Michael Gerber wrote a well-known book “The E Myth Revisited” which he subtitled “Why Most Small Businesses Don’t Work and What to Do About it”.
The E in the title stands for “entrepreneur” which is what many Kiwis are or want to be.
He identified the fundamental flaw for most new small business owners – thinking that if you are great at the technical things in a business then you also understand the whole business and can make it work.
To put it another way, you can work ON your business – outcome SUCCESS, or
you can work IN your business – outcome DISAPPOINTMENT!
Working IN your business is being the technician – the expert. This limits success to your own ability and time.
Working ON your business is being the manager of all that goes on in the business. To do this you have to stand back and look at the business from the outside.
Success means you need to wear the “right hat” and not try to do everything.
The “entrepreneur hat” requires:-
- a vision,
- a plan,
- a team,
- a product or service
- a belief in a successful outcome,
- the willingness to take risk.
The “manager hat” requires the ability to implement the plan and to deal with and solve day to day issues as they come up.
The “technician hat” requires doing the hands on work at the coal face.
In a small business the owner frequently wears all 3 hats. This is limiting and holds back many businesses particularly new start-ups.
Long term success can only come by concentrating on the “entrepreneur hat” and empowering others with the right skills to wear the “manager” and “technician hats”.
This is achieved by having a plan, looking at it daily, revising it as necessary, and as soon as cash flow permits, finding the other wearers of the hats to become the key members of the team.
The acronym TEAM – Together Everyone Achieves More sums it up.
Richardson and his Team at Capital Accounting Associates Limited are happy to assist existing or new business owners with all aspects of business advice as a key part of the business team to do better and get to the next level.
For the rest of 2016 we are pleased to offer a free copy of Michael Gerber’s book “The E-Myth Revisited” to all businesses who book a free introductory 45 min consultation with us.