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 is one of the MUST-READ books on growing a business. As a business coach, I buy this book for each of my clients on day1. It changes the way they think about their business. a couple of clients over the years have specifically credited this book to CHANGING their business. It's that good.

In short, The E Myth Revisited explains why most small businesses fail, and then illustrates an easy-to-follow roadmap for owners and leaders to get out of trouble and drive toward success. The sobering fact is that an overwhelming majority of businesses fail in the first five years of operation, and these failures tend to follow a pattern. Gerber illustrates that successful businesses excel not by happenstance but by following a particular model that has proven to work—franchises, with overwhelmingly high success rates at five years, are given as a prime example. The E Myth Revisited explains, in often broad and sometimes specific terms, the approach that is required for a business to not only persevere, but to prosper. The book is divided into three parts. Part I exposes many of the myths that delude people into starting their own business. Here the author clarifies the three different personalities in business: the “technician,” the “manager,” and the “entrepreneur.” Gerber explains that new ventures are often started by “technicians” who make the mistake of thinking that being able to do some type of work (e.g. hairstylist) equates to an understanding of how that business is done (beauty salon). Part II takes a broad approach to explain the “Turn-Key Revolution” and the general tenets one needs in order to lay the foundation for a successful business prototype. Part III comprises the bulk of the book and provides the most detail. It has step-by-step systematic guides to cultivate and nurture success. I think this book’s greatest value is establishing a universal blueprint that any person from any type of business can follow in order to steer their team and organization toward new heights. With this advice are some very valuable life lessons and pearls of wisdom. On a negative note, as with any other book that secondarily serves as propaganda, there are frequent references and “plugs” to the author’s own website and business services. Moreover, the author often diverts and has a conversation with “Sarah,” a fictional failed business owner who is guided toward the light. These sections are lacking in substance and are so full of fluff that I wanted to send Sarah away on a permanent vacation. As a non-businessperson, this book is extremely easy to read, and the fact that it has no technical language whatsoever makes it accessible and worthwhile to anyone who either wants to launch a new venture or reboot an old one. Despite the fact that it’s 260+ pages, The E Myth Revisited is also a surprisingly quick read. I am sure there are many paths to success in business, but Gerber makes a persuasive case for his prescriptions in this book.

Good book to read

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!

READ THIS BOOK! Transformative no matter your sex or age!

This book is worth the read just to get you thinking differently about business. Unfortunately, once he makes his point and you are ready to think about business differently it moves into a weird self help book. It makes a strong case for why an entrepreneur mindset is needed to build a successful business, but then it moves into part three to describe what you need to do to “work on your business, not in your business” it completely flops. For instance, chapter 10 is title your primary aim. A pretty important topic about building a business. But the entire chapter is just him telling his weird life story with no point. He is trying to say that the primary aim is that the business needs to serve your life not the other way around. But he offers no practical advice for how to develop an actual aim for a business. His main point in the book is to design a business that works so well you can sell it. Well how exactly do I do that? That should be the primary aim chapter. Not why he was remarried 4 times.