What is the e-myth?
Why many tradies businesses struggle to make good money (and how to fix it.) You chose to go out on your own, because you had a dream.
What is this myth that so many come under the spell of?
It's the idea that when people with good technical skills and sufficient entrepreneurial flair start a small business they will have enough tangible business know-how to make it successful! It's a myth!
The truth is most small businesses are started by “technicians” who don't know enough about actually running a business. They're good at their work, and they like doing it.
Over 30 years ago, Michael E. Gerber wrote a best-selling business book called The E-Myth: Why Most Businesses Don’t Work and What to Do About It.
It's a good read, a story about Sarah who started a pie shop. And was trapped in the pie shop. The book is a game plan for putting yourself back in control of your work - life balance. A lot has changed in 30 years, especially in business management software and other tools, but the traps are all still there for the unsuspecting.
The important thing is to analyse your own strengths and skill set.
The skill of managing a business is a completely separate skill from practising medicine or being a good plumber. A person can be the most expert tradesman in the world, but that doesn’t automatically make them a leader or a business manager.
As soon as the contractor realises that, he can begin to put things in place to compliment his strengths and cover for his weaknesses.
A business is a system of systems. Be sure to systematise what you set up, and be certain to account for all the minutes that get used.
The small business owner is an incredible person, often having to play 3 very different roles every day, and still develop his own personal and professional awareness to the point where he can form his business into a separate entity that provides a return well above wages for them.
Powagroup hopes that owning your own business brings you success and happiness. This blog will keep up a stream of tips and tricks to help tradies improve their success as business owners!