E-Myth
'E-Myth' in the business vernacular refers to the Entrepreneurial Myth, and means that most businesses fail because the founders are technicians that were inspired to start a business without a true entrepreneur's outlook. The E-Myth has been sited in many books such as 'Managing Organized Chaos - Business Planning 1.0' where the author gives reference to recommending it as a must read.
Statistics Canada has mentioned that 80% of all non franchised business fail. Which is a direct result of not understanding the differences between running a business and performing a service or providing a product of that business 'Managing Organized Chaos - Business Planning 1.0'.
Business Management involves the direct management of all processes of business systems not just the performance of a service. An example is one seen very often with construction companies. The owner may be a licenced heating and cooling technician who feels since he is qualified to do all the service work, he is qualified to run a business, since that business performs heating and cooling services. In fact this is the biggest mistake anyone can make. Yes he is qualified to do the work but he does not know how to set up the company, prepare reports, market his business, handle customer service issues, etc... He forgets that he went to school and became qualified to work for a business not run one.
E-Myth is also used as a verb, i.e., to 'E-Myth your business' means to build internal systems that control processes as in a franchise operation, so that results are predictable.
E-Myth methods are taught in courses at Stanford [1], BYU [2] and Stetson University [3] and recognized by Entrepreneur Magazine[4], Forbes Magazine [5] and Inc. (magazine)[6] among others. In 2003 E-Myth entered the Fast Company (magazine) blogosphere [7].
[edit] References
- "Stanford University, Hasso Plattner Institute of Design", Me 288/MS&E 228 - Spring 2007 course reading.
- "BYU 2007 Entrepreneur Lecture Series"[dead link].
- "Stetson University, 2006 Prince Entrepreneurial Seminar", BN 399.
- Henriks, Mark. "Novel Ideas", 'Entrepreneur Magazine', April 14 2007.
- Maiello, Michael "The Entrepreneur Library", Forbes Magazine, September 12 2005.
- "Undergraduate Entrepreneurship College Opens in Phoenix" ,INC. Magazine, January 26 2007.
- "Sound Off", FastCompany (magazine), August 12 2003.
