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Michael Gerber’s Top 10 Rules For Success


– He’s an American author and business skills training consultant. Ink Magazine named him the world’s number one small business guru. He’s the author of the mega
bestseller, The E Myth. He’s Michael Gerber, and here are his top 10 rules for success. – It’s the most extraordinary
businesses in the world are focused and finding a better way. They’re what I call best way companies. They’re constantly trying
to find a better way. To do what, to do what they do. To do what, to differentiate themselves from everybody else. How, by giving the customer
the sense of control in our business that they
don’t have any place else. The cleaning workings of Disneyland. You know, you ask people,
what do you remember about the park and what
they all say is it’s clean. Now think about it, they
don’t talk about Mickey, they don’t talk about Pluto,
they don’t talk about. They say it’s clean, now why in the world would that matter to people? Because every place else is so dirty! How did Walt do that? Every night at Disneyland, they
steam clean the entire park. And they’ve been doin’ that
in Anaheim for over 35 years. Think about that, to do what,
to create this sense of order in the mind of the consumer. Which instantly differentiates
them from everybody else. Every place else is
dirty, our place is not. The core business development system in any company, in every
company, sitting here, no matter what kind of company it is, is lead generation, lead
conversion, client fulfillment. How many people do you
attract to your door? How do you convert a larger
and larger percentage of those people to become customers? And how do you convert
the largest percentage of those customers to become clients? And the ballgame of that is mindset, it’s truly the paradigm through which you approach the building of the systems through which leadership
and entrepreneurship becomes a reality every
single day in the company. Most important thing you
can learn about being an entrepreneur is a blank piece
of paper and beginner’s mind. Everything begins right now, everything. Now is the most important word
you can begin to practice. Now, not before, not later, but now. And being present, now,
is the art of mastering your human capability right now, like a martial artist on the mat. Right now, be here, now, and begin it. The system is the solution, not people. Not the product, the
system is the solution. Because Ray Kroc and Tom
Watson and Walt Disney and the founder of Midas Muffler and the founders of Supercuts,
every single one of ’em knew identically the same thing, the one thing the consumer wants more
than anything else, the one product that is true
of every great business, that every entrepreneur is there
to create in that business, the one word that describes what you’re selling in your business, is control. C-O-N-T-R-O-L, the consumer’s control over their experience when
they come to buy from you. And if you can give that customer what they want the very first time, and you can replicate it faithfully, every single time from that point on, that customer will continually
choose to come back. And that’s the business Ray Kroc was in. And he realized that if it was up to his franchisee, he’d be out of business. Because the franchisee,
being a technician, would go and do it, do it, do it, do it, and destroy it in the process. Ray Kroc realized that McDonald’s wasn’t in the restaurant business. It was in the fuel business. Fill me up, you got it,
fill me up, you got it. And he did it every single time and identically the same way. And it was his ability to
do it every single time in identically the same
way, in a clean, organized, shining, colorful environment
that differentiated McDonald’s from every
other restaurant around. I want to do something
I’ve never done before, and I don’t know how,
but I can imagine it. I want to engage in the unknown. I truthfully want to pursue the unknown. And in the pursuit of the unknown, something comes to realization. And I’m never prepared for it. So when I set out to do
what I set out to do, I set out to do the impossible. Everybody told me, “You’re nuts. “You can’t do that. You can’t do that.” And that’s also consistent
with all entrepreneurs. There’s always a legion of
people who will tell them, “You can’t do that, and even if “you could, why would you? “There’s so many better
things to do other than that, “that you can make so
much more money from.” But money, was really a
very, very narrow part of what I was really setting out to do. Course I had to make a living,
course I had to do this, course I wanted to, you know,
produce something great, but it was really, the result that I could intuit, that in fact, that people who were were
struggling, don’t have to. That they’re struggling so hard, is simply a sign that something’s
missing in this picture, and so the question always has been, and I believe this to be the
true entrepreneurial driver, what’s missing in this picture? What’s missing in this picture? It’s always a question,
it’s never an answer. What’s missing in this picture? And as I begin to ask that question, something begins to come
alive, to give me the food I need to nurture this passion
I’ve got that I can’t apply. And it enables me to see
things I never saw before. – Get the first one right,
you get your sales system right when you’re small, you get your lead generation system
right when you’re small and you get your lead
conversion system right when you’re small, knowing that
you’re going to be big. And that because you’re going to be big, it’s absolutely critical
that you’ve gotten it right so you can replicate it
tens of thousands of times. The attorney opens up a legal practice. The doctor opens up a medical practice. The graphics designer opens
up a graphics design business. Each and every one of
them believing because I understand how to do the
technical work of a business, I understand how to run a business that does that technical work. And it’s 180 degrees from the truth. Knowing how to do the work in a business has nothing to do with
creating a business that works. And it is the fatal assumption behind the failure of almost every
single business you walk into. Every single business around. Because the owner of that business, the founder of that business, does not start a business as an entrepreneur would. The founder of that
business starts a business for absolutely the wrong reason. They start a business
to get rid of the boss. They start a business
to get rid of the boss because they’re workin’ for somebody else, they’re doin’ it, doin’ it, doin’ it, day in and day out, a master technician, a master auto mechanic,
a master poodle clipper, and they’re sittin’ there
sayin’ to themselves, “Why am I doin’ this for this guy? “I could be doin’ this for me.” “Hell, any dummy can run a business,” you said, “I’m workin’ for one!” (audience chuckles) And knowing that, you decide, “I could do this as well as this guy.” And you start a business, to get rid of the boss and instantly do what you never should
have done, create a job. So what I’m going to suggest,
ladies and gentlemen, for the purpose of this
meeting, that most businesses you walk into aren’t businesses at all. They’re a job for the
person who started it. And he’s created the worst job of all. Workin’ 12 hours a day, seven days a week, doin’ it, doin’ it, doin’ it, doin’ it, based upon one presupposition
that sweat equity is what every little business is about. Who came up with that word? But a technician, who’s accustomed to working it, working it,
working it, working it, doing it, doing it, doing it, doing it, hasn’t the faintest idea of how to create a business that works, simply creates a job that
depends upon himself or herself, and continues to do it over
and over and over and over and over again until they
don’t want to do it anymore. Most businesses imprison
the person who creates it. Most important thing
I can say to you about growing and about creating
and about learning how to bring the entrepreneur
within you to life and to manifest your ideas in the world, is to truly become an incredible student. You truly have to learn how to develop the capability and capacity
to create in the world. In order to do that, there’re really five essential skills you need to develop. The first is this skill of concentration. You need to be able to
focus your attention. The second is discrimination. You need to be able to
choose what’s most important, as opposed what’s least important. The third is organization. Your really have to turn chaos into order and you can find a way to
do that, where you live, in your school, at home, at work, with your peers, and so forth. The fourth skill is innovation. That’s the best way, in other words, it’s trying to discover a better way to do everything that needs to be done, and you can learn how to do that in everything you’re doing today. So you have the opportunity
to innovate all around you, with everyone you know, and to begin to practice innovation as a way of life. And finally, and absolutely
essential, is communication. You have to learn how to
connect with other people. You can’t simply sit
all alone, in your home. You can’t simply use Facebook and Twitter. You got to be able to
communicate live, in person, and learn how to do that, and you learn how to do that by
practicing how to do that. So find a great communicator
and say to that individual, “How did you learn how to communicate?” And that person will, in fact, begin to teach you how to communicate. So concentration,
discrimination, organization, innovation, communication,
and you’re on your way. It’s like a voice awakens inside of you. That’s what I call the
entrepreneur within, which is the subject of my latest book. It awakens, it either
awakens or it doesn’t. And if does, what most of
us do is put it to sleep. Because it’s dangerous, I mean essentially it’s saying fly against all of the odds, do something that you
don’t know how to do, create something that
you’ve never created before, pursue a path that’s impossible to pursue, look at how many fail, look
at how few ever make it, and then what? Well, that called me, and I’ve always been called by the impossible. So, I never worked for anybody else. I was never on the job so to speak. The only job I was really
on, my very first job, was when I was going to school, and I worked in a Ford
plant, and I was a janitor. And I was working at night, obviously to support myself going to school, and I was changing a light
bulb, and I’ll never forget it, the boss came up to me and he said, “You don’t look too happy, Gerber.” And I said, “I didn’t know
I was supposed to be.” (host laughs) And he said, “No, you
have to be happy here. “That’s part of the game we play.” And I said, “Yeah, but I’m doin’ the job.” And he said, “Not good enough. “Unless you’re happy, you got to be gone.” And that was my last night there. And I never had a job since. I’ve always worked for myself. “I am my business,” every one says. “It it weren’t for me, there wouldn’t “be a business,” they say proudly. But what happens when you
don’t want to do it anymore? You’re out of business. And I want to talk about a man who I’m sure most people are familiar with, at least the company he created, most people are familiar with, and that’s Tom Watson, the founder of IBM. You know, when I talk about
IBM to small business people, they think to themselves, “Well, “what is he talkin’ about IBM for? “I mean, you know, I’m not
IBM, I don’t want to be IBM.” But just think about it for the moment. I think you got to agree with me IBM is a relatively successful company. You know, last year, IBM did $59 billion. Last year, do you know $59, do you know what a billion dollars is? A billion dollars, ladies and gentlemen, is $1,000 a day, for 3,000 years in small, unmarked bills. (audience laughs)
Think about that. 59 times that last year. I mean, can you see it? How did you do that, Tom? I mean, you got to wonder,
what did the guy know that most people, IBM is
bigger than most countries. (audience chuckles) IBM is, if not the, one
of the most profitable businesses in the entire world,
in the history of mankind. Nobody has created anything to match it. Well you got to ask yourself,
what did the guy know? Well somebody asked him the question. And Tom Watson was purported to respond in the following way, he said, “I did something in IBM
that most people don’t do. “Three things. “The critical three things,” he said, “that differentiate IBM
from everybody else.” He said, “The first
thing is I had a picture “of what IBM would look like
when it was finally done “before I even started the business. “I had a vision of what the business “would look like when it was finished.” You know, we talk about
visionaries, what is a visionary? A visionary is someone
who can see something, where out there, no in his head. He had a vision in his head, a picture of how the business would
look when it was finally done. He saw this extraordinary organization, this extraordinary company, this monument, this testament to order, to control, to discipline, to integrity, the most extraordinary service
business in the world, is what he imagined he
was about to create. “So once I had a picture
of what the business “needed to look like, when it
was finally done,” he said, “The second thing I did, was to get “a picture of how our people would look. “The people that would
be in IBM to produce “that vision that I had in my mind.” And he said, “And I saw this
extraordinary army of people, “in their dark suits and
their white, crisp shirts, “and their black shining shoes.” Missionaries, his army of missionaries out there in the world
communicating to the world in a way that nobody had every
communicated to it before. And he said, “That was
the person, the IBM man,” he called it then, excuse me ladies. He said, “Finally, the third thing “we did at IBM that
nobody else did,” he said, “Once I had a picture of what
the business would look like when it was finally
done, once I had picture of how our people needed to look in order to bring that vision
to the rest of the world,” he said, “the third
thing I realized is that “there is absolutely no difference “between a big business
and a small business. “A big business is
simply a small business,” Tom Watson said, “that
did the right things. “A big business is a small business “that did the right things.” He said, “If we were to start our business “in the right way, and do it as though “it were the biggest
business in the world, “if we’re able to act in the beginning “as though this business
were already complete, “only then would we be able to do that.” So he said, “We didn’t go to work in IBM, “we went to work on IBM to replicate “the picture I had in my mind.” – Thank you so much for watching. I made this video because
Mike Watkins asked me to, so if there’s a famous entrepreneur that you want me to profile next, leave it in the comments below
and I’ll see what I can do. I’d also love to know
which of Michael Gerber’s top 10 rules meant the most to you. Leave it in the comments and
I will join in the discussion. Thank you so much for watching. Continue to believe,
and I’ll see you soon.

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