Is The E-Myth Still Relevant?

Is The E-Myth Still Relevant?

Remember Michael Gerber, author of The E-Myth? The business guru who proclaimed in 1985 that an entrepreneur (the “E” in E-Myth) who tries to run a business single-handedly is doomed.

He said that a one-person business is not a “real business” and is in fact nothing more than a job. One the occupant will inevitably come to hate because running a business requires a variety of roles that no one person can fill. As long as the business owner remains solo, without employees, he or she cannot have the time or perspective to work “on” the business; they’re too busy working “in” the business.

According to Gerber, the goal of a business owner should be to reduce the business operations to simple systems and procedures that any employee can follow, with no particular talent, skill or love for the work required. Unless the business can function independently of its owner, he or she can never escape its burdensome demands. The business will die.

Wait just a minute!

Perhaps that was true in 1985, but today, there are thousands of us solopreneurs around the world, running successful one-person businesses that we love. Our idea of a “real business” is doing work we enjoy, that there’s a need for, and that generates an income that supports the lifestyle we want. The types of businesses that fit that definition are as numerous and varied as the people running them.

When Gerber wrote The E-Myth, his opinion may have been valid. But almost 30 years later, his definition appears hopelessly outdated. It’s no longer necessary to have the kinds of business processes and management structures he prescribes. We solopreneur business owners cultivate in-person contacts that generate referrals to well-paying customers. We partner with other small businesses to extend our networks and reach more customers. We find business opportunities through public speaking, trade shows, and other audience-drawing events. We don’t need to hire employees to grow our businesses.

For those of us who venture online, there’s a booming industry supplying technology and business services to the solo professional market. Nowadays, it’s possible for solo business owners to run a personally-satisfying and profitable business from our home offices, using robust software services and highly-skilled independent contractors. Whatever functionality and special skills we don’t personally possess are readily available. And we can choose whatever and whoever is best for a given situation; we aren’t limited to our company’s equipment or personnel.

For us, the solopreneur model is infinitely preferable to the stresses of hiring, training and managing employees, worrying about escalating overhead costs, complying with ever-changing government regulations, and so on. And we don’t find it at all “burdensome.” We arrange our schedules to accommodate the non-work aspects of our lives, and hire other solopreneurs to share the workload so our successful and growing business doesn’t require us to do everything ourselves. These days, our businesses can even carry on without us while we’re taking a break. It just takes a little planning.

Single-person businesses are real indeed and very popular in an uncertain economy where employment by someone else can disappear without a moment’s notice. They allow owners to choose and enjoy their work, reap the benefits of their efforts, and maintain control of their lifestyle. What could be more relevant?

What do you think? Share your thoughts in the comments.

4 Comments

  1. Tim

    Although it is much easier to run a business by yourself than it was in 1985, I have found that there is a ceiling you will hit in terms of both revenue and reach if you try to go it alone indefinitely. But that only applies if you want your business to grow past a certain point. I know numerous “solo-entrpreneurs” that have grown to multiple 6 figures and suddenly find themselves burned out, exhausted, and on the verge of breakdown because they are trying to be a one-man (or woman) band.

    The other pertinent point is that no one is great and everything. Coaching, training, marketing, sales, client care, graphic arts, video production, social media… the list goes on. Now that doesn’t mean that you can’t out source much of these things, use virtual assistants (something impossible in 1985) and hire part-time.

    Finally, there is the fact that being an entrepreneur can be a lonely slog. Sometimes it just helps to have someone else to bounce ideas off of and help share the load.

    Reply
    • Elaine

      Tim, thank you for your thoughtful comments. I agree wholeheartedly that it’s important for a solopreneur to avoid getting swept into something much bigger than they wanted! Many solo business owners choose this type of business model precisely because they CAN control their company’s growth. To avoid feeling overwhelmed, I’m very much in favor of outsourcing activities that a person doesn’t enjoy and/or isn’t good at to other small businesses who specialize in that very activity. There are now SO many freelancers and independent contractors that good resources are fairly easy to find. One of the best ways to meet such people is strategic networking, which, in addition to uncovering business opportunities, can also connect a solopreneur with others in the same boat, replicating the camaraderie of a traditional workplace environment. Just because you’re in business by yourself doesn’t mean you have to be alone!

      Reply
  2. Malcolm Sproull

    I think it might be worth you re-reading the E-Myth. I believe Micheal’s ideas only applied to people who wished to approach their businesses as enterprises they could replicate and thereby set the scene for creating a business that was not reliant on the expertise of its founder. For those with that ambition in mind, I believe the E-Myth principles are timeless. By undertaking disciples of reliance on process and systems rather than the unique and expensive talents of a solo technician, then the business founder opens the doors to establishing a business that they can hand on. The true test of the end result is that the business owner can leave the business for a year and it is doing better financially when they return. If that is an aspiration then stick with the timeless E-Myth principles. In my humble opinion. 🙂

    Reply
    • Elaine

      Thank you for your thoughts, Malcolm. I agree that Michael Gerber had in mind those who want to grow their businesses beyond themselves. Since he wrote the E-Myth, however, the economy has changed so significantly that these days, many who establish a business they specifically don’t want to grow beyond themselves find they are able to develop a book of business that is saleable. These are people who recognize their own talents and don’t try to become expert in everything. There are plenty of experts available as independent contractors to fill whatever gaps they may have. With a network of long-term, reliable contractors who mutually support each others’ solo businesses, plus today’s array of automated software choices, it’s entirely possible (and sometimes necessary) to step out of the technician role and into a managerial role. Solopreneurs can end up managing a virtual company encompassing all the functions that used to require employees, if that is their wish. And if that’s not want they want, they don’t have to explain themselves to anyone. They’re without obligations and are free to choose their life and lifestyle, which is the whole point. IMHO. 🙂

      Reply

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