The E-Myth Revisited — Book Summary

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Introduction

With over 60% of companies failing in the first year of operation, The E-myth will show you how to manage the business and increase productivity. Through the analysis of the author, you will have a different view of how to manage your company and achieve success. One of the main points highlighted by the author is how the lack of knowledge can be harmful to companies. Being one of the main causes of companies' bankruptcy in the first year of operation, lack of knowledge is something that must be taken very seriously. This book will show you what it takes to be successful in the business world.

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Summary of the book The E-Myth Revisited

Strategic Planning

Strategic planning is of fundamental importance in the company's operational structure. It is responsible for long-term planning and the application of the company's values in the business world. With effective strategic planning, it is possible to reduce costs, optimize processes and resources, in addition to aiming for great economic growth.

Although essential to the success of the company, many entrepreneurs do not see the need to plan. In this way, they end up setting goals that do not meet the needs of the company. With a constantly changing market, planning is something that successful companies take very seriously, as it helps in understanding and solving problems.

Technical Knowledge Doesn't Mean Success

Technical knowledge is a very important skill in the business world. With it, it is possible to make specific analyses which can be the difference between the company's success and failure. Many entrepreneurs do not know how to apply their knowledge correctly, which means that more than 80% of companies declare bankruptcy in the first year. Having technical knowledge without knowing how to apply is useless.

Ambition Is a Must!

What differentiates successful and unsuccessful companies is ambition. Companies without ambition have no chance in the market. They will always offer mediocre products and services, which is unsustainable in the long run. On the other hand, ambitious companies always seek improvement. Focusing on growth, successful companies know the importance of ambition. However, ambition should not be confused with disrespect. Successful companies always have exemplary conduct and obey the laws. In business, a good dose of ambition is what differentiates successful and unsuccessful companies. You do not need to be in an excellent market to achieve good results. You need to be the most ambitious.

Analyze the Market for a More Realistic View

Many entrepreneurial companies use intuition instead of technical data to base themselves on market conditions. In fact, in many cases, experience does prove to be effective. However, in most situations, it is better to analyze the technical data instead of predicting the market. This way of acting may not be as reliable as some business owners think. A constant technical analysis of the market is necessary to achieve great results.

The Leader Needs to be Focused

Whoever is leading the company needs to set clear goals. The leader is a strategic element that connects employees and activities within the company. If the leader is not focused, the organization will not function properly as a whole. Coordination of different sectors will be ineffective, which will result in inefficient results. The leader's main goal is to ensure that everyone has a common interest in the right organization. It is about defining the pathway so that everyone can work as a team. Therefore, the leader must be always focused on the issues that contribute to the company's success.

Successful Companies Often Evaluate Goals

It is necessary to reassess the goals constantly, to make sure that the company and the employees are focused on the objectives and reaching the right goals. To analyze the effectiveness of the goals, successful companies create a performance schedule and constantly analyze it. If the result is not going as expected, it is necessary to redefine the objectives and goals.

Employees Are Always Motivated

Successful companies achieve a high level of productivity through the motivation of their employees. It is crucial to motivate employees, to treat them with equality, confidence, and respect. Besides, managers and leaders must dedicate themselves and act on behalf of the team, so that there is a spirit of integration in the work environment.

Connection with the Team

Successful companies make their presence felt, making it possible to motivate employees. In these companies, high-ranking employees respect all employees, give advice, and always have a positive mindset.

Successful Companies Are Fair and Neutral

It is common for some companies to promote employees because of friendships rather than performance, something that should be avoided at all costs. It is a complicated situation when employees are promoted due to a close relationship with the leader.

The Customer Is Everything

A successful company is characterized by knowing how to communicate effectively with customers. Nowadays, we must focus on the product and the relationship with the consumer. In more than 90% of cases, the consumer decides to buy the product or service based on the company-customer relationship. Nowadays, successful companies are committed to satisfying, delighting, and retaining their public, as they recognize that this is the path to success. Thus, it is essential to maintain a focus on the quality of customer service. Without the customer, there is no way to prosper. In a market with a lot of competition, it is necessary to focus efforts on creating a unique and exclusive experience.

How to focus on the customer:

Ask for feedback

If you want to win more customers, you need their feedback.

Satisfaction surveys are ideal for this. However, you can also use other forms of communication to get new ideas, suggestions, and opinions, through communication channels such as social networks or customer service.

Offer a Unique Experience

The customer experience is what differentiates successful and unsuccessful companies.

It is necessary to create an incredible experience throughout the purchase journey, as the customer needs to feel special, especially in after-sales services.

And don't forget to reproduce the same excellence in all sectors in the company, especially in customer service channels.

Technical Data Is Vital

To make correct decisions, accurate and up-to-date information is required. A good manager does not decide without first updating himself on everything that involves his decision: competitors, finances, marketing, suppliers, partners, and consumers. If a company wants to make accurate decisions and achieve success, it must know the market. This applies to both small and large investments. It is important to remember that one should not be in a hurry to acquire this knowledge. Through the performance analysis in the company's previous years and market analysis, it is possible to improve the company's methods andmake the right decisions.

Review of the book The E-Myth Revisited

I liked the book because I always wanted to open my own business. I didn't know that such simple mistakes can destroy companies. With the tips and suggestions that the author gives, I am sure that it will be easier to open my company, achieve my goals and objectives. It is certainly one of the best books I have ever read!

Conclusion

You want to open your business, but you don't know and you are having difficulties. This book will teach you everything you need to achieve long-term business success.

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