Small Business Failure – The Number One Reason

The majority of small business failures stem from one fatal assumption:

“If you understand the technical work of a business, you understand a business that does technical work.”

This at least is according to Michael E. Gerber and to be fair he makes a pretty compelling case in his book “The E-Myth Revisited: Why Most Small Businesses Don’t Work and What To Do About It”. Let me explain…

Most people start businesses directly related to the technical skills they have acquired during previous years of employment. The barber opens a barber shop; The musician opens a music store; The carpenter, or the electrician, or the plumber becomes a contractor. 

But these technical proficiencies are unrelated to the entrepreneurial skills which are vital for small business success. And so happens the “fatal assumption”. Instead of working “on the business” by developing procedures, systems and growth strategies, these technicians are instead wholly consumed by working “in the business”.

So what is the solution? Well, I’m only on page 117 of 268 so bear with me and I promise blog again on this shortly! 🙂