Start Your Business Off on the Right Foot With Help From “The E-Myth” As a small-business owner, what’s your greatest fear? Many business owners across the country share one common fear: failure. According to data from the U.S. Bureau of Labor Statistics, 1 in 5 businesses fail within their first year, and 50% fail within their first five years. How do you prevent your companies from becoming a
part of this statistic? One of the best ways to ensure your business thrives is to follow the strategies found in Michael E. Gerber’s book, “The E-Myth: Why Most Small Businesses Don’t Work and What to Do About It.” There’s a common myth among entrepreneurs that if you’re proficient at a technical skill, you’ll be able to run a business that utilizes said technical skill. In most cases, this is not true. Many small-business owners
1 in 5 businesses fail within their first year, and 50% fail within their first five years.
the case as most successful businesses do not develop into maturity; they begin there. Gerber states that you build a mature business with a vision and shape the present around that vision.
fall into this trap. They then spend all their time working in the business instead of on the business, which can quickly lead to burnout without reaching their desired success. “The E-Myth” provides examples and guidelines for small- business owners to break the mold and run a successful business in any industry. In “The E-Myth,” Gerber explains that each business owner has three distinct personalities: the technician, the manager, and the entrepreneur. The technician is the part of them that knows how to successfully perform the technical skill the business relies on to grow. The manager wants to achieve results through people and systems. They work in the present while strategizing for the future. The entrepreneur is much more focused on getting the company where they want it to be. A successful small- business owner will be able to effectively utilize all three personalities to be the best owner they can be. “The E-Myth” is broken up into three sections. The first defines the E-myth while providing readers with descriptions of the three phases of businesses. There are infant, adolescent, and mature businesses. Most business owners think their business starts in infancy and grows through the different stages. Gerber explains this is not
In the second part, Gerber explains that business owners need to work on their business rather than in it. He encourages readers to create systems within their business so it can run smoothly even if they’re not present. He explains that owners should treat their business as if it were a franchise and points to McDonald’s as a great example. Your business should be able to produce predictable results and happy customers. When you go to McDonald’s, you know what to expect, regardless of where you are in the country. Your business should run the same way. The final section of “The E-Myth” provides business owners with a step-by-step guide to successfully run a business. Plenty of valuable information within this section is incredibly beneficial for any business owner. It teaches you how to build a business plan that works for you and your business.
“I urge, then, first of all, that petitions, prayers, intercession and thanksgiving be made for all people.” –1 Timothy 2:1 (NIV)
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