Here’s The E-Myth Revisited summary. Learn how to increase your odds of success in business. It’s not enough to have the technical skills to be a successful entrepreneur.
The E-Myth Revisited author Michael Gerber starts with a familiar statistic. 80 percent of all businesses fail within 5 years. He then explains how you will belong to the 20 percent who made it.
E-Myth is the entrepreneurial myth. It means people who have technical skills start small businesses. The myth there is that they will naturally succeed. A technical person is different from a true entrepreneur.
About the Author
Michael Gerber now focuses on helping millions of people awaken the entrepreneur in themselves. He believes that entrepreneurs should transcend the urge to make money.
He encourages entrepreneurs to make a difference and have more life. Aside from The E-Myth Revisited, he also wrote other E-Myth books that focus on different professions.
Main takeaways: The E-Myth Revisited Summary
Let’s discuss the key takeaways from his book:
- Technical skills are not enough.
- Work ON your business, not in it.
- Use the franchise approach.
Technical skills are not enough
The entrepreneurial myth starts with a person who builds a business. He thinks that his technical skills are enough to build and grow a business.
That’s why programmers start a software development company. Copywriters start their own agency. Bakers start their own bakeshop. And more.
Technical skills are still important. But you should also learn how a business works. That’s where most “entrepreneurs” fall off.
To become an entrepreneur, you must learn how to manage and grow your business. You must learn about finances, marketing, selling, operations, and administration stuff.
Your business has parts. Neglect one and the business might crumble. Even if you’re one of the best in your field, you should still learn business management and growth.
You might be thinking you’ll just hire people and delegate. But it’s necessary to have the basic skills yourself. This way you’ll know the ins and outs of your business.
Work ON your business, not in it
You want to grow your business? Then set aside time and resources for its growth.
It’s obvious. But many people are just busy running the business. Growth is not actually a priority. There’s no goal. You and everyone is just busy doing it, doing it, doing it.
The solution is to work ON your business. Look at the big picture. Look at your business from top to bottom. Solving problems and running your business are still important. But you still have to think about growth and automation.
If you want to get the most out of your business, you have to think about automation and delegating. You won’t be able to do that if you’re always focused on running your business.
Each week or at the end of the day, ask yourself where is your company going. Then think of strategies that will help you achieve your business goals.
Use the franchise approach
Think of a franchise. How does it work? Is the owner there?
Most probably it’s a no. A franchise will run by itself whatever the business owner is doing. All systems are in place. Every personnel knows what to do.
The entrepreneur doesn’t have to lift a finger. But the business still runs smoothly. It’s automated. That’s why many people choose to buy franchises. They’re already proven. They don’t require much hands-on work.
Why does a franchise run smoothly? Because of the systems. There’s a system for packaging, marketing, supply, selling, and accounting. All the owner has to do is to buy the franchise.
Make your own small business run like a franchise. It’s where everything is clear. You won’t have to worry much about the quality and service. Your presence is not required.
As a result, you will have more mental energy to focus on growing your business. You don’t have to run your business. You’ll be able to enjoy life and form partnerships. You’ll also be able to maximize the potential of your enterprise.
Aside from learning business skills, working on your business, and taking the franchise approach, you’ll also learn the following from The E-Myth Revisited book:
- How to use the turn-key system for your business
- How to formulate your business development program
- How to build a small business that works
- What to expect during each business stage
- Why you should not make your business a job
My personal takeaways
The E-Myth Revisited helps people open their minds about the true nature of a business. It’s not enough to have technical skills. Business skills also count.
For example in a bakeshop. Yes it’s important that some of the personnel know how to bake. But baking is not all there is. The business has to sell the bread. It should also worry about the costs and profits.
There’s more. The bakeshop also has to deal with human resources. Add to that the marketing and logistics of the business. It’s not all about the product.
If you want to succeed in business, keep in mind the E-Myth principles. It will help you save time and propel you to success.
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