Michael Gerber On Developing A Business Model Built For Growth

Michael Gerber, author of The E-Myth Revisited, describes developing a business model that can scale. By focusing on creating a system that can expand rather than the management …

Michael Gerber, author of The E-Myth Revisited, describes developing a business model that can scale. By focusing on creating a system that can expand rather than the management of the business, he argues that you will have a better opportunity to achieve a greater level of success. See the following article from JasonHartman.com for more on this.

Established in 1977, E-Myth Worldwide mastery programs have served tens of thousands of clients representing 145 countries. Recognizing that business ownership for many is a self-imposed prison rather than means of liberation, Gerber’s approach stresses “working on your business not in your business” by developing a finely tuned franchise model that is built for growth.

Entrepreneur, Manager or Technician?

Of these three roles, most business owners concentrate on the latter when what is required is developing into a “systems thinker”. The absence of an entrepreneurial mindset, Gerber asserts, is at the root of failure, and in fact many businesses are conceived when “a technician has an entrepreneurial seizure.” Instead of how-to and people skills, the true entrepreneurial mind is a combination of “dreamer, thinker, storyteller and leader.”

The McDonald’s Paradox

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With high turnover rate among a workforce barely past its teens, McDonald’s success at delivering consistent quality is a seeming contradiction. Where they have succeeded is in developing the prototype that has allowed their model to multiply. Contrast this approach with the business owner who invests his energy in the quest for an indispensable, go-to employee only to grow overly dependent, placing his business at risk. Failing that, businesses tend to contract rather than expand since the owner is unable to find his replacement, missing the fact that this is really a saving grace.

The Dreaming Room – Awakening the Entrepreneur Within

Inaugurated in 2005 as a training grounds for implementing his philosophy, the Dreaming Room is heading for a global launch with 10,000 facilitators tasked with saving start-ups from joining the ranks of the 80% of businesses that don’t survive beyond infancy. Gerber hopes to fill a niche by teaching real-world skills to “produce a startlingly different result… for less than the cost of a minimum wage employee.” Too often, Gerber says, the fundamental systems of lead generation and conversion along with client fulfillment are lacking, leaving business owners bogged down, unable to experience the innate joys of entrepreneurship.

10 Principles of Effective Businesses

In his latest book, “The Most Successful Small Business In The World”, Gerber defines an ideal business model for a new era shaped by a new ethos. He shares the first four principles with Jason’s audience, describing a well-designed business as capable of exponential expansion and sustainable through any market conditions, where all parts contribute to a whole which is only as effective as the idea on which it is based. Above all, an ideal business must be both “transformable and scalable”, with the power to effect real world change and the ability to be replicated.

You can listen to the full podcast interview of Michael Gerber at JasonHartman.com, a real estate investment and wealth creation site


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