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?
- A technician is someone who focuses on doing work perfectly and enjoying it.
- He lives in the present time and tries to focus on what can be done today.
- He sees money as a return for work done. More production more money.
- Focuses on working through tasks, one at a time.
- A Manager is a planner and organizer who turns the vision into action. He looks for systematic orderly working.
- The manager lives in past and current times and tries to maximize production. He is very realistic, does not dream.
- He focuses more on cost reduction and utilizing the available people and resources to the maximum.
- 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
- An entrepreneur is a dreamer, the one who like to think and create strategies.
- His vision is always tied up with future. Always ready to take risks.
- Entrepreneur focuses on creating value and increasing the equity value of Business, rather than cutting costs. The idea is opportunity maximisation.
- 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?
- Watch this keynote lecture by Michael Gerber on this topic.
- There are lots of summaries available on youtube in English and Hindi language.