Tuesday, October 21, 2008

What's Your Business - Really?

Chating to a potential customer today reminded me of something I read in Michael Gerbers' excellect book The eMyth Revisited.

This book outlines the principles of running your business as a business rather than being a technician IN your business. The difference between baking cakes and making profit from a business that happens to bake cakes.

Michael quotes Ray Crock, the founder of McDonalds, as describing his profit generating business as Real Estate. That would be a surprise to most people who would have thought his answer would be 'selling hamburgers'.

He may have done that at the very beginning but he soon realised that the real profit was in buying and leasing restaurant sites to franchisees. It is the franchises that sell hamburgers.

I'm as guilty as the next man in this. I love getting involved, learning how to do stuff, finding out how it works. The trick is then to pass the real job onto someone else so that you can grow the business and make money for you, your fellow directors and your trusted employees.

So ask your self - What is your business?

If it doesn't fit with Ray Crocks answer then read Michael Gerbers book to work out how to change.

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