Insights from ‘The E‐Myth Revisited’ by Michael Gerber

Question 1

According to Michael Gerber, what does it mean if your business depends on you?

Answer 1

It means you don’t own a business; you have a job.

Question 2

True or False: The goal of an entrepreneur is to make a business that can work without them.

Answer 2

True

Question 3

Fill in the blank: To avoid a business becoming a personal prison, you must replace yourself with a unique _____.

Answer 3

system

Question 4

What is the main goal of building a business according to Gerber?

Answer 4

To create a business that operates independently of the owner.

Question 5

In Gerber’s example, why would a bakery owner focus on building a cake-baking system instead of baking the best cakes themselves?

Answer 5

To enable ordinary people to produce extraordinary results through a reliable system.

Question 6

What is the purpose of a Sales Operation Manual in a business?

Answer 6

It documents scripts and processes for customer interactions to ensure consistent service and efficiency.

Question 7

According to Gerber, what type of person should be hired for a system-dependent role?

Answer 7

An ordinary, novice individual who is eager to learn.

Question 8

True or False: Gerber advocates for hiring highly skilled technicians for every role in a small business.

Answer 8

False

Question 9

Define ‘Management by Abdication’ and ‘Management by Delegation.’

Answer 9

‘Management by Abdication’ is relying on skilled people without oversight, while ‘Management by Delegation’ involves creating systems and guiding employees within those systems.

Question 10

Fill in the blank: ‘No business can produce consistent results if it depends on ______ people.’

Answer 10

extraordinary

Question 11

Why does Gerber recommend training a novice rather than hiring someone with sales experience?

Answer 11

A novice can learn the company’s specific methods without relying on personal discretion, ensuring consistency.

Question 12

According to Gerber, what question becomes unnecessary in a well-systematized business?

Answer 12

‘How do I motivate my people?’

Question 13

Describe the purpose of creating systems for different areas in a business.

Answer 13

Systems allow each area to operate independently, freeing the owner to focus on building rather than operating the business.

Question 14

What mission should a business owner aim for according to Gerber?

Answer 14

To work on the business (creating systems) instead of in the business (performing daily tasks).

Question 15

True or False: Gerber believes a business should aim to make the owner essential to its daily operations.

Answer 15

False

Question 16

According to Gerber, what kind of place can a business become for its employees?

Answer 16

A community with purpose, order, and meaning, fostering organized and intentional actions.

Question 17

What does Gerber mean by creating a ‘Game Worth Playing’ in a business context?

Answer 17

Building a meaningful, organized workplace that gives employees a sense of purpose and discipline.