The E-Myth: a Review

(To my friend, AGOL, who is an avid reader of this column, thank you for believing not only for my person, but my capacity. And thank you for the book that you gave. It definitely saved me with today’s column.)  

I would like to share my thoughts about the book titled, E-Myth Enterprise – How to Turn a Great Idea into a Thriving Business by Michael E. Gerber. The book is only less than 200 pages and can be read in a day or two even if you’re working. In a way, the book presents a whole new perspective to enterprise creation from both its inner workings and the “externalities” that matter not only to the business but to the stakeholders as well.  

Gerber, probably in his 70s now, is touted as the guru for small businesses. This book might seem to look like "one of those" business books on the shelves if you look at its cover. But it isn’t really a business book in the entire sense. There are only a few chapters of the book that tell you about the “goings on” in the world of business. The rest of the chapters talk about principles, virtues and common sense that one must take by heart to realize a business idea and the importance of human interactions, the philosophy a business must choose to live by and the values on what it believes to be upright and conscientious. 

As I may not be able to present everything in this column, let me cull some of my favorite parts. For an idea to thrive as a business, one must ask 1) if the idea will attract customers; 2) if it attracts people (to work on the idea); 3) if it attracts suppliers and; 4) if it attracts lenders or investors. “It is an idea that attracts, with the greatest of force, the interest and attention of the four primary influencers, and acts with the same force which it attracts.”  

Skill is essential to make the business succeed. This is not about the technical skills needed to accomplish certain functions or operations of the business (as these can be easily assigned to professionals or specialists). The skill, as Gerber points out, is the ability to “concentrate” or focus one’s attention to the business. By concentrating also means harnessing what the business does in terms of value and strength of the product or service to the customers.

I took due notice on the part of the book where he mentions Apple, as an example. People behind the Mac computer are content with a very low share in the personal computing market while the rest of the manufacturers are kicking each other’s behinds to lower prices for lust of the lion’s share. The Mac stands for what it’s worth and has never been displaced even with the invasion of high-end personal computers in the market. “Concentration is not only something a great business must do, it is also the result of such doing.”    

Discrimination is another skill to get to grips with and a twin sister to concentration, says the book. If concentration is the provider of energy, discrimination enables businesses to allocate those energies where they are needed the most. Discrimination rationalizes the business process. It feeds those areas that are crucial to the survival of the business. Discrimination also impels businesses to create standards of efficiency, defines the culture by which people must work and behave. Discrimination in other words, provides the means for resource optimization and the ways people in the organization must act with respect to the resources at hand. 

Value for what’s ideal and what’s human. This part happens to be one of my favorites in the book. Gerber likens a business to war. The comparison might come too extreme or unreasonable but businesses also exist based on its ideals. In war, we have battalions and regiments and captains and generals. In business, we have the assembly line, managers, and top executives who rally the whole personnel to accomplish certain visions and goals and sometimes the survival of the company. Therefore, people must also share the same passion and purpose for the company to succeed.

A business owner must also be mindful that the members of the organization are not just company soldiers or merely personnel that can be disposed of without compassion. They are human beings and as such must be treated with great respect and value not only for his/her contribution to the company, but also for his or her person as a human being. It is impossible to rally an organization when people in the organization feel that they have a very small place in the company. It is when we give importance to human capital that people begin to value their place in the organization – their willingness to be a war worth fighting for.   

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