After Vince’s book review of the MacDonald’s Franchise system, I thought that I would make a review of « The E-Myth revisited » by Michael E. Gerber, who sees the « Franchise mind » as a key success factor for small businesses. It is quite an old book, but I have been amazed by the simplicity and the truthfulness of how the author describes the mind of a business owner.

The author describes the entrepreneurial myth as 1) the myth that most people who start businesses are entrepreneurs, 2) the fatal assumption that an individual who understands the technical work of a business can successfully run a business that does technical work.

He says that almost every business starts with a Technician (somebody with a great ability, for example baking pies) having an “Entrepreneurial seizure” (“it would be so much better to do it for me!”). But in each business owner, there are 3 different people with different interests: the Technician, the Manager and the Entrepreneur.

Whereas successful businesses are owned by people having “the Entrepreneur” in them shaping a vision which will lead the company to succeed, most businesses are owned by people who are Technician at 70%. They are people who have started their business thinking that by this way they will be able to dedicate entirely to what they love, without knowing that being a business owner requires many more skills.

For a Technician to develop his Entrepreneur side, he needs to think about the business as a Franchise (named the Turn Key revolution) as if he had to build a business which would have to seduce potential franchisees not for the product the business is selling but for the perfect functioning of the business itself. He has to create a Prototype business, as though it was the model for 5,000 more just like it.

I really think that Gerber has understood the psychological brakes which prevent owners from creating efficient businesses:

- Owners focus on the product rather than on the business

- Owners build a business based on their talent and personality rather than on processes, which makes impossible to grow the business or to create others on the same model

- Owners go to work in their business rather than on it

Fidji is not at all a reference in entrepreneurial success, but her mistakes make her believe that she can talk about it. You can discover her in her initial announcement or on her blog.

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