Review of The E Myth Revisited – Why Most Small Businesses Don’t Work and What to Do About It by Michael E. Gerber

gerbernewsDid you know that almost 7 in every 10 new small businesses in 2013 failed within the first 2 years of their startup?  This is a real estate book but it mainly focuses on using a fictional entrepreneur profile who starts a pie shop but she has to deal all the difficulties of a small business entrepreneur to the point of burning herself out without actually getting as much returns as she deserves from the business.  Michael Gerber in this book published in January 1995 demonstrates that for a business or a company to be successful, they shouldn’t sell the products they make, they would just be fulfilling the emotional demands of the clients.

” The E Myth Revisited ” has  been described as the perfect guide for small business technicians, entrepreneurs and managers, to show them how business can succeed when the businesses focuses only on what it is good at.  For instance, he uses Southwest Airlines as a good example of a successful company, which, though it generates its income through the sale of tickets, it does not handle ticketing and instead focuses on providing quality travel services to clients.  The book goes further to the economic systems and especially the workplace environment and how an average employee can get rid of the notion that work and business is a disliked place because people come there to waste their lives.

Among the most intriguing arguments in his book is that in order for a business idea to work, you must have a ‘primary aim’ in life, not just business first, because without it even the best entrepreneur can get consumed.  The strategic objective will be what you want to become of the business to fulfill the requirements of the ‘primary aim’ in life.  It also puts a lot of emphasis in how to analyze an opportunity when it presents itself and using modern available tools to assess the profitability of a venture.  This section is what makes this book one of the most educative and easily explained real estate reads suitable for novice and intermediate entrepreneurs.

Of greater importance is that Michael Gerber, the author, delves into detail to bring out some of the least discussed business strategies and approaches including how to merge talent with the system, how to turn training into a game, measuring and estimating anything at the first glance and the importance of scripting everything in order to make achieve more predictable or consistent results in business.  After all, the idea of a business is a secure and ever-growing income source.

Despite all the good things positive reviewers write about this book, quite a number of Amazon reviewers view it as an out-of-date manual written by a washed up entrepreneur now surviving by writing, lecturing and making inspiration CDs.  It depends on what kind of entrepreneur you are, if you believe there is always something positive out of any publication, then you should consider reading this book before you enter the real estate market.