The No.1 Reason Why Most Small Businesses Won’t Work

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The No.1 Reason Why Most Small Businesses Won’t Work

Do you know the No. 1 reason business legend, Michael E Gerber in his book, E-Myth, gave as to why most small businesses don’t work? 80% of businesses crash after 5 years of kick-off and 90% of the remainder crash after 10 years of kick-off. As the rate of business failures keeps rising, more and more people have continually asked “Why do businesses fail?” Let me break it down for you.

Over the years, as a copywriting and PR agency, we have had the opportunity of working with quite a number of businesses, and one major reason clients come to us is to help promote their brand image and boost sales via quality copywriting. They come with stories of past trials indicating that they lack the basic understanding of running a business. After critically looking at various businesses and business models, we found out that Michael E. Gerber’s reason is very accurate.

Here is what Michael E. Gerber says, “At the core of all this dramatic business failure and loss of happiness is a very simple, tragic assumption, made by every single business owner: The assumption that they understand the business because they understand—and maybe are experts at—the technical work of the business. They think because they know the work, they are qualified to run the business”. Robert Kiyosaki, Author of Rich Dad Poor Dad, called these kinds of people self-employed, not business owners. Kiyosaki opined that in fact most “business owners” today own a job, not a business. This is the reason most small businesses don’t work.

There are three parts, according to Michael E. Gerber, which every business must have to make a business work – The Entrepreneur, The Manager, and the Technician. While these three parts could be a person or three different people, it is highly expedient that all businesses hoping to exist for long have these three parts working in harmony.

The Entrepreneur is the person with the vision. He or she is the person who understands business systems and works on the business. He has a picture of what the business should look like.He knows the necessary skills required to make the business work. The Entrepreneur is a risk-taker and will do whatever it takes to make the business work.

The Manager refers to the person who runs around controlling the resources that the Entrepreneur has provided to make businesses work. The manager works in the business, a bit less risk-taker. He or she is responsible for effectively bridging the Entrepreneur- Technician gap.  

The Technician does one and only one thing – work. This is the person who provides the necessary skills to get a product into reality and effectively delivered to customers, with the provided resources that have been provided.

All businesses area reflection of  their  owners. The Entrepreneur, usually the owner of the business, is responsible for making the business work. He or she works on the business by providing the right systems, innovations, and strategies which the business requires for growth, from infant to adult stage. He works mostly with the manager and provides efficient strategies for Sales and Marketing, Operations, Accounting, Legal, and communications. Together, they ensure that technicians are well catered for so that they can provide the best experience for customers and boost business growth.

Is your business not working? No problem. Harmonizing Michael E. Gerber’s 3 must-have personalities in your business is an excellent start to growing and improving your business. Act Now!

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Written by Joseph Oche
Joshua, Oche Joseph is a mechanical engineer. He is also a trained professional writer. Joseph is enthusiastic about righting wrongs, passionate about goals, and hardworking towards life.