Limesh Parekh
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Book Review – The E-Myth: Why Most Small Businesses Don’t Work

Reading Time: 3 minutes

Most small business owners struggle with their managing and growing their small businesses. They always remain small. It is simply because they are working in their business and not on their business. It sounds like a very subtle thing, but it is a very big difference. This is especially true for first-generation businessmen. 

Are you working on your business, or working in your Business? Most small business owners work in their businesses.

– Michael Gerber

The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It is a Mega BlockBuster. Written by Michael Gerber. Inc Magazine named him World’s #1 Small Business Guru. He has published 14 industry-specific version of E-Myth

This is probably the first book that everybody should read if you are into business or planning to start a business.


The Entrepreneur, the Manager, and the Technician. 

Michael explains the concept with three categories. Every business needs these three personalities. Every businessman also passes through these three phases. Which one are you?

Technician

  1. A technician is someone who focuses on doing work perfectly and enjoying it.
  2. He lives in the present time and tries to focus on what can be done today.
  3. He sees money as a return for work done. More production more money.
  4. Focuses on working through tasks, one at a time.

Manager

  1. A Manager is a planner and organizer who turns the vision into action. He looks for systematic orderly working.
  2. The manager lives in past and current times and tries to maximize production. He is very realistic, does not dream.
  3. He focuses more on cost reduction and utilizing the available people and resources to the maximum.
  4. Focuses on making things systematic, does not like chaos.

The role of an entrepreneur is not to produce a great product or service. An entrepreneur creates a system to create a great product or a great service. 

– Michael Gerber

Entrepreneur

  1. An entrepreneur is a dreamer, the one who like to think and create strategies.
  2. His vision is always tied up with future. Always ready to take risks.
  3. Entrepreneur focuses on creating value and increasing the equity value of Business, rather than cutting costs. The idea is opportunity maximisation.
  4. Focuses on getting control, can live comfortably amongst chaos.

If your business depends on you, you don’t own a business. You have a job. and its the worst job in the world. 

– Michael Gerber

Why you should read it?

The book has two parts. The first part talks about the Entrepreneur’s myth, which is a big eye-opener for any small business owner. The first part will teach you a lot of things and point out lots of mistakes that we all have been doing. You will find that as if it is your own story.

However, the second part, which talks more about creating a franchise model, might not sound very exciting to you. However, on the subdued level, it is very relevant. – Even if you watch a few of the videos of Mr. Gerber, you will understand what he wants to say.  

I would insist that if we have not understood the first part and not thought on the topic, then the second part seems little boring and not relevant. However, give some thought on the first part and then the second part starts making sense.


Who should read it?

I suggest every business person or anyone who wants to start a business should read it. In fact, if you are planning to start a business, you need to read it for sure.

I highly recommend it for students, who aspire to start a business in their career


What if you don’t have time to read this book?

  1. Watch this keynote lecture by Michael Gerber on this topic.
  2. There are lots of summaries available on youtube in English and Hindi language.
In case you liked E Myth, you might also like this book
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11 Responses

  1. Limesh ji, you have introduced the book very nicely. By providing the reason for reading it, the book is now on my list now!
    Looking forward to more book reviews from you.

    1. Thanks a lot, Rahul Bhai, I am glad that you found it useful.
      Please do help to spread the word by sharing this on your Social media and WhatsApp Groups.

  2. limesh bhai,

    do u believe there r answers suggested in the book?

    if not, u need to specifically mention that it does not as one of the coverage topix (imho).

    there is no doubt it is an xlnt book, but if someone intending to read it based on your review is expecting to get something clear, practical and actionable at the end of it, well…..

    what it seemz to b is a good marketing ploy, even the key note u hav referred to, to get u to subscribe to his company’s offering.

    1. Yes Sir. I think the story itself is the answer. let me share some of the examples (all these policies and processes in Enjay are derived or inspired or backed by Ideas in this book):

      ONE – Customer Service
      After reading this book, we created a WhatsApp group of our Customers. First, we thought that it would be disastrous because if one client messed up, the entire group would turn into chaos. But we were very sure, sincere, and determined about the support that we are providing. So we created the groups.
      The result is astounding, the kind of support that we get from our customers is awesome. Plus we get to know them much better.

      TWO – Refund
      Generally, when we speak of providing refund to our customers, we feel that everyone will misuse it. and we will end up paying back and getting entangled with each and every customer. But then we started offering it to our products. We give a refund without asking a question, No questions asked. Whether it is our fault or your problem, we refund the money.

      Yes, there were a few refunds. (it turned out that were wrong sales from our side, we should have not sold those products to those clients). But, the people who got a refund from Enjay, became life-long FANs of Enjay. They in fact recommended our solution to more people than our paying customers. This is a fact, and I can prove it with examples.

      THREE – Human Relations
      We have a budget for learning. We have a fixed day for learning. We also subscribe to various paid training courses, very regularly. We hire costly consultants and coaches for training our staff, we also do lots of internal training.
      First, when we think of so much training, we might feel that people will leave once the training is completed. But it does not happen like that.

      FOUR – No Bond (Agreement)
      Unlike many other software companies, we do not sign any bonds with our staff for staying in Enjay for stipulated period of time. Also, we hire only freshers, which means that first 12 months are a pure investment from our side. But it has proved to be successful for us.

      मेरी एक आदत है, में जब कुछ पढ़ता हूँ तो वो करता भी हूँ, (शायद इसीलिए, में thriller Novels नहीं पढ़ता)

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