TEB Book Review: The E-Myth by Michael Gerber

The last 2 months have been unlike anything that any entrepreneurs have encountered before. Ingenuity, strength, creativity and grit have been on full display as you work to save your business. Many entrepreneurs have said that they are using this time to work on their business instead of just in it. That is a concept that many have heard before, but never had a break from the frantic pace of ordering finding customers, ordering supplies, managing operations, balancing the books, cleaning the shop, finding customers……

One of the first leaders to teach about working on your business not in it was Michael Gerber. Michael is the best-selling author of many books, The E-Myth perhaps his most famous book.

If you have not had the pleasure of reading this impactful insight into your business, I recommend that you pick up a copy at your nearest bookstore, Amazon, or Audible. To me, it felt like reading the original thesis that many amazing entrepreneurial books are based on. The truths were timeless and the examples were as relevant today as they were 25 years ago when Michael first penned them. There are so many gems in this work, but here are my top 3:

1. Every entrepreneur has multiple personalities fighting each other to be in control, the technician, the manager, and the entrepreneur.

The technician is the part of the entrepreneur that is concerned about doing. Doing what? Doing everything that needs to be done. From the actual operations of the business (baking pies, turning wrenches, painting walls, crunching numbers) to all of the other stuff that needs to happen (answering google reviews, ordering supplies, hiring help, signing paychecks, sweeping the floor, and the list goes on and on). Without the technician, nothing would get done.

The manager is the part that organizes and orchestrates all the activities. Ask any entrepreneur how many hats they have to wear, and they will tell you a number north of 10. All of these activities need to coordinated so that the business is as efficient as possible. The manager is the one that makes this happen. To promote efficiency in every aspect of the business. Without the manager, nothing would get done.

The entrepreneur is the dreamer and the visionary. The entrepreneur was the one that first whispered to you: “I think I could do this on my own and create a business”. All of the passion, spirit, optimistic confidence, and unending self-belief comes from the entrepreneur. It is he that allows you to peer into a foggy crystal ball and see a future that is so clear, it is all but a foregone conclusion. Without the entrepreneur, you would probably be working for your old boss and nothing would get done.

While it is important to realize that all 3 of these personalities live inside you, balancing them is just as critical as nurturing them. When the technician is dominate work and doing is all the consumes the entrepreneur. Joy, passion, vision, and creativity are overcome with dreadful work. Risk of burnout is high. When the manager takes over, order is brought to chaos and efficiency in everything is the prize. But creativity and doing things better (if that means doing things differently) is sacrifices. Risk of passionless (if efficient) operations is high. When the entrepreneur is at the helm, creativity and passion ooze out of every square inch of the business. The problems that can be solved are endless, and the craving to create and make are insatiable. Risk of shiny-object syndrome and lack of clarity is high. Finding the balance and encouraging the natural strife between these personalities is something that the best entrepreneurs figure out how to do.

2. Think of your business as a franchise. This concept took me a while to warm up to, because one of the things that I love about entrepreneurship is the freedom and creativity. However, throughout the book, Gerber presents a very compelling argument. Using the restaurant industry as an example, individual restaurants have a much higher fail rate than franchised ones. While location, food offerings, and price may have a part in this – what many individual restaurants lack that franchises have are standards, structures, and systems. Being able to do the same thing, the same way, providing the same result is critical to the success of a business. If you build your business, as if you were going to franchise it, and equip another entrepreneur to live out their dream – then you need to have clear standards, structures, and systems. What I have come to believe is that these actually provide room for creativity, as it frees the entrepreneur up to find creative solutions to current problems.

3. The true work of the entrepreneur is strategic, not tactical. Strategic thinking is a 10,000-foot level view of the company and where it is going, while tactical thinking is viewing the current problem and solving it. As a former Army officer, this clear and important directive is very appreciated. It is so hard to do, but if a business is going to grow beyond what a single entrepreneur can do by themselves – then taking a strategic view of your company is critical. You should approach your business like you are playing a game of chess, not checkers.

Being an entrepreneur is one of the most difficult and demanding things you can do. The good news is that entrepreneurship today is a team sport. Hit the connect button on LinkedIn or Facebook NOW and together we will work towards hitting your 10-year target. Along the way we will increase your profit, strengthen your leadership skills and transform your banking relationship into a strategic partnership. This will lead to confidence in your path, freedom to dream up bigger targets and a business that is enjoyable to own. When we connect, tell me if you have read The E-Myth and what was your biggest takeaway.

Greg Martin is an entrepreneur’s insider to the banking industry and passionately believes that every person was uniquely designed for a higher purpose and calling. Greg guides entrepreneurs in defining and achieving their purpose and calling. His deepest passion is living life with his wife and their wonderful son.