In this special group panel episode of the Econ Breakthrough Podcast, host Josh Hadley and fellow podcasters interview Michael E. Gerber, author of "The E-Myth." Gerber shares his foundational principles for business growth, emphasizing the need for entrepreneurs to work on their business, not just in it. He introduces his "eightfold path" for evolving a company from one person to an enterprise, and stresses the importance of developing elite talent and adopting a transformative mindset and "soul set" to build a successful, scalable organization.

Chapters:

Introduction and Setting the Stage (00:00:00)
Host introduces the episode, panel, and Michael E. Gerber, setting up the discussion on business ownership myths.

The Myth of Doing It All Yourself (00:01:09)
Discussion on the misconception that business owners can do everything themselves and the dangers of being the business’s core.

If Your Business Depends on You, You Have a Job (00:01:42)
Gerber explains his famous quote about business dependency and the need for transformation in business thinking.

People Development and Its True Meaning (00:02:28)
Explores the concept of people development and its foundational role in business growth.

The Eightfold Path to Business Evolution (00:03:17)
Introduction to the Eightfold Path: dream, vision, purpose, mission, job, practice, business, enterprise.

The Dreaming Room and the Importance of Dream Discovery (00:03:48)
Gerber describes the Dreaming Room program and the necessity of discovering your dream before vision and purpose.

Gerber’s Personal Dream, Vision, and Mission (00:05:00)
Shares his original dream and mission from 1977 to transform small business worldwide.

Scaling a Business and People Development Advice (00:06:52)
Advice on finding and hiring top talent as you scale from a company of one to an enterprise.

The Navy SEALs Analogy for Talent Development (00:07:44)
Compares elite business team development to the rigorous selection and training of Navy SEALs.

OldCo vs. NewCo: Building the Future Organization (00:09:07)
Explains the concept of OldCo (legacy) and NewCo (future), and the need to focus on building NewCo.

Mindset and Soul Set for Business Owners (00:11:08)
Emphasizes the importance of both mindset and “soul set” before committing to transformative business changes.

Closing Remarks and Thanks (00:11:51)
Panelists thank Michael E. Gerber and conclude the episode.

Links and Mentions:

Tools and Concepts
"The Eightfold Path": "00:03:48"
"The Dreaming Room": "00:04:56"

Books
"The E-Myth": "00:00:00"
"Beyond the E-Myth: The Evolution of an Enterprise from a Company of One to a Company of 1000": "00:03:19"

Notable Quotes
"If your business depends on you, you don't own a business; you have a job, and it's the worst job in the world because you're working for a lunatic.": "00:01:09"

Transcript:

Josh 00:00:00 Welcome to the Econ Breakthrough Podcast. I'm your host, Josh Hadley, where I interview the top business leaders in e-commerce. Past guests include Kevin King, Howard Tye, and Stephen Pope. Today is a special episode where I have joined a group panel of other podcasters that are interviewing Michael E Gerber, the author of the E myth. This is a foundational book that many of you have probably read. And now we get his decades of wisdom and we get to ask him questions. I know you're going to enjoy this podcast episode, so sit back, enjoy and enjoy this episode with Michael E Gerber, the author of the E myth. You know, Michael, I'm amazed with the book that you you wrote e myth. And because it is a timeless principles that are going to impact generations to come. And I look forward to my children and my grandchildren being able to read those principles. As an e-commerce business owner and as I speak with other e-commerce business owners, there's kind of this myth, that people believe that they could do it all on their own.

Josh 00:01:09 Right. And they what they do is they build a team of a lot of VA's that are surrounding themselves, but they are still the core function of the business. There's a quote from your book that I want to read real quick and get your take on it. If your business depends on you, you don't own a business. You have a job. And it's the worst job in the world because you're working for a lunatic. So, Michael, can you provide some additional insight as to if you are still working in the business, why you don't actually own a business?

Michael 00:01:42 Well, you have to understand that, oftentimes my statements are stronger than they need to be. Oftentimes, as well, they're not strong enough, but I understand. Take that quote working for a lunatic and you might change it to be working for an idiot. And it's that idiot that I attempt to transform. And the only way in the world that idiot is going to be transformed is if he or she doesn't persist. Being that idiot in the way they think about who they are, why they do what they do, what they're there to create, and how it's going to be created if in fact, they grow beyond their idiot hood.

Michael 00:02:28 So it's a master, master, master position to take charge. In short, to strenuously understand that while you're not in a people development business. In short, that's not the intent you are. You get what I mean by that. While you're not in a people development business, you actually are. Everyone is. But the question then becomes what is people development? And how does one approach people development at the very outset? And that is in the positioning of who you are and what you do. So the most critical process in what I describe, how many of you have read beyond the email?

Josh 00:03:17 Yes, I've read it.

Michael 00:03:19 Well congratulations Josh folks. I picked the book up. It's beyond the myth, the evolution of an enterprise from a company of one to a company of 1000. And at the heart of that book is what I describe as the Eightfold Path. The Eightfold Path is crucial to the process of becoming who you intend to be. Let me describe the eight steps in the Eightfold Path.

Michael 00:03:48 I have a dream. I have a vision. I have a purpose. I have a mission. I have a job, I have a practice. I have a business. I have an enterprise, a dream, a vision, the purpose, the mission, the job, the practice, the business, the enterprise. The Eightfold path is the process for growing a company of one to a company of 1000. It is the process of maturing from doing it yourself, doing it, doing it, doing it, doing it to create an enterprise that does it in great measure with a great number of individuals who are in fact, instilled in the process of understanding and appreciating what a dream is, what a vision is, what a purpose is, what a mission is. How many of you are familiar with the Dreaming Room? So the Dreaming Room is a program that I developed to take one through the first four steps to discover your dream, your vision, your purpose, your vision. If you fail to discover your dream.

Michael 00:05:00 I'm saying you'll never discover your vision. If you fail to discover your dream, I say go to never discover your purpose. And you follow me and follow me. First this, then that, then that, then that. So there's a process, a mad process through which you grow in maturity, you grow in eloquence. You grow in ability to literally become the one you can't even imagine becoming. At the very outset of this process, my dream way back then, in 1977. Wow, that's a long time ago. My dream was to transform the state of small business worldwid...