Startup by Technical Entrepreneur- The following are the learnings from Michael Gerber's book"e-myth revisited"
Yours is a startup business because you wanted freedom from your boss.Who does not want freedom from boss.
You had technical skills and a product or service idea to deliver a superb experience to customers.
What is the recipe for success for startup business by technical entrepreneurs? My blog on how to be a successful startup by a techno- entrepreneur is based on my learnings from the book -“The E myth revisited “by Michael E. Gerber
The book is an in depth analysis of the reasons “Why most small businesses don’t work and what to do about it?”
Here are five ideas for techno entrepreneurs to follow so that they build a successful business.
The customer is always the king. Startup business owners need to focus on the customer needs rather than solely on their whims and fancies.
"You need to give customers what they want, not what you think they want". -John Ilhan
Business has three phases. i) startup ii) growth iii) Maturity. Each stage of business requires different mix of resources like finance, human resources and assets, to succeed. The business owners, especially, techno entrepreneurs fail to understand the challenges and dynamics of changes required at each stage.
The adage “If you fail to plan you plan to fail” applies.
A small business, to become successful, requires the owner to don the mantle of entrepreneur, executive and technician at different stages in varying proportion.
Unfortunately the technician spends most of the time in work and neglects the other two roles required for success. Gerber has pinpointed this problem after studying a lot of small businesses started by technicians.
They provide the franchisee with an entire system of doing business.
Gerber is not suggesting that all small businesses should follow the franchising route.
The most critical take away for startup entrepreneurs is this excerpt from the book.
Success rate of business format franchise is 95% in the first year compared to 50% failure rate of independently run businesses.
Further at the end of 5 years 70% of business franchises run profitably compared to less than 10% of independently run businesses
The small business owners should set up systems and processes so that business can run without their day to day involvement.
The business ventures like KFC, Starbucks,Pizza Hut, McDonalds etc are very successful globally, due to the systems and processes which have been put in place.
Further a study of
successful serial entrepreneurs also shows that they create a business and
develop systems which are run by a professional CEO after the first phase so
that they can focus on starting new businesses
"Systems run the company; people run the systems".
Walking the High-tech High Wire: Technical Entrepreneur’s guide to run a
successful Enterprise -David Adamson
Michael Gerber: The Four Mind-Sets of an Entrepreneur: Innovators Forum Guest- You Tube Video