Michael Gerber’s book “The E-Myth” underscores a critical oversight many new business owners make: excelling at a technical skill does not automatically equip someone to run a successful business. This concept is highly relevant across many industries, though it is particularly observable in the culinary sector.
In “The E-Myth,” Gerber introduces us to an illustrative story of a cook who decides to open a restaurant. As a skilled culinary technician, the cook is motivated by a passion for cooking and dreams of serving delicious meals in a bustling, successful restaurant. Most people who want to open a restaurant love to cook and think having a restaurant will allow them to follow their passion and cook delicious meals all day. Unfortunately, this is far from the truth.
The reality quickly sets in that operating a restaurant involves far more than great culinary skills. Cooking a dish in a home kitchen for a family or friends, or even when hosting a large party, is not the same as cooking many dishes for dozens of people every single day. The daily demands include managing supplies, staff, customer service, and the financial aspects of the business, which are all critical to success but far removed from the culinary arts.
In another example, consider a skilled carpenter who decides to start his own home remodeling business. As a technician, his craftsmanship in carpentry is exemplary, and his initial projects receive high praise from clients. Encouraged by this success, he launches his business with the expectation that his technical skills will see him through. However, he soon encounters challenges he hadn’t anticipated: he needs to manage project bids, handle scheduling, supervise subcontractors, and keep up with billing and accounting—tasks that require very different skills from carpentry. Like the restaurant owner, he discovers that these managerial and entrepreneurial responsibilities are critical to his business’s sustainability.
Many entrepreneurs are motivated to start their own businesses with compliments and encouragement from friends, family, and co-workers who admire their technical skills. They often hear phrases like,
“You’re so good at your craft. Why do you continue to work for the man? You should hang out your own shingle and start your own business!”
While well-meaning, this advice overlooks the multifaceted nature of running a business and can lead to a rude awakening about the realities of entrepreneurship.
Successful business owners need to adopt three key roles:
The CEO focuses on the future, setting the vision and direction of the company and driving its growth.
The President ensures the smooth operation of the company, manages day-to-day activities and maintains organizational structure.
The Technician is the expert in the craft, focusing on producing the core product or service of the business.
As businesses grow and employ more people, the importance of the owner’s technical skills often diminishes. For example, if you’re a freelance photographer operating solo, your technical ability to capture and edit photos remains paramount. However, if you run a hair salon with multiple beauticians, your role evolves significantly. Here, your focus shifts towards managing the business, marketing your services, and maintaining customer relations rather than cutting and styling hair yourself. The technical expertise becomes distributed among your employees, while your primary role becomes ensuring that the business operates smoothly and profitably.
This model reveals that while the Technician’s role is crucial, it is not sufficient on its own to guarantee business success. The CEO must envision and strategize for the future, while the President must efficiently manage resources and operations.
Thus, “The E-Myth” teaches us that mastering the technical work of one’s trade while crucial, is just one part of a much larger picture. Business success requires a balanced approach, integrating the visionary with the managerial and the technical, to build a sustainable enterprise. This lesson holds true whether one is running a restaurant, a carpentry business, or any other venture where technical skill is central to the product or service offered.
For further reading on the principles discussed by Michael Gerber in “The E-Myth Revisited,” here are some resources that explore similar concepts and provide additional insights into the challenges and strategies of entrepreneurship:
“The E-Myth Revisited” by Michael E. Gerber – This book itself is a foundational resource, outlining the common pitfalls faced by entrepreneurs who excel technically but struggle with the managerial and entrepreneurial aspects of running a business. It emphasizes the importance of working on your business, not just in it, through systematic approaches and strategic thinking (Michael E. Gerber Companies) (EMyth Business Coaching) (Elevate Society) (Simplimba).
Project Life Mastery Review of “The E-Myth Revisited” – This review provides a succinct overview of the key lessons from Gerber’s book, highlighting the need for entrepreneurs to balance their roles as the Technician, Manager, and Entrepreneur to successfully grow their business (Project Life Mastery).
Dan Silvestre’s Summary of “The E-Myth Revisited” – This summary offers detailed insights into the stages of business development as described by Gerber, from the infancy phase where many businesses struggle, to the maturity phase where businesses operate under a clear entrepreneurial vision (Dan Silvestre).
Hustle to Startup’s Application of E-Myth Lessons – This practical application of the E-Myth principles discusses how even solopreneurs can benefit from building organizational charts and creating detailed job descriptions for better business management (Hustle to Startup).
Additionally, here is an article that might be of interest:
“So You Want to Open a Restaurant? Read This First” – This Chef Works blog post provides practical advice and considerations for aspiring restaurateurs, aligning well with Gerber’s caution about the difference between technical skills and business management skills. It’s a great read for anyone considering entering the restaurant business. Read more here.
These resources will provide a comprehensive view of the challenges and strategies outlined by Michael Gerber, along with practical applications and further explorations of the concepts.
Are you thinking about business ownership based on your technical proficiency?
