By HEATHER DOUGLAS*
Michael Gerber's indispensable little classic offers more between its covers than many business owners learn in a lifetime.
If you are serious about expanding your business, and you choose to read only one book, this should be the one.
This slim volume has revolutionised the thinking of numerous solo operators,
teaching them to work on rather than in their businesses.
It has also provided a simple blueprint enabling them to expand their businesses and increase their revenue by working smarter rather than harder.
Gerber's points are woven neatly into a simple story line, and the book is easy reading.
The E-Myth's theory is based on the fact that many small businesses are started by individuals with a particular skill, who face redundancy or get fed up with corporate life and decides to go into business for themselves.
These individuals may be exceptional at what they do, but usually do not have managerial or entrepreneurial skills or experience. The E-Myth (E is for Entrepreneur) says it is necessary for any successful business owner to balance three personas - the technician, the manager and the entrepreneur - in the business, which they can do by hiring others or improving their own skills.
Gerber takes the reader through a pie-shop owner's growth cycle, demonstrating how setting up systems and processes enable the business owner to begin to work on, rather than in the business.
Gerber labels this "developing a franchise prototype", but the concept is applicable not only to those looking to franchise their businesses, but also to those wanting to increase revenues without increasing time spent on the business, and to add value to their business with a view to selling it.
A warning, though: don't read The E-Myth if you are content running your business just the way you are - it has a way of shaking things up.
* Paperback, 268 pages, Harper Collins, 1995.
* Heather Douglas is managing director of Home Business New Zealand.
