Why Most Business Wont Work

The CEO Report
Why Most Businesses Don’t Work
By Michael E. Gerber

E-Myth Worldwide: CEO Report E-M— Why Most Businesses Don’t Work —

CEO REPORT Why Most Businesses Don’t Work By Michael E. Gerber

Businesses start and fail in the United States at an increasingly staggering rate. Every year, over 500,000 people start a business of some sort. By the end of the first year, at least 40% of them will be out of business. Within 5 years, more than 80% of them—400,000 people—will have failed! And, if your business has managed to survive for 5 years or more, don’t breathe a sigh of relief. More than 80% of the enterprises that survive the first 5 years will fail in the second 5 years. Why is this? Why do so many people go into business, only to fail? What lessons are they not learning? Why is it that with all the information on how to be successful in business, so few people really care? “I think that maybe inside any business, there is someone slowly going crazy.”
—Joseph Heller, Something Happened

These figures gathered by the Department of Commerce illustrate a startling fact supported by the experiences of countless people, which is:

That’s not because people who own and operate businesses don’t work. They do. They work far more than they should for the return they’re getting. The problem is that they’re doing the wrong work. As a result, their businesses end up in chaos—unmanageable, unpredictable, and unrewarding. Sound familiar? No matter how large or how small your business is it is important to remember that your business is nothing more than a distinct reflection of who you are. If your thinking is sloppy, your business will be sloppy. If your information about what needs to be done in your business is limited, your business will reflect that limitation. If you are disorganized, your business will be disorganized as well. If you are greedy, your employees will be greedy, giving...