The E-Myth Revisited

Preview

Most people who start a small business do it for a simple reason. They want freedom. They want to do what they love, be their own boss, earn a decent living, and build something they can call their own. That dream is honest, hopeful, and deeply human. Yet for so many people, the dream turns sour. The business that was supposed to give them a life begins to consume it. Instead of freedom, there is panic. Instead of purpose, there is endless work. Instead of building a future, they find themselves trapped in a job they created for themselves. That is the heart of this book. It looks at why small businesses so often fail, not because their owners are lazy or foolish, but because they walk into business carrying a dangerous misunderstanding. They believe that if they understand the technical work of a business, they understand how to build a business that does that work. But knowing how to bake a pie is not the same as knowing how to build a bakery. Knowing how to fix pipes is not the same as knowing how to build a plumbing company. Knowing how to cut hair is not the same as knowing how to create an enterprise that consistently serves customers, grows wisely, and works without devouring its owner. Michael E. Gerber calls this misunderstanding the E Myth, the entrepreneurial myth. It is the myth that small businesses are started by entrepreneurs risking capital to make a profit. In truth, many are started by technicians who suffer what he memorably calls an “entrepreneurial seizure.” One day, a person who works for someone else gets tired of it and thinks, “What if you went into business for yourself?” That thought feels liberating. It also starts a chain of events that can...