The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It―A Guide to Starting a Business in a Productive and Successful Way

On April 8, 1999, I discovered a book that changed the way I view business; a book that helped me to realize that running a successful architecture firm required so much more than designing great architecture. It taught me that inside the owner of every small firm exists a battle among The Entrepreneur, The Manager and The Technician, and that if we don’t attend to the needs of each, our firms are destined for failure. The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It inspired me to build Fivecat Studio as a Franchise Prototype, even though we knew selling our business systems as a franchise was never a planned goal. The systems we created for the firm have allowed us to thrive and have given us the freedom we need to balance the requirements of our firm with the responsibilities of our family. It is the book that inspired me to begin to work “on my business, rather than in my business.” This book, written by Michael E. Gerber, had a major influence in the success of our firm and continues to guide many of our business decisions to this day. Fivecat Studio has been in business for 15 years. Annmarie and I experienced the startup pains of “infancy”, the hard earned success of “adolescence” and recently, with our return to the home studio and the launch of our new virtual business model, we are surprisingly “getting small again”. As I re-read the words of this inspirational how-to guide for successful small business, it is shocking to me how accurate Mr. Gerber is as he describes the different stages of the typical small business. As I read it, I can follow the path of Fivecat Studio through good decisions and bad, through ups and downs and I can see the next steps we need to take. I’ve read The E-Myth so many times that I have lost count. A quick peek at my Amazon order history documents that I have given this book to no fewer than 10 friends and acquaintances as a gift from one business owner to another, struggling to find a life of fulfillment and freedom. Michael Gerber breaks his book into three sections. In Part I, The E-Myth and the American Small Business, he defines the E-Myth as the Entrepreneurial Myth and discusses how most small businesses are the result of an Entrepreneurial Seizure. He says, “The technician suffering from an Entrepreneurial Seizure takes the work he loves to do and turns it into a job.” Does that sound familiar? How many architects do you know who have launched their own firms, with dreams of “doing it better” than their former employer and found themselves way over their heads in all the responsibilities of running a small business? Gerber describes the three phases of business; Infancy, Adolescence and Maturity. He explains why it is so important to build a Mature company from the start. “A Mature company is founded on a broader perspective, an entrepreneurial perspective, a more intelligent point of view. About building a business that works not because of you but without you. And because it starts that way, it is more likely to continue that way. And therein the true difference between an Adolescent company, where everything is left up to chance, and a Mature company, where there is a vision against which the present is shaped.” “Successful companies don’t end up as Mature companies. They start that way.” In Part II, The Turn-Key Revolution: A New View of Business, Mr. Gerber introduces the concept of the Franchise Prototype and the concept of “working on your business, not in it.” He encourages us to create systems which allow for predictable results and happy clients. “The system runs the business. The people run the system. The system integrates all the elements required to make a business work. It transforms a business into an organism, driven by integrity of its parts, all working in concert toward a realized objective. And, with its Prototype as its progenitor, it works like nothing else before it.” Many architects I know, including Annmarie at first, reject the thought of building systems for their firms. They feel that the routines and consistency of such will limit their creativity, that they will lose their flexibility to create amazing works of architecture. When, in fact, systems will do just the opposite. When everything else required to run a successful business is set to run on “autopilot”, an architect will actually have more time and flexibility to be an architect. Gerber continues, “Great businesses are not built by extraordinary people, but by ordinary people doing extraordinary things. But for ordinary people to do extraordinary things, a system – ‘a way of doing things’ – is absolutely essential in order to compensate for the disparity between the skills your people have and the skills your business needs if it is to produce consistent results.” This is also the section where some readers become frustrated with Gerber’s example of McDonald’s as a model for small business success. I know, as an architect, it is difficult to see the connection between the home of the Big Mac and our aspiring high-end residential design firms. Please trust me and read the book to the end. You will not regret learning the lessons he teaches using the examples of this successful business franchise. Here is some of what Gerber says about McDonald’s; “It delivers exactly what we have come to expect of it every single time. So that’s why I look upon McDonalds as a model for every small business. Because it can do in its more than 14,000 stores what most of can’t do in one! And to me, that’s what integrity is all about. It’s about doing what you say you will do, and, if you can’t, learning how. If that’s the measure of an incredible business – and I believe it is – then there is no more incredible business than McDonalds. Who among us small business owners can say we do things as well?” Part III, Building a Small Business That Works is a step by step, how-to guide for a successful small business. He leads us through a fully developed Business Development Program and describes the many strategies required for small business success. The E-Myth Revisited is not only your answer to building a successful small business, it’s also very entertaining. Gerber structures the information around a narrative about a woman named Sarah struggling with her small business named All About Pies. Many readers will see ourselves in Sarah as she evolves from frustrated Technician into a successful small business owner. When I posted recently that The E-Myth was my favorite business book of all time, many from the Entrepreneur Architect Community reached out and asked me why. In short… If you take action to implement the lessons Michael Gerber teaches, The E-Myth Revisited will take your firm to places you only imagined. I know it will work for you, because it has already worked for me.

I have owned a small business for over 1.5 years now, as a one-man web development shop. For the past few months I have come to the realization that my current way of doing things will lead down one of two paths: frustration at working all the time for not a lot of money, or closing shop and finding a job. A couple of business partners recommended this book to me within the last two months, and so I bought it. I can only say that what happened next was the best part of owning a business for me so far ... reality checks and awakenings to what could be. As I read through the book, Gerber pointed out things about how most small business owners are "technicians" turned business owners; the problem, we may be skilled in what we do, but now we take on multiple jobs that we do NOT know how to do. The problem continues as we immerse ourselves in the "technician" work, but never actually work ON the business, so many aspects of the business suffer (sales, marketing, finances, operations) or just plain don't exist. In the first part of the E-Myth, Gerber discusses finding the balance of our inner selves: the Entrepreneur, the Manager, and the Technician, and the responsibilities that each of these roles must take on to drive the business toward success, as well as some pitfalls that each face unless there is a cooperative effort by each within you to work ON, not IN, the business. The second part of the E-Myth talks about the Franchise Prototype. While this sounds like Gerber is going to talk about how to build a franchise, it's not! What he discusses here is the importance of setting up your initial (and perhaps for many, the only) company the right way ... YOUR way. This will inevitably lead to the "prototype" company, so that, in theory, you can take that business system and replicate once, twice, 5000 times ... always running the "system" the same way in each business. The third, and final, part of the book guides you through the system that you will think through, the business processes that make up your business system, so that the business can run ... even without you in it! It talks about this becoming your own turn-key solution so that you have a business model in place that your system can effectively reproduce, as you need to. I took about a week to read through the book and soak in much of what Gerber has to say in it. Gerber includes interesting examples, and the book is very easy to read and understand ... and most importantly, incredibly enjoyable. While some of the text in describing his interaction with a particular business owner is a bit over the top, it doesn't detract from the primary message of the book. I will read it again, and have already begun to get my (new) business system in place. I now have plans to grow my company, and have the vision of what my company will look like. The fog has already started to lift, and the steps are being put into place to reach the success that I have been longing to reach. If you have, or are planning to start, a small business, this really is a fantastic book, and should be manditory reading. If you have a successful business in place, and don't agree with this book, please remember one thing before you post a negative review ... you are in the absolute minority of small business owners due to the fact that most small businesses fail within the first 3-5 years; due in large part to NOT having a system in place that helps drive the business. Most small business owners would most definitely benefit from reading this book, if for no other reason than the awareness of where they are and where they could be. Thanks to Michael Gerber for such an eye-opening experience, and a viable blueprint. I'm looking forward to the journey!

This book is good! This book has helped me realize that I don't need to hire or seek out skilled individuals, I just need responsible individuals who are willing to learn the process of YOUR business and how you want things to be run! Gerber does a great job in helping the reader realize that a business owner wears three hats: The Entrepreneur, the Manager, and the Technician in order to be successful. You have to have all three to run your small business!

"The e-Myth Revisited" is an entertaining, well-written book that provides Gerber's philosophy on why 80% of small businesses fail and what can be done to prevent that. It is presented in three parts. Part I serves to convince the reader that just because they are a great technician, it does not mean they will be a great owner of a business that does technical work. In essence, every small business must either grow or die, and for the owner, "your job is to prepare yourself and your business for growth" not necessarily work in the business. Part II seeks to convince the reader that the business Business Format Franchise is the optimal model for a small business. With this concept, the product of the business is the business itself, and the owner should build his business as if he will franchise it. Part III gets down to some blocking and tackling of founding and constructing the business. This is an excellent little section that communicates a lot in a short space about operational, management, and marketing strategies. The questions raised in sections "Your Primary Aim" and "Your Strategic Objectives" are worth posing when considering any vocation, not just running a small businesses. The concept of "The Game" is very insightful, and it is applicable to both small business and corporate managers. This isn't your typical business advice book. A consulting session with Sarah, owner of All About Pies, runs through the text, providing a forum for Gerber to give his advice in a personal fashion (and to exhibit an apparent flare for drama). The pages are sprinkled with references to classical literature, and there is a mid-book confession Gerber's exotic lifestyle, career choices and the road he took to become who he is now. And then there is Gerber's philosophical approach: - He says "Your business is nothing more than a distinct reflection of who you are". - He states small business has a higher calling than just business, and provides a Game to address the "Something is missing in most of our lives.... Part of what's missing is purpose. Values. Worthwhile standards against which our lives can be measured. Part of what's missing is a Game Worth Playing." Elsewhere, he says "A small business is a place that responds instantly to any action we take. A place where we can practice implementing ideas in a way that changes lives." - He compares a small business to a dojo, or our practice hall, to wrestle with ourselves outside our comfort zone. - He advises us to be wary of the comfort zone, saying "Your Comfort Zone has seized you before... and it can seize you again, when you're least prepared for it, because it knows what it means to you. Because it knows how much you want to be comfortable. Because it knows what price you are willing to pay for the comfort of being in control. The ultimate price, your life.... Comfort makes cowards of us all." As far as the intended audience, in the first line of his Introduction, Gerber states "If you own a small business, or if you want to own a small business, this book was written for you". This is very true, with two caveats: it offers little insight on how to determine what type of business to start, and secondly, there are nuggets of wisdom in here for corporate mid-level or line managers too. Although I was slightly put-off by long-winded digressions and melodrama, I still have to strongly recommend "The E-Myth" to its target audience.

Michael Gerber's E-Myth Revisited is a must-read for anyone harboring dreams of entrepreneurship. It shatters the common misconception that running a successful business is simply about having a great product or service. Gerber argues that most businesses fail because they're built on a faulty foundation – the myth that the entrepreneur themselves needs to be the "technician" doing all the hands-on work. The book brilliantly lays out a framework for building a business that works for you, not the other way around. Gerber introduces the concept of the "Entrepreneurial Myth" – the belief that technical skill and a passion for the product are enough for success. He then dives into the three key roles a business owner must embody: the Technician (the doer), the Manager (the organizer), and the Entrepreneur (the visionary). Gerber's core message is that for a business to truly thrive, the entrepreneur needs to focus on building systems and processes, not getting bogged down in the day-to-day operations. The book provides actionable steps to delegate tasks, standardize procedures, and ultimately, build a business that can run without you being constantly at the helm. Even if you're not planning to start your own company, The E-Myth Revisited offers valuable insights into business operations and management. It's a wake-up call for any entrepreneur feeling stuck in the weeds and a roadmap to building a successful, scalable business. Highly recommend!

If you are a small business owner or thinking of starting your own business you need to read this book. The insights are nothing short of amazing. The first section about motivations for going into business is pure gold - if you’re just starting out and internalize what he says it could literally be the difference between success and failure. Much of the book is spent discussing the need for systems which is 100% correct and something many, in particular more creative people, need to take to heart. I know because I’m one of them. While he is a little too in love with the franchise model the points he makes are spot-on whether you are in retail, professional services, manufacturing or anything else. A caveat. This has been out twenty plus years so the writing style is a bit old school. Throughout the book we listen in as he mentors a small business owner. The author lays it on pretty thick as was the style of the time so you just have to roll your eyes sometimes and forge on. I’ve been in business 40 years and have owned my own company for 20 - I learned a lot from this book. I truly wish I read it when I was starting out. Hands down this is the best book I’ve ever read on small business or starting a company. It is a must read.

This book is about building a business. This might be a odd book to read as a minister, but there was many connection points that were helpful. In regards to the organization of a congregation, this book was a valuable resource. The best insights from this book was the role of the business owner. The business owner works the business, much in the same way that the minister works in the congregation. This is why congregations that have a pastoral mindset stop growing at 200 members. The minister cannot do anymore for the people. He is maxed out. The next step is that the minister works harder, helps the congregation grow, but than there is conflict. He no longer can be at everything, people expect him at everything, and there are hurt feelings. The same quality of service is no longer there. Disappointment sets in. People leave, and the congregation falls back to the normal size. This book helps you think through these issues. Instead of just working in the business, you need to work on the business. This is probably the biggest shift for a preacher. We are trained to work in, and not on. One of the best steps for a successful business is building a system that can be duplicated. This means understanding who is doing what. If you do not have a flow chart, or an organizational chart, you have a mob, and mobs destroy things. This is a good book for understanding how an organization works. Everything might not line up with how a church works, but there is a lot of good advice, and a good read for the topic. Good stuff.

All i want is to start right away. This is the first. Real business life experience book i have ever read.

This book has been a real eye-opener and has completely changed my view on what a new business should look like. Mandatory reading for anyone looking to start his own company!

This book explains why you are stuck in business. All the myths revolved around entrepreneurship is explained.

This is a great book for people running small businesses. It shows you how a lot of people start a business after working a full-time job and feeling they could do better by striking out on their own, but then face a lot of unexpected problems unrelated to their craft. It teaches you how to resolve this and how to work on your business instead of in your business, and how every business requires at least three roles, even if you are a solopreneur - the technician, the manager and the entrepreneur. This will not teach you how to manage money, get leads or acquire customers, but I would recommend this book to anyone who needs clarity on how to run their business more efficiently and with less stress, particularly people who are starting or running a business for the first time. It will show you how to properly think about it and give you a guide on the tasks you need to do to optimize it.

L'ho comprato un paio di anni fa e riletto recentemente. E' uno dei libri di business che mi porto nel cuore da quando l'ho scoperto. Si rivolge ai piccoli imprenditori,quindi quasi tutti,e quindi quasi tutti dovrebbero leggerlo. Usa la storia come metodo per introdurre i concetti fondamentali e alla base di tutto c'e' il consiglio,vero,profondo, utilissimo di iniziare la propria attivita' con un piano ben chiaro in testa, farsi i conti bene e per bene intendo bene e partire da subito con l'idea che nel lungo periodo bisogna arrivare a una standardizzazione del servizio, tirarsi fuori dall' equazione e iniziare la costruzione di un brand in franchising. Non significa rifondare Mc Donald, ma evitare di rompersi la schiena tutti i giorni per cinquat'anni cercando di sfondare il muro della propria produttivita' fisica con la testa. Comprare cartaceo e regalare a chi ha un'attivita'.

Ce n'est pas parce qu'on crée sa boîte qu'on a forcément l'envergure d'un entrepreneur. C'est même souvent le contraire. Ce livre en explique les raisons et décrit des principes très clairs pour qui veut passer du stade d'artisan ou freelance à celui de manager d'une PME. Si vous avez envie de créer votre petit business parce que vous avez un talent particulier, lisez d'abord ce livre. Si vous avez déjà créé votre petite entreprise et que les journées s'allongent à l'infinie, il est grand temps de lire ce livre. Pour les autres, lisez aussi ce livre car les principes qu'il contient peuvent également être appliqués au sein de grosses entreprises. J'ai lu la version anglaise mais comme je n'arrête pas de le prêter, je me suis racheté la version française.