The E-Myth Revisited

Summary

“The E-Myth Revisited” is divided into three sections, each of which focuses on a different aspect of running a successful business. The first section explores the myths that surround entrepreneurship and how they can lead to failure. The second section delves into the “turn-key revolution” and how it can be used to create a successful business model. The final section provides practical steps for building a successful business, including creating systems, managing people, and achieving balance in life.

“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!”

BIG IDEA 1: The Entrepreneurial Myth

“The E-Myth Revisited” challenges the common belief that most small businesses are started by entrepreneurs who are experts in their field. Gerber argues that this is a myth and that many entrepreneurs are actually technicians who know how to do the work, but not how to run a business.

The book explains that technicians, such as bakers, lawyers, or graphic designers, often start their own businesses because they want to be their own bosses and have control over their work. They believe that if they are good at their craft, they will be able to succeed in business. However, this is not necessarily true. Being good at a particular skill does not mean that one is equipped to run a successful business.

Gerber argues that to be successful in business, entrepreneurs must learn to work on their business, not just in it. This means that they must develop a strategic mindset and focus on building systems and processes that allow their business to run smoothly, even when they are not there. They must also learn to delegate tasks and responsibilities to others and trust their team to carry out these tasks effectively.

Gerber believes that many small business owners become trapped in their businesses because they are so focused on the day-to-day tasks that they do not have time to work on the bigger picture. This can lead to burnout and ultimately, failure.

To overcome the entrepreneurial myth, Gerber suggests that entrepreneurs should focus on developing their business as a product. This means that they should think of their business as a system that can be replicated and scaled, rather than a job that they do. They should work on creating processes and procedures for every aspect of their business, from marketing and sales to operations and finance.

“The Entrepreneurial Myth” challenges the common belief that most small businesses are started by entrepreneurs who are experts in their field. Instead, the book argues that many entrepreneurs are actually technicians who lack the skills to run a successful business. To overcome this, entrepreneurs must learn to work on their business, not just in it, and focus on building systems and processes that allow their business to run independently of them. By doing so, they can achieve the ultimate goal of building a business, not a job.

BIG IDEA 2: The Turn-Key Revolution

The turn-key revolution is a new way of thinking about how businesses can be created and operated. Instead of relying on the skills and expertise of the business owner, the turn-key revolution is based on creating a replicable system that can be operated by anyone.

Gerber argues that the turn-key revolution is the key to building a successful business. It involves creating a business model that is based on systems and processes rather than on the individual skills of the owner. By doing so, the business can be scaled and replicated, allowing for growth and expansion.

The book explains that the turn-key revolution is based on three key principles: innovation, quantification, and orchestration.

Innovation: The turn-key revolution starts with innovation. This means that the business owner must be able to identify a need in the market and create a unique product or service that meets that need. This requires creativity and the ability to think outside the box.

Quantification: Once the business owner has created a unique product or service, they must be able to quantify it. This means that they must be able to measure and track the results of their business activities. By doing so, they can identify what is working and what is not and make adjustments as necessary.

Orchestration: Finally, the turn-key revolution requires orchestration. This means that the business owner must be able to create a system that allows their business to run smoothly and efficiently. This includes developing processes and procedures for every aspect of the business, from marketing and sales to operations and finance. By doing so, the business can be replicated and scaled, allowing for growth and expansion.

Gerber believes that the turn-key revolution is the key to building a successful business. By creating a replicable system that can be operated by anyone, entrepreneurs can focus on innovation and growth, rather than being trapped in the day-to-day operations of their business.

“The Turn-Key Revolution” is a new way of thinking about how businesses can be created and operated. It involves creating a replicable system that can be operated by anyone, allowing for growth and expansion. The turn-key revolution is based on three key principles: innovation, quantification, and orchestration. By following these principles, entrepreneurs can create a successful business that can be scaled and replicated.

BIG IDEA 3: Building a Business, Not a Job

Gerber explains that many small business owners are actually self-employed and trapped in their businesses, rather than building a business that can run independently of them. He argues that the key to building a successful business is to focus on creating a business that can operate without the owner’s constant involvement.

Gerber believes that many small business owners become trapped in their businesses because they are so focused on the day-to-day tasks that they do not have time to work on the bigger picture. This can lead to burnout and ultimately, failure. To avoid this, entrepreneurs must focus on building a business, not a job.

The book explains that building a business, not a job, requires a shift in mindset. Instead of thinking of their business as a way to earn a living, entrepreneurs must think of their business as a product. This means that they must focus on creating systems and processes that can be replicated and scaled, rather than relying on their individual skills and expertise.

Gerber argues that the key to building a business, not a job, is to focus on creating a franchise prototype. This means developing a business model that can be replicated and scaled, even if the owner is not involved in the day-to-day operations. By doing so, the business can be sold, franchised, or operated by someone else, providing the owner with a source of passive income.

The book provides a roadmap for creating a franchise prototype. It involves defining the business’s primary aim, creating a turn-key system, documenting all of the business’s processes and procedures, and developing a management strategy. By following these steps, entrepreneurs can create a business that can operate without their constant involvement, allowing them to focus on innovation and growth.

Gerber emphasizes the importance of creating a business that can operate independently of the owner’s involvement. To achieve this, entrepreneurs must focus on creating a franchise prototype that can be replicated and scaled. This requires a shift in mindset from thinking of the business as a way to earn a living to thinking of it as a product. By doing so, entrepreneurs can create a successful business that provides them with passive income and the freedom to focus on innovation and growth.

“The true product of a business is not what it sells but the systems and the way it does business.”

Conclusion

“The E-Myth Revisited” is a must-read for anyone who is interested in starting their own business or taking their existing business to the next level. The book challenges common myths about entrepreneurship and provides practical advice on how to build a successful business. Its three key ideas, “The Entrepreneurial Myth,” “The Turn-Key Revolution,” and “Building a Business, Not a Job,” provide a roadmap for creating a replicable and scalable business model. By following the principles outlined in the book, entrepreneurs can avoid common pitfalls and build a business that can operate independently of their constant involvement.

About the Author

Michael E. Gerber is an American author and entrepreneur, born in 1936 in California. He is best known for his book “The E-Myth Revisited” and is considered a small business expert. Gerber started his career in the 1970s, helping small business owners to improve their operations and profitability. He went on to write over 28 books on entrepreneurship and small business management, many of which have become bestsellers. Gerber is also the founder of the Michael E. Gerber Companies, a business coaching and consulting firm that helps small business owners to build successful businesses. Throughout his career, Gerber has received numerous accolades for his contributions to the small business community, including the National Small Business Association’s 2009 Lewis Hine Award for Outstanding Contributions to the Youth Entrepreneurship Education.