2005 Survey Results for f E-Myth Worldwide s Mastery Program Coaching Clients
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1 2005 Survey Results for f E-Myth Worldwide s Mastery Program Coaching Clients
2 Table of Contents About E-Myth Worldwide Survey Background and Objectives Survey Methodology Summary of Results Return on Investment Profile of Typical Mastery Client The Impact of Mastery Client Survey Participation The Bottom Line
3 About E-Myth Worldwide Founded in 1977 by Michael Gerber, the best-selling author of The E-Myth Revisited, E-Myth Worldwide offers results-based education programs for small business leaders to help them run their businesses more effectively, while enjoying more personal freedom and richer, fuller lives. For almost 30 years, the E- Myth core business principles and unique depth of business experience have dramatically helped over 52,000 clients from every industry around the globe. E-Myth has continued to innovate, and has recently launched a new a range of low-cost, high-impact online programs and tools specifically designed to address a variety of individual and institutional learning styles and investment levels. Current and emerging business leaders from around the world can now leverage the E-Myth curriculum to more effectively compete and succeed in the 21 st century marketplace. 1
4 E-Myth Point-of-View E-Myth stands for Entrepreneurial Myth, which challenges the notion that small businesses are started by knowledgeable entrepreneurs risking capital to make a profit. In fact, most small businesses are started by technicians who have had an entrepreneurial seizure, believing that because they can expertly do the technical work of a business, they can successfully run a business that does that work. For example, a plumber starts a plumbing business or a hairdresser starts a salon. In reality, the technician-turned-entrepreneur usually lacks management disciplines critical to building a successful small business. The outcome of this situation can be seen in the rate of small business failures and in the number of business owners whose lives are consumed by their business. E-Myth Worldwide delivers proven, proprietary business development education that has the power to dramatically transform any struggling small business into a thriving and growing enterprise. The result: Small business owners who enjoy a sustainably improved business and richer life. 2
5 Background & Objectives In its continuing commitment to extraordinary client service, E-Myth Worldwide conducted a second annual survey to definitively quantify the impact of its E-Myth Mastery Coaching Program. The survey included all of E-Myth s active Mastery clients as of Dec. 31, 2005, focusing on the performance of their businesses in 2005 and the program s contribution to business owners quality of life. Objectives of the survey included: Gathering quantitative data about business and personal results experienced as a result of participation in the Mastery Program. Gaining a more extensive understanding of the issues most critical to the ongoing success of small business owners. Sharing the aggregate results with survey participants and others who may be interested in the impact of E-Myth s small business coaching. Assessing the impact of client profile and program changes that occurred in 2005 as a direct result of the 2004 client survey comments and feedback. 3
6 Survey Methodology The survey, which was conducted in January 2006, was distributed and the results compiled through an online research tool, Zoomerang.com, a product of MarketTools, Inc. Survey respondents reflect a representative sampling of E-Myth s active Mastery client base. Results are statistically significant with a margin of error of ±3%. A summary of aggregate responses from the survey is presented in the following pages. 4
7 Summary of Results: E-Myth s Impact on Small Business The following information, charts and graphs highlight impressive findings from the survey. The participant response rate was excellent, with hundreds of Mastery clients completing the survey. For ease of understanding, certain findings have been presented with a simple chart or graph. Out of respect for the confidentiality of our clients, all results have been reported in the aggregate. 5
8 Top Line Results The following results clearly demonstrate the importance and impact of the Mastery Program on clients businesses and lives. 850% Return on Investment in The average E-Myth Mastery client experienced an 850% return on investment (ROI) in 2005, as measured by net after tax profit improvement over the annual cost of E-Myth Mastery. The 850% ROI that E-Myth survey respondents achieved in 2005 represents a 47% increase over the 579% ROI that respondents achieved in % of E-Myth Mastery Clients Believe the Program Significantly Impacts Their Ability to achieve Their Business Goals. E-Myth Mastery was credited for helping them achieve critical business goals, such as increased sales, net profits, cash flow, and market value. 85% of E-Myth Mastery Clients Believe the Program Significantly Impacts Their Ability to Achieve Their Personal Goals. Along with significant improvements to their businesses, E-Myth Mastery significantly impacted their ability to realize their personal goals, such as increased compensation, net worth, quality of life, or free time. 6
9 Striking Business Results E-Myth helps people reach tangible business goals, such as increased sales, net profits, cash flow, or market value. Overwhelmingly, about 92% of our respondents believe that E-Myth positively impacted their 2005 business goals, of which the vast majority (84%) claimed quantifiable business improvement. Almost 70% achieved 10% or greater improvement in their #1 business goal for Improved sales were top priority for business owners in 2005, with about 33% reporting this was the #1 business goal they achieved in For 2006, Mastery clients have set even more aggressive goals for their businesses, particularly for increased net profits, cash flow, and market value. 7
10 84% of E-Myth s Mastery Clients Experienced an Increase in Their #1 Business Goal for % By more than 100% 16% Between 50% to 99% 16% 16% 84% 20% Between 25% to 49% Between 10% to 24% 24% Between 1% to 10% 16% Did not increase 8
11 Striking Personal Results E-Myth helps people reach tangible personal goals, such as improved quality of life, free time, net worth, and personal compensation. Nearly 93% of clients believe E-Myth positively impacted their 2005 goals, of which 87% claimed quantifiable personal improvement. 70% achieved 10% or greater improvement in their #1 personal goal for Interestingly, for 2006, 52% of our clients seek improved quality of life or free time as their #1 personal goals, with increased personal compensation being the top priority for 29% of clients. 9
12 87% of E-Myth s Mastery Clients Experienced an Increase in Their #1 Personal Goal for % By more than 100% 15% Between 50% to 99% 13% 87% 21% Between 25% to 49% Between 10% to 24% 26% Between 1% to 10% 13% Did not increase 10
13 The Ultimate Proof: A 12-Month Investment in E-Myth Mastery Yielded an Impressive 850% Return in 2005, up from a 579% Return in 2004 $125,000 $117,168 $100,000 $75,000 $50,000 $71, % average return in % average return in 2005 $25,000 $12,335 $- Annual Investment Individual Mastery 2004 Average Annual Improvement 2005 Average Annual Improvement 11
14 Profile of a Typical Mastery Client Analysis of our clients responses revealed that their businesses generate an average annual revenue of between $500K and $2.6 million, employ 4-22 people, and have been in business for more than 10 years. E-Myth serves clients in virtually every type of industry, including among others, construction, professional services (including scientific and technology), retail, and healthcare/social assistance. The universality and application of E-Myth principles continue to support the ongoing needs of the small business sector. 12
15 The Impact of Mastery Client Survey Participation We learned several critical things from our clients as a result of our 2004 client survey: Our Mastery coaching clients experienced very positive changes in both their businesses and their lives as a result of their participation in the 36-month program, but said they would like to be able to achieve results faster Clients with 10 or more full-time employees and greater than $1,000,000 in gross annual revenues achieved significantly greater results from their coaching programs Small business owners said that they wished we could provide business development skills and education for their managers as well 13
16 The Impact of Mastery Client Survey Participation (Continued) How E-Myth Worldwide used this feedback in 2005 to strengthen and innovate our flagship coaching services and to develop and launch new products: Developed a revised 12-month coaching program focused on key skill and tool development, in order for our clients to realize a more immediate impact on their businesses and lives Developed a new product, Embark E-Learning, which consists of an affordable series of seven online business development courses that busy business owners and key managers can take at their own convenience Developed and launched a series of one-day seminars devoted to the needs of small business leaders and their key managers Launched the Embark Community Connection a free online forum where business leaders can review and respond to E-Myth content, and interact with peers worldwide Better utilized business and personal profiles to advise potential small business owners on which of these programs or services would best help them achieve the greatest results 14
17 87% OF E-MYTH'S COACHING CLIENTS GENERATE GROSS ANNUAL REVENUES BETWEEN $250K and $9.9M 20% $5M to $9.9M 4% 9% <$250K $10M+ 87% 29% $2.5M to $4.9M $1M to $2.49M $500K to $999K $250K to $499K 38% 15
18 Client Respondents Own Businesses In Many Industry Sectors Accommodations & Food Services Administrative Support, Waste Management & Remediation Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Educational Services Finance & Insurance Healthcare & Social Assistance Manufacturing Other Service Professional, Scientific & Technical Services Promotional Products Real Estate, Rental & Leasing Retail Trade Transportation & Warehousing Wholesale Trade Information 16
19 E-Myth Coaches Clients at All Stages of the Business Life Cycle, Although Its Clients Average 10+ Years in Business 22% 5 to 9 years 21% < 5 years 13% 10 to 14 years 44% 15+ years 17
20 The Bottom Line E-Myth Works! Mastery produces tangible, measurable business and personal results, including an impressive return on investment. Clients believe E-Myth Mastery has a dramatic, positive effect on their ability to improve business performance. E-Myth Mastery continues to demonstrate its power and effectiveness for the small business entrepreneur by helping owners build successful, world-class companies. The Mastery Program engages and sustains clients on a long term basis, providing incremental value and impact. E-Myth s new generation of products and services were specifically designed and launched to meet the business development and educational needs of our global clients in the 21st century marketplace. 18
21 DISCLAIMER Client results and financial returns presented in this document were derived from a January 2006 comprehensive survey of E-Myth Worldwide s active Mastery clients. Results were aggregated for all client participants completing the survey (a statistically representative sample), and only illustrate an average of past performance for those clients participating in E-Myth s Mastery Coaching Program at that time. Past results and returns for E-Myth s Mastery clients do NOT in any way represent any past, present, or future responsibilities or guarantees of performance from E-Myth Worldwide, as clients bear sole responsibility for the use and implementation of E-Myth s services within their businesses. Client success in E-Myth s Mastery Coaching Program depends on numerous variables outside the control of E-Myth Worldwide. 19
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