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The entrepreneurial myth
- 1. The Entrepreneurial-Myth „The E-Myth“ Bestseller Book from Michael E. Gerber Book Review Lean Startup Hamburg MeetUp July 2013 Presenter: © Dipl-Ing H. J. Vetter
- 2. Agenda Entrepreneurial Seizure 10 Useful Terms Balanced Entrepreneurship Business Failure
- 3. Entrepreneurial SeizureUnternehmerischer Anfall ... Just Because You Know How To Do The Work, You believe You Know How To Run It As A Business … THAT's THE MYTH!
- 5. Josef Schumpeter 1912 - „Theorie der wirtschaftlichen Entwicklung“ Creative Destruction ... (Kreative Zerstörung) „Continuously Replacing Good Through Better …“ Always Re-Inventing Themself ...
- 6. FundingProf. Günter Faltin – Labor Für Entrepreneurship FU Berlin Richard Branson – Founder Of The Virgin Label: „We had No Money, So We Had To Become Creative!“ Guy Kawasaki – Apple Evangelist: Taking Outside Money Means Loosing The Control Of Your Startup ...
- 7. Creativity Counts!Sir Ken Robinson (See Wikipedia) „More Important Than Knowledge Is Imagination!“ (Albert Einstein) So What Counts Most For Businesses: Phantasy & Creativity
- 8. Do We Have Enough Problems? Motto Of The Sales KickOff 2001 In San Francisco Of Mentor Graphics Corporation Problems And Pain Are Driving Innovation (!)
- 9. Value ChainGeoffrey A. Moore - „Crossing The Chasm“ Only Whole Solutions Augmenting Unique Value Chain(s)! Customers Will Only Pay For „Their“ Solution (!) Solving Their Problem (!) Specifically If Their Pain Is Unbearable ...
- 10. Whole SolutionGeoffrey A. Moore – The Chasm Group A Solution Always Solves (!) a Problem Does THEIR Problem Hurts THEM? … How Much? Is Your Solution Really Relevant? Does It Solve Their Problem? Well Than That Is Your Differentiator!
- 11. Do „Risk-Taker“ Take Risk? Prof. Günter Faltin – Buch: „Kopf schlägt Kapital“ Sucessful Entrepreneurs Hate Risk! „Risk“ Is ALL About Preparation! Components Reduce Risks ... („Kopf schlägt Kapital“ - Gründen Mit Komponenten)
- 12. Effectiveness vs. Efficiency Effectiveness: Doing The Right Thing! … Entrepreneur's responsibility Efficiency: Doing Things Right! … Managers Responsibility Most Damaging: Doing Things Right, But They Are Not The Right Things!
- 13. Buying HierarchyProf. Clayton M. Christensen - Harvard Business School - „The Innovator's Dilemma“ Throughout The Whole Product Life Cycle ➢ First => Capability ➢ Second => Quality ➢ Third => Ease-Of-Use ➢ Finally => Price BUT … Their Is Always A But … See The Next Slide ...
- 14. (Un)Consciousness Buying Decisions Are Always: Irrational & Emotional & Instantaneously (!) Your Unconsciousness Decides … Only Its Post-Decision Reasoning Sounds Rational ...
- 15. Balanced Entrepreneurship Michael E. Gerber
- 16. Startup Phases Infancy: Doing All The Work ... Adolescence: Getting Some Help ... Final Maturity: Starting With The Entrepreneurial Perspective
- 17. Entrepreneurial Perspective Asking: „How Must The Business Work?“ Seeing A „System“ Producing Outside Results ... Starting With A Well Defined Picture Of The Future ... Envision The Business In Its Entirety!
- 18. Market SegmentationGeoffrey A. Moore - „Inside The Tornado“ Define Your First Market Segment (A Group Of People Sharing The Same Interest(s) Specify Your First Segment Small Enough (!) Be Specific (!), Because You Must Be Able To Serve Your Customers ... Because You Are Small Enough You Will Not Be On Your Competitor's Radar Screen ...
- 19. Organising People Classical Divisional Structure(s): Sales & Marketing Development & Production Supply-Management Finance & Accounting
- 20. Balancing Your 3 RolesMichael E. Gerber - „The E-Myth“ ➢ Entrepreneur - Working ON Your Business just 10 % Visioneer ... to the Outside of your Company … … Searching … Innovations … Wondering … Are We Doing The RIGHT Thing(s) ... ➢ Manager - Working ON Your Business just 20 % Enabler ... to the Inside of your Company … Improving Processes … … Are We Doing Our Thing(s) RIGHT? ... ➢ Expert - Working IN Your Company 70 % Producer Doing The Work … … How To Do The Work ...
- 21. Entrepreneur Your First Role ... Focus: The Visionary Is Living For The Future … Always Wondering What If ... … Searching For Innovation(s) Conflict Potential: His Need for Change … Always In Conflict With Manager(s) ... … Trying To Clean Up The Entrepreneur's Latest Mess ... Integrating New Innovation(s) ...
- 22. Manager Your Second Role ... Focus: Improving Business Processes Planing, Order and Predictability … Lives In The Past Conflict Potential: Always Sees The Problem (For The Process) Running After The Entrepreneur Cleanup His Mess ... Tention Between The Entrepreneurial Vision and The Managers Pragmatism ...
- 23. Expert Your Third Role ... Focus: Happy If He Is In Control Of Workflow(s) … „How To Do“ The Work … Producing … Living In The Present Conflict Potential: Entrepreneur Comes Up With New Work ... … Manager Imposes Order On His Work ...
- 24. Entrepreneurial Dimensions Michael E. Gerber - „Awakening The Entrepreneur Within“ ➢ The Dreamer => Ideas ... ➢ The Thinker => Concept ... ➢ The Storyteller => Feedback ... ➢ The Leader => Lets Do It ! Michael E. Gerber's - Book „Awakening The Entrepreneur Within“
- 25. How To StartMichael E. Gerber - „The E-Myth“ ➢ Build Your MVP For Market Feedback … MVP := Minimum Viable Product := Prototype ... ➢ Is Your Prototype Scalable? (!) ➢ Then Start Growing … NOT earlier! ➢ Hire (Soon) Your First Expert … ➢ ... Next Hire Your First Manager … ➢ … Finally Be The Entrepreneur ...
- 26. Scalability Enables Profits Scalability Enables Your Business To Grow Organically! Scalability Transforms Your MVP Into Your Prototype! Your Prototype Defines Your System, Which Requires Ongoing Continuous Improvements!
- 27. Turn-Key Revolution Michael E. Gerber - „The E-Myth“ Work ON Your Business ... NOT IN it (!) Your Prototype Becomes Your System The System Runs The Business, The People Run The System. All That's Left For The „Franchise“ To Do Is Learn How To Manage The System ...
- 28. Working ON Your Business Your Business Is Not Your Life (!) Pretent That You Are Going To Always Franchise Your Business Rules To Win: The Model Will Provide Consistent Value … ... To Your Customer Your Employees Qualification Therefore Can Be Limited … In Order To Replicate Your Business All Work (Processes) In The Model Will Be Documented … The Model Will Provide A Uniformly Predictable Service … To The Customer
- 29. Business Development Process Second Half Of The Book „The E-Myth“ Innovation (Preparing The Future) Quantification (Knowing The Numbers) Orchestration (Standardizing Processes) Your Business Development Program: Your Primary Aim – Your Strategic Objective – Your Organisational Strategy Your Management Strategy – Your People Strategy Your Marketing Strategy - Your System Strategy
- 30. Leadership The 7 Entrepreneurial Disiplinces: Enterprise Marketing Finance Management Lead Generation Lead Conversion Order Fullfillment You Need To Get These Right When You Are Small … … BEFORE You Scale ...
- 31. Entrepreneurial Charisma „Walk Your Talk (!)“ It Is The Entrepreneur having The Vision, which Is Bigger Than Life ... Who Turns Idea(s) & Invention(s) Into Innovations, deriving from It His Mission ... This Is The Foudation Of A Successful Businesses!
- 32. Business Hierachy Vision: Your Dream … Bigger Then Life, Very Long Term ... (My Vision: Helping People To Develope Successful Business Models ...) Mission: Your Core Competency … for decades ... (My Mission: Development Of Open-Source Solutions Offering As SaaS Solution Towards Non-Techies …) Strategy: Combining & Configuring …for years … Defining The Set Of Components / Partners … Preparing for The Next Market Segment (Bowling Alley Strategy) ... Tactics: Improve Offering Quality … every quarters ... Stabilizing & Improving Business Proccesses ...
- 33. Reality Check After 1 Year ~ 40 % After 5 Years ~ 80 % After 10 Years ~ 96 % … Of Businesses Fail! (Seems To Be Valid Around The Globe)
- 34. German IHK Statistics „Experts“ Say That The „Typical“ Reasons For Business Failures Are: Not Enough Experience ... Not Enough Knowledge about: Finance, Taxes, Marketing, Sales, ...
- 35. Andreas von Bechtolsheimer Founder of Sun Microsystems Inc. & the very first Google Investor (100k$) His 5 Reasons Why StartUp Fail: Too early Too late Too complex Not relevant Too expensive
- 36. Guy Kawasaki Apple Evengalist … Business Angel … VC Do NOT scale too early! A Working Prototype Is Most Important And Must First Be Scalable! Focus On Your Market Segment! Growing Organically … Improving Scalability Of Your Prototype!
- 38. Appendix Book Title: „The E-Myth Revisited“ - „Why Most Small Businesses Don't Work and What to Do About It“ ISBN: 978-0-88730-728-7 Author: Michael E. Gerber