Thursday, June 5, 2008

SMEs - Gerber's point of view

I was recently given a gift of Gerber's book on audio CD, called the E-Myth which is a must read for SME owners. Normally I hate this kind of gift as I cannot stand the ra-ra antics of motivational speakers.

This one is not a motivational speaker. Yes there is a bit of the ra-ra, but there is a lot of good information here. This is someone who talks about the realities of SMEs. This is someone who I agree with, and whose book so far has been really great.

He says that the sole reason for starting or buying a business, is so that you can sell it! Now this is something I have said for a long time and having done 30+businesses since 1982, lived it. I have written on this topic before, and stand by what I have said. You create more wealth through business sales than through drawing a salary from the business. In South Africa, even with the new capital gains tax, it is still the case. I am sure in your country much the same situation exists. Do the numbers people. Prove to yourself whether there is more money in selling your business regularly or not?!

Rob Smorfitt

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