Friday, November 8, 2013

A Summary - The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It

QUOTES
The basic difference between an ordinary man and a a warrior is that a warrior takes everything as a challenge while an ordinary man takes everything either as a blessing or a curse - Don Juan/Tales of power

"people who are exceptionally good in business aren't so because of what they know but because of their insatiable need to know more."

"The great ones I have known seem to possess an intuitive understanding that the only way to reach something higher is to focus their attention on the multitude of seemingly insignificant, unimportant, and boring things that make up every business (and that make up every life, for that matter!) These mundane and tedious little things that, when done exactly right, with the right kind of attention and intention, form in their aggregate a distinctive essence, an evanescent quality…"

"Indeed, the problem is not that the owners of small businesses in this country don't work; the problem is that they're doing the wrong work.""

"management by luck, stagnation and ultimately failure"

"if your thinking is sloppy, your business will be sloppy"

"where was the entrepreneur who had started the business? the answer is simple, he had only existed for a moment"


“The Fatal Assumption is: if you understand the technical work of a business, you understand a business that does technical work”

"the technician lives in the present for the status quo,the manager lives in the past and the entrepreneur in the future"

"the work of an entrepreneur is to wonder, to imagine and dream"

"It's easy to spot a business in infancy : the owner and business are one and the same. if you remove the owner from an infancy business there would be no business left. it would disappear" (can you go on a vacation???)

"it's only a problem when the technician avoids the challenge of learning how to grow a  business"

"the purpose of a going into business is to get free of a job so you can create jobs for other people."


"he technician’s boundary is determined by how much he can do himself. The manager’s is defined by how many technicians he can supervise effectively or how many subordinate managers he can organize into a productive effort. The entrepreneur’s boundary is a function of how many managers he can engage in pursuit of his vision.”

"simply put your job is to prepare yourself and your business for growth"

“By asking the right questions, such as: Where do I wish to be? When do I wish to be there? How much capital will that take? How many people, doing what work, and how? What technology will be required? How large a space will be needed, at Benchmark One, at Benchmark Two, at Benchmark Three?

if you don't articulate it - write in down, clearly, so others can understand it - you don't own it. 
building a business that works not because of your but without you.

A mature business knows how it got to be where it is what it must do to get where it wants to go

1. have a clear picture  of what the company would look like when it was done
2. how a company which looked like tht would have to act
3. unless we act that way from the very beginning, we would never get there.
4. for it to become a great company,it would have to act like a great company long before it ever became one.
5. at the end day we asked ourselves how well we matched against the set template. discovered the disparity and the next day set out to make up for the difference.

what's important in the business is how it looks, how it acts,how it does what it is intended to do.

Here are some key ways these views differ:
  • The Entrepreneurial Perspective asks the question: “How must the business work?” This perspective looks at the business as the product, competing for the customer’s attention against a whole shelf of competitors. The Technician’s Perspective asks: “What work has to be done?” In this view the product features, cost, and support are the key to success.
  • The Entrepreneurial Perspective sees the business as a system for producing outside results for the customer, resulting in profits. The Technician’s Perspective sees the business as a place in which people work to produce inside results for the Technician, producing employee income.
  • The Entrepreneurial Perspective starts with a picture of a well-defined future, and then comes back to the present with the intention of changing it to match the vision. The Technician’s Perspective starts with the present, and then looks forward to an uncertain future with the hope of keeping it much like the present.
  • The Entrepreneurial Perspective envisions the business in its entirety, from which is derived its parts. What’s important is the business as a whole: how it looks, how it acts, how it does what it is intended to do. The Technician’s Perspective envisions the business in parts, constructed from the bottom up, based on technical tasks.
  • The Entrepreneurial Perspective is an integrated vision of the world, where the customer need is an opportunity to make meaning. The Technician’s Perspective is a fragmented vision of the world, where customer satisfaction represents a series of problems to solve, with price, features, availability, and support.
  • To the Entrepreneur, the present-day world is modeled after a vision of a better way, one that will stand out with customers from all the rest in the past, and give the joy and satisfaction of success. To the Technician, the future is modeled after the present-day world, the model of past experience, and the model of getting paid for effort or results.
a solution is the form of a business that looks and acts in a very special way, the way, the customer needs it to look and acct, not the entrepreneur. to the entrepreneur the business is the product. to him the customer is always an opportunity. all he has to do is find out what the customer's wants are and what will they be in the future. the world is a continuing surprise a treasure hunt to the entrepreneur. provide a business model that is so exciting that it stimulates our entrepreneur personality.

your business is not your life, i would never allow myself again to be consumed by the work of my business

the purpose of a business is to live or die according to how well it performs its sole function: to find and keep customers.

Go to work on your life, not in it. Their lives are spent living out the vision they have of their future, in the present.  They compare what they’ve done with what they intended to do.  And where there’s a disparity between the two, they don’t wait very long to make up the difference.
I believe it’s true that the difference between great people and everyone else is that great people create their lives actively, while everyone else is created by their lives, passively waiting to see where life takes them next.
The difference between the two is between living fully and just existing.
The difference between the two is living intentionally and living by accident.

VISION
The company was an expression of who he was, a symbol of what he believed in

MISSION
How you've innovated systems solutions to poeple problems, how youve quantified the results of those innovations and how you've orchestrated the innovations so that they prduce the same results every single time.Imagine how impressed the potential buyer of your business would be upon being presented with such order, such predictability, such irreproachable control

 PRIMARY AIM
What do I value most?  What kind of life do I want?  What do I want my life to look like, to feel like?  Who do I wish to be?
 What would you like to be able to say about your life after it's too late to do anything about it?
 All you need to do is begin living your life as if it were important. All you need to do is take your life seriously. To create it intentionally.
if your business is going to make a major contribution to the realization of your dream, if your business is going to become a significant component of your Primary Aim, you have to let your business know what that Aim is!

What do I wish my life to look like?
·         How do I wish my life to be on a day to day basis?
·         What would I like to be able to say I truly know in my life, about my life?
·         How would I like to be with other people in my life; my family, my friends, my business associates, my customers, my employees, my community?
·         How would I like people to think about me?
·         What would I like to be doing two years from now?  Then years from now?  Twenty years from now?  When my life comes to a close?
·         What specifically would I like to learn during my life; spiritually, physically, financially, technically, intellectually?  About relationships?
·         How much money will I need to do the things I wish to do?  By when will I need it?

STRATEGIC AIM
It is the vision of the finished product that is and will be your business.
“Your Business Strategy and Plan are a way of communicating to anyone you must communicate to the direction your business is going, how it intends to get there and the specific benchmarks it will need to hit in order for the Strategy and Plan to work.”
your strategic objective is just such a list of standards. it is a tool for measuring your progress toward a specific end. it is a template.
What will be the Gross revenues, gross profits, pretax profits, after-tax profits?

How much money do I need to live the way I wish?  Not in income but assets.  In other words, how much money do I need in order to be independent of work, to be free?  In fact there is ultimately only one reason to create a business of my own, and that is to sell it.  
How much, when, why would anyone buy it?
"Does the business I have in mind alleviate a frustration experienced by a large enough group of consumers to make it worth my while?"
the product is what your customer feels as he walks out of your business – what he feels about your business, not what he feels about your commodity. Understanding the difference between the two is what creating a great business is all about.
When is your Prototype going to be completed? In two years? Three? Ten? • Where are you going to be in business? Locally? Regionally? Nationally? Internationally? • How are you going to be in business? Retail? Wholesale? A combination of the two? • What standards are you going to insist upon regarding reporting, cleanliness, clothing, management, hiring, firing, training, and so forth?

HR
But Harry has needs of his own. Harry’s also a technician. He needs more direction than The Technician can give him. He needs to know why he’s doing what he’s doing. He needs to know the result he’s accountable for and the standards against which his work is being evaluated. He also needs to know where the business is going and where his accountabilities fit into its overall strategy.
She abdicated her accountability as an owner and took the role of just another employee. She avoided fully participating in her relationship with Elizabeth, and, in the process, created a dynamic between herself and her employee built on a weak structure. 
its the people's job to use the tools you've developed and to recommend improvements based  on their experience with them.
Management by abdication - "technical help: someone who knows how to do the technical work that isn't getting done-usually the work you don't like to do"
It is literally impossible to produce a consistent result in a business that depends on extraordinary people. No business can do it for long. And no extraordinary business tries to! You will be forced to find a system that leverages your ordinary people to the point where they can produce extraordinary results over and over again.
 By making clear demands on their time and energy, it provides an element of structure around which the rest of their lives can be organized - documentation

Motivation
And so the craftsperson is one who has reached that stage of her development where she is content with the work, and only the work, knowing that it is only through being there with one’s work that the jewel will reveal itself, and that it is the work, and only the work, raised to the level of near perfection that connects the craftsperson with herself, with her own heart.  And so she practices, day in and day out, content to do so, without the thrill of the apprentice to keep her going, but knowing deep inside that there is no place to go but here.
For the master, there is only one way and that is to teach another.  The master is connected to the apprentice as though to her past.  As you are to your childhood.  The master knows that the process of growing, of change, of transformation, is always moving, never still.  Is is in the face of the apprentice that the master sees herself anew.  It is in the face of the craftsperson that the master renews her pilgrimage and finds the beauty of giving herself up to work.  It is in the face of the work that the  master discovers anew why she is so enraptured and, in so doing, brings her rapture to the apprentice to start all over again
The mystery that change can bring, continuous innovation is the key to avoid monotony.
to discover the thrill of the craft is by practicing the craft mindlessly. to become one with the work.

New person hiring
show sales manual, strategic objective, why created and how. tell them story and dream, organization chart, who to report. discussing a new person's job is more important that the work at hand. The work we do is a reflection of who we are. If we're sloppy at it, it's because we're sloppy inside. If we're late, it's because we're late inside. If we're bored, we're bored inside. How we do our work becomes a mirror of how we are inside. making sure they understand the idea behind the work they’re being asked to do.
there was an idea behind the work that was more important than the work itself.
  1. The customer is not always right, but whether he is or not, it is our job to make him feel that way.
  2. Everyone who works here, is expected to work toward being the best they possibly be for the tasks they are accountable for, if they can't do that, then they are to be expected to act like they are, until they can get around to it, and if they are unwilling to act like it, then they should leave.
  3. That the business is a place where the business is a place where everything we know how to do, is tested by what we don't know how to do, and the conflict between the both, is what creates growth.
 the degree to which they buy into your game doesn't depend on them but on how well you communicate the game to them — at the outset of your relationship, not after it's begun.

the game and the rules are defined by how you act.
The Rules of the Game
  1. Never figure out what you want your people to do and then create a game out of it. IF it’s to be seen as serious, the game has to come first.
  2. Never create a game for your people that you’re unwilling to play yourself. They’ll never let you forget it.
  3. Make sure there are specific ways of winning the game without ending it. The game can never end or it will take the life out of your business. But there must be victories in the process which are celebrated, to keep your staff engaged and to make the game appealing.
  4. Change the game from time to time – the tactics, NOT the strategy. The strategy is its ethics, the moral underpinning of your game’s logic. Watch your people. Their results will tell you when the game’s all but over and it’s time to change. The trick is to anticipate the end BEFORE anyone else does, and change it by executive action. Persist even when you get push back at first. Your persistence will move them through their resistance into a more lively game.
  5. Never expect the game to be self-sustaining. People do what you INSPECT, not what you EXPECT. They must be reminded often. At least once a week create a meeting about the Game. Once a day, make an issue about an exception to the way the game has been played and make certain everyone knows about it. Remind your staff often about the Game they’re playing with you.
  6. The game has to make sense. An illogical game will die before it ever gets off the starting blocks. It has to be built around universal truths that everyone can see and understand.
  7. The game needs to be fun from time to time. Plan the fun into your Game. Most games are NOT fun, so the challenge is learning how to deal with the “not fun” parts of the game so you retain your dignity while making mistakes. Fun needs to be defined by your people, so get them involved in making it Fun, something they look forward to.
  8. If you can’t think of a good game, steal one. Anyone’s ideas are as good as your own. But if you steal someone else’s game, learn it by heart, and, if necessary, give them credit.
the hiring process was comprised of several distinct components
1. A scripted presentation communating the Boss's idea in a group meeting to all of the applicants at the same time. This presentation described not only the idea but also the business' history and experience in successfully implementing that idea , and the attributes required of the successful candidates for the position in question
2. Meeting with each applicant individually to discuss his reactions to and feelings about the idea , as we ll as his background and experience. At this meeting , each applicant was also asked why he felt he was superbly appropriate for the role the position was to play in implementing the Boss's idea
3. The notification of the successful candidate by telephone Again. a scripted presentation
4. The notification of the unsuccessful applicants thanking each for his interest. A standard letter , signed by the interview
5. First day of training to include the following activities for both the Boss and the new employee
� Reviewing the Boss's idea
� Summarizing the system through which the entire business brings the idea to reality
� Taking the new employee on a tour of the facilities, highlighting people at work and systems at work to demonstrate the interdependence of the systems on people and the people on systems
� Answering clearly and fully all the employee's questions
� Issuing the employee his uniform and his Operations Manual
� Reviewing the Operation's Manual , including the Strategic Objective, the Organizational Strategy , and the Position Contract of the employee's position
� Completing the employment papers

Managing
1. How We Do It here
2. How We Recruit , Hire, and Train People to Do It Here
3. How We Manage It Here
4. How We Change It Here

OPERATIONS
Create a system dependent business and not a people dependent one.  A business that could work without the owner. system dependent rather than expert dependent. How can I give my customer the results he wants systematically rather than personally. to successfully differentiate itself from the competition.
Franchise prototyping - mcdonalds burgers. your business is going to serve as the model for 500 more just like it.perfect replicas, clones.

without documentation, all routinized work turns into exceptions.
  1. The model will provide consistent value to your customers, employees, suppliers and lenders, beyond what they expect.
  2. The model will be operated by people with the lowest possible level of skill.
  3. The model will stand out as a place of impeccable order.
  4. All work in the model will be documented in Operations Manuals.
  5. The model will provide a uniformly predictable service to the customer.
  6. The model will utilise a uniform colour, dress and facilities code.
Manual:It designates the purpose of the work, specifies the steps needed to be taken while doing that work, and summarizes the standards associated with both the process and result.
Do not constantly and arbitrarily change the experience for the customer. What you do in your model is not as important as doing what you do the same way, each and every time.

* How can I get my business to work without me?
* How can I get my people to work without my interference?
* How can I systematize my business so it could be replicated thousands of times?
* How can I own my business, and still be free of it?
* How can I spend my time doing the work I love to do rather than the work I have to do?

Make a checklist for everything. Include drawings so its easy for even new people to do.

ORGANIZATION
Orchestration is the elimination of discretion, or choice, at the operating level of your business.  Without Orchestration, nothing could be planned, and nothing anticipated — by you or your customer.  If you’re doing everything differently each time you do it, if everyone in your company is doing it by their own discretion, their own choice, rather than creating order, you’re creating chaos.
Because unless your customer gets everything he wants every single time, he’ll go someplace else to get it! Orchestration is the glue that holds you fast to your customer’s perceptions.
The Business Development Process is dynamic, simply because the world, moving as it does, will not olerate a stationary object.  The world will collide with whatever you’ve created, and sooner or later destroy it. A habit, a way of doing something habitually.

It is not structured, it is a mob. mobs do not get things done, they destroy things. most companies organize around personalities/persons ad not accountabilities or responsibilities. if everybody's doing everything, then who's accountable for anything? without a chart,everything hinges on luck and good feelings, on the personalities of the people and the goodwill they share - they are a recipe for disaster.

- To be shareholders outside but employees inside.
- conduct a market research/need analysis: form, list calling people, consumer, competition, pricing
- and financial info: operating proforma, cash flow projection.

CHART
Shareholders - President/CEO - VP Marketing + VP Operations+ VP Finance
VP Marketing - Sales Manager + Ad Research Manager
Sales Manager - Sales person
VP Operations - Production Manager + Service Manager +Facilities Manager
Production Manager - production workers
Facilities Manager - peons
VP Finance - Account Receivable Manager + Accounts Payable Manager

Position contracts for each position:
a summary of the results to be achieved by each position in the company, the work that position is accountable for, a list of standards by which results are to be evaluated. Sign off on it. Not a job description, it is a contract between the company, employee, and a summary of the rules of the game. It provides each person with a sense of commitment and accountability.

decide and discuss who will take what and sign off.
Each of them asks, “What would best serve our customer here? How could I most easily give the customer what he wants while also maximizing profits for the company? and at the same time, how could i give the person responsible for that work the best possible experience?

Our job is to manage the system rather than doing the work.
unless I act as I expect my employees to act, unless I work in my business exactly as I wish them to , I will never be able to create a system for doing it exactly the way I expect them to do it
" In other words , unless I act in exactly the same way as I expect my employees to act, the system I create will indulge my preferences, rather than what the business really needs to make it possible for everyone other than me to be as productive and happy as possible

If the rules don't apply to the leader why should you expect anyone to follow you?


QUANTIFICATION/DASHBOARD
“Begin by quantifying everything related to how you do business. I mean everything. How many customers do you see in person each day? How many in the morning? In the afternoon? How many people call your business each day? How many call to ask for a price? How many want to purchase something? How many of product X are sold each day? At what time of the day are they sold? How many are sold each week? Which days are busiest? How busy? And so forth. You can’t ask too many questions about the numbers.”

SALES
always ask qs to the customer whose answer is a yes.
touch them softly on the arm
what is standing in the way of my customer getting what he wants from my business?customer's pov
you and your people constantly should ask, what is the best way to do this?
people buy feelings. what feeling will your customer walk away with?
demographics, psychographics
the Sales Operations Manual contains the exact scrips for handling incoming calls , outgoing calls , meeting the customer at the door. The exact responses to customer in queries , complaints, concerns. The system by which an order is entered returns are transacted , new product requests are acted upon , inventory is secure
Only when the Sale Operations Manual is complete does Murray run an ad for a salesperson.
AD: But not for someone with sales experience
Not a Master Technician. But a novice. A beginner. An apprentice"
Someone eager to learn how to do it right.
Someone willing to learn what Murray has spent so much time and energy discovering
Someone for whom questions haven't become answers
Someone who is open to the possibility of learning skills he hasn't developed yet , skills he wants to learn.
The greatest feeling in a customer: somebody had heard me every single time!
The customer you've got is one hell of a lot less expensive to sell to than the customer you don't have yet.
to deliver the promise that no one else in your industry dares to make.

a selling system is a fully orchestrated interaction between you and your customer that follows 5 primary steps:
-  Identification of the specific Benchmarks or consumer decision points-in your selling process
-  The literal scripting of the words that will get you to each one successfully (yes, written down like the script for a play!)
-  The creation of the various materials to be used with each script
-  The memorization of each Benchmark’s script
-  The delivery of each script by your team in identical fashion.

1. The purpose of an appointment presentation is one and one thing only, to make an appointment
"i'm ... from..... Are you buying a new quality of velvet (jacquard etc.) that is quite popular?
2. reestablish emotional commitment,how would you like to proceed to fulfill your promise
3. company expertise
4. personal willingness to do whatever is necessary
5. describe by impact on customer, and why it works so well

Different Types of Scripts
-  Appointment setting
-  Main Presentation
-  Voice Mail
-  Referral
-  Objection Handling
-  Each Product Needs a Script (Travel & Opportunity)
-  Each way you sell your product needs a different variation of the script

Wednesday, February 13, 2013

My list of business ideas and opportunities


Business Ideas come to me plenty. Only thing is I am unable to judge if they are worthy of my time. I may get excited by a particular idea but lose interest later on.



Anybody is welcome to use these ideas but I prefer working with you if make it into a reality.



~~Textile Related

1. 3D PRINTING on textiles
2. PVC Profile Printing Machine

3. Professional sample makers

4. Magic Clean Carpet: Dust smell-absorbing carpets

5. Specialist fabric-care home service



~~Online

1. PRICELIST.COM: an online portal where shopkeepers get to list if their product is cheapest

2. Getaquote.com / odd jobs inc.
3. Placetoplay.com
4. Bodyshaper:  Description: online previewing of customized clothing/shoes by inputting exact body measurement, making alterations to the product or suggesting in stock perfect fit items
5. trureview.com:  authentic critical reviews
6. willingtogive.com: willingtolend.com - lend/borrow books etc
7. seatavailable.com
8. rentavenue.com
9. giftselector.com: gift suggestions based on info/fb likes/info, movies, music etc.
10. lendabook/borrowabook.com



~~Food Related

1. 3D chocolate printer

2. Vegan Chicken

3. Pies, pretzels n tacos (pizzas) 3 Ps



~~Services

1. Live the movies: travel planner, tour as per famous movie/actor, genre wise

2. Skywriting, sky banners, flowerfall

3. Shop display consultant

4. Kaam Tamaam: making SOPs for your business (in hindi)
5. Girls/Women/Housewife/School Kids Intelligence agency: information to help marketers make bette decisions about products related to certain segments
6. Trainspot: product testing "lab" like seating room, where college youngsters can sit without buying

7. PartyLoud: soundproofing homes, concert halls, theatres, balconies, terraces
8. Richie's gym: Kid Gym, target segment - kids of IB/IGCSE and other posh schools, standards till 10th/age till 15/16
9. Tech shotgun: troubleshooting high end imported items like electronics
10. MarriedName: changing ids/docs for people after marriage (not originally my idea)
 

~~Products

 1. Pillow fluffing device
2. Standout: niche supermarket - theme based garments, hats for parties/weddings
3. USBFilms: movies which can be downloaded from kiosk via USB
4. Fruit Soda

5. Mosquito repellent soap / shower head cake
6. Pasta fork: spiral handle till neck, so with 2 fingers you can spin fork and twirl pasta (not originally my idea)
7. scootbag: bags for kids till 10th, with scooter suitcase type mechanism (not originally my idea)
8. Freshflops: interchangeable accessories on flip flops (or other items) (not originally my idea)
9. pet trainer: lawn for dog/litter for cats, attachment to be installed on WC till pet is trained (not originally my idea)
10. Microwavable soft toy