Small Business Owners: Read this book!

Since this is the very first week of our “Smart-n Up” series of post, I thought it appropriate to talk about one of the most important books for small business owners to read and to understand. The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It by Michael Gerber is an updated version of his original book “The E-Myth” (now out of print). This should be required reading for every small business owner out there.

I rarely (if ever), go to a conference that discusses small business issues where the principles outlined in the E-Myth are not discussed in some fashion. Michael Gerber dismisses the common Myths about owning your own business and helps owners easily distinguish whether they want a “business” or a “job.” Unfortunately, most small business owners more closely resemble someone in a “job” than someone who owns a business.

Gerber, who has been a long-time consultant for small business success, makes it clear that most businesses fail; however, the ones that succeed do not do so because of luck. They succeed because they are organized properly. They are organized much the way that many franchises are organized – so that an ordinary “Joe” can walk in off the street and operate the business. This is done through business systems/processes. Why do you think that a McDonald’s in Japan operates exactly the same as a McDonald’s here in the Charlotte area?

It isn’t because of luck. It is because of systems. As Gerber puts it “Your business is not your life.” Your business should be a means to the life you want, but it should not consume you. Getting the proper systems in place does several things for your business – most importantly, it allows you to step back from the day-to-day grind of keeping your business operating and allows you to concentrate your efforts on growing your business.

That brings us to another great reason for the systems – scalability. Let’s face it, a plumber can physically only fix so many toilets by himself, but if he has functional systems in place, there is no limit to the amount of toilets his business can service. It’s all about systems. Do you have all of the systems in place in your business?

I have glossed over the points that Gerber talks about in detail through the book. I can’t even begin to give his work justice – much less so in a short blog post. Again, this is a book that every small business owner needs to read. After you read it the first time, you will probably want to read it again.

Where you can get The E-Myth Revisited:

Amazon.com Paperback

Amazon.com Audio CD

Charlotte-Mecklenburg Public Library

Over the past couple of years, I have become a much more avid reader – especially of books that will help me succeed with my goals. I have been able to cut out a lot of television and other non-productive activities, and I have used these “found” hours to concentrate more closely on success oriented tasks. I have heard the following phrase several times, although, I have no idea who said it.

“If you’re not getting smarter, you’re getting dumber.”

The essence of this statement revolves around the idea that educational opportunities are so plentiful that the average person is getting a little smarter each day. If you are staying the status quo, then by comparison, you are drifting lower and lower down the “smart” versus “dumb” scale in relation to everyone else.

Don't Let This Be You!

 With the growth of the Internet and the vast amount of knowledge resources in the market today, I believe that this is much more true than ever. Individuals and organizations have the ability to supercharge their learning today with countless educational opportunities available online. From a nearly infinite number of educational videos on YouTube (it’s not just funny videos), to a never ending supply of educational podcast on iTunes, there is no end to the number of free educational opportunities in the market today.  And, of course, let us not forget the old standard – books.

While I have always read industry periodicals and research to stay on top of things, I had rarely picked up a book and read it. Last year, I set a goal to read more books – enough to total 5,000 pages during the year. After finishing thirty books last year, I had blown through over 5,800 pages and had expanded my knowledge on several key topics that have helped me immensely in both my business and my life.

The question everyone must ask themselves is: “What am I doing to make myself smarter today?” Phrased another way, “What am I doing to grow my knowledge today so that I can help fuel my business and personal growth?”

Quite often, I run across many educational opportunities and items that I feel might help or be of interest to my small business clients. Therefore, we are going to start incorporating a weekly segment into the blog called “Smart’n up with…” to discuss these things. Quite often, they will be books, but they may also include Podcasts, YouTube educational segments, or any other item that may interest our clients.   Hopefully, I can pass along a few great resources to each of our clients and blog readers as well.

Also, I would like to add that if you come across any great resources or books, please pass them along to me.  I would love to hear about them.

While reading the book Bear Bryant, CEO, I came across the following quote:

“If you want to coach you have three rules to follow to win. One, surround yourself with people who can’t live without football. I’ve had a lot of them. Two, be able to recognize winners. They come in all forms. And, three, have a plan for everything. A plan for practice, a plan for the game. A plan for being ahead, and a plan for being behind 20-0 at half, with your quarterback hurt and the phones dead, with it raining cats and dogs and no rain gear because the equipment man left it at home.” – Paul “Bear” Bryant

Are you playing by these rules in your business?

Who do you surround yourself with? Who are you top employees? Are they committed to your business? Are they committed to making your business win? Do you have a mastermind group outside of your business? Attorneys, business coaches, accountants? The lesson, all of these should be people who are fully committed to making your business succeed. The more obsessed they are with helping your business succeed, the better.

This leads into the second rule, be able to recognize winners. When you are hiring employees or interviewing potential members of your mastermind group, can you recognize a winner from someone who just gets by – or worse, who drags other employees (and your business) down with them.

And the third rule, have a plan! You should have a detailed plan for your business. The reason for this is so that you make better decisions. Studies show that if you sit down and make a detailed plan, you will make better business decisions. The physical act of sitting down and writing out a plan makes you think of scenarios that may occur. Many of these scenarios may never happen. If they do happen, you will be well prepared to make the best business decisions. Without sitting down and writing out a plan, you may not have even thought of the scenario until it has happened – thus leaving you ill prepared to make quality decisions.

Follow these three rules, in your business and you will begin to see some of the success that Bear Bryant achieved during his illustrious coaching career.

Do you ever wonder how your brain works? The possession of this knowledge would surely increase our productivity and our likelihood for success in life. Brain Rules, a new book and DVD by John Medina, explores twelve principles of how the brain works with the purpose of allowing the readers to maximize the different aspects of their lives.

One of my favorite rules is Rule #1: Exercise boost brain power. In my opinion, the author hit the nail on the head with this one. Medina suggests that the best business meeting would have everyone walking at 1.8 miles per hour. I know that some of the best meetings I have with my business partner (my wife) come as we take a leisurely stroll around the neighborhood. During this stroll, my mind begins to churn ideas and answers to business challenges at a rate that I never get laying around the house or sitting at my desk.

I will provide more insight on this book after I actually read it, but for now, you can learn the twelve rules for yourself by visiting the Brain Rules website.