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

by Michael E. Gerber

Overview

E-Myth \ 'e-,'mith\ n 1: the entrepreneurial myth: the myth that most people who start small businesses are entrepreneurs 2: the fatal assumption that an individual who understands the technical work of a business can successfully run a business that does that technical work

Voted #1 business book by Inc. 500 CEOs.

An instant classic, this revised and updated edition of the phenomenal bestseller dispels the myths about starting your own business. Small business consultant and author Michael E. Gerber, with sharp insight gained from years of experience, points out how common assumptions, expectations, and even technical expertise can get in the way of running a successful business.

Gerber 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 or not it is a franchise. Most importantly, Gerber draws the vital, often overlooked distinction between working on your business and working in your business.

The E-Myth Revisited will help you grow your business in a productive, assured way.

Product Details

ISBN-13:	9780887307287
Publisher:	HarperCollins
Publication date:	10/14/2004
Edition description:	Updated
Pages:	288
Product dimensions:	5.34(w) x 8.02(h) x 0.71(d)

About the Author

Michael E. Gerber is a true legend of entrepreneurship. The editors of INC magazine called him "The World's #1 Small Business Guru." He is Co-founder and Chairman of the Michael E. Gerber Companies—a group of highly unique enterprises dedicated to creating world-class start-ups and entrepreneurs in every industry and economy. The Gerber Companies transforms the way small business owners grow their enterprises and has evolved into an empire over its history of nearly three decades.

Read an Excerpt

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 andwhy.

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.

Table of Contents

Acknowledgments

Foreword

Introduction

Part. I. The E-Myth and American Small Business

Chapter 1: The Entrepreneurial Myth

Chapter 2: The Entrepreneur, the Manager, and the Technician

Chapter 3: Infancy: The Technician's Phase

Chapter 4: Adolescence: Getting Some Help

Chapter 5: Beyond the Comfort Zone

Chapter 6: Maturity and the Entrepreneurial Perspective

Part. II. The Turn-Key Revolution: A New View of Business

Chapter 7: The Turn-Key Revolution

Chapter 8: The Franchise Prototype

Chapter 9: Working On Your Business, Not In It

Part. III. Building a Small Business That Works!

Chapter 10: The Business Development Process

Chapter 11: Your Business Development Program

Chapter 12:. Your Primary Aim

Chapter 13: Your Strategic Objective

Chapter 14: Your Organizational Strategy

Chapter 15: Your Management Strategy

Chapter 16: Your People Strategy

Chapter 17: Your Marketing Strategy

Chapter 18: Your Systems Strategy

Chapter 19: A Letter to Sarah

Epilogue: Bringing the Dream Back to American Small Business

Afterword: Taking the First Step