Home Based Business – The E-Myth Revealed

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A couple of years ago I read “The E-Myth Revisited.” It was an entertaining eye opener that helped change my focus in business. I realized that I couldn’t do what I wanted to do because parts of the business puzzle were missing. Every person thinking of running a home based business should absolutely read this book. 

The “E-Myth Revisited” was written by Michael Gerber to help small business. The term E-Myth is a term Gerber coined to refer to what he calls the entrepreneurial myth. In it he tells a story of a failing entrepreneur who is in the position of losing her dream and her business and what happens to turn it around. In so doing he explains why most small businesses fail and what they can do to be a success. 

His premise is that most entrepreneurs fail because they simply aren’t really entrepreneurs, they’re technicians. And a technician by Gerber’s definition is anyone that works for someone else and provides a set of skills in exchange for money. By this definition almost everyone is a technician, from the person that cuts your hair to the orthopedic surgeon, because they are all working for someone else. They don’t own the business and probably don’t make any of the decisions concerning the business.

In the story he shows how the typical technician thinks that just because he has the technical skills for a particular business, he thinks he can be a successful entrepreneur. In reality there is far more to running a business than just knowing how to do the technical side. And if you start a business on your own, you have to wear all the hats from CEO to accountant, to salesman, to marketer, etc. The conclusion is that you need a system like McDonald’s or any franchise business where each part of the business is well defined and works like a Swiss watch. 

That’s why network marketing businesses should do well, because each part is well defined and everyone can know what they should be doing. But most of these businesses are still failing because they are being operated by the lone entrepreneur. If you really want to be a success in MLM or network marketing then you need to be organized like MacDonald’s and you need to become a member of a team. When your home based business is part of a team, then each part of the business can be taken care of and everyone can be a success.

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