E-Myth Author, Michael Gerber: Who Buys Franchises?

Spent an enlightening Monday (yesterday) with Michael E. Gerber, author of The E-Myth, as well as numerous other best-selling business books, and we discussed franchising — why people buy them, why people sell them, why some work, why some don’t work, and (of special interest to me) what we might say and do collaboratively to help improve franchising for all parties. 

The E-Myth is our starting point

At 73, Gerber has more to offer than you or I can absorb in a day! If you’ve read The E-Myth then you know what I’m talking about. If you haven’t read The E-Myth I really don’t know what to say to you, other than, “Stupid, stupid, stupid!” (You’ll have to read it to get the chuckle that the rest of us just enjoyed).

If you haven’t read The E-Myth, just stop right now, go over to Amazon.com and buy it — let me check for you. Here you go: Click here. There are 369 used and new copies starting at $2.88! I assure you, once you read it, you’ll send me a check purely out of gratitude!

Stupid to buy a franchise without reading the book

The E-Myth is the most compelling, business-changing book you can ever possibly read. Don’t buy a franchise until you read it!

Back to my story. Driving to my hotel after lunch, Gerber says to me, “Do the people who buy franchises realize they are not entrepreneurs and that, in fact, they should not be entrepreneurs, and that, furthermore, no franchisor wants to sell a franchise to an entrepreneur?” It was really a statement, not a question. And, of course, I agreed with him.

Entrepreneurs don’t buy franchises

Entrepreneurs invent businesses, they don’t buy someone else’s idea, he continued to lecture me (and I’m attentive in his presence). That’s an important point. I know many franchisees who think they are entrepreneurs, and they’re not.

And thank God they’re not! It may make them feel better to think they are, but thank God they’re not!

‘Cause entrepreneurs screw up even more often than franchisees!

But that’s another story for another blog.

Here’s your mission when buying a franchise

Here’s my point today. It comes from Gerber through me.

Your Mission: As you’re in the hunt for a franchise to buy, look for one that has already solved the problems that an entrepreneur has to solve when starting up a business.

Avoid having to do the work of an entrepreneur

You don’t want to do the work of an entrepreneur! Not if you’re buying a franchise.

You want to find a business system that works. A series of systems, really. There should be a working operating system, a marketing system, a sales system, a system for hiring and firing people, a system for serving customers, a system for working with vendors, a system for inventory, a system for merchandising . . . . All kinds of systems.

Not all are created equal

Now here’s the thing: Many franchisors, in spite of being entrepreneurs, have yet to develop their systems. They may have one or two systems, but they won’t have all the systems you will need to succeed as a franchisee. Or they may have multiple systems, but the systems don’t work. Remember: All franchises are not created equal. Some are better than others!

McDonald’s — Gerber writes a lot about McDonald’s — works superbly because it is a series of systems. Look for a McDonald’s when you purchase a franchise.

And there’s more. (I told you, you can’t just spend a day with Gerber and absorb it all).

You must do it the franchisor’s way, thank God!

While you’re due-diligencing your way through franchise opportunities, look for the one that enforces compliance. Even if you are an entrepreneur! You probably won’t like that — the more entrepreneurial you are, in fact, the less you will like that. But compliance is absolutely essential to the success of a franchise and to your success as a franchisee.

If only all franchisors enforced the rules!

There are franchisors who have systems, good systems, and the franchisees ignore the systems. That’s not entirely the franchisee’s fault. It’s mostly the franchisor’s fault. Sometimes the franchisor doesn’t understand that it’s a mistake not to insist that franchisees comply with the systems. Sometimes they don’t know any better. Sometimes they are too timid. Sometimes they are just gutless. Sometimes (quite often) they are managers and not leaders! It’s always, always, always a mistake to ignore compliance.

Enough for now. I’ll pick up with compliance at a later time and tell you why franchisees should get on their knees and thank God when a franchisor insists that its franchisees comply with its systems. That’s not the way of the entrepreneur, but it is the way of a successful franchisee.

For now, just find a franchise that has working, productive, satisfying, money-making systems. That’s the one to buy!

Gerber Is Seeking E-Myth Partners

. . . Know an entrepreneur who wants to dominate their industry the way Gerber has dominated small business development and coaching? He’s looking for E-Myth Partners! They will join him as co-authors on future E-Myth books. Soon there will be The E-Myth Attorney, The E-Myth Optometrist, and others to follow. Looking for The E-Myth Accountant, The E-Myth Bartender, The E-Myth Undertaker, The E-Myth Auto Dealer, The E-Myth Carpet Cleaner, The E-Myth Consultant, The E-Myth Broker, etc. Know someone who’s interested? Send them to me and I’ll make the introduction to Gerber. 

Read Another Blog About My Day With Gerber:
The F-Myth: Michael Gerber Explains Why Franchising Doesn’t Work For Entrepreneurs 

Photo image by: StevenGroves

Categorised in: Buy a Franchise, franchise information

This post was written by Dr. John Hayes