There's a scary reality about starting a small business: 50% of small businesses fail within their first year. 75% of those that passed the first year fail in the next 5 years.

How are you going to beat those odds? How can you create a business that doesn't fail, runs smoothly, and gives you the time and money to enjoy life?

That was the question spinning around my head until I found an answer through Michael E.

Gerber's book, "The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It." If you're thinking about starting a business, or if you have started one but feel stressed and busy all the time, then this video is for you.

This is one of those books that I wish I had read before starting my business. Okay, let's get started. Part one: The Fatal Assumption.

This is you. You work in a company for somebody else. You're good at your job, damn good. You are one of the best employees, but things aren't going well for you.

You might not feel appreciated or you don't feel like you are paid enough. One day you're at work, and for some reason you don't like your boss's behavior.

Maybe he said something or did something. The reason doesn't matter much, you just didn't like it.

Suddenly a voice in your head said, "Why am I working for this idiot guy? I know the job better than he does. This business would collapse if I weren't working here.

Why don't I start my own business and be my own boss?" From that day on, you just couldn't stop thinking about creating your own business.

The entrepreneur in you woke up and wasn't going back to sleep. The excitement of Being your own boss and becoming independent was irresistible.

You had to do it. So you start your business. But here's the thing you didn't realize yet: You were about to go from hating the idiot boss to becoming the idiot boss yourself.

Including myself, most people start a business this way. Before starting, they were doing some technical work for a company, and one day they decided to start their own business.

But this is a recipe for failure because the person who starts a business this way makes a fatal assumption, and it's this: The technical work of a business and a business that does the technical work are two totally different things.

Just because you understand the technical work of a business doesn't mean that you understand a business that does that technical work.

Just because you are a skilled video editor doesn't mean you know how to create and run a video editing business. Unfortunately, most people fail to see this.

This happens to millions of technicians daily: A barber opens a barber shop, a hairdresser opens a beauty salon, and a musician opens a music store.

The tragedy is that when the technician falls prey to this fatal assumption, the business that was supposed to free him enslaves him. He used to do one job when he was working for somebody else, but now, besides that job, he has to do 10 other jobs that he has no idea how to do.

One day, you wake up and realize that you don't have a business, you have a job, and it is the worst kind of job.

You were running away from your boss, but now your business is your boss, and it is the worst kind of boss.

Soon, the job you used to love becomes the job you hate. The journey that started with excitement turns into terror, exhaustion, and failure. In the next part, you will understand why this happens and how to avoid it.

Part two: The Entrepreneur, Manager, and the Technician. Everyone who goes into business is really three people in one: an entrepreneur, a manager, and a technician.

The easiest way to understand this is if you've ever been on a diet.

Everyone who has tried dieting knows there's a fat guy and a skinny guy inside them. Skinny guy knows what you have to do to get skinny: diet and exercise.

All you have to do is chisel skinny guy out of you like a marble statue. But fat guy doesn't want to go on a run.

Fat guy likes junk food. You can work out later, maybe tomorrow or never. Anyone who has ever experienced the conflict between the fat guy and the skinny guy knows what I mean.

You aren't just skinny guy or fat guy, you're both. When you're skinny guy, you're always making promises for the fat guy to keep.

And when you're the fat guy, you're always making promises for skinny guy to keep.

If you've ever felt like fat guy and skinny guy, you know that you can't be both. Someone has to lose, and they both know it.

Well, that's the kind of war going on inside the owner of every small business. But it's even worse because it's a three-way battle between the entrepreneur, the manager, and the technician.

Unfortunately, it's a battle no one can win.

Understanding the differences between them will quickly explain why. First is the entrepreneur. The entrepreneur is the visionary, the dreamer. This is who was inside you daydreaming, looking at the clock, imagining a better life.

They live in the future, never in the past, and hardly ever in the present. They are your innovators.

and always best at working with the unknown, engineering chaos into harmony. They have a strong need for control because they need the control of people and events in the present to make their vision or dreams come true.

This causes a big problem: they live in a world made up of too many opportunities and everyone around them is just slowing them down.

This means they usually do whatever it takes to make their projects move forward, even if they have to bully, harass, or scream at their employees.

To entrepreneurs, most people are problems that get in the way of their dreams. Next is the manager. The entrepreneur has the future vision for the business, but the manager within you keeps the business running smoothly in the present.

They are practical. The manager wants to keep things organized and in order.

It's their job to clean up the mess of the entrepreneur. If you're like me, you have a junk drawer in your house.

It might be in your kitchen, in a desk, or office, but there's a drawer that's just full of random items.

You don't know how it got there, but one day you woke up and it was full of junk: rubber bands, old mismatched keys, a broken watch, batteries that might be dead, and always some loose screws and nails waiting to poke you when you reach inside.

This is what the manager sees when he sees an entrepreneur's business.

They can't work in this mess. He sees a junk drawer that needs to be cleaned and organized.

Instead of everything being shoved into a drawer or tossed into piles, a manager would go to work with a label maker. Everything has a place, and everything should be put back in its place.

Keys are on a key ring, screws and nails are in plastic bins labeled screws and nails. Batteries are tested and then either thrown out if they are out of power or put into clearly labeled bins by size.

Managers treat people and tasks in a business the same way they handle junk drawers.

They plan for problems to happen. Everyone has their place and their jobs to do, and they make sure it happens. The technician, if you're watching this video and you want to quit your job, you are a technician.

If you've ever thought to yourself, "If you want it done right, do it yourself," you are a technician.

Technicians love the feeling of getting things done, having their hands on projects, and living in the present. They don't care about the future of the business or the problems of yesterday.

They just want to get to work. They want to know how to do it, and they want everyone to get out of their way.

Everyone gets in the technician's way. The entrepreneur creates new and interesting work for the technician, but they are always interrupting or distracting.

The manager is also a problem because they want to make technicians part of their system. If it were up to the technician, they would go to work every day and never worry about the future.

This is the worst mentality if a business is going to survive for many years.

In your life, you can probably see these three characters in action. You can see how one part of you craves a sense of order, while another part of you dreams about the future.

You can see how another part of you can't stand being idle and jumps into work and feels guilty if he isn't doing something all the time.

So, to sum up this part, there are three people in you: the entrepreneur, the manager, and the technician.

The entrepreneur dreams, the manager worries about everything, and the technician gets the job done. Part three: Three phases of a Businesses grow just like people.

There are three stages that a business will grow through: infancy, adolescence, and maturity. Infancy, the technician's phase. This is how most businesses start as a technician-led business.

You are finally free of the boss. It's an exciting start that's about to be exhausting. You are now going to be a master juggler every day.

From now on, you will be juggling balls in the air, doing all of the work inside your business.

One ball is managing the business's money, and the other ball is selling your products and services, all while juggling advertising, marketing, legal fees, and taxes.

In the infancy stage, all you do is work, work, and more work. Hours are long. You might work 12 to 14-hour days.

You work every day, 7 days a week. Even at home, you're working. You are totally invested in your business, but there's a big problem: there's more work than you can handle.

You work harder, you put in more time, but you can't juggle it all.

Balls start to drop and hit the floor. You can only work so hard alone. Infancy ends when the owner realizes that the business cannot continue to run the way it has been.

In order for it to survive, it will have to change. When that happens, when the reality sinks in, most business failures occur.

The technician locks the doors and walks away. The rest go on to adolescence. Adolescence, the manager's phase. This is the moment when you decide to finally get help with your business.

Every business that lasts must grow into the adolescent phase. Every business owner who survives needs help. What kind of help does an overloaded technician get?

Technical help. Someone who can do the work that isn't getting done, which is usually the work you don't like to do.

if you like sales, you bring in someone to build the product. If you like production, you bring in a salesperson. If you don't know who to bring in, it's usually an accountant because most small business owners hate accounting.

So you hire your first employee, Harry. Harry knows accounting, he's an experienced, hard worker.

Harry has been crunching numbers longer than you've been alive. He's worked in businesses just like yours all his life and now Harry is going to find out the deepest secret you've been hiding.

He will soon discover that you don't know what you are doing. Day one on the job and Harry goes to work on your books.

He's looking over the mountain of spreadsheets, printouts, and paperwork you've given him, and in a moment it hits you.

You don't have to do that job anymore. You can now be a manager and not just a technician. A few weeks later, you realize Harry can do more than just accounting.

He can answer the phone, he can work with customers, he can tidy up the storefront, he can do a little bit of everything.

Life gets easier with Harry. You start taking longer lunch breaks and relax a bit, but there's a problem. You let Harry take over tasks inside your business instead of telling Harry what to do.

This is a dangerous game because if you aren't telling Harry what to do, he does things his way. This means your business is slowly changing from the way you did things to a new and unrecognizable business.

Harry needs more help, so he hires new employees because you are so busy working and growing the business.

They answer to Harry instead of you. You keep this up because it frees you up to do what you love until problems start happening.

Mistakes start piling up, unhappy customers start complaining that things aren't the way it used to be, deadlines get missed. This poor management begins to take its toll.

You begin to realize that no one cares about your business the way you do. You begin to realize that you never should have trusted Harry.

You never should have trusted anyone. You should have known better. As the balls continue to fall at an overwhelming rate, you realize no one is willing to work as hard as you work.

No one has your judgment or your ability or your desire or your interest.

If it's going to get done right, you're the one who will have to do it. Walk into any adolescent business and you'll find a busy owner.

They are trying to do everything even though they are paying workers to do it. The more the owner does, the less the workers do because you don't know how to do it any other way.

Every adolescent business reaches a point where it pushes beyond its owner's comfort zone. You lose control over your business and can't even manage your Harry.

When Harry came, you just threw things at him and ran away, but Harry has needs too. He needs more direction.

He needs to know why he's doing what he's doing. He needs to know where the business is going and what's the overall strategy.

If you can't manage Harry, how are you going to grow? Instead of growing the business, you'll say, "Forget this. We'll go back to the old way when it was just you and you alone.

We won't worry about all these employees and expenses." So you shrink down the business where you feel comfortable, but you don't realize that you have already been there.

You have already been small and you couldn't do it. So you shrink down the business where you feel comfortable.

Things go fine for a while, but one day you wake up and realize, "I don't want to do this anymore." You're lying in bed and don't have the energy to get up.

Then you turn to your partner and say, "I'm not feeling well. I think I'm sick.

I don't want to go to work." And your partner says the quiet truth out loud, "But if you don't go and work, no one else will." Right at this moment, you realize you don't own a business, you own a job, and it's the worst job in the world because if you take a sick day, you don't get paid.

If you don't show up today, there's no one who will do the work for you, and you can't sell this business to anyone because you'd just be selling them a job you hate.

When the dream is gone, the only thing left is work.

You might ask, "What will happen if I don't go small and keep growing?" Well, you'll eventually self-destruct.

Let's say against all odds you survive because you're stubborn and determined to stay in business. You do whatever it takes to keep the lights on, and you have to be working all the time.

You're consumed by the business. Day after day is the same. You never change. The business doesn't fail; your body and mind do.

Build a Business That Runs WITHOUT You  & Gives You FINANCIAL FREEDOM

Hi, I am Elvin. I  summarize personal development and business books for entrepreneurs. 
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Build a Business That Runs WITHOUT You & Gives You FINANCIAL FREEDOM

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