The E-Myth Revisited by Michael E. Gerber. Everyone wants to start their own business and work for themselves. But the reality is that most businesses fail in the first year, and it’s because they don’t follow what Michael E. Gerber calls “The E-Myth.” So I’m going to break down ten lessons from The E-Myth Revisited by Michael Gerber, so you know what not to do when starting your business.
You might be wondering why I’ve chosen such a boring topic as The E-Myth Revisited? However, we can learn some compelling lessons from it if we take the time to read it carefully.
1. Don’t Work On Your Business, Work In It!
This is the first lesson you need to learn if you want your business to succeed. So often hear from people who have a day job, and they dream of being their boss so they can do whatever they want whenever they want.
But what these people fail to see is that they are working for the man. And since most businesses fail in the first year, you want to use your time wisely and not waste it on something that will not work out. So if you do choose to start your own business, make sure it’s something you can succeed doing with or without employees.
2. Focus On What You Do Best
When you first start, it’s tempting to want to do everything yourself. But if you want your business to be a success, you need to delegate and focus on what you do best and hire people who can handle the rest of the company’s operations. For example, when Michael first started his tax preparation service, all he did was everything himself. He filed the taxes, painted the office, fixed his car, and washed his clothes along with everyone else.
He quickly realized that he needed to focus on what he did best: working with clients and hiring an administrative assistant who could handle filing tax returns for him. This freed up Michael’s time to make more money and allowed the business to grow exponentially.
3. Start Small And Grow Big
Starting small is better than not starting at all because it lets you make sure your idea is viable before getting too big too fast. Most businesses fail in their first year because they don’t do enough research into the market, and then they bite off more than they can chew. They spend all their money advertising and then run out of cash to pay their bills which blows up the business.
Starting small is better than not starting at all because it lets you make sure your idea is viable before getting too big too fast. Most businesses fail in their first year because they don’t do enough research into the market, and then they bite off more than they can chew.
4. You Don’t Need A Business Plan To Succeed
I’ve heard a million times that you need to write a business plan if you want your small business to be successful. But what most people don’t know is that Michael E. Gerber believes that doing so can be harmful to your business. This is because when you write up a business plan, you spend all this time planning out how things will go instead of getting started with the concrete work of creating something.
Michael believes that creating a good business plan leads to “analysis paralysis,” where people are more concerned about the wording of their plans rather than following the plan itself. This is especially true with entrepreneurs who can’t manage to get anything done because they feel like someone will steal their business idea if they ever make any progress on it.
5. Sales Sell Products, Customers Buy Solutions
Most businesses sell products that are tangible items that you can hold in your hand. And most people want to buy products, not services which is why selling your product over the phone is one of the most difficult things for a new business owner. But what you need to realize is that most customers don’t buy products. They buy solutions.
So instead of thinking about products, think about services and solutions. So, for example, when you sell a car, you’re not selling the metal vehicle itself. Instead, you’re selling freedom from having to ride a bus or take taxis or being stuck in traffic every day. Or, if you own an accounting firm, most people don’t want to hire a CPA who can do the taxes they want help dealing with the IRS, so they don’t have to deal with them at all.
7. Create A Plan To Find Your Ideal Customer
If you’re struggling with finding your first customers, it’s because you either don’t have a target audience or you have one but are doing nothing to find them. One of the most important things that Michael does when he starts working with a new client is to find out who their ideal customer is because finding them is the first step in knowing where to promote your products or services.
8. You Don’t Have To Be The Best At Everything
Once you start thinking about everything you need to do, it’s easy to get overwhelmed and lose sight of what’s important. That’s why it’s important to choose the one thing that you do well, become good at doing it, and then market yourself as an expert in this space.
Michael thinks that when you try to be everything to everyone, you’re nothing to no one because there are so many things competing for their attention that they tune you out. People buy from experts, not someone who’s mediocre at a lot of things.
9. Out Of The Box Marketing Is As Important As Selling Your Product Or Service
Most small business owners spend all their time and energy on marketing products and services but completely ignore the other important part: building a brand. No one cares about your products and services if they don’t know about them.
The big thing people remember is the last time you communicated with them and whether or not what you said was relevant to what they wanted or needed at that moment in time. To invest as much time and energy in marketing as you do in selling.
10. It’s Not About You, It’s About Them
Even though you think your business idea (product or service) is the best thing since sliced bread, it doesn’t matter to others. When other people buy your product or use your services, they don’t care about what you created or built. All they see is how it will benefit them.
So don’t get all wrapped up in what you created and start selling it as if it’s the best thing since sliced bread. Instead, show your customers how it will make their life easier or better in some way.”
Conclusion: The E-Myth Revisited by Michael E. Gerber
If you want to know what it takes to build a successful business, read this book. You’ll learn the critical elements of creating and sustaining an enduring enterprise with lasting value that provides incredible opportunities for its employees and owners alike. This is one of the most influential books on entrepreneurship ever written–and deservedly so!