The E-Myth Revisited…
This book is the real deal, for any entrepreneur looking to build a successful business of any kind.
Of all the people who have helped me with developing my entrepreneurial skills, Mr. Gerber had the biggest impact.
Of all the business books I have ever read, this one is hands down my favorite.
The lessons I have learned from him in The E-Myth Revisited have totally changed the way I think about my business.
His book The E-Myth Revisited is a must read for any entrepreneur and should be mandatory reading before anyone is allowed to start their own business.
I’ve read the book at least 20 times now and have given away at least 50 copies to entrepreneurial friends.
The book is that good.
What I want to do in the paragraphs below is share a few lessons I learned from Michael Gerber in The E-Myth Revisited and also provide my own two cents on each topic.
Each lesson is in bold and italics. Let’s get started.
# 1 Most people start a business for the wrong reason.
Most people start a business because they are good at a certain technical job (barber, accountant, baker, etc.) and they are tired of working for someone else. Or, they start a business because they cannot find a job.
Most people who start a business aren’t entrepreneurs at all. They just want to WORK for themselves, control their own schedule and do what they want to do.
What they don’t realize is that they will have to work twice as much for half the money when first start their business, and probably for the first three to five years in business.
In addition, they don’t realize that the TECHNICAL work is only a small part of running a business.
The reason most entrepreneurs make less in their business than they would as an employee is because they do the wrong work!
The technical work of the business (cutting hair as a barber for example) is not the real work of the business. Yes, those things are important and must be done properly.
A business owner must learn how to PROMOTE and MARKET their business, so they can grow it.
All other tasks are inferior and could be labeled as busy work. How do you spend your time?
# 3 Everyone who goes into business is three people in one: The Entrepreneur, the Manager and the Technician.
This lesson was an “ah ha” moment for me.
The entrepreneur is the visionary; the creative dreamer. They’re the person inside of you that made you want to go in business for yourself.
The manager is the person who craves order and likes things structured and organized.
The technician is the doer, the worker.
Everyone has some of these three people within them with one as a dominant one.
The problem for most people is that the entrepreneur is not their dominant trait: normally the technician is.
As a result, their business struggles and all they do is keep working harder to keep their business afloat.
# 4 Work on your business rather than work in your business.
This is quite perhaps the most important lesson in the book.
As an entrepreneur, your job is to do the strategic work to GROW your business, not just the work to RUN your business.
Strategic work is game planning, developing systems, marketing, operations, sales, creating policies and procedures, getting new customers, former partnerships with other businesses etc.
Most business owners just focus on the busy work.
How much time do you spend on the strategic work in your business? When was the last time you stepped away from your business and looked at in from the outside in?
# 5 If your business depends on you alone, you don’t own a business, you own a job.
It took me a long time to really understand this lesson.
Your goal should be to replace yourself in your business as quickly as possible. Create systems so you don’t need to be there 24/7.
If you need to be there for your business 24/7 just to succeed, what would happen if you lost your ability to work or didn’t want to go to work?
Simply put, it’s better to be the real estate broker than the agent. Your business needs people and systems!
# 6 The purpose of your life is not to serve your business, but the primary purpose of your business is to serve your life.
Your business is NOT your life.
It should not consume all of your life and time, either. Your business should PROVIDE you with the lifestyle and the money you need to live comfortably. If it doesn’t do that, get rid of your business and do something else, or change the way you run your business.
# 7 Think of your business as anything but a job.
If you think of your business as a job, you will work harder than ever, get paid less than you deserve and get burnt out.
Don’t think of your business as place to go to work. Think of it as a place to FREE UP your time.
Your goal should be to make as much as you can in as little time as possible.
# 8 The problem isn’t your business, it’s you.
This is another lesson that really hit home for me. If things aren’t going well in your business, the issue is YOU.
That might be a tough pill to swallow, but it’s the truth.
Our business is a reflection of us, so sometimes we need to do a reality check and look ourselves in the mirror.
For your business to improve you must improve.
Insteading of blaming your lack of results on your business, or the competitior, look yourself in the mirror and man up or woman up.
# 9 The only reason to create a business is so you can sell it one day!
Yes, your business should provide an income too, but your ultimate goal is to create something that you can sell one day and cash out when you want to retire, or move on to something else.
If YOU are the business, you will never be able to sell it.
# 10 All buying decisions are made irrationally!
People are EMOTIONAL creatures.
No buying decision is made on logic. We use emotion and then justify it with logic.
That means your marketing and advertising should appeal to people’s emotions whenever possible. Focus on what people want, not what they need.
# 11 You must know more about your customer than they know about themselves.
Every business has customers that are in a certain demographic, sometimes referred to as a target market.
Your job is to study your customers and learn everything you can about them. Know where they live, their race, their religion, what they do for work, what they drive for cars, how much they earn, what their hobbies are, what magazines they read, etc.
All of these demographics are important to know, so you can purchase leads and attract more people in the same demographics. The more you know about your customers the better.
# 12 You must take marketing more seriously than a big business does.
As a small business owner, you can’t afford to advertise like the big companies do. You can’t do BRANDING.
Your only objective should be direct response marketing. This is where you advertise DIRECTLY to people in your target market.
You should spend at least 20% of your working time on marketing activities. This is the ONE activity that can produce the greatest rate of return on your time investment. Focusing on marketing is the best way to spend your time.
# 13 Marketing, sales and operations are your real job as a business owner.
The technical work of your business is not your real job. Your employees or independent contractors should be doing the technical work while you focus on the activities that GROW your business.
If you have to do the technical work yourself, make sure you set aside time for the strategic work. Remember sales, marketing and operations should be your top priority. These things should not be delegated. If anything, the technical work should be delegated.
# 14 It’s cheaper to keep a customer than it is to go out and find a new one.
Don’t forget to take care of your customers and stay in touch with them on a regular basis.
It’s much easier, and cheaper, to keep a current customer than it is to go out and find a new one.
When issues arise, fix it! When a customer has questions, be prompt and courteous. Treat your customers like gold and stay in touch often. This will keep them coming back and have them sending you referrals.
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About the Book
The E-Myth Revisited is one of the top five best-selling business books of all time. It was published by Harper Collins in 1995. The ISBN is 978-0887307287. It features 268 pages and comes in softcover and Kindle format. As of October 2016, it has 1,473 reviews on Amazon with an average 4.5 star rating. It is considered by many as one of the most important business books of all time. I give the book a 10 of 10 myself.
About Michael Gerber
Michael Gerber is a business consultant, author, speaker and trainer. He has been labeled as the # 1 Small Business Guru by Inc. magazine. He has personally helped tens of thousands of small business owners turn around their business for the better. To learn more about Mr. Gerber, check out his website.
Buy the Book
What do you think about these 14 Michael Gerber quotes from The E-Myth Revisited? Which quote resonates with you the most? Which lesson do you need to improve the most in your business? Leave a comment below to let me know what you think. I look forward to hearing from you.