EMyth Should Be Required Reading
Have you read the E-Myth yet? If not, why not?
The basic premise is that most entrepreneurs are not entrepreneurs at all. They’re technicians who have a skill who decide they should become business owners. They’ve had an “entrepreneurial seizure.” Because they’re good at the skill, they think they’re be good at running a business.
They concentrate on their skill, but they never learn how to put procedures and systems in place to run their business.
Again…this is basic material. I wouldn’t represent the book as anything advanced. It’s to show you the basics. The problem is most people who think they’re building a business don’t operate with these principles in mind.
Here’s the real definition of a business…
“A business is an income stream that works without you.”
If you’re working 60 hours a week to do all the work in your “business,” you don’t really have a business at all. You have a job. It may or may not be a good one depending on whether you love the job and it pays you appropriately.
Take a look at how McDonalds or any major franchise operates. Every single element of the business is written down. All the procedures and systems are in place. When someone pays the fee to become a franchise owner, they are trained in the all the systems. What are they really buying for the $45,000 + 12.5% royalties (initial franchise fee as reported by The Franchise Mall)?
You’re buying proven systems. The rest of your investment $506,000 to $1,600,000 will be for setting up all the systems in place.
Here’s where many people make the mistake.
They advertise that it’s EASY to get setup and put systems in place. It’s not easy. You put together a system. Then you continuously improve that system. It takes a lot of time and work to create proven systems. That’s why franchises cost so much!
If you think that starting an internet business is expensive, you should spend a little time investigating franchise opportunities. Want to start a cleaning business? Merry Maids will offer you their systems for $19,000-$27,000 + 5% – 7% royalties. Perhaps you’d prefer to train and board dogs? From At-Heel, that will only be $47,500 + 5%. How about a business with College Nannies and Tutors? The franchise fee is only $25,000 + 5% royalties.
Maybe the Internet is more your style. For $49,700 + 10% royalties, WSI will set you up as an Internet consultant with all their systems.
When I decided I wanted to do business coaching, the first thing I did was investigate some of the major business coaching franchises. ActionCoach is one of the most popular. Their initial fee is $30,000-$50,000 with a monthly royalty fee. Another major one I took a look at was Growth Coach. Their initial franchise fee is $28,900 plus a monthly fee.
Please note all the franchises above are previously reported numbers. Any of the prices or opportunities may have changed. I’m not making an endorsement for any of them. Do a search for them and contact them directly to make sure you have accurate information.
Why didn’t I choose either of the coaching franchises? It wasn’t because of price. I don’t think any of the businesses above are too high priced. Real systems are worth that kind of money. The reason I didn’t join the coaching franchises is they were too limited in your “territory” and didn’t cover the internet well enough in my opinion (my specialty).
Don’t think it’s easy to put systems together. If it was easy to have working systems, good franchises would be a dime a dozen.
When someone first starts moving from being a “job owner” to building a business, their work often increases. While they’re doing their normal work, they’ll also putting together systems they can use to hire out or outsource their work. That means additional work in the beginning for the eventual payoff of cutting down their “job hours.”
That’s all well and good, but most job owners say…
“But You Can’t Turn Everything I Do Into a System”
Why can’t you? Let’s take a few things that would seem hard to systematize. How about copywriting? That is part science and part art as most people describe it. Yet we have a lot of training companies that teach you how to be a copywriter. In addition, many top copywriters have proteges and students who they source work out to.
For example, Michel Fortin is an incredible copywriter. He’s written copy for me before. Notice that if you go to his copywriting services now, he has a “crack team of copywriting specialists.”
What else would be really difficult to systematize? How about coaching business owners? That means you’d have to know how to run a business, set up systems, do copywriting, etc. It doesn’t seem that could be a system, does it?
Yet, I showed you a couple of franchises above. John Jantsch certifies Duct Tape Marketing Coaches. The PBCA trains business coaches as well. Michael Gerber who wrote the E-Myth trains his own group of coaches as well.
You may say, “But Terry, you personally coach people one-on-one right now.”
That’s right. I do. But do you think I plan to do that personally forever or that I’m creating systems for it while I go along? Remember how I said it isn’t always easy to create systems. It takes time.
You might be involved in every single element of your business today. Start creating procedures for each element one at a time. It won’t happen overnight. It might not always be easy. But that’s what businesses do. For me, I have to create systems. I’m a horrible long-term employee. Go ask Little Caesars, Sears, or that satellite dish company whose name I forget. If they remember me, they’d probably say I was a poor employee. I get bored and roam off to do something else.
Are you creating yourself a business or just another job?
- Learn How to Be an Entrepreneur for Under $100
- Enterpreneur or Employee
- Are You Thankful?
- Create Business Systems
- Choosing a Mentor or Coach