Tuesday, January 29, 2008

Building A Successful Internet Business

For anyone currently building their Internet Business I would like to briefly mention Michael Gerber's highly recommended book 'The E-Myth Revisited - Why Most Small Businesses Don't Work and What to Do About I'.

Here is a short overview over his basic business building concepts and principles:

1. Every year over 1 million people start a business of some sort and statistics tell us that by the end of year ten over 90% of these small companies have failed. (These statistics are from the States but I doubt very much that the horrific failure rate is much different in any other country!)

2. Most businesses are started by so called 'technicians', people who are skilled at what they enjoy doing. Technicians assume that they understand how a business works but most of the times they don't.

3. Building a business, according to Michael Gerber, takes three skill sets: (1) The entrepreneur, (2) The manager, (3) The technician.

4. Businesses generally go through 3 phases of growth:
- Infancy - When the technician is required mostly
- Expansion - when better management skills are required.
- Maturity - when an entrepreneurial perspective is needed

The business that is built and managed by someone who combines the approach of the three roles will have a far greater chance of survival and success than the one guided by someone thinking like a technician alone.


Michael Gerber's main idea to save (small) businesses from failingis that you should view your operation as the prototype for a franchise business or a turn-key solution. The main challenge in doing so he sees in maximising the amount of time you spend working ON your business rather than IN your business.

Michael Gerber has been a consultant for small companies for many years and his company E-Myth Worldwide has put together a business development process by which a successful franchise prototype can be built in seven distinct steps and a foundation of three key activities.

See the Summary of the 'E-Myth Principle Based Business Development Process', click here. Even if you have read the book before, this summary is a great reminder of the main ideas.


P.S. If you would like to get great tips & feedback for your specific business, here is the link to a brand new Forum "Successful Internet Business" to discuss some of the challenges and advantages building a business online.

1 comment:

Bonnie Gean said...

Karl,

Michael Gerber's book is a great reminder on how important it is to have a SYSTEM in place. One that can be copied repeatedly to achieve the same results.

It also expresses the importance of having manuals written to TRAIN employees to do the work that needs to be done.

This is also a good idea (write a manual) for future purposes when and if the business owner cares to sell their website business.

The manual becomes a great benefit to the buyer -- as it allows the buyer to understand from day 1 how the business should operate to be most successful.

All good things,
Bonnie Gean