Chapter 01 Flashcards
What is the E-Myth?
The E-Myth, or the entrepreneurial myth, is the idea that most people who start small businesses are entrepreneurs, risking capital to make a profit.
This myth can mislead individuals into believing they have the necessary skills to run a business based solely on their technical expertise.
What is the Entrepreneurial Seizure?
The Entrepreneurial Seizure is a misconception that lures people to start a business to gain freedom and independence from their existing jobs.
This often leads to disappointment when the realities of running a business set in.
What is the Fatal Assumption?
The Fatal Assumption is the belief that an individual who understands the technical work of a business can successfully run a business in that industry.
This assumption overlooks the complexities of business management beyond technical skills.
What happens to the technician’s work when they start a business?
The work which used to be love and joy for the technician will turn into forced chores, and eventually the business will be too much for the technician to handle.
This shift can lead to burnout and dissatisfaction.
What should you consider if you want to start a business?
Ask yourself the following questions:
* Do I want to start a business because I want to be my own boss?
* Do I want to start a business just because I am good at and enjoy doing the technical work?
* Do I want to start a business to have the job I want with higher pay?
* Do I feel lost in identifying my business’s purpose?
These questions help assess your motivations for entrepreneurship.
What does it imply if you answer ‘Yes’ to any of the self-reflection questions?
If you answer ‘Yes’ to any of the questions, you’re a Technician. Starting your own business may not be desirable.
Technicians may lack the broader vision needed for successful entrepreneurship.
What should you do if you cannot name a purpose for starting your business?
If you cannot name a purpose for starting your business besides enjoying the technical work, you should find a job in somebody’s business.
For example, if you’re good at cooking, do not open a restaurant; consider working as a chef instead.
What should you evaluate if you are already operating a business and realize you’re only a Technician?
Decide whether you still want to keep the business. If not, backing out is not a bad option. If you want to continue, be prepared to reevaluate your business, identify problems, and drastically change your business around.
This process should start with insights from subsequent chapters.
