Report about E Myth in Prof Saguinsin's Entrep class

1. Why Most Small Businesses Don’t Work
And What To Do About It

2. Philippine Small Business
 By Asset Size (15M below)
 By Number of Employees (99 Employees)
 40% out in Year 1
 80% out within 5 Years
 80% out within the next 5 years
 Starting with100 Business
 End in 3 Business in10 years
 Effects: Loss of Personal Assets and Self-Esteem

3. Questions???
 How do we explain the failure rate?
 Why do so many people go into business, only to
fail?
 What lessons aren’t they learning?
 With all the information available today, why only
few people are successful?
 Why Most Small Business Don’t Work?

4. Entrepreneur Myth (E-Myth)
 “Small businesses are started by Entrepreneurs”
 Entrepreneurial Seizure
 Fatal Assumption
 If you understand the technical work of a business, you
understand the business!!!

5. 3 Personalities
 Entrepreneur – visionary, dreamer, future
 Manager – pragmatic, organizer, past
 Technician – doer, present
 Conflict
 Entrepreneur vs Manager
 Doer vs the World!
 10% Ent + 20% Mgr + 70% Tec = 100% Failure!!!

6. 3 Phases
1. Infancy
 Owner and Business are one and the same
2. Adolescence
 Getting Some Help
 “Management by Abdication”
 You don’t own a business, you own a job
3. Maturity

7. Maturity
 Knows how it got to be where it is and what it must
do to get where it wants to go
 Entrepreneur Perspective
 Commodity or work is not important, the business is
 Entrepreneur vs Technician Perspective
 Entrepreneur Model
 Business as a Product
 Commodity is not as important as delivery
 Starts with the customer in mind

8. Turn-Key Revolution
 Franchise Phenomenon
 Business Format Franchise
 Sell the Business Instead of the Product
 Your business is not your life
 The purpose of your life is not to serve your business,
but your business to serve your life.
 Rules

9. Franchise Prototype
 Pretend like it is a Franchise
 Satisfies 3 personalities
 Entrepreneur – vision takes form
 Manager – order and predictability
 Technician – technical work

10. Business Development Process
 Innovation – business not commodity
 Quantification - feedback
 Orchestration – Standardization, Predictability

11. Business Development Program
1. Primary Aim
2. Strategic Objective
3. Organizational Strategy
4. Management Strategy
5. People Strategy
6. Marketing Strategy
7. Systems Strategy

12. Thank You!