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

Michael E. Gerber · First published 1995

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.

The E-Myth by Michael E. Gerber is a book that explores the common pitfalls of small business ownership and offers solutions to overcome these challenges

1. Most small business owners work IN their business rather than ON it, leading to burnout and inefficiency.
2. The Entrepreneurial Myth is the belief that starting a business is the path to financial freedom and personal fulfillment.
3. To be successful, small business owners need to adopt a systems-thinking approach and delegate responsibilities to employees.
4. A business must have a clear and concise business model that outlines its unique value proposition and target market.
5. A franchise prototype is a blueprint for your business that outlines all of its systems, processes, and procedures.
6. The Technical Entrepreneur focuses on the skills and tasks required to deliver a product or service, while the Managerial Entrepreneur focuses on the systems and processes that make the business run smoothly.
7. The life cycle of a business includes four stages: infancy, survival, success, and take-off. Understanding where your business is in its life cycle is critical to making the right decisions.
8. The team structure of a successful business includes a technician, manager, and entrepreneur. These roles should be filled by different people, rather than one individual trying to fill all three roles.
9. A successful business must have a clear and consistent marketing message that reaches its target market effectively.
10. Business owners must take time to reflect on their business regularly, setting aside time to think and plan for the future.