The E-Myth Enterprise: How to Turn a Great Idea into a Thriving Business By Michael E. Gerber Book Review


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My rating: 4 Stars

The E-Myth Enterprise Review:

People who have lately thinking about starting their own business, but don’t have enough knowledge and want to start learning first before they went into business – I would suggest you to read this book. I do have to say that this will not be your complete ‘How to’ guide when it comes learning about how to start your own business, but it’s a good start. Also I would suggest this book to people who already had started business but the business is not doing well. You can learn some important skills that are required, and start working on how to apply some changes to your business and make it better.

Essential skills of this book and that everyone should learn are:

  1. Concentration
  2. Discrimination
  3. Organization
  4. Innovation
  5. Communication

Another important aspect of your product and service that it’s important to customers and that need to be presented clearly to your customers, and those preferences are:

  1. Visual preference
  2. Functional preference
  3. Emotional Preference
  4. Financial Preference

Without going into depth explaining more about this book, I think it’s clear from above what are main subjects of this book and things you can learn. I would suggest to anyone who is interested in business to learn this book because it does offer good content and author have enough experience in this field. It’s important to be prepared when you starting your journey of starting your own business. Of course that you can’t prepare yourself for everything, but it’s good to have some basic knowledge on how things should work. I would suggest you to read another book from the same author which contains much more great insights about creating business system, the book is The E-Myth.

If you like, you can read my other reviews of Entrepreneurship & Small Business Books

Also, check out my Best Business Books List

The E-Myth Enterprise Summary:

INTRODUCTION

The E-Myth Enterprise is a book about the business of invention. More importantly, it’s a book about rare people who I have come to think of as true E-Myth Entrepreneurs, people who were moved to re-create their world by inventing a business unlike any they had ever seen other than in their imagination.

CHAPTER ONE

THE E-MYTH ENTERPRISE AND THE POSITION OF ONE: A BUSINESS EXISTS ONLY AS IT IS PERCEIVED BY OTHERS

This book is meant to be a prescription for building a successful business in a free market system. As you will find out, it probably serves as well—if not better—as a polemic against such prescriptions.

Please excuse the apparent contradiction. I know that if you’re patient, somewhere in the middle resides a truth worth digging for. But to get there, you’re going to have to do some of the work. You’re going to have to stretch where I stretch and let go where I let go.

  • Businesses Exist Only Because People Want Them To.
  • People Are Regarded as a Problem to Most Businesses.
  • Service Is an Incomplete Word. 
  • There Aren’t Any Good Answers for Long. 
  • You Are Either the Lawn Mower or the Lawn.

DESIGNING THE ENTERPRISE: THE TAKEAWAY POINTS

  • Businesses exist only because people want them to.
  • People are regarded as a problem to most businesses.
  • Service is an incomplete word.
  • There aren’t any good answers for long.
  • The E-Myth Enterprise and the Position of One.

CHAPTER TWO

THE E-MYTH ENTREPRENEUR AND THE FIVE ESSENTIAL SKILLS

If a good idea for a business is one that serves the most people best, then we in the United States have some soul searching to do, because there’s something missing in most of our businesses. And that something is meaning.

  • The first essential skill—the most fundamental of all—is concentration.
  • The second essential skill is discrimination, the ability to choose upon what, where, and whom our attention, our ability to concentrate, is directed.
  • The third essential skill is organization, the ability to turn chaos into order.
    • There are three things that can be so organized: time, space, and work.
  • The fourth essential skill, innovation, turns order into right action.
  • The fifth essential skill is communication. 

CHAPTER THREE

THE E-MYTH ENTERPRISE MATRIX: THE FOUR CATEGORIES OF PREFERENCE

  • Visual preferences
  • Emotional preferences
  • Functional preferences
  • Financial preferences

make up what I call the E-Myth Enterprise Matrix.

The potency and vitality of a business can only be actualized to the degree that it fills the possibilities to be discovered within each of these categories of preference as they are experienced by each of their four primary influencers.

CHAPTER FOUR

THE FIRST CATEGORY OF PREFERENCE: THE VISUAL IDEAL

And so it is that the visual preference is so immediately critical to the success of a business.

Taken to that level, the visualization of a business is an art form. And just like a work of art, there are at least six tangible components that comprise the Visual Matrix that need to be considered in the construction of a business.

  1. Color.
  2. Form.
  3. Scale.
  4. Order.
  5. Detail.
  6. Information.

CHAPTER FIVE

THE SECOND CATEGORY OF PREFERENCE: THE EMOTIONAL IDEAL

To become an E-Myth Enterprise, it is essential for a business to become a visual production. But for the production to have meaning, for the form to have substance, the second category of preference, the emotional ideal, is equally essential, lest the production degenerate into what might be called visual rhetoric, “full of sound and fury, signifying nothing.”

There are seven rules Mary learned about building an emotionally vital business:

  1. The first rule Mary learned is that people need order.
  2. The second rule Mary learned is that people need to feel heard.
  3. The third rule Mary learned is that people need to feel connected to something bigger than themselves.
  4. The fourth rule Mary learned is that people need to have a purpose.
  5. The fifth rule Mary learned is that people need to feel that what they are doing has moral weight.
  6. The sixth rule Mary learned is that people need to feel that what they personally do is important.
  7. The seventh rule Mary learned about the emotional health of a business is that people need to feel that the people they associate with love them.

CHAPTER SIX

THE THIRD CATEGORY OF PREFERENCE: THE FUNCTIONAL IDEAL

That a company looks great and feels great is still insufficient for a company to act great. For a company to act great, it must think in a significantly different way about what it does and how it does it than most companies are prepared to do. That is because most companies are people-oriented rather than process-oriented.

People-oriented companies focus their attention on who is doing the work.

Process-oriented companies focus their attention on whether the right work is being done, and more importantly, if the right work is being done, how it is being done.

What is the primary frustration?

To make a promise—and to accept full responsibility for the delivery of that promise—requires control, the kind of control that only a process-oriented company can hope to exercise.

Marino Santos and his men boiled their mission down to five essential ingredients:

  1. Control what is sold.
  2. Control how it is sold.
  3. Control how it is planned.
  4. Control how it is built and installed.
  5. Control how it is monitored.

CHAPTER SEVEN

THE FOURTH CATEGORY OF PREFERENCE: THE FINANCIAL IDEAL

The fourth category of preference is the financial ideal. You’ve heard the platitude, “Do the right things, and the money will take care of itself”? Let me tell you this: the money never takes care of itself. Never.

YOU have to take care of money. Daily.

In a free market system, money is the measure. Money speaks.

Don’t mess with that truth. The minute you mess with that truth, no matter what you believe to be true about the person whose money you’re messing around with, that person will have your head.

To become the financial ideal, you must have integrity when it comes to money. Your investors, your bankers, your accountants, your suppliers, your customers, and your employees must know, without a doubt, that you have integrity. You back up your word with compatible actions.

Money can be your ally and help you build your business. Or it can be your enemy and destroy your business. The decision belongs to you.

CHAPTER EIGHT

THE E-MYTH PERSPECTIVE

This is the E-Myth Perspective. Service, excellence, and caring are not something you can do anything about. They are a state of mind. When a business is bereft of such qualities, it is because its founders, its owners, and its managers are bereft of such qualities. They don’t care to serve. It doesn’t bother them that their performance is less, by far, than excellent. They don’t care about the business because they simply don’t care at all.

Great companies, E-Myth Enterprises, are headed by great people who are possessed by a burning hunger to create something perfect in the world that they can’t find in themselves.

Ideas reside at the heart of the E-Myth Perspective.

Those who are possessed by the E-Myth Perspective are driven by ideas.

CHAPTER NINE

SHOOTING FOR THE MOON

An E-Myth Enterprise is a business that takes personal responsibility for the condition of the world it finds itself in; for the condition of the people with whom it interacts; for the condition of their children and their children’s children; for the condition of the very quality of life itself.

A business with conscience. That is, I believe, the only mission worthy of the name.

To accomplish this mission requires all that we have.


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Product details

  • Paperback: 224 pages
  • Publisher: HarperBusiness; 1 edition (August 3, 2010)
  • Language: English
  • ISBN-10: 9780061733826
  • ISBN-13: 978-0061733826
  • ASIN: 0061733822
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The E-Myth Enterprise: How to Turn a Great Idea into a Thriving Business By Michael E. Gerber
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