It’s great to be back. A warm welcome to our new readers who joined us from The Leaders’ Library, where we host enriching read-alongs on must-read business books.
This is the third post in our series on “The E Myth Revisited” by Michael Gerber. We’ve been uncovering strategies for building a business that operates independently, and I’m thrilled to share these powerful concepts with you in this ongoing series.
Creating a Business That Runs Itself: The Franchise Model Approach
Lauren Dallas once said in a masterclass I attended, “If you can’t step away from your business for 4 weeks, and it keeps going without you, then you have not created a business – you have created a job.” Ouch!
Technicians are terrible at creating businesses. They are great at creating jobs – for themselves. If you want to get out from under the drudgery of being the technician, you have to unleash the manager to create the processes and systems that organises the vision of the Entrepreneur.
One of the most powerful concepts from this book is the idea of systematizing your business using the franchise model. Even if you’re not looking to franchise, adopting this mindset can transform your business into a more predictable, scalable, and ultimately a more valuable asset for acquisition, if that is your aim.
Why Systematize?
- The franchise model emphasises creating a business that can operate without the constant presence of its owner. The goal is to make your business process-dependent, not people-dependent.
- This approach provides consistency, scalability, and greater value for potential buyers or investors.
Lessons from McDonald’s:
While opinions may vary on whether McDonald’s is good, there’s no denying it is an exceptionally good business. The success of McDonald’s lies in its ability to deliver a consistent product and customer experience worldwide. This consistency is achieved through meticulously documented systems and processes, with strict adherence to standards. Whether you’re enjoying a portion of McDonald’s fries in Krugersdorp or Somerset West, they should taste exactly the same. This predictability is the hallmark of their brand, ensuring that every customer receives a familiar, reliable experience, no matter where they are.
How to Apply This to Your Business:
If you don’t start creating systems and processes, you will never be able to step away from the business. Start documenting every process in your business, from sales to customer service. Create an operations manual that can guide new hires and ensure consistency.
Action Steps:
Document Key Processes: Begin with the most critical processes in your business. Write down each step in detail and test them to ensure they can be followed by anyone. If you find yourself doing something twice – document it!
Adopting this franchise mindset doesn’t mean you have to franchise your business. It’s about creating a robust, reliable system that delivers consistent value and can grow without you.
Stay curious, till next time…
Anne Gray
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