Dear Business Owner,
If you’re reading this because you’ve built a business that’s become more consuming than you ever imagined, I’d like to share with you how we came to help small business owners transform the business they have into the one they want and what that looks like today.
In 1975, before business coaching existed as an industry, EMyth founder Michael E. Gerber had an epiphany working for his brother-in-law’s advertising agency helping small business clients build their sales process. As a door-to-door encyclopedia salesman and regional manager before joining his brother-in-law’s agency, Michael knew a lot about building sales systems. He didn’t know anything about running a business. And, he was shocked to discover that his clients didn’t either.
Michael saw something that no one had seen before: the myth that businesses are started by Entrepreneurs. The Entrepreneurial Myth. Michael realized that most businesses are started by Technicians. Plumbers open plumbing businesses, auto mechanics open auto repair shops, doctors open medical practices and so on.
And, Technicians go into business operating under what Michael called the Fatal Assumption: If I understand the technical work of my business, I understand a business that does that technical work. It’s an assumption that just isn’t true.
Michael saw the Fatal Assumption not only as the cause of the tragically high failure rate of small businesses in the US—as much as 80% in the first five years at the time—but also the source of overwhelm and stress for the business owners he got to know. Whatever dream or impulse they had to start a business of their own turned into something much more difficult than it was ever meant to be.
The business owners Michael worked with were exceptional at the technical work of their business but unprepared for the demands of owning a business: how to lead, how to create leads and make sales, how to grow cash and manage people, how to work on their business not just in it, how to build a business that served their life.
Michael watched his clients shy away from what they weren’t good at and build their business around what they excelled at: their own ability to produce results. Every decision, every customer interaction, every problem had to run through them. Because they were exceptional at the technical work of their business, they never considered how much overwhelm and stress they were creating for themselves or how much they were limiting their growth to what they could personally get done.
Michael felt the chaos these men lived with, inside their business and at home—in broken marriages and fathers who didn’t have time to be fathers—and knew there must be a solution to a problem he saw again and again in his clients.
He was inspired by Ray Kroc, the founder of McDonalds and Tom Watson Sr., IBM’s first CEO, who approached their companies differently, as Entrepreneurs. Ray Kroc wasn’t interested in making hamburgers and Tom Watson Sr. wasn’t spending his time building computers. They weren’t Technicians. They were leaders who saw their business as a system, apart from them rather than a part of them. The system made it possible for their employees to fulfill the needs of their customers in alignment with their values and the life they wanted for themselves.
Michael E. Gerber turned 90 this year. With the founding of EMyth in 1977 and the subsequent publication of 37 E-Myth books and a speaking career that spanned decades, Michael is still imploring small business owners to make the transition from Technician Leader to Entrepreneurial Leader so their business works without them rather than because of them.