The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do about It

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Overview

In this first new and totally revised edition of the over two million copy bestseller, The E-Myth, Michael Gerber dispels the myths surrounding starting your own business and shows how commonplace assumptions can get in the way of running a business. Next, he walks you through the steps in the life of a business -- from entrepreneurial infancy through adolescent growing pains to the mature entrepreneurial perspective: the guiding light of all businesses that succeed -- and shows how to apply the lessons of franchising to any business, whether it is a franchise or not. Finally, Gerber draws the vital, often overlooked distinction between working on your business and working in your business. After you have read The E-Myth Revisited, you will truly be able to grow your business in a predictable and productive way.

Editorial Reviews

Library Journal
Indicating that 40 percent of small businesses fail within their first year, Gerber, a small business expert, talks about how to be successful. In this revision of his 1986 book, he describes the "E-Myth," which basically states that a person with technical but few management skills can do well in business. Gerber describes developing a precise business system that produces consistent results because it has been tested and refined. He says that businesses thrive because of innovation, quantification, and orchestration. Visualize what is true success to you as a person, Gerber advises, and work from the ideal to the specific. While the author is a consumate salesman who reads his material in soothing tones, he offers too many abstract ideas and too few concrete plans. There is little useful content here.
-- Mark Guyer, Stark City District Library, Canton, Ohio

Product Details

  • ISBN-13: 9780887307287
  • Publisher: HarperCollins Publishers
  • Publication date: 3/3/1995
  • Edition description: Updated
  • Edition number: 2
  • Pages: 288
  • Sales rank: 15,727
  • Product dimensions: 7.92 (w) x 7.90 (h) x 0.73 (d)

Meet the Author

Michael E. Gerber is the legend behind the E-Myth series of books, which includes The E-Myth Revisited, E-Myth Mastery, The E-Myth Manager, The E-Myth Physician, The E-Myth Contractor, and The E-Myth Enterprise. Collectively his books have sold millions of copies worldwide. Michael is also highly sought after as a speaker and consultant. He lives in Carlsbad, California.

Read an Excerpt

The E-Myth Revisited
Why Most Small Businesses Don't Work and What to Do About It

The Entrepreneurial Myth

They intoxicate themselves with work so they won′t see how they really are.

--Aldous Huxley

The E-Myth is the myth of the entrepreneur. It runs deep in this country and rings of the heroic.

Picture the typical entrepreneur and Herculean pictures come to mind: a man or woman standing alone, wind-blown against the elements, bravely defying insurmountable odds, climbing sheer faces of treacherous rock--all to realize the dream of creating a business of one′s own.

The legend reeks of nobility, of lofty, extra-human efforts, of a prodigious commitment to larger-than-life ideals.

Well, while there are such people, my experience tells me they are rare.

Of the thousands of businesspeople I have had the opportunity to know and work with over the past two decades, few were real entrepreneurs when I met them.

The vision was all but gone in most.

The zest for the climb had turned into a terror of heights.

The face of the rock had become something to cling to rather than to scale.

Exhaustion was common, exhilaration rare.

But hadn′t all of them once been entrepreneurs? After all, they had started their own business. There must have been some dream that drove them to take such a risk.

But, if so, where was the dream now? Why had it faded?

Where was the entrepreneur who had started the business?

The answer is simple: the entrepreneur had only existed for a moment.

A fleeting second in time.

And then it was gone. In most cases, forever.

If the entrepreneur survived at all, it was only as a myth that grew out of a misunderstanding about who goes into business and why.

A misunderstanding that has cost us dearly in this country--more than we can possibly imagine--in lost resources, lost opportunities, and wasted lives.

That myth, that misunderstanding, I call the E-Myth, the myth of the entrepreneur.

And it finds its roots in this country in a romantic belief that small businesses are started by entrepreneurs, when, in fact, most are not.

Then who does start small businesses in America?

And why?

The Entrepreneurial Seizure

To understand the E-Myth and the misunderstanding at its core, let′s take a closer look at the person who goes into business. Not after he goes into business, but before.

For that matter, where were you before you started your business? And, if you′re thinking about going into business, where are you now?

Well, if you′re like most of the people I′ve known, you were working for somebody else.

What were you doing?

Probably technical work, like almost everybody who goes into business.

You were a carpenter, a mechanic, or a machinist.

You were a bookkeeper or a poodle clipper; a drafts-person or a hairdresser; a barber or a computer programmer; a doctor or a technical writer; a graphic artist or an accountant; an interior designer or a plumber or a salesperson.

But whatever you were, you were doing technical work.

And you were probably damn good at it.

But you were doing it for somebody else.

Then, one day, for no apparent reason, something happened. It might have been the weather, a birthday, or your child′s graduation from high school. It might have been the paycheck you received on a Friday afternoon, or a sideways glance from the boss that just didn′t sit right. It might have been a feeling that your boss didn′t really appreciate your contribution to the success of his business.

It could have been anything; it doesn′t matter what. But one day, for apparently no reason, you were suddenly stricken with an Entrepreneurial Seizure. And from that day on your life was never to be the same.

Inside your mind it sounded something like this: "What am I doing this for? Why am I working for this guy? Hell, I know as much about this business as he does. If it weren′t for me, he wouldn′t have a business. Any dummy can run a business. I′m working for one."

And the moment you paid attention to what you were saying and really took it to heart, your fate was sealed.

The excitement of cutting the cord became your constant companion.

The thought of independence followed you everywhere.

The idea of being your own boss, doing your own thing, singing your own song, became obsessively irresistible.

Once you were stricken with an Entrepreneurial Seizure, there was no relief.

You couldn′t get rid of it.

You had to start your own business.

Copyright C 1995 Michael E Gerber

The E-Myth Revisited
Why Most Small Businesses Don't Work and What to Do About It
. Copyright © by Michael E. Gerber. Reprinted by permission of HarperCollins Publishers, Inc. All rights reserved. Available now wherever books are sold.

Table of Contents

Acknowledgments
Foreword
Introduction 1
Pt. I The E-Myth and American Small Business 7
Ch. 1 The Entrepreneurial Myth 9
Ch. 2 The Entrepreneur, the Manager, and the Technician 19
Ch. 3 Infancy: The Technician's Phase 34
Ch. 4 Adolescence: Getting Some Help 43
Ch. 5 Beyond the Comfort Zone 51
Ch. 6 Maturity and the Entrepreneurial Perspective 68
Pt. II The Turn-Key Revolution: A New View of Business 77
Ch. 7 The Turn-Key Revolution 79
Ch. 8 The Franchise Prototype 91
Ch. 9 Working On Your Business, Not In It 97
Pt. III Building a Small Business That Works! 115
Ch. 10 The Business Development Process 117
Ch. 11 Your Business Development Program 134
Ch. 12 Your Primary Aim 136
Ch. 13 Your Strategic Objective 149
Ch. 14 Your Organizational Strategy 166
Ch. 15 Your Management Strategy 187
Ch. 16 Your People Strategy 197
Ch. 17 Your Marketing Strategy 218
Ch. 18 Your Systems Strategy 234
Ch. 19 A Letter to Sarah 253
Epilogue: Bringing the Dream Back to American Small Business 259
Afterword: Taking the First Step 267
Customer Reviews
Average Rating 4
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  • Posted December 31, 2009

    more from this reviewer

    I Also Recommend:

    A "must buy" for the sole practitioner or small business

    You need to buy this book if you're a small business person or a sole practitioner or artist of any sort thinking of starting a small business. Gerber has a very important concept that is so often overlooked: to turn yourself from an artisan to a business person, you need to stop working IN your business and start working ON your business.

    The best way, he says, to think of this is to imagine if you had to "franchise" your business. Is the way you're doing things systematic enough that it can be replicated all over the country? In reality, of course, the odds that you WILL franchise your business are negligible, but the same method of thinking will allow you to:
    ...expand your business to include more employees
    ...allow you to go on VACATION with a free and easy conscience
    ....allow someone else to pick up the slack if you fall ill.

    There are some other good points in here (the value of consistency, etc.) A definite must read for the small business owner.

    Having said all this, I am not really sure why Gerber "revisited" his original E-myth. If you can find a copy of the original, it was even better, lacking the superfluous "sarah" character who mars and confuses this revised edition slightly.

    2 out of 2 people found this review helpful.

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  • Posted August 20, 2010

    more from this reviewer

    American Common Sense

    This book is striking from the beginning because it was like a refreshing breeze on a hot and humid summer day. In an age where many businesses are chaotic, without vision, and without direction this book reminds us of the power, and wealth-building potential, of engineering, uniformity, and simplicity. While the book is targeted to small business many of the biggest corporations can definitely benefit from its wisdom. Some of the worlds' most famous franchises are evidence the utility of an engineered approach to business. In my opinion this should be required reading, and mastery of concept, for any executive.

    1 out of 1 people found this review helpful.

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  • Anonymous

    Posted September 15, 2007

    A reviewer

    The Book E Myth was recommended to me by a good friend. He insisted that I read this book before I go into unchartered territories of starting my new business. I thank him everyday for pushing me to read this book. If you ever have thoughts of becoming a small business owner,or currently have a small business make sure to read this book. Michael E. Gerber must be physic, because it seemed as if he was reading my mind. The clarity in which he talks about why most individuals start a business was phenomenal. The way he described the average small business owner and there struggles really hit home. I re-evaluated my entire plan and thanks to Michael E Gerber and E Myth Revisited, my business has been successful from the start. Great Book, would encourage all entrepreneurs current and future to read.

    1 out of 1 people found this review helpful.

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  • Anonymous

    Posted July 18, 2006

    Good for Students

    I am young and have not graduated college yet, but can't keep from thinking about owning my own business someday. I found this to be a great read simply b/c it was informative on an issue that I have no experience with. Overall it's a good starter book for those interested in running a business.

    1 out of 1 people found this review helpful.

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  • Anonymous

    Posted February 4, 2012

    Great refresher with some good new tools

    Enjoyed the read.

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  • Posted October 10, 2011

    Life Changing!

    My husband and I have both read this book and it has absolutely changed our lives. This is an absolute MUST READ for any business owner or aspiring entrepreneur. Easy to read and understand, this book provides simple, yet profound, solutions to implement into your own business (and life). If you follow Michael Gerber's guidelines, he will help you lay down a solid foundation for your business, assist you in defining your future (outside of the business), give you the ability to streamline your business' processes so that your business can operate regardless of whether or not you are there, and much, much more. SIMPLY AMAZING.

    Was this review helpful? Yes  No   Report this review
  • Posted July 15, 2010

    I Also Recommend:

    A must read for ANYONE who owns a business or has a job

    This book explains the way business SHOULD be done. It tells how every business and every employer need to set-up and run their business. People need to quit thinking about their business or job how they would do it, and instead think of how to make it simple for someone else to do it. With a simple change in the way you look at your business or job, you can make huge, drastic changes in your happiness and productivity.

    Was this review helpful? Yes  No   Report this review
  • Posted April 21, 2010

    more from this reviewer

    Before you quit your job, read this book

    If you are ever asking the questions, "Why dont I start my own business," or " Why do I continue to work for this crazy company," then you need to pick this book up and you are thinking about starting your own business, then this book is for you.

    This book is also for people who have a small business and are trying to make it grow.

    This book does what other books do not do. It describes people who are real good at a skill and say, it is time to start my own business. And after 4 months or so in, they are burnt out mad, unsuccessful and wonder why.

    This book is not a technical boring book. It is a real easy read and it is very pratical. I recommend this book before you quit your job.

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  • Posted January 16, 2010

    I Also Recommend:

    Excellent

    The E Myth Revisited by Michael E. Gerber stresses the importance of planning, organizing and running a small business with ethics, excellence, and a sense of responsibility to the owner, employees and the public. It makes the case for living, working and running a business from the best in us, doing what we love and giving back!

    I highly recommend it!

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  • Anonymous

    Posted October 29, 2009

    Easy Read, Great Resource

    Had started the original version from a friend and decided to get my own. Fantastic resource with modern day examples.

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  • Anonymous

    Posted August 23, 2009

    Must read for new entrepreneurs

    Great book for small business owners. Michael Gerber writes with statistics, coaching/consulting style along with a storyline. It's a great read for young entrepreneurs.

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  • Posted March 9, 2009

    E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do about It by Michael E. Gerber Average Reader Rating: E-Myth Revisited: Why Most Small businesses Don't Work and What to Do about it by Michael Gerber

    A must have/must read for ALL small business owners and prospective entrepreneurs! I wish I would have read this book when I started my company over 16 years ago, it could have saved me a lot of unnecessary "brain damage"!

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  • Anonymous

    Posted November 11, 2008

    Innovative thinking

    Book is an easy read and gives you tools for digesting problems with your company. It gives an interesting perspective to the makings and success of a small business, could even be applied to a medium size business.

    The prototype is a lot of work and the detail envolved and why the prototype is needed is clear cut. Most of what is said is common sense, but we all need direction to get our minds thinking - it is a great guide for bigger things.

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  • Anonymous

    Posted October 16, 2007

    How to Build (or Repair) Your Small Business

    Most small businesses fail within their first two years, and the success rate after that isn't much better. In this book, author Michael Gerber shows why that is, and what can be done about it. Gerber begins with the reason most businesses are started in the first place (because an individual feels like they could do something better than their current company) and proceeds to explain the mistakes that most business owners make while starting and growing their business. Gerber shows that it is only through building and refining a system that a business can survive and thrive with or without its owner. The E-Myth is a great compliment to Kiyosaki's Rich Dad books, which speak to the philosophy of building wealth without getting much into the specifics.

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  • Anonymous

    Posted April 4, 2007

    Outstanding

    This might be the best book ever in terms of learning how a successful business runs around a 'system'. He uses great examples throughout the book. Using Sara as a backbone example, I like the way she tries to explain what she just learned in her own words (sometimes helps the point he just made 'click'). Make sure you have a highlighter for this one so you can keep track of all the useful information when coming up with your own system for your business! This book is priceless!!!

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  • Anonymous

    Posted January 17, 2007

    All Present & Future Business Owners Should Read This

    Michael Gerber has done a great job in explaining why 10 out of 12 small businesses fail within 2 years after they're opened. This is an easy read that contains insightful and practical messages for business owners. There are three components to a business (technician, manager, entrepreneur). The problem with most businesses is they focus most of their time on the technical component of the business. Gerber uses a woman who bakes pies to illustrate. She may feel that since she makes the best pies in town, this will drive masses of people through the door. The problem is that couldn't be farther from the truth! Sales and Marketing bring customers to your business. This is part of the entrepreneurial hat the business owner must also wear. E-Myth is fantastic so if you want to decrease your chances of becoming a statistic, I recommend purchasing this book ASAP! - Dr. Matthew J. Loop (Author of 'Cracking the Cancer Code')

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  • Anonymous

    Posted March 9, 2007

    A concise guide for entrepreneurs and other dreamers

    Business owners typically learn about corporate pitfalls the hard way. After falling into a professional pit, entrepreneurs are forced to yank themselves up by their fraying bootstraps. Fortunately, Michael E. Gerber provides a well-written tutorial about business plans, strategic growth and employee management. He delivers an elegant dose of reality with strategic examples, concrete numbers and marketing insights. At times, some of the examples and scenarios are a bit sappy and repetitive, but the book scores points for delivering difficult lessons in bite-sized portions. We recommend this book to entrepreneurs and other dreamers.

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  • Anonymous

    Posted January 24, 2007

    What Every Entrepreneur Should Know About Their Business

    Michael Gerber's E-myth Revisited is a work of genius. Every entrepreneur at one point or another thinks that the only way their business will succeed is if they do all the work themselves. The key to any effective small business is to create a system that can exist without the owner's direct involvement, and that is what the E-myth Revisited teaches you. Michael Gerber's advice helped me grow my eBay business, Koss DVD, to over $1,000,000 in sales and become a top 200 seller on eBay. Read this book and prepare to take your business to the highest level! - Corey Kossack, author of eBay Millionaire or Bust

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  • Anonymous

    Posted October 29, 2006

    emyth mastery

    this book is a waste of money. Michael ramble about things that have nothing to do with business such as a conversation with sara about her pie business, he never get to the meat and potato of what the book is all about. and then he talks about what happen to him in the 80s he sounds like he is venting about what happen back then. I don't think I would by any more of his books. maybe he didn't have an idea himself about the book. He lost me a few time where I had to say what are you talking about. A big let down for me waste of my time and money with this one. Maybe the next one will be better I never know.

    0 out of 2 people found this review helpful.

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  • Anonymous

    Posted August 1, 2006

    Peaks Early

    Bought this book on the recommendation of a friend who is also starting his own company. Don't get me wrong--it's full of lots of helpful information. It's also full of lots of superflulous crap. The book does a really good job of building up to the point of making the reader realize s/he has to make changes in her/his company, then when it starts to give advice on how to make and impliment those changes, it backs down. Unfortunately, this happens 2/3 of the way through and you're left reading the last 1/3 of the book, hoping to come across something useful and don't. It's like in high school where you write 'he was a very very very very very big man' to try and get the paper's word count in. You get the feeling that somebody's just trying to get the word count in. So, worth a skim, but not a read. Check it out from the library don't buy it.

    0 out of 1 people found this review helpful.

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