The E-Myth

Most businesses fail in the early (the ones that don’t pivot). About 85% of bright eyed, hopeful, hard working entrepreneurs find themselves out of a job within five years.

But not all.

Some categories have much lower failure rates. One category’s five year failure rate is ten percent. That category is franchise businesses.

The central question to Michael Gerber’s book, The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It, asks why this is so.

His explanation of why things work out so well for franchise businesses like McDonalds, Dunkin’, and Chipotle takes a whole book. We’ll do it in a sentence: successful businesses design processes that lead to short and long term success.

For a franchise, these come as part of the bundle. Orangetheory. Tropical Smoothie. Ace Hardware. Yes, there’s a brand but more importantly there’s a way of doing things.

And any business can build this.

Gerber answered his question, now Can You? Have you designed processes that lead to short and long term success?

The Daily Entrepreneur newsletter delivers brief meditations on the principles & practices of the world's greatest business builders. This newsletter will always remain free and dedicated to helping you get a little better each day.