EMyth Should Be Required Reading
Have you read the E-Myth yet? If not, why not?
I read a ton of books, and this is one of the ones I read early on. It’s basic foundational material to running your own business, yet I’ve found a large number of people simply haven’t read it yet.
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?
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26 Responses to “EMyth Should Be Required Reading”
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Hiya Terry
Yes, I have read the E-Myth, the E-Myth revisited and E-Myth mastery and is something I talk about quite a lot.
Many if not most of the business owners I have met and some I have helped are really technicians who are trapped by their business. Self employed and stuck in a job that has become a millstone around their neck.
They fear the system because the system is about doing things they hate or taking on staff that they can’t or don’t know how to control.
People are hurting because all they can see is pain. Their expectations are mostly faulty though because once they take the steps to break through their imagined problems go away.
Yes, you are talking to the converted.
Best wishes from the UK.
Steve
I agree- it’s a great book, and I just happened to start reading it myself for the first time recently.
About halfway through it I started wondering how I was having any success at all.
Hi,
I read the original “E-Myth” about 15 years ago and it is one of my top three business books. I’ve started no less than five businesses since then and have found that “E-Myth Thinking” has pervaded each of them.
In fact, I got so interested in the whole idea of standardizing systems and making them franchise-able, my latest business is all about making that a reality. (We’re still working on the business and our website is not great, yet!)
I appreciate your blog.
Thanks,
Rod Brant
I’ve been through that book twice. I highly recommend it.
Hey Terry,
Great timing. I am in the middle of reading this book, actually not too far from the end. I agree that all business owners, especially those of us in this industry need to read this book and more importantly act on the advice.
One thing I have been doing since reading this book is to take everything I am doing and start putting it down into a check list system and even starting to record screen capture videos to be part of the systems and processes.
Now on a different note, I also was a pizza delivery guy at one time and now full time in this.
Chris
Hey Terry,
The EMyth is one of my most refered to books when I am in discussions about starting a business. It has definately affected my thinking when planning and running the businesses I’ve created. Its message is so simple, however its very profound. I know so many people who have created what they thought were businesses but where dreadful jobs. In particular, i have a coleague who lacks the trust needed to allow his business to reach its full potential. Instead, he runs a business/job that has become his life. It pays him well, but I am sure when he looks back during his retirement he will surely be sad about the lifestyle he missed out on
Jeff
[...] Dean’s post titled “E-myth Should Be Required Reading”, should be required reading, as well as the book. He says that this about the book: “I read a ton [...]
Outstanding post on what I consider to be an extremely important subject. So many freedom seekers trap themselves into self-slavery by their own business and don’t understand how it happened, or how to break free without sinking their business.
I agree, this should definitely be required reading!
-Jack
Hello Terry, Thanks for the mention of my coaching network.
Michael has been a great inspiration for me and even contributed the forward to my book Duct Tape Marketing.
He has a new book out this week called Awakening the Entrepreneur Within – check it out.
Thank you all for your comments. The Emyth is definitely “required reading” for anyone who wants to be an entrepreneur.
John: I’ll definitely have to check out Michael’s new book.
[...] EMyth Should Be Required Reading [...]
Hi Terry,
To be honest, I have never read this book before. I am a person that likes to read any book that is available on the market. Books from Tony Robbins to Napoleon Hill.
I think that it is time for me to go and get my own copy since you recommended it as a good read.
As an independent E-Myth Coach for the past ten years I can speak to the powerful impact the book and the E-Myth resources have had on my clients. It’s an excellent foundation for any small business owner. Another powerful book that takes simple principles to apply to business to make immediate impact is Mastering the Rockefeller Habits by Verne Harnish. I’m currently a gazelles coach using their tools and recommend to any small to midsize business owner they read this book to learn some practical approaches to get results and grow your business. Great blog Terry, you have a knack for simplifying things!
[...] Dean presents EMyth Should Be Required Reading posted at Integrity Business Blog by Terry [...]
[...] Dean presents EMyth Should Be Required Reading posted at Internet Business Coaching by Terry [...]
[...] Dean presents EMyth Should Be Required Reading posted at Integrity Business Blog by Terry [...]
[...] various practices as well as myths. In the terminology of businesses the biggest myth is the EMyth or Entrepreneurial Myth. The term refers to the myth that experts in certain technical fields such [...]
The E-Myth Revisited Book changed my business from one that was consuming me to one where I was delegating predictable systems. Since them I have become a process consultant focused on helping Small Business Owners get more qualified prospects and also insure that their website is in the top 10 of the Major Search Engines. Michael Gerber is a genius.
[...] Dean presents EMyth Should Be Required Reading posted at Integrity Business Blog by Terry [...]
We have a thing in France (where I live) that reminds me of the Peter Principle. People do their university studies, then work n that field – often doing a great job. Then they do an MBA and fail horribly.
Why would a great programmer be a great businessman?
Same hold true for all entrepreneurs. Just because we are good at one thing does not mean that we will do great in a related field. If you want to start a business it it best to do it in a field where you have some skill, but being great at one thing will not automatically make you great at another, like being an entrepreneur.
I stumbled it and included it in my blog carnival.
(see the carnival at: http://cheapkeywords.info/one-huge-carnival-of-leads-to-making-money-online/)
I’m Interested in your thoughts.. Does 37signals or E-myth have the right philosophy for business start-ups today?
Hi Martin,
The two concepts are not at odds to one another. When you’re starting out, you’re developing the concepts and testing them. The change over to systems happens more and more as you grow. BUT even a large company (if they’re smart) still takes out their systems and runs them through tests at times to see if they can be improved.
The true answer is you want to have systems…that are continuously improving…especially in today’s business environment.
Terry
My business partner and I have both been inspired by E-myth to the point of considering enrolling on the E-myth program, though we’re UK based and all their consulting is US based… Does anyone have experience of the programme, or have any alternative suggestions?
PS context: we’re a small executive search (headhunting) business with a 6 year track record of success though with aspirations to be bigger and better…and to ultimately relinquish the reins and responsibility in return for just reward. Based in Cheshire, UK though operating across Europe. All advice welcomied. Best, Simon
Hi Terry,
Thanks for the information, I am just starting my own business so I will look for E-Myth and try to read ASAP.
Will let you know of my thoughts about this book.
We are seeking Facilitators to duplicate Michael E. Gerber’s New Entrepreneur mentoring with our new Origination program.
Do you know any one interested in working directly with Michael on what will be his biggest project to date?
Visit: http://www.michaelegerber.com to watch our introductory video.
Regards,
Jeff Perry
Senior Executive
(760) 731 2510