The E-Myth Revisited

False Bill of Goods

A false system is cheating small business owners. Quite frankly, the owners of small corporations spin their wheels performing the wrong type of work. Basically, the returns they earn from their businesses fall dramatically short in relation to their investment of time and energy. The numbers don't lie: Each year, more than a million people launch new businesses in the United States. Unfortunately, within 12 months, 40% of those start-ups close. And after five years, more than 80% (roughly 800,000) no longer exist. Most entrepreneurs are victims of their own fictions, fantasies and lack of knowledge. They govern themselves according to four concepts:

1. The Myth of the Entrepreneur – This false idea, the "E-Myth," states that people launch start-up companies because of the entrepreneurial spirit – the desire to create profits from investment capital. In fact, people start businesses for many reasons, but entrepreneurship doesn't have that much impact.
2. "Turn-Key Revolution" – The franchise movement generated this wave of change, enabling an entrepreneur who buys a license to become ...