The E-myth Revisited Book (Summary) :- Macdonald’s Burgers, You go to any city and eat it, you will get its taste same. The reason is its burger making system, their burger making system is divided into some small steps His employees also follow the steps properly, so that the burger gets the same test everywhere, due to the easy to follow process, even after making burgers from different types of employees at different places, there is no difference in their quality.
People believe that only Entrepreneurs can start business but it is not so, in fact those who start business are first working for someone else and when they got mad of becoming an entrepreneur then start their own business. And in a few years, their so called business flops, but why this happens, let’s understand in detail.
Jack used to make pizza in a restaurant, but he thought that despite working so much for other people, I do not get anything, now why not open my own pizza restaurant where people get better and cheaper pizza, Jack quit his job and started a restaurant of his own. In the beginning, only a few people came there, then jack realized that he would have to do a little marketing for his restaurant, so he started his own marketing too.
Due to good marketing, good and cheap pizza, traffic started coming to his restaurant and Jack’s business started running in a little profit, but as soon as more people started coming to the restaurant, cleaning, accounting, marketing all these things now jack is not able to do it alone. It was because most of his time was spent in making pizza, that’s why he hired a man, but instead of being easy, things became more complicated because the man he had hired was very lazy.
Due to which people’s complaints started increasing and Jack felt that no one else can do this work better than me and Jack fired the person from the job and started handling all the work alone.
But in a very short time he understood that he should hire an expensive and expert person, again he hired an expensive man and finally got a good worker, then again he hired another man because His business had become a little bigger than before, but their is a problem that’s why he started going into loss instead of profit due to different expenses like Employee’s Salary, Shop Rent, Loan Emi, Furniture, Decoration and finally he closed his restaurant business.
This failure happened because jack only thought about his technical skills that if he can make tasty pizza, then he will also run the restaurant business as well but it did not happen.
That’s why Michael Gerber says that running a good business and being a technician is the difference between the two.
When IBM founder Thomas J Watson was asked in an interview why his business is so successful, Thomas Watson also said that someone Knowing the technical part and running a business are both different and most of the businesses start because they have the knowledge of the technical work of that business, people believe that they get technical work, then the business related to that work is also easy. Michael Gerber calls it a technical traveling from Entrepreneurship, Michael Gerber says that for any business to be successful, it is very important to have three people, an Entrepreneur, Manager and a Technician.
→ Entrepreneur is the one who lives in the future who gives vision to the company by bringing new ideas.
→ Manager is a practical person who keeps the business organized with past experience, he handles everything from Employee to Customer, Product Manufacturing to Product Distribution. And
→ Technician is the one who does technical work by staying present i.e. he gives practical shape to ideas.
To run a successful business these three people are needed or a person who has all these three quality but like Jack many people get failure because they are 70% Technician, 20% Manager and 10% Entrepreneur while in a Strong Brand To create an image, all three of you should be in a balanced quantity.
That is why if you know how to do any technical work well, it does not mean that you can do its business well too. According to the author, the life cycle of any business can be divided into three parts.
If you want to do a business or are thinking of doing it, then you have to go through these three stages, only then you will be able to make a successful business.
- INFACY STAGE
In this stage, all the work from owner to peon is done by the owner himself, till the business expands, more customers start coming, then he is not able to give all the work as much importance as he used to give before, he spends time on one work and other work remains incomplete. On the go and this starts reducing the customer satisfaction – for example,
You are a hair stylist when customers were less then you used to manage all the work but when customers started increasing then you make hairstyle of one customer then you are not able to manage other customers well or take care of cleanliness of shop And if you pay more attention to all these then the quality of work starts making a difference and customers start complaining now if the business owner understands that he cannot do all this work alone he can help me and people. It should be taken then it comes in the second stage.
- ADOLESCENSE STAGE
In this the business starts growing and the owner is unable to do all the work, then he starts hiring other people, in this he outsources a lot of his work which is not always the right decision which is from some customers side. There is also some complaint like this ,They are not getting the product of that standard as they used to get earlier, so if that business owner thinks that no one will be able to do this work except me and he starts working alone after removing his employee then his business goes back to the first stage.
But the one who crosses the adoption stage through good management in business comes to the maturity stage.
- MATURITY STAGE
Which is the highest level of any business in which the business is run without the owner, at this level you do not need the continuous hard work of the owner to grow the business so that that business owner can enjoy his life by going on as long vacation as he wants. But to bring your business to this level, it is very important for you to follow 2 rules!
Rule 1 – Create a system dependent business not a people dependent.
McDonald’s Burger You go to any city or country and eat it, you will get the test the reason is their burger making system, their burger making system is divided into small steps, their employees also follow those steps properly Due to which the burger test gets beans everywhere, due to the easy to follow process, even after making burgers from different employees at different places, there is no difference in their quality.
If your business will be people dependent then you know that when people work according to their will and mood, if those people leave or they do not work properly then your whole business gets spoiled that’s why your business Not people dependent but system dependent with a check list of clear cut standards and processes like McDonald’s has predefined checklists for the whole process of making burgers, design of the store, etc. McDonald’s will not stop any chef from leaving because any college student can easily learn their recipe and start working there in a few days.
If your business will be people dependent then you know that when people work according to their will and mood, if those people leave or they do not work properly then your whole business gets spoiled that’s why your business Not people dependent but system dependent with a check list of clear cut standards and processes like McDonald’s has predefined checklists for the whole process of making burgers, design of the store, etc. McDonald’s will not stop any chef from leaving because any college student can easily learn their recipe and start working there in a few days.
Rule 2 – Work On A Business Not In Your Business.
The reason people start a business is to create a good lifestyle for themselves, but they build the business in such a way that their business is completely dependent on them, the core principle of this book is that “Work On A Business Not In Your Business.”
Like Mark Zuckerberg started coding in his childhood, but if he kept on coding even after creating Facebook, then Facebook would never have been so influential, that’s why he hired others for technical work and instead of working in Facebook himself. Started working on Facebook.
The only way to get freedom from business is to put yourself out of business i.e. the entire burden of work is not on you but it is running through those systems. In simple language, build a business in such a way that decisions, progress can be made without you and you do not have to monitor everything.
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