023 – E-Myth Unpacked

In this week’s show I talk about one of my favorite business books of all time, The E-Myth Revisited by Michael Gerber.

Mr Gerber describes it like this…

The “E-Myth,” or Entrepreneurial Myth, is the flawed assumption that people who are expert at a certain technical skill will therefore be successful running a business of that kind.

The introduction of The E-Myth contains four ideas that, according to itself, if you understand and take them to heart, will give you the power to create and extraordinarily exciting, and personally rewarding, small business.

Idea #1 – There is a myth in this country-I (Michael Gerber) call it the E-Myth – which says that small businesses are started by entrepreneurs risking capital to make a profit.  This is simply not so.  The real reasons people start businesses have little to do with entrepreneurship.  In fact this belief in the Entrepreneurial Myth is the most important factor in the devastating rate of small business failure today.  Understanding the E-Myth, and applying that understanding to the creation and development of a small business, can be the secret to any business’s success.

Idea #2 – There’s a revolution going on today in American small business.  I (Michael Gerber) call it the Turn-Key Revolution.  Not only is it changing the way we do business in this country and throughout the world but it is changing who goes into business, how they do it, and the likelihood of their survival.

Idea #3 – At the heart of the Turn-Key Revolution is a dynamic process we at E-Myth Worldwide call the Business Development Process.  When it is systematized and applied purposely by a small business owner, the Business into an incredibly effective organization.  Our experience has shown us that when a small business incorporates this process into its every activity and use it to control its every activity and uses it to control its destiny, that company stays young and thrives.  When a small business ignores this process – as most unfortunately do – it commits itself to Management by Luck, stagnation, and, ultimately, failure.  The consequences are inevitable.

Idea #4 – The Business Development Process can be systematically applied by any small business owner in a step-by-step method that incorporates the lessons of the Turn-Key Revolution into the operation of that business.  This process then becomes a predictable way to produce results and vitality in any small business whose owner is willing to give it the time and attention it requires to flourish.

In my opinion the best thing I can do for the future of my company is educate myself.  It’s the business side of what we do that will move us past our competitors.  Yes we need to be good at what we do.  I have some of the best skilled people in the city, I truly believe that.  Unfortunately it’s going to take more than that for us to become a world class business.  We can’t just assume that because we are good at our products that we will outlast our competition.  We have to be good at everything business does.  We have to prepare for big, if we are going to be able to handle big when it happens.

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