If you start by reading The E-Myth Revisited by Michael Gerber, he explains why most small businesses don’t work and the conflict in each of us who have created a business around doing what we love, and why this leads to the risk of our not loving it quite so much anymore.
It all starts with the entrepreneurial seizure, the good idea you had which caused you to start your business. Usually this is about not liking working for a boss, or not being appreciated or paid enough. Or perhaps you felt like a square peg in a round hole? You are very good at what you do so why shouldn’t you make all the profits from it?
Gerber then goes on to explain that to be successful and profitable in your own business you need to be Entrepreneur (visionary), Manager (organiser) and Technician (worker) in balanced, equal measures. Unfortunately it is much more likely to be 10/20/70 per cent in your own businesses. This way lies stress, money worries, exhaustion, health and relationship breakdowns and business failure. The tension between these roles is what can tear the business apart. Can you relate to that?
The secret is not necessarily to set up a business around doing what you love to do. A business must be about identifying what your market needs, wants and will pay for. A business must have centres of management attention: marketing, management, money, client generation and service and perhaps most important of all – leadership. And all of these roles need to be assigned to the most appropriate people within your organisation. Hire to the role; don’t just give it to a mate you happen to like and who is looking for something to do to supplement their income.
And you thought you could do it all? Well, think again. You can still do what you love, so long as you have the other areas covered by competent colleagues, willing to be part of your business and its profitable success.
A franchise can be a way to iron out these sorts of difficulties, since someone has already gone before you and proved the business model and there’s already a procedure in place to make sure you don’t repeat these errors.
Today I am celebrating with a client who bought a business five years ago and is selling it for three times what she paid for it. It’s also provided her with a useful living during 5 years and an escape from the rat race. Next she is becoming an investor and will live off her investment income generated from the sales proceeds. Wow! From day job to investor in only 5 years. What a result! My client reminds me this is possible and she went via the route of buying a franchise too. It saved her some time but still allowed her the room to express her own business-building skills and add a whole raft more to her skill set.
A franchise is not the solution for every entrepreneur and definitely not for me but, applauding my colleague’s results today, I am reminded that it provides an expedient route to small business ownership and business results for many. Do ask if you’d like some help in evaluating such an opportunity for yourself, MLM, franchise or licence. Or indeed rolling out your business on one of these bases as a route to growth.