The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It

I first read this book in 1994. I believe it was first published in 1986. The first time I picked it up, I stayed up all night and read it all the way through. I just couldn't put it down. With that said, I need to point out that if you don't own a business, never have owned a business or never will, this book probably won't appeal to you. It will appeal to you if you already own a small business or are planning on opening a business. It may just save your sanity. It's saved mine.

Basically, the point of the book is this: "Your business is not your life" (quote from the book). It took me about 4 readings of this book to figure that out. Business owners tend to think working 16 hours a day is some kind of heroic effort. It's suicide. Been there done that. There's nothing glamorous about working in your business until you fall over. How, then, does the author propose to solve this problem? How many small business owners don't work insane hours and are successful? The key according to the author is to make your business into a system like McDonald's that anyone can run. Too much of a business is dependent on the owner to be there. You're not there, the business doesn't make any money. If you're not there for an extended period of time, you won't have a business when you come back.

The key factor in turning a business into a system as the author states, is to have operating manuals which describe each function of the business. One criticism I have of the book, and I suppose he did this on purpose, is that he really doesn't go into a lot of detail as to how these manuals are done. I guess we have to figure that out. The example in the book about the owner of a pie shop, I felt, was a very good example. I know, because I wrote operating manuals for my business, and I started franchising my business back in 1995. I had 15 offices up and running at one point, and I decided not to pursue it any further, so I pared it all back down. This book works, but you better be prepared to take a really long hard look at how your business is run and particulary how it fits into your life.

The bottom line on this book is that you can make your business into a system. You can reduce your hours to a reasonable level. Yes, you can even make a good living in your own business. I've been doing it for years. The only problem is, you have to do it. You have to sit down, take a good hard look at your business, and get the thing built or rebuilt from the ground up. You need to have all your financial records in order. You need to know at any moment what your operating margins are, what's going on with everything. It's a big task, and I suspect many people who have read this book don't want to do all that. As for my business, I've implemented much of what he talks about with great success. I haven't implemented all of it because some of it is difficult and time consuming. The other problem is, there's no "step-by-step" method presented, at least not what one would want. There is a methodology to it, but as with most things in life, we have to adapt them to our situation and take the time to do it. The author won't take you by the hand and do it for you.

I'm giving this book 5 stars because I think it provides much thought provoking material. If you own a business or are planning on going into business, this book is a must. Even if you ignore most of what he says, it will at least change the way you think about your business. For example, take the total number of hours you work in your business per week, month, year or whatever and divide that by your net business income factoring in expenses that were just for tax purposes. After you do that, find out your hourly wage. I did that, and I was shocked. If you're working 12-16 hours a day, and you're making an average income in your business or if you're breaking even, you're wasting your time. Take a day off and read this book. It will change your focus dramatically. It's not an easy process, but if you're serious about making your business work without you having to work so hard, then this book is worth every penny. Good luck in all your ventures.


Guide to creating a business that lets you 'breathe easy."   August 12, 2000
Coach Linda (linda@vectorvisions.com)
83 out of 91 found this review helpful

If you own a small business or are considering starting one, put this book at the top of your "must read list." As a personal coach, I recommend the E-Myth Revisited to our entrepreneurial clients, especially if the business has "taken over the client's life."

Gerber's E-Myth Revisited offers salient points with the most important being, "Work ON your business not IN it." We are introduced to three working personalities: 1) the entrepreneur who always has ideas, 2) the manager who keeps everything organized, and 3) the technician who knows that "If it's going to get done right, I'd better do it myself." Through the eyes of a business owner/client, Gerber unfolds the story that allows us to see the importance of each personality preference and the necessity for balance between them. We also see the different stages of business growth and come to appreciate the benefits of implementing systems at the beginning of developing a business.

Humor throughout the book makes this an enjoyable read, and as I tell my clients, savor your chuckles when you find Gerber describing you almost perfectly.


Excellent teaching/learning tool for anyone in business   June 20, 1999
33 out of 34 found this review helpful

I am now using this book as a text for a college level course designed for Information Technology students. I read the original version about 6 years ago when I purchased it for 39 cents at a thrift store. Having been a business systems analyst for many years I used these techniques but never knew it. Now using the messages in this book, I can share techniques that work with others. This book is a practical giude to business problem solving and it can be used to design useful information systems and implement effective training in any size operation. The "Revisited" edition has been enhanced using a case-study approach that makes the message easily understood by any reader. Employers today want more from employees than mere technical proficiency. They want people who can analyze their business and provide viable technical solutions that contribute to a good work environment as well as to bottom line success. This book focuses not only on developing a good business strategy but also on the leadership skills required to develop a business and meet goals. It provides all the steps needed to implement these ideas in the real world. It is an exellent book for the technician, the manager or the entrepreneur. Whether you run or are a part of any business I highly recommend it.


Read this before starting your own business!   October 30, 2000
Ng Chon Hsing (Singapore)
25 out of 26 found this review helpful

This is one of the few books you must read if you want to go into business. It's called The E-Myth because it addresses the entrepreneurial myth. The book starts off by telling you what a business is not. Having done so, the book goes on to tell you what a successful business is all about.

In a nutshell, a successful business is all about systems. A systems-based business is neither beholden to individuals nor at the mercy of their personalities and quirks. It is capable of running on its own without its owner having to be present.

An owner who cannot afford to be away from his business is merely a self-employed person. An employee sells time. A self-employed mere buys a job to work in. A real business owner works on the business rather than in it. The book adopts the concept of a franchise as the ultimate objective of all business owners. By aiming to be a franchise in any business you do, you will be reminded of the need to systematise every facet of your business.

If you are an employee, have little or no prior experience in business, but are keen to start your own business, you would do well to read this book. There are a lot of things that you should know before taking the plunge. This book will save you a whole lot of heartache and unnecessary aggravation.


The Best Business Management Book Ever Written!   January 11, 2006
Monica Main (Valencia, CA USA)
21 out of 22 found this review helpful

I've owned my own company for 13 years. I picked up this book about 4 years ago and it changed the course of my company forever. I went from struggling with day to day operations and not able to get over a certain gross dollar amount per year to EXPLODING my business virtually overnight into a 7-million-dollar per year company (from barely getting $500,000 per year gross before).

I look at the other reviews for this book and I shake my head. One was from a guy who didn't even read the book all the way through! His review should be deleted, as he doesn't even qualify to write a review. I seem to remember the days of being in school where it was a requirement to read the entire book before writing a review (book report).

I'm sick of reading reviews from losers and wannabes who never actually use the methods in this book (or any others) but yet have a load of opinions on whether the techniques work or not. I've actually used these techniques for my company which has resulted in a multi-million dollar per year business.

Like some of the most successful millionaires (and billionaires) say: Don't listen to people unless they are making A LOT MORE than you are and they are in a position in life where you want to be.