Chapter 2: The Entrepreneur, the Manager, and the Technician

In Chapter 2 of “The E-Myth Revisited,” Michael E. Gerber delves deeper into the three key personalities within an individual that are crucial for the success of a business: the Entrepreneur, the Manager, and the Technician. He explores the roles, characteristics, and interactions of these personalities and how their balance is vital in running a successful enterprise.

The Entrepreneur: Gerber describes the Entrepreneur as the visionary and dreamer. This aspect of a person is constantly seeking new opportunities, imagining possibilities, and looking for innovative ways to grow the business. The Entrepreneur sets the direction for the business, defining its long-term vision and strategic goals.

The Manager: The Manager is the practical and organized personality. This aspect of a person is focused on planning, setting goals, creating schedules, and ensuring that the daily operations run smoothly. The Manager is responsible for establishing systems and processes that enable the business to function efficiently and effectively.

The Technician: The Technician is the “doer” and the expert in the technical work of the business. This personality enjoys performing the hands-on tasks and takes pride in their technical skills. However, when the Technician dominates the other two personalities, it can lead to neglecting the overall business strategy and growth.

Imbalance and Conflict: One of the central themes of this chapter is that most small business owners are primarily Technicians, having started their businesses based on their technical expertise. As a result, they often neglect the Entrepreneur and Manager aspects of the business. This imbalance can lead to conflicts and frustrations, with the business becoming stagnant or overwhelmed with day-to-day tasks.

The Entrepreneur’s Role in Small Business: Gerber emphasizes that the Entrepreneur is essential for driving the business forward. Without a clear vision and direction, the business may lack purpose and may not adapt to changing market conditions.

The Manager’s Role in Small Business: The Manager’s role is to implement the Entrepreneur’s vision. They are responsible for creating systems, procedures, and routines to achieve the business’s strategic objectives. The Manager ensures that the business operates efficiently and consistently.

The Technician’s Role in Small Business: The Technician’s role is to perform the technical work and deliver the products or services to customers. While the Technician’s skills are vital, they should not dominate the other personalities, as this can hinder business growth.

Achieving Balance: Gerber highlights the need for business owners to wear different hats and balance these three personalities effectively. Entrepreneurs must learn to think strategically and work on the business’s growth, while Managers need to focus on implementing systems and routines. Technicians should be empowered to do what they do best, while not losing sight of the bigger picture.

Franchise Prototype: Gerber introduces the concept of the Franchise Prototype, which suggests that every business should be developed as if it were to be franchised. This mindset promotes the standardization of processes and procedures, enabling the business to be easily replicable and scalable.

In summary, Chapter 2 explores the critical roles of the Entrepreneur, the Manager, and the Technician in a business. It emphasizes the necessity of balancing these personalities to ensure the success and growth of the enterprise. By understanding the distinct roles and integrating them effectively, small business owners can create a harmonious and efficient business that thrives in the long term. The introduction of the Franchise Prototype concept underscores the importance of standardization and scalability in building a successful business.