like McDonald’s have done time and time again.

In Brief

I have only briefly touched on what it takes to make a small business a success. Mostly it starts out with setting a simple well defined business plan, including the strategic strategy, organisational structure, management, people, market and system strategy, all mentioned by Michael throughout his books. A great way to start the process is to visualise (in an ideal world) for you to be 100% satisfied with your business model, what would it look like? In comparison, what does it look like now? Asses the gap between where you want to be and where you are now. The gap will help you identify the right questions you should be asking your business, and help point you in the right direction. It’s just the beginning of a magnificent journey in small business.

If you need any assistance or someone to facilitate your business development plan please do not hesitate to contact me for a free consult.

Resources:-

http://michaelegerbercompanies.com/web/

 

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