Quotes
Michael E. Gerber
The most-loved lines from Michael E. Gerber, drawn from 1 book in the library.
“The fatal assumption: that if you understand the technical work of a business, you understand a business that does that technical work.”
Gerber's whole book unfolds from this one sentence. Being a superb baker is not the same skill as owning a bakery, and the gap between them is where most small businesses quietly die.
“Every owner is three people at once — Technician, Manager, Entrepreneur — and the Technician wins almost every argument.”
His rough split for a typical owner is seventy percent Technician, twenty percent Manager, ten percent Entrepreneur. The Technician wants to do the work today, so tomorrow's business never gets built.
“Work on your business, not in it. If it cannot run without you, you did not buy a business — you bought a job.”
The line the book is famous for, and the test underneath it is brutally simple: what happens to the revenue if you are unreachable for a month?
“Build it as the prototype for five thousand more, whether or not you ever open the second one.”
The Franchise Prototype is a design constraint, not an expansion plan. Pretending the second location is coming forces every decision to be written down rather than carried in your head.
“Write your Primary Aim before the business plan. The business exists to serve your life, not the reverse.”
Step one of the seven is not commercial at all — it is what you want your life to look like. The Strategic Objective is then just the business's job description for delivering it.
“Draw the organisation chart for the company you do not have yet, then write your own name in every box you are standing in.”
The Organizational Strategy exercise, and the most uncomfortable ten minutes in the book. Most owners find their name in seven boxes and discover the company has no structure, only them.
“Innovate, quantify, orchestrate — then start again. What you refuse to measure you cannot improve.”
The Business Development Process is a loop, not a project. Innovation without numbers is preference; orchestration without innovation is just a rut written down.
“Hire ordinary people and give them extraordinary systems. The system runs the business; people run the system.”
His answer to the perpetual hiring complaint. A business that only works when you find exceptional staff is a business with a recruiting dependency, not a model.