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How to “E-Myth” – a Step by Step Guide


“The E-Myth Revisited” by Michael E. Gerber


In the ever-changing world of business, entrepreneurs often find themselves at a crossroads, trying to strike a balance between two essential aspects of their venture: “Working on Your Business” and “Working in Your Business.” This fundamental concept, popularized by Michael E. Gerber in his iconic book “The E-Myth Revisited,” holds the key to the success and sustainability of small businesses. In this comprehensive guide, we will delve deep into understanding this concept, exploring its implications, and providing actionable steps to apply it effectively. Whether you’re a seasoned entrepreneur or just starting on your journey, mastering this distinction can significantly impact your business’s growth and prosperity.

What is The E-Myth?

The Entrepreneurial Myth, commonly known as The E-Myth, revolves around the misconception that small businesses are primarily started by entrepreneurs taking bold risks to generate profits. However, Michael E. Gerber, a renowned small business guru, vehemently opposes this notion. He argues that most small businesses are, in fact, founded by skilled technicians (e.g., carpenters, accountants, and hairdressers) who excel at their craft but lack the expertise to run a business successfully. The E-Myth highlights the critical difference between working on your business (strategic, visionary work) and working in your business (hands-on, technical work) and emphasizes the need for a balanced approach.

The Entrepreneurial Seizure: The Catalyst for Small Business Startups

Question: What is the “entrepreneurial seizure,” and why do many small business owners fall into this trap?

The “entrepreneurial seizure” is a term coined by Michael E. Gerber to describe the moment when skilled technicians decide to start their own business, believing that their expertise alone is enough to ensure success. It occurs when individuals become disillusioned with working for someone else and decide to take the leap into entrepreneurship, driven by the desire to be their own boss. However, the fatal assumption here is that technical expertise automatically translates into business acumen.

The reality is that technical skills are just one aspect of running a successful business. Entrepreneurs must also possess managerial and strategic skills to navigate the complexities of the business world effectively. Many budding entrepreneurs fail to recognize this critical distinction, leading to the high failure rates observed in small businesses.

Understanding the Entrepreneur, Manager, and Technician Roles

Question: What are the different roles an entrepreneur must embody, according to The E-Myth?

According to The E-Myth, successful entrepreneurs need to embody three distinct roles: the Entrepreneur, the Manager, and the Technician. Each role plays a crucial part in ensuring the smooth functioning and growth of the business.

  1. The Entrepreneur: This visionary, creative, and innovative personality lives in the future and constantly seeks opportunities and challenges. They are the dreamers who set ambitious goals for their business and are willing to take calculated risks to achieve them. However, their strong sense of control and determination can make them ruthless in pursuing their visions.
  2. The Manager: The pragmatic and organized personality, the Manager focuses on creating structure and order within the business. They excel at problem-solving and prefer to maintain the status quo. Managers are essential for establishing efficient systems and processes that ensure the business runs smoothly.
  3. The Technician: The hands-on, doer personality lives in the present moment, focusing on executing technical tasks. Technicians are often skilled professionals who perform the core work of the business. However, they may lack patience for new ideas, making them resistant to change or innovation.

The Consequences of an Imbalanced Entrepreneurial Personality

Question: How can an imbalance in the entrepreneur’s personality lead to business failure?

An imbalanced entrepreneurial personality, where the Technician dominates the Entrepreneur and Manager, can lead to significant challenges and eventually business failure. When a business relies heavily on the Technician without a strong entrepreneurial vision and managerial oversight, it can result in the following consequences:

  1. Limited Growth: Without the visionary thinking of the Entrepreneur, the business may struggle to identify new opportunities and expand its offerings.
  2. Overwhelming and Burnout: The Technician’s workaholic nature may lead to overburdening responsibilities, leading to burnout and reduced productivity.
  3. Resistance to Change: A Technician-dominated business may resist adopting new technologies or approaches, hindering progress and innovation.
  4. Inefficient Operations: Without effective management from the Manager role, the business may lack efficient processes and systems, leading to inefficiencies and reduced profitability.

To avoid these pitfalls, entrepreneurs must recognize the need to balance their entrepreneurial personalities and actively work on developing their Entrepreneur, Manager, and Technician capabilities.

Working In Your Business: The Technician’s World

Question: What does “Working in Your Business” entail, and how can entrepreneurs effectively manage this aspect?

“Working in Your Business” refers to the hands-on, technical work performed by the business owner. As a Technician, the entrepreneur is immersed in the day-to-day operations, delivering the core products or services the business offers. While this work is essential for the business’s immediate functioning, entrepreneurs must be cautious not to get lost in the Technician role and neglect other critical aspects.

To effectively manage “Working in Your Business,” entrepreneurs should:

  1. Set Boundaries: Allocate specific time for technical work while making time for strategic planning and managerial tasks.
  2. Delegate and Empower: Identify tasks that can be delegated to competent team members, empowering them to take on responsibilities.
  3. Continuous Learning: Stay updated with industry trends and innovations, ensuring the business remains competitive.
  4. Automation and Efficiency: Use technology and tools to streamline repetitive tasks and improve efficiency.

Working On Your Business: The Entrepreneur’s Vision

Question: How can entrepreneurs transition to “Working on Your Business,” and what benefits does it offer?

“Working on Your Business” involves stepping back from the daily grind to focus on the bigger picture and long-term growth strategy. This visionary work allows entrepreneurs to shape the direction of their business, identify opportunities, and make strategic decisions to drive sustainable success.

To transition to “Working on Your Business,” entrepreneurs should:

  1. Schedule Strategic Time: Set aside dedicated time for strategic planning and visioning, away from day-to-day distractions.
  2. Goal Setting: Establish clear and measurable business goals, aligned with the overall vision.
  3. Market Research: Regularly analyze market trends and customer needs to identify new opportunities.
  4. Building the Team: Attract and retain talented individuals who complement the entrepreneur’s skills and contribute to the business’s growth.

The benefits of “Working on Your Business” include:

  1. Sustainable Growth: With a clear vision and strategic approach, businesses are more likely to achieve long-term growth and success.
  2. Adaptability: An entrepreneurial vision allows businesses to adapt to changing market conditions and stay ahead of competitors.
  3. Innovation: Focused on long-term objectives, entrepreneurs are more likely to innovate and stay relevant in the marketplace.


FAQ 1: Is The E-Myth only relevant to small businesses?

While The E-Myth was initially focused on small businesses, its principles apply to businesses of all sizes. Whether you’re a solopreneur or a large corporation, understanding and balancing the Entrepreneur, Manager, and Technician roles can significantly impact your business’s success and sustainability.

FAQ 2: How can I find time to work on my business when I’m overwhelmed with day-to-day tasks?

Delegate tasks that do not require your direct involvement and empower your team to take on responsibilities. By creating efficient systems and trusting your team, you can free up time to focus on strategic aspects.

FAQ 3: Can I transition from a Technician-dominated role to an Entrepreneurial one?

Yes, transitioning is possible with self-awareness and intentional effort. Recognize your strengths and weaknesses, seek training or mentorship, and gradually shift your focus towards strategic thinking and visionary leadership.

FAQ 4: How do I strike a balance between Working in Your Business and Working on Your Business?

Create a schedule that allows you to allocate time for both aspects. Set aside specific days or hours for strategic planning and ensure you’re actively engaging in both Technician and Entrepreneur roles.

FAQ 5: Can you recommend other resources to complement The E-Myth Revisited?

Certainly! Other valuable resources include books like “Traction” and “Good to Great” which offer insights into business growth and effective leadership.

FAQ 6: Is The E-Myth still relevant in today’s fast-paced digital world?

Absolutely! The principles of balancing entrepreneurial roles remain relevant, irrespective of technological advancements. In fact, technology can enhance efficiency in both Technician and Manager roles, enabling entrepreneurs to focus more on visionary work.


In conclusion, mastering the distinction between “Working in Your Business” and “Working on Your Business” is the key to unlocking sustainable growth and success for entrepreneurs. The E-Myth Revisited offers invaluable insights and actionable steps to balance the roles of the Entrepreneur, Manager, and Technician. By recognizing the importance of strategic thinking, visionary leadership, and efficient operations, entrepreneurs can overcome “the entrepreneurial” seizure and build thriving businesses that withstand the test of time.

Remember, your journey as an entrepreneur is a continuous learning process. Embrace the insights from The E-Myth Revisited and apply them to your unique business context. Balancing the different aspects of your entrepreneurial personality is a dynamic process that will empower you to shape a prosperous and fulfilling future for your business. So, step into the world of strategic visioning and entrepreneurial empowerment, and let your business flourish like never before!


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