The E-Myth Revisited

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

In the book The E-Myth Revisited, certain widespread misconceptions about entrepreneurship and owning a small business are debunked. 

According to the author, Michael Gerber, most small firms fail because they are handled by technicians who are skilled in their field but lacking in business management. He suggests a solution based on the notion of developing a franchise prototype, which is a systematized and expandable company model that can be duplicated and enhanced.

The book consists of three parts:

Part I: The E-Myth and American Small Business

The Entrepreneurial Myth, or E-Myth, is a concept that Gerber outlines in this section. The E-Myth is the mythical idea that business owners of startups risk their own money in the hopes of turning a profit. In truth, the majority of small firms are founded by technicians who experience an entrepreneurial seizure, at which point they decide to leave their positions and go into business for themselves.

Every business leader has one of three characteristics, according to Gerber: the Entrepreneur, the Management, and the Technician. The entrepreneur is a dreamer, an innovator, and a visionary. The Manager is a pragmatist, planner, and organizer. 

The technician does, works, and specializes. The issue is that the Technician, who enjoys working on technical tasks but despises managing or delegating, rules over the majority of business owners. As a result, the business owner finds himself working on the company rather than in it.

Gerber also outlines the three stages of a typical small business' life cycle: infancy, adolescence, and maturity. The infancy of a business is when the owner handles every aspect alone. The business owner enters adolescence when he or she hires assistance but continues to exert total control. When a business owner develops a system that works without them, it is when they have reached maturity.

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

In this section, Gerber defines the Turn-Key Revolution, a phenomenon that has altered how business is conducted in the modern day. The Turn-Key Revolution is built on the notion of developing a franchise prototype, which is a systematized, scalable business model that can be duplicated and enhanced.

In order to illustrate how a successful franchise prototype may transform an industry, Gerber cites the example of McDonald's. He argues that McDonald's system, not its product (burgers and fries), is what drives the company's success (a standardized way of delivering quality, service, cleanliness, and value). He contends that any small firm ought to model its strategy after that of McDonald's and develop its own franchise model.

Also, Gerber stresses the significance of working ON your business rather than IN it. According to him, working on your business entails developing processes that can run without you and your staff. According to him, running a business entails doing everything yourself or micromanaging your staff.

Part III: Building a Small Business That Works!

Based on his personal experience as a business consultant, Gerber describes in this section a doable procedure for creating a small firm that succeeds. He calls this process the Business Development Process, which consists of seven steps:

Your Primary Aim

This is the way that you personally envision your life to be. It consists of your principles, objectives, aspirations, and passions.

Your Strategic Objective

This is how you envision your company functioning in the future. It comprises your mission, values, objectives, and tactics.

Your Organizational Strategy

This is how you structure your business to achieve your strategic objective. It includes your organizational chart, job descriptions, roles and responsibilities, and reporting relationships.

Your Management Strategy

This is how you manage your people to achieve your organizational strategy. It includes your policies, procedures, standards, training, communication, and performance evaluation.

Your People Strategy

This is how you attract, motivate, and retain your employees to achieve your management strategy. It includes your hiring process, compensation plan, benefits package, recognition program, and culture.

Your Marketing Strategy

This is how you communicate with your customers to achieve your strategic objective. It includes your market research, target market, unique selling proposition, marketing message, marketing channels, and marketing budget.

Your Systems Strategy

This is how you design and implement the processes that run your business to achieve your marketing strategy. It includes your hard systems (equipment, tools, technology), soft systems (scripts, manuals, checklists), and information systems (data, reports, feedback).

A Letter to Sarah

This is a fictional letter from Gerber to one of his clients, Sarah, who owns a pie shop. The letter summarizes the main points of the book and illustrates how Sarah can apply them to her own business.


This is a final message from Gerber to the readers, encouraging them to pursue their dreams and create a small business that works. He also invites them to contact him for further assistance and guidance.
This book is incredibly helpful and insightful, and we believe it can help you grow your business.


The "E-Myth" or Entrepreneurial Myth is the mistaken belief that most businesses are started by people with tangible business skills, when in fact most are started by "technicians" who know nothing about running a business. Hence, the reason most fail.

The "Fatal Assumption" is the false belief that if you understand the technical work of a business, you understand a business that does that technical work.

According to the book, every business owner embodies three personalities: The Entrepreneur, The Manager, and The Technician. The Entrepreneur is the visionary, The Manager is the planner, and The Technician is the doer.

"The E-Myth Revisited" suggests that business owners should work "on" their business, not "in" their business. This means focusing on the business systems, not the day-to-day workload.

The book suggests that viewing your business as a franchise can lead to success. This is because franchises have a consistent and proven system that delivers quality products or services. By systematizing operations, the business no longer relies solely on the owner.

You can purchase this book through the link below: