How E-Myth is relevant for a software company?


I am in planning stage of my first startup and to get better equipped with knowledge/tools for that, I am reading number of books that are recommended as must-read for entrepreneurs. One such book is E-Myth Revisited. Book is definitely a good-read and highlights number of important points. However I wonder how does that apply to tech-startups. Specifically, I wanted to know:

How does 'Franchise Prototype' model as suggested in book applies to a software product or software services company? Can you please help me in understanding what I have missed. Thanks.

Books Entrepreneurship

asked Mar 4 '12 at 18:46
179 points

1 Answer


From my perspective, the main tenet of the E-Myth is to build systems. These systems allow others to do meaningful work and not have to rely on individuals to get things done.

It's application to a startup is limited since startups, by their nature, are dependent on people simply because it's a new venture trying to get off the ground.

Where the application of the E-myth to startups is more relevant is on non-core functions. Here is where it's a great idea to create systems or outsource things you should not do (like accounting or billing or etc.).

Once you have an established business (or are on the way to one), then it applies more readily.

This does not mean you should not seriously consider how to automate, outsource or build systems that transcend the dependence of single people to get the job done.

answered Mar 5 '12 at 02:30
Jarie Bolander
11,421 points

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