"The E-Myth" Book Report

Michael E. Gerber wrote the original "E Myth" book in 1986. It found an underground audience and sold 150,000 copies. Mr. Gerber's follow-up "Revisited" was written 9 years later in 1995. These two books have transformed the way businesses think.

I am one who believe geniuses like Seth Godin and see jobs and the Industrial Age slipping away, being replaced with the many types of "-preneur" in the Connection Economy. Thus, the need for this book becomes greater year by year. Essentially, Gerber cites IRS stats that 80% of businesses fail within 1 year and 80% of the survivors fail within 5 years. That's only a 4% chance of surviving 5 years! And he states the #1 reason is a BAD assumption.

What is that assumption?

That each new owner is an entrepreneur... thus, the E-Myth.

In most cases, they are technicians. Technicians are experts in the widget or service they do and decide to do it on their own. They trade one boss for a worse one - themselves! Technicians have no clue how to generate leads, convert leads, manage a business, set goals, and express vision. Why??? Because these are 3 separate roles.

Technician - The accountant, lawyer, doctor, plumber... and cleaner! They are experts in their craft.

Manager - This role handles personnel, works with leads and sales teams, and operates the business for the entrepreneur.

Entrepreneur - This is the role that sets the vision, inspires, sets aggressive SMART goals, builds relationships with clients, vendors, competitors, and team members. This is the critical role that must have the right person doing it.

Jim Collins talks about every member of an organization being on the right bus and the right seat on the bus.

So, you're a cleaner or "technician" as Gerber says. How do you survive the 96% fail rate? Simple, become a true entrepreneur and hire the other seats on the bus.

Gerber talks about the three phases every business travels through.

(1) Infancy -- YOU are the technician, manager, and entrepreneur. You can only go so far, right until you have to make a choice??? I'll come back to that.

(2) Adolescence -- YOU add technicians and a manger, desperately trying to keep everyone happy. This is the phase where the majority of the 96% fail. If all three roles are established with at least 3 people and the business stabilizes with a solid foundation and repeatable systems, then the business heads into...

(3) Maturity -- The business grows without YOU.

This process can take 1 year or 20 years, with the owner slipping in and out of infancy and adolescence. I did it for 3 years until I pursued another route.

I chose to remain the Technician, Manager, and Entrepreneur. However, I developed the ISO Model to carry my business through a predictable path towards freedom. This is what I teach.

Initialize... Stabilize... Optimize. The ISO Model is a system using SMART goals, metrics, coaching, and accountability to achieve the WHY in your life through your cleaning company... in 90-day bites.

It has changed my life as my business has gone from 5 days per week to 2 days per week earning the same income. I now have 5 days per week to design my life, enjoy my family, and work on the projects that I want to work on for income. SMART Cleaning Biz is one of those projects.

And the cool thing is that my ISO Model works for me and cleaners with the same goals as me as well as the three phase model Gerber speaks of. You can't build a business foundation on a beach, but rather rock. You can't play Jenga with your business, waiting until it topples. You have to have a plan and that plan starts with...

A WHY and SMART goals.

If you'd like to set your first SMART goal in your cleaning business and be held accountable, or you'd just like to learn my model, JOIN my private Facebook group or my LinkedIn group.