If you own a bakery, you don’t want to bake the best cakes in town. You want to create a system that bakes the best cakes in town. You want your cake baking system to enable the ordinary people you hire to produce extraordinary results.

“If your Business depends on you, you don’t own a business—you have a job. And it’s the worst job in the world…” – Michael Gerber

To prevent your business from turning into a personal prison you must replace yourself (and all your unique talents) with a unique system. The entrepreneurial perspective is about “building a business that works not because of you but without you.” – Michael Gerber

How do you build such a system?

Here’s how…

Recommendation

Business owners typically learn about corporate pitfalls the hard way. After falling into a professional pit, entrepreneurs are forced to yank themselves up by their fraying bootstraps. Fortunately, Michael E. Gerber provides a well-written tutorial about business plans, strategic growth and employee management. He delivers an elegant dose of reality with strategic examples, concrete numbers and marketing insights. At times, some of the examples and scenarios are a bit sappy and repetitive, but the Book scores points for delivering difficult lessons in bite-sized portions. getAbstract recommends this book to entrepreneurs and other dreamers.

Take-Aways

• Many entrepreneurs mistakenly confuse the technical craft of a business with the strategic requirements of a company.
• Entrepreneurs typically face four stages: excitement, fear, fatigue and depression.
• Every new business owner wears three hats: “The Entrepreneur” (the visionary), “The Technician” (the technical expert), and “The Manager” (the pragmatic).
• Start-up businesses suffer when technical concerns overshadow visionary and pragmatic plans.
• During a company’s infancy, the entrepreneur becomes synonymous with his or her emerging business.
• If your business runs your life, you do not have a company, but rather you have the worst type of job.
• In a mature company, the business owner has a strategic plan for growth.
• An excellent operating system is more important than the company’s product.
• McDonald’s is the world’s “most successful small business.”
• Discipline, standards and procedures are the calling cards of a successful company.

Imagine you want to hire a Salesperson for your business. You start by considering how you want your company to interact with its customers. You test different wording for your sales calls and modify your sales script to increase its effectiveness. You write down everything you learn in your company’s Sales Operation Manual.

“Before long, the Sales Operations Manual contains the exact scripts for handling incoming calls, outgoing calls, meeting the customer at the door. The exact responses to customer inquiries, complaints, concerns. The system by which an order is entered, returns are transacted, new product requests are acted upon, inventory is secured.” – Michael Gerber

When building your operations manual, ask yourself:

“What would best serve our customer here? How could I most easily give the customer what he wants while also maximizing profits for the company? And at the same time, how could I give the person responsible for that work the best possible experience?” – Michael Gerber

When your Sales Operation Manual is complete (and you’ve followed your procedures exactly as you’ve written them to get results you desire), it’s time to run an ad for a salesperson.

“But not for someone with sales experience. Not a Master Technician. But a novice. A beginner. An Apprentice. Someone eager to learn how to do it right. Someone willing to learn what (you’ve) spent so much time and energy discovering. Someone for whom questions haven’t become answers. Someone who is open to the possibility of learning skills he hasn’t developed yet, skills he wants to learn.

“The Rule of Ordinary People—that says the blessing of ordinary people is that they make your job more difficult. The typical owner of a small business prefers highly skilled people because he believes they make his job easier—he can simply leave the work to them. That is, the typical small business owner prefers Management by Abdication to Management by Delegation.

“Unfortunately, the inevitable result of this kind of thinking is that the business also grows to depend on the whims and moods of its people. If they’re in the mood, the job gets done. If they’re not, it doesn’t. In this kind of business, a business that relies on discretion, ‘How do I motivate my people?’ becomes the constant question. ‘How do I keep them in the mood?’ It is literally impossible to produce a consistent result in a business that depends on extraordinary people. No business can do it for long. And no extraordinary business tries to!” – Michael Gerber

After hiring an ‘ordinary’ person to be your salesperson, hand them the manual and walk them through it. In a few weeks you’ll have your replacement performing the job just as good as you did. Now that you’ve freed yourself from the sales position, you can develop systems for other areas of your business.

“The system becomes the tools your people use to increase their productivity, to get the job done in the way it needs to get done in order for your business to successfully differentiate itself from your competition.” – Michael Gerber

Make it your mission to work ON the business (building systems) instead of IN the business. Aim to be non‐essential to any system that produces your company’s product or service.

“What most people need, then, is a place of community that has purpose, order, and meaning. A place in which being human is a prerequisite, but acting human is essential. A place where the generally disorganized thinking that pervades our culture becomes organized and clearly focused on a specific worthwhile result. A place where discipline and will become prized for what they are: the backbone of enterprise and action, of being what you are intentionally instead of accidentally. A place that replaces the home most of us have lost. That’s what a business can do; it can create a Game Worth Playing.” – Michael Gerber

Summary

False Bill of Goods

A false system is cheating small business owners. Quite frankly, the owners of small corporations spin their wheels performing the wrong type of work. Basically, the returns they earn from their businesses fall dramatically short in relation to their investment of time and energy. The numbers don’t lie: Each year, more than a million people launch new businesses in the United States. Unfortunately, within 12 months, 40% of those start-ups close. And after five years, more than 80% (roughly 800,000) no longer exist. Most entrepreneurs are victims of their own fictions, fantasies and lack of knowledge. They govern themselves according to four concepts:

1. The Myth of the Entrepreneur – This false idea, the “E-Myth,” states that people launch start-up companies because of the entrepreneurial spirit – the desire to create profits from investment capital. In fact, people start businesses for many reasons, but entrepreneurship doesn’t have that much impact.
2. “Turn-Key Revolution” – The franchise movement generated this wave of change, enabling an entrepreneur who buys a license to become the local outlet for a nationwide product. Franchising is dramatically altering the global approach to business.
3. Development of Business Procedures – Innovative strategies, processes and systems are changing the way companies develop and manage business. Entrepreneurs who fail to understand the importance of systems create businesses that don’t work, because they are based mostly on “management by luck.” Those who properly use the “business development process” can thrive.
4. Universal Application of Turn-Key Principals – When a franchisee buys a turn-key format, he or she gets “an entire system of doing business.” Most franchise entrepreneurs think they are selling a product; in fact, they are selling the well-known name on their marquees. In other words, “the true product of the business is the business itself.”

Entrepreneurs and Fiction

Corporate history is filled with fictional, heroic tales about entrepreneurs. The legend says: In a difficult environment, a brave woman or man defies all odds and scores profits, fame and headlines. Such tales are rarely true. Here’s the real story: The initial spark of entrepreneurial spirit dissolves into terror, exhaustion and misunderstanding. Most businesses are not started by visionary entrepreneurs, but by bookkeepers, barbers, plumbers, salespeople and secretaries, who are tired of working for someone else. Due to a life-changing event, a milestone moment or a bad day at the office, these “technicians” suddenly get hit by an entrepreneurial spirit and begin to develop their own companies.

“The people who own small businesses…work far more than they should for the return they’re getting.”

But a deadly assumption flaws their business development efforts: a misplaced faith in technical talent. Here’s how it works: A successful interior designer will attempt to open her own home design store or an excellent graphic artist may falsely believe that his creative talent will translate into the skills needed to manage an advertising business. Both rookie business owners fail to understand that mastery of a business involves far more than mastering a craft. When the number-crunching realities of business set in, the novice owner wakes up to a corporate nightmare.

Three Hats – One Head

Most small business owners face a fierce inner tug-of-war. That’s because owners of start-up companies typically wear three hats: the techie’s cap, the manager’s fedora and the entrepreneur’s visionary crown. Those functions compete for the beleaguered small start-up owner’s limited time and energy. Imagine trying to follow the worst diet you ever tried with a personal trainer, a dietician and a binge-eater all residing in your head.

“Great businesses are not built by extraordinary people but by ordinary people doing extraordinary things.”

Here’s a short rundown of each role:

1. “The Entrepreneur” – This is your inner dreamer. With grand visions of corporate development, the entrepreneur marries the future. In this role, the business owner constantly pushes the envelope, but hates the nitty-gritty details involved in actually licking the envelope. Your inner entrepreneur gives the firm its creative spark.
2. “The Manager” – This is your practical side. The office chief operates in the past, and knows how many envelopes were purchased and licked last year. The manager buys supplies and organizes workstations, order forms and other nuts-and-bolts details. Without your inner manager, your business will lack structure.
3. “The Technician” – This is your inner office grunt. The techie does the work, and produces the goods and services. The techie licks the envelopes that the entrepreneur pushes and the manager purchases. Your inner techie lives in the moment. Without the techie you have no product; but when the techie takes over, your company lacks business development and strategic procedures.

Baby Steps: The Technician’s Domain

For the technician, the ideal workplace offers freedom from change, oversight and other managerial constraints. Unfortunately, a change-free company is doomed because business survival depends on growth and the ability to navigate through the three stages of corporate life: toddler, teen or corporate “adolescent,” and adulthood. A company’s owner needs to understand each phase and develop a strategy for managing growth.

“Luck and speed and brilliant technology have never been enough because somebody is always luckier, faster and technologically brighter.”

The signs of corporate “infancy” are clear. In the early years of a business, the owner works as many as 14 hours daily, including weekends. This stage is the playground for the techie, who takes on the new business as an occupation and a preoccupation. During this phase, the business owner resembles a juggler with several objects in the air. What’s more, without the owner, the infant company does not exist. But a crisis develops when the exhausted owner confronts more work than he or she can personally handle.

Corporate Teen Years: Reaching Out for Help

This infant stage ends when the entrepreneur realizes that the company cannot survive as a solo performance. Like a bad case of acne, the onset of a corporate crisis usually signals the beginning of adolescence in a company’s life span. To cope with the growth pains, the stressed owner reaches out for technical support. At this critical juncture, the owner hires the company’s first worker, and delegates jobs and functions. Liberated, the owner abdicates authority and control. The arrangement works fine until the new employee feels overworked and resigns, or underperforms and gets fired. Faced with complaints and operational gaps, the technician must develop a managerial operational plan and a strategic vision. To build management skills and entrepreneurial vision, the business owner is forced to stretch past his or her “comfort zone.”

Maturation: Finding a Balance

Federal Express, Disney and McDonald’s are excellent models of mature businesses, companies that have reached the third, adult stage of corporate development. A mature company operates with a clear destination and a well-designed map. Business owners who endure corporate infancy and adolescence acquire an “entrepreneurial perspective,” that is, a balanced business strategy. Given this hard-won perspective, an entrepreneur can examine how the company should work, while the techie focuses only on the type of work the company should complete. The entrepreneur creates an ideal corporate model for the future and labors to make the current environment match that vision. The techie remains fixed in the present. While the balanced entrepreneur understands the importance of well-constructed systems and business models, the techie focuses on product.

The Franchise Model of Success and Systems

The development of McDonald’s represents an important milestone in corporate history. Without exaggeration, McDonald’s can be billed as “The Most Successful Small Business in the World.” The chain was launched in 1952 when salesman Ray Kroc convinced two brothers who owned a successful hamburger restaurant to let him operate a franchise using their surname, and their systematic process for selling burgers and fries. The founding brothers used efficiency and speed to produce inexpensive food. The company’s success validated Kroc’s recognition of their genius, as the McDonald’s system became the world’s largest restaurant chain, with $40 billion in annual sales. It represents more than just a model of franchise success; it illustrates the beauty of well-executed systems and formats.

Your Business and Your Life

Many small business owners merge their personal lives into their business careers. Ultimately, that creates a very hostile takeover. Use these discussion points to regain control of your life:

• How will I make myself replaceable in my business?
• What’s the best way to delegate my duties and responsibilities?
• What procedures should I implement to make the business replicate itself?
• How should I design systems that will let me focus on the tasks I enjoy?

“If your business depends on you, you don’t own a business – you have a job. And it’s the worst job in the world because you’re working for a lunatic.”

Fortunately, you can follow a few clear rules to prevent your business from overrunning your life. For example, adhering to a business model and a definitive set of procedures will restore and maintain order.

Here are the rules:

1. Create a business model based on the company’s central values.
2. Build a system that workers with the “lowest-possible skills” within their given positions or ranks can use. This process creates a business that depends on systems rather than experts or talented individuals.
3. Make your system a model of flawless order.
4. Document procedures in employee manuals.
5. Provide your customers with uniform services and products.
6. Establish a dress code; implement a standard of design for stores and office sites.

Procedures for Developing Business

Building a business depends on three functions: “innovation,” “quantification” and “orchestration.” Innovation yields new ways to deliver service and products. Successful business owners constantly seek different ways to provide clients with excellence. Even a new, but intriguing way of greeting customers could be a significant innovation. Quantification is the process of measuring results and processes with numbers and benchmarks. Without quantification, an owner is clueless. Finally, “orchestration” means executing your systems and procedures; it is the blueprint for your operation.

How to Create Your Own Prototype

Your assignment: Review your business as if your operation is the model for 5,000 identical units. Imagine that you are designing the operations manual for other franchise owners in your corporation.

“Begin living your life as if it were important.”

Build your program based on the following considerations:

1. Name your primary goal – How would you like to be remembered? What are your long- and short-term goals? What are your material and spiritual goals?
2. State your strategic aim – What are your standards? How do you define your business? Who are your customers?
3. Outline your organizational strategy – What does your organizational chart look like? What are the key functions of each job? How can you replace yourself?
4. Discuss your management plan – How do you train your managers? Does your operating manual match your marketing and customer service objectives?
5. Clarify your personnel strategy – How do you train your staff? What is your system for rewarding and punishing your team members? How do you keep employees motivated and sharp?
6. Fine-tune your marketing program – What do customers expect? What are the unspoken needs of the marketplace? How does your customer make purchasing decisions?

“Your business is not your life.”

Discuss your systems plan – Examine your equipment, décor, sales plans and presentations. How effective are those systems? Quantify the number of sales calls, appointments and customer surveys that your staff members undertake. How do your systems reflect your personality, goals and talents?

About the author

Michael E. Gerber, chairman, CEO and founder of E-Myth Worldwide, is the author of The E-Myth. Gerber has re-engineered operating strategies for more than 25,000 small businesses and entrepreneurs.

Review 1

“The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It” by Michael E. Gerber is a game-changing book that challenges common assumptions about entrepreneurship and offers practical insights for small business owners. Gerber reveals the common pitfalls that lead to the failure of many small businesses and provides a blueprint for building a successful and sustainable enterprise.

Key Points:

• The Entrepreneurial Myth: Gerber introduces the concept of the “E-Myth,” which suggests that many small business owners fail because they possess entrepreneurial skills but lack the mindset and systems required to build a successful business. He dispels the myth that being good at a particular skill or trade automatically translates to success as a business owner.
• The Three Roles: The book outlines three distinct roles that every small business owner must play: the Entrepreneur, the Manager, and the Technician. Gerber explains the importance of balancing these roles and provides guidance on how to transition from being solely a technician (the one who does the work) to a true entrepreneur.
• Systems and Processes: Gerber emphasizes the significance of developing systems and processes in a small business to ensure consistency, scalability, and efficiency. He stresses the importance of documenting procedures and creating a replicable model that can be followed by others.
• Working On, Not In, the Business: One of the core principles of the book is the idea of working on the business rather than being consumed by day-to-day tasks. Gerber highlights the importance of strategic planning, developing a clear vision, and delegating responsibilities to create a business that can thrive without the owner’s constant involvement.
• Embracing the Franchise Model: Gerber encourages small business owners to adopt the mindset of a franchisor, regardless of whether they plan to franchise their business. He explains how leveraging the principles and systems used by successful franchises can lead to consistent growth and increased chances of success.
• The Importance of Customer Experience: “The E-Myth Revisited” emphasizes the significance of delivering a remarkable customer experience. Gerber stresses the need to understand customers’ needs, exceed their expectations, and build strong relationships to foster loyalty and drive business growth.
• Real-Life Examples and Case Studies: The book includes numerous real-life examples and case studies that illustrate the principles and concepts discussed. Gerber shares stories of small business owners who have successfully implemented his strategies, providing practical insights and inspiration.
• Practical Implementation: Throughout the book, Gerber provides actionable advice and exercises that help readers apply the concepts to their own businesses. He offers guidance on creating business plans, developing systems, and implementing effective marketing strategies.
• Thought-Provoking and Engaging Writing Style: Gerber presents his ideas in a thought-provoking and engaging manner. His writing style is accessible, making complex business concepts understandable for readers without a strong background in entrepreneurship.

Overall, “The E-Myth Revisited” is an essential read for small business owners and aspiring entrepreneurs. It challenges conventional wisdom and provides a roadmap for building a successful business. By addressing the common pitfalls that small business owners face and offering practical strategies for overcoming them, Gerber equips readers with the tools and mindset necessary to create a thriving enterprise. Whether you are just starting out or have been in business for years, this book offers invaluable insights and guidance for achieving long-term success.

Review 2

Based on my analysis of the book “The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It” by Michael E. Gerber, here is a detailed review:

Book Overview:

“The E-Myth Revisited” is a business self-help book that provides insights and strategies for small business owners to overcome common challenges and achieve success. The book is written by Michael E. Gerber, a well-known author and small business expert. It was first published in 1985 and has since become a classic in the business literature. The book is divided into three parts, each of which explores a different aspect of small business ownership and management.

Key Takeaways:

• The E-Myth: The book introduces the concept of the “E-Myth,” which stands for the Entrepreneurial Myth. This is the idea that most small business owners are not entrepreneurs at all, but rather technicians or managers who have been miscast in the role of entrepreneur. The E-Myth is the belief that success in business is based on individual skills and talents, rather than on a well-designed business system.
• The Three Myths: Gerber identifies three main myths that hold small business owners back from success. These myths are:
  • The Technician Myth: The belief that success in business is based on technical skills and expertise.
  • The Manager Myth: The belief that success in business is based on management skills and the ability to oversee a team.
  • The Entrepreneur Myth: The belief that success in business is based on individual entrepreneurial skills and talents.
• The Solution: Gerber argues that the key to success in small business is to focus on designing a well-structured business system, rather than relying on individual skills and talents. He provides a step-by-step process for creating such a system, which includes identifying the business’s “sweet spot” (the unique value proposition that sets the business apart from competitors), defining the business’s “dream 100” (the ideal customers who are most likely to buy the business’s products or services), and creating a “world-class” (i.e., highly efficient and effective) business system.
  • The Three Stages of Business: Gerber identifies three stages of business development: the Survival Stage, the Success Stage, and the Scaling Stage. He argues that most small businesses get stuck in the Survival Stage and never advance to the Success Stage or the Scaling Stage.
  • The Role of the Business Owner: Gerber emphasizes the importance of the business owner’s mindset and the need for them to let go of their technical and managerial roles in order to focus on the bigger picture and the long-term success of the business. He argues that the business owner’s primary role is to create a vision for the business and to ensure that the business is well-designed and well-executed.

Strengths:

• Practical advice: The book provides practical advice and strategies for small business owners to overcome common challenges and achieve success.
• Well-structured: The book is well-structured and easy to follow, with each chapter building on the previous one to provide a comprehensive overview of the topics covered.
• Insightful: The book offers insightful observations about the challenges of small business ownership and the reasons why most small businesses fail.

Weaknesses:

• Limited scope: The book focuses primarily on small businesses and may not be applicable to larger organizations or enterprises.
• Outdated: Some of the concepts and strategies presented in the book may be outdated or no longer relevant in today’s fast-changing business environment.
• Lacks depth: Some readers may find that the book lacks depth in certain areas, such as financial management or marketing strategy.

Overall, “The E-Myth Revisited” is a valuable resource for small business owners who are looking to overcome common challenges and achieve success. The book provides practical advice and strategies for designing a well-structured business system, focusing on the big picture, and scaling the business. However, readers should be aware that some of the concepts and strategies may be outdated or limited in scope, and may need to supplement their knowledge with other resources to achieve their goals.

Review 3

The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It by Michael E. Gerber is a book that challenges the common myths and misconceptions about entrepreneurship and small business ownership. The author argues that most small businesses fail because they are run by technicians who are skilled at their craft but lack the managerial and entrepreneurial skills needed to grow and sustain a successful business. The book offers a framework for transforming a small business from a chaotic, reactive, and dependent operation to a systematic, proactive, and independent one. The book also provides practical advice and tools for creating a business vision, developing a strategic plan, designing a business model, implementing systems and processes, managing people and finances, and delivering value to customers.

The book is divided into three parts: The E-Myth and American Small Business, The Turn-Key Revolution: A New View of Business, and Building a Small Business That Works. The first part explains the concept of the E-Myth, which stands for the Entrepreneurial Myth, and how it leads to the fatal assumption that working on your business is the same as working in your business. The second part introduces the idea of the Turn-Key Revolution, which is the process of creating a business that can operate without you, as if it were a franchise. The third part outlines the steps for applying the Turn-Key model to your own business, using the Business Development Process, which consists of seven stages: Innovation, Quantification, Orchestration, Documentation, Systemization, Organization, and Delegation.

The book is written in a clear, engaging, and conversational style, using anecdotes and examples from the author’s own experience as a business consultant and coach. The book is aimed at anyone who owns or wants to own a small business, regardless of the industry or sector. The book is not a quick fix or a magic formula, but rather a comprehensive and holistic approach to building a successful and sustainable business. The book is based on the premise that your business is nothing more than a reflection of you, and that by changing yourself, you can change your business.

Review 4

“The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It” is a highly insightful and thought-provoking book written by Michael E. Gerber, a renowned business consultant and author. The book offers a comprehensive examination of the common pitfalls that plague small businesses and provides practical advice on how to overcome these challenges. Here is a detailed review of the book:

Book Overview:

The E-Myth Revisited is a follow-up to Gerber’s original book, “The E-Myth,” which was first published in 1986. In this revised edition, Gerber explores the reasons why most small businesses fail and provides a step-by-step guide on how to transform a flawed business into a successful enterprise. The book is divided into three parts, each of which focuses on a critical aspect of small business ownership:

Part I: The Common Pitfalls of Small Business Ownership

In this part, Gerber identifies and explores the most common mistakes that small business owners make. These include:

• Myth #1: The Myth of the Entrepreneurial Personality
• Myth #2: The Myth of the Business Plan
• Myth #3: The Myth of the Business Itself
• Myth #4: The Myth of the Owner-Manager
• Myth #5: The Myth of the Expertise

Part II: The Five Essential Ingredients of a Successful Business

In this section, Gerber outlines the five essential ingredients that he believes are necessary for a small business to succeed. These include:

• The Entrepreneurial Mindset
• The Turnkey System
• The Innovator’s Mindset
• The Strategic Mindset
• The Financial Mindset

Part III: The Four Stages of a Successful Business

In the final part of the book, Gerber explains the four stages of a successful business journey:

• The Marketplace Stage
• The Organizational Stage
• The Managerial Stage
• The Enterprise Stage

Key Takeaways:

Throughout the book, Gerber emphasizes the importance of understanding the unique challenges that small business owners face and provides practical advice on how to overcome these challenges. Some of the key takeaways from the book include:

• Small business ownership is not for everyone. It requires a specific set of skills and mindset that not everyone possesses.
• The majority of small businesses fail due to a lack of understanding of the fundamental principles of business ownership.
• The most successful businesses are those that have a clear and well-defined vision, mission, and strategy.
• The role of the business owner is to create a system that can run without them, rather than trying to do everything themselves.
• Financial success is not just about making money; it’s also about managing money.

Criticism and Limitations:

While “The E-Myth Revisited” is an excellent book that offers valuable insights into the challenges of small business ownership, some critics have raised the following points:

• The book can be repetitive and dry at times, which may make it challenging for some readers to stay engaged.
• Gerber’s advice may be too broad and not tailored to the specific needs of individual businesses.
• The book does not provide enough practical examples or case studies to illustrate its points.
• Some readers may find the book’s emphasis on the entrepreneurial mindset to be overly simplistic or unrealistic.

Conclusion:

In conclusion, “The E-Myth Revisited” is a must-read book for any small business owner who wants to understand the common pitfalls of business ownership and how to overcome them. Gerber’s insights are thought-provoking and practical, and his advice is grounded in years of experience as a business consultant. While the book may have its limitations, it is an essential resource for anyone looking to build a successful and sustainable small business.

Review 5

“The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It” by Michael E. Gerber is a highly insightful book that provides a fresh perspective on entrepreneurship. The book is centered around the ‘E-Myth’, which stands for the Entrepreneurial Myth. Gerber argues that most people who start small businesses are not entrepreneurs but technicians suffering from an entrepreneurial seizure.

The book is divided into several sections, each focusing on different aspects of running a business. Gerber starts by debunking the myth that small businesses are started by entrepreneurs, asserting that they are often started by people who are good at a particular task but lack the broader skills needed to run a business.

Gerber introduces the concept of working ‘on’ your business instead of ‘in’ it. He emphasizes the importance of systematizing your business, making it operate independently of the owner. This allows the business to be scalable and potentially franchisable, even if that’s not the owner’s goal.

The book also introduces the idea of the business lifecycle, comparing it to the growth of a person from infancy to maturity. Gerber explains how a business can get stuck in its ‘infancy’ and what steps need to be taken to help it grow and mature.

One of the key takeaways from the book is the concept of the ‘Three Personalities’ – the Entrepreneur, the Manager, and the Technician. Gerber explains that every business owner embodies these three personalities, and the key to success is achieving a balance between them.

Overall, “The E-Myth Revisited” is a must-read for anyone who owns a small business or is thinking about starting one. It provides valuable insights into the realities of entrepreneurship, offering practical advice on how to avoid common pitfalls and succeed in the business world.

Review 6

The E-Myth Revisited is a book by Michael E. Gerber that has been praised by entrepreneurs such as Warren Buffett, Bill Gates, and Donald Trump. The book’s central premise is that most small businesses fail because they are not run like businesses. Instead, they are run like jobs, with the owner working in the business rather than on the business. This leads to a lack of focus, poor decision-making, and ultimately, failure.

Gerber argues that the key to success in small business is to think like an entrepreneur and to focus on the big picture. This means creating a business plan, setting goals, and measuring your progress. It also means delegating tasks to employees and hiring experts to help you with areas where you are not strong.

The E-Myth Revisited is a comprehensive and practical guide to starting and running a successful small business. Gerber provides a wealth of information and advice, and his book is a must-read for anyone who is thinking about starting their own business.

Here are some of the key takeaways from the book:

• Most small businesses fail because they are not run like businesses.
• The key to success in small business is to think like an entrepreneur and to focus on the big picture.
• Creating a business plan, setting goals, and measuring your progress are essential for success.
• Delegating tasks to employees and hiring experts to help you with areas where you are not strong is important.

If you are thinking about starting your own business, I highly recommend reading The E-Myth Revisited. It is a valuable resource that will help you increase your chances of success.

Review 7

“The E-Myth Revisited” by Michael E. Gerber is an essential read for anyone who dreams of starting their own business or is already a small business owner. Gerber’s book delves into the common pitfalls that entrepreneurs face and provides insightful guidance on how to overcome them.

The central theme of the book revolves around the “entrepreneurial myth” or the mistaken belief that small businesses are primarily started by entrepreneurs seeking freedom and independence. Gerber argues that this assumption is flawed and leads many small business owners to struggle and even fail. He explains that most small business owners are not true entrepreneurs but rather technicians who excel at the technical work of their industry. However, they lack the necessary skills and mindset to effectively run a business.

One of the key takeaways from the book is the importance of developing a clear distinction between working in the business and working on the business. Gerber introduces the concept of three distinct roles that every small business owner must fulfill: the Technician, the Manager, and the Entrepreneur. He emphasizes that in order for a business to thrive, the owner must learn to balance these roles effectively.

Gerber also highlights the significance of systems and processes in building a successful business. He stresses the need for creating standardized operating procedures and clearly defining roles and responsibilities. By doing so, small business owners can ensure consistency, scalability, and ultimately, the ability to work on their business rather than being trapped in day-to-day operations.

Another valuable aspect of the book is Gerber’s emphasis on the importance of creating a compelling vision for the business. He suggests that business owners should envision their enterprise as a franchise prototype, with the intention of eventually expanding it and replicating its success. This mindset shift enables entrepreneurs to focus on building a scalable and sustainable business model from the start.

Throughout the book, Gerber provides numerous real-life examples, anecdotes, and case studies to illustrate his concepts and bring them to life. His writing style is engaging and accessible, making the book a practical guide rather than a dry theoretical text.

“The E-Myth Revisited” is not without its criticisms, however. Some readers may find that the book oversimplifies certain aspects of entrepreneurship or that Gerber’s ideas are too prescriptive. Additionally, the book primarily targets small businesses in the service sector and may not be as directly applicable to other industries.

In conclusion, “The E-Myth Revisited” is a valuable resource for small business owners and aspiring entrepreneurs. It sheds light on the common misconceptions and challenges faced by small businesses and provides practical advice on how to overcome them. By emphasizing the importance of systems, processes, and a clear vision, Gerber offers a roadmap for building a successful and sustainable business. While not without its limitations, this book remains a worthwhile read for those seeking to take their small business to the next level.

Review 8

This book is a classic and influential work on entrepreneurship and small business management. It challenges the common myths and misconceptions that most people have about starting and running a successful business. The author, Michael E. Gerber, is a renowned business consultant and coach who has helped thousands of small business owners transform their businesses and lives.

The book is based on the idea that most small businesses fail because they are run by technicians who are experts in their craft, but not in the business itself. The author introduces the concept of the E-Myth, which stands for the Entrepreneurial Myth, which is the assumption that anyone who knows how to do the technical work of a business can successfully run a business that does that work. The author argues that this is a fatal error that leads to frustration, burnout, and failure.

The book proposes a solution to the E-Myth problem, which is to work on your business, not in your business. The author explains how to create a business that can run without you, by applying the principles and practices of franchising. The author outlines the three roles that every business owner must master: the entrepreneur, the manager, and the technician. The author also describes the seven stages of business development: infancy, adolescence, beyond the comfort zone, maturity, expansion, diversification, and exit strategy.

The main message of the book is that you can create a successful and profitable business that gives you more freedom, fulfillment, and happiness, by following a proven system that works for any type of business. The book shows how to design and implement a business model that delivers consistent value to your customers, employees, and yourself. The book also emphasizes the importance of having a clear vision, a strong purpose, and a continuous improvement mindset.

I would rate this book 5 out of 5 stars. I think it is a timeless and practical book that offers valuable insights and tools for anyone who wants to improve their business skills and results. I think it is well-written, clear, and engaging. I think it could have been improved by providing more examples and case studies from different industries and markets, as well as more research and evidence to support the claims. I also think it could have been more balanced by acknowledging some of the challenges or trade-offs of franchising, such as the potential for loss of creativity, autonomy, or differentiation.

Overall, I enjoyed reading this book and I learned a lot from it. I think it is a must-read for anyone who wants to overcome the E-Myth and create a thriving business.

Review 9

Here is a summary and review of the key points of “The E-Myth Revisited” by Michael E. Gerber:

The E-Myth Revisited explores why most small businesses fail within the first 5 years and provides principles for business success.

Gerber’s core thesis is that most small business owners lack formal business training and focus on being great technicians rather than effective business builders. They passionately pursue their craft but fail to create systems that allow the business to grow without their direct involvement. Gerber refers to this as the “E-Myth” – the Entrepreneurial Myth that people who start companies are successful entrepreneurs.

The book argues that to build a successful business, the owner must take on three distinct roles – Technician, Manager and Entrepreneur. As a Technician, they excel at their product or service. As a Manager, they create processes and systems allowing employees to deliver consistent customer experience regardless of who is serving. As an Entrepreneur, they devise innovative ways to continually grow the business.

Gerber advocates developing a business model through careful planning and documentation of standardized operating procedures. This allows shifting from a “Mom & Pop” operation reliant on the owners to a business entity with its own identity. He emphasizes separating the “what” of the business – its products/services from the “how” – its systems and processes.

Some other key concepts include developing a compelling vision, treating customers as “guests”, leveraging automation to free up time for high-level strategy, conducting weekly meetings with staff for accountability and integrating marketing at every touchpoint.

Overall, the book provides a thought-provoking framework for understanding why small businesses struggle and offers practical steps to transition from an insecure job to a growth-oriented company less dependent on individuals. It remains highly relevant for entrepreneurs seeking to build sustainable operations.

Review 10

Michael E. Gerber’s The E-Myth Revisited is a seminal guide that dissects the pitfalls and misconceptions surrounding small businesses, offering valuable insights on how to create a successful and sustainable enterprise. Gerber argues that many entrepreneurs fall into the trap of being consumed by their technical expertise (the “E-Myth”), neglecting the crucial aspects of business development and growth.

The book revolves around the core concept that a business should be system-dependent rather than owner-dependent. Gerber emphasizes the need for entrepreneurs to shift from being technicians who work “in” their businesses to becoming strategists who work “on” their businesses. He introduces the concept of the “Entrepreneurial Myth,” where individuals mistakenly assume that expertise in a specific field translates to business success.

Gerber’s writing is clear and methodical, making complex business concepts accessible to a wide audience. He introduces the “Three Business Personalities”: the Entrepreneur, the Manager, and the Technician. By understanding these roles and how they interconnect, readers gain a comprehensive perspective on running a successful business.

A significant strength of the book is Gerber’s emphasis on systems. He outlines the importance of documenting processes, creating replicable systems, and maintaining consistency. These insights empower readers to build businesses that can function smoothly even in the absence of the owner’s direct involvement.

The inclusion of real-world case studies and relatable examples adds depth to Gerber’s teachings. Readers can see how the principles discussed in the book apply to various industries and scenarios, enhancing the book’s practicality.

However, some readers might find the book’s repetitive nature a drawback. Gerber reiterates key points throughout the book, which could lead to a feeling of redundancy for those seeking more advanced insights. Additionally, while the book primarily targets small business owners, the advice and strategies discussed might not be as applicable to larger enterprises or certain specialized fields.

In conclusion, The E-Myth Revisited is a valuable resource for entrepreneurs aiming to create businesses that are scalable, efficient, and sustainable. Michael E. Gerber’s approach to dispelling common myths and focusing on systematic approaches to business development is insightful and actionable. Readers should approach the book with an intention to critically assess their own business practices and tailor the concepts to their specific circumstances.

Review 11

The E-Myth Revisited by Michael E. Gerber is an exceptional book that delves deep into the challenges faced by small businesses and provides invaluable insights on how to overcome them. Gerber’s expertise and experience in the field make this book an essential read for aspiring entrepreneurs, small business owners, and anyone interested in understanding the pitfalls of entrepreneurship.

The central premise of the book revolves around the “E-Myth” or the entrepreneurial myth, which suggests that most small business owners fail to realize that running a business requires much more than just technical expertise in the respective field. Gerber argues that many entrepreneurs start their businesses based on their passion or expertise, assuming that their skills alone will guarantee success. However, he emphasizes that this is a flawed approach and highlights the importance of adopting a more strategic and systematic mindset.

One of the book’s key takeaways is the distinction between working “in” the business and working “on” the business. Gerber explains that most entrepreneurs get trapped in the day-to-day operational tasks, becoming technicians rather than visionary leaders. He introduces the concept of creating systems and processes that allow businesses to operate efficiently, even without the owner’s constant involvement. By delegating responsibilities, implementing standardized procedures, and focusing on strategic planning, small business owners can free up their time and energy to work on the growth and development of their enterprises.

Gerber illustrates his ideas through a captivating blend of storytelling and practical examples. He presents a fictional narrative featuring Sarah, a struggling small business owner, and her mentor, Michael, who guides her through the process of transforming her business. This storytelling approach not only keeps the reader engaged but also helps in visualizing the concepts and their practical implementation.

Another significant aspect of The E-Myth Revisited is the emphasis on understanding customers and their needs. Gerber stresses the importance of creating a remarkable customer experience by going beyond delivering a product or service. He advises entrepreneurs to develop a clear understanding of their target market, identify their customers’ pain points, and design their businesses accordingly.

The book also highlights the significance of building a strong team and nurturing a company culture that aligns with the business’s vision. Gerber emphasizes the need for effective leadership and the role it plays in driving the success of a small business. By hiring the right people, empowering them with the necessary tools and training, and fostering a culture of accountability and continuous improvement, entrepreneurs can create a thriving organization.

While The E-Myth Revisited provides a wealth of valuable insights and practical advice, some readers may find the book repetitive at times. Gerber reiterates key points throughout the chapters, which can be both helpful for reinforcement and slightly redundant for those seeking new information. However, this repetition serves as a reminder of the fundamental principles he wants readers to internalize.

In conclusion, The E-Myth Revisited is an indispensable guide for small business owners who aspire to build successful enterprises. Michael E. Gerber’s compelling storytelling, combined with his profound knowledge of entrepreneurship, offers a transformative perspective on how to overcome the challenges that plague most small businesses. By adopting the principles outlined in this book, entrepreneurs can shift their focus from being overwhelmed by daily operations to effectively leading and growing their businesses.

Review 12

The book The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It by Michael E. Gerber is a classic guide for entrepreneurs who want to avoid the common mistakes that lead to failure. The book explains the concept of the E-Myth, which is the assumption that anyone who is good at a technical skill can successfully run a business based on that skill. Gerber argues that this is a myth, and that most small businesses fail because their owners are too focused on working in the business rather than working on the business. He proposes a solution based on the idea of creating a franchise prototype, which is a system that can be replicated and scaled to achieve consistent results. He also outlines the roles of the entrepreneur, the manager, and the technician, and how they need to work together to create a successful business. The book is full of practical advice, examples, and exercises that help the reader apply the principles to their own situation. The book is suitable for anyone who wants to start, grow, or improve their small business.