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

While at a conference for PASBA (Professional Association of Small Business Accountants) earlier this month, our keynote session was from the E-Myth Worldwide Group.  We discussed all of the traditional principles of managing your business rather than just working in it.  If you have not read the book, go get it today and read about yourself if you are a small business owner.  The work-life balance is something everyone struggles with, including me.

The speaker had us go through an exercise of writing down our goals for what we like to be doing versus what duties we actually perform in our business in a given day.  I’m sure that 99% of the members had a consistent theme of what we would like to be doing — working less and spending more time with family and friends.  I am included in that group.  Don’t get me wrong, I love what I do and am passionate about it.  But, I’m also passionate about living the rest of my life outside of work. 

Last week, my husband left on a fishing trip to Portsmouth Island (near the Outer Banks of NC) and has been stranded there due to weather and wind for a couple of extra days.  My mom also lives near me, but is out of town visiting our family in Ohio.  So that leaves me with my soon to be four year old son, Zack, and being a full-time stay at home mommy for a few days.  I have to keep reminding myself that it is a time that I will never get to relive so I put the work aside (for the most part) and live in the moment of being a mom.  Zack saw a picture of his dad on my TweetDeck and wanted me to make it bigger.  He said, “Mommy, I miss that guy.”  It reminded me how important it is to spend time with your children and family.  We have had a great time and guess what?  The office is still standing and our customers are still getting their questions answered in a timely fashion due to our remote work environment and the invention of the century, my Crackberry, I mean, Blackberry.

Take a look at your business.  Can it survive if you are out for a week or two?  If the answer to this is no, admit it, you need help.  There may be some easy things that can be resolved with technology or outsourcing.  Or maybe its just a matter of having that contingency plan to have others trained to do what you do.  To maximize the value of your business, you cannot be a cornerstone in running the business every moment of the day.  It needs written processes and procedures so someone else can step up to the plate if necesary.  This process will also give you a great peace of mind in knowing that your business is a self-sustaining entity. 

As Michael Gerber reminds me each day, “small business owners spend too much time working IN their business rather than ON their business”.  I remember when I am at the office because his words are framed and on my desk.  Come see me to discuss this important topic and I’ll remind you too!