Why So Many Skilled Experts Fail When They Start Their Own Business
The idea of launching your own business often sparks images of freedom and self-determination. Escaping a frustrating job, becoming your own boss, calling the shots – it’s a powerful allure. Yet, the reality can be daunting. Statistics paint a stark picture: a significant portion of small businesses don't survive their first year, and many of those that do face closure within the next five. Why does the dream so often clash with reality?
Thinking you can run a business just because you're good at the technical work involved is perhaps the most common, and most dangerous, assumption an aspiring entrepreneur can make.
The Fatal Assumption: Skill vs. Ownership
Imagine you're exceptional at your job – a talented graphic designer, a skilled baker, a meticulous mechanic. You know your craft inside out. Frustrated by your current situation, perhaps feeling undervalued or disagreeing with management, the thought strikes: "Why work for someone else? I know this better than my boss. I could run my own shop!"
This is the "entrepreneurial seizure," the moment the desire for independence becomes overwhelming. The trap lies in believing that understanding the technical work of a business is the same as understanding how to build and run a business. They are fundamentally different skill sets. Being a great baker doesn't automatically equip you to manage supply chains, marketing, finances, staffing, and customer relations effectively.
This misunderstanding is a primary driver of small business failure. The very business intended to bring freedom instead often turns the founder into a slave. The work they loved becomes just one small part of a mountain of tasks, many of which they dislike or don't understand. The dream sours, and the business becomes the new, inescapable boss.
The Inner Conflict: Three Personalities at War
Within every founder, especially in the early stages, three distinct personalities often vie for control. Understanding this internal dynamic is crucial from a psychological perspective:
- The Entrepreneur: The visionary, the dreamer. This personality lives in the future, brimming with ideas and possibilities. The Entrepreneur is energized by the unknown, sees opportunities everywhere, and constantly pushes towards a grand vision. However, they can be impatient with the present and struggle to manage the details needed to bring their dreams to life. Their focus on the future can sometimes create chaos in the present.
- The Manager: The pragmatist, the organizer. This personality craves order, planning, and predictability. The Manager looks to the past for lessons and tries to structure the present, cleaning up the creative messes left by the Entrepreneur. They build systems, organize tasks, and ensure things run smoothly. Without the Manager, there would be no structure; however, they can sometimes stifle innovation with their need for control and order.
- The Specialist (or Technician): The doer, the expert. This personality lives in the present and loves the hands-on work. The Specialist believes, "If you want it done right, do it yourself." They enjoy perfecting their craft and getting things done but can resist systems or new ideas (from the Entrepreneur) that disrupt their flow, and resent attempts at organization (from the Manager) that feel like interference.
These three personalities are in constant tension. An imbalance, often where the Specialist dominates (because the founder started the business based on their technical skill), leads to significant problems. The business owner ends up doing all the work, resisting delegation, and getting lost in the business instead of working on it.
The Predictable Stages of Business Growing Pains
Businesses, much like people, tend to go through developmental stages, each with its own psychological challenges:
- Childhood (The Specialist's Reign): This is where most businesses start. The founder is the business, juggling everything – sales, service, finances, marketing. Enthusiasm runs high, but so do the hours. Working 12+ hours a day, seven days a week is common. The founder invests everything, but the workload becomes unsustainable. Eventually, balls get dropped. The realization hits: "I can't do this alone." This stage often ends in burnout or the decision to get help.
- Adolescence (Seeking Help, Finding Chaos): The founder decides to hire help, often bringing someone in to handle tasks they dislike or are overwhelmed by (like bookkeeping or sales). Initially, there's relief. But without clear systems and direction, the founder often falls into "management by abdication" – handing off tasks without proper structure or guidance. The new employee starts doing things their way. As the business grows and more people are hired, control is lost. Quality might slip, customers complain, and the founder feels increasingly out of touch. Frustrated, they might conclude, "Nobody can do it as well as I can!" This often leads to two paths: either the business collapses under its own chaotic weight, or the founder reverts to Childhood, firing staff and doing everything themselves again, shrinking the business back to their personal comfort zone (and workload capacity). This return to "doing it all" provides temporary comfort but ultimately leads back to the same trap: owning a job, not a business.
- Maturity (An Entrepreneurial Perspective): Maturity isn't necessarily reached after surviving Childhood and Adolescence; it's a perspective that can guide a business from day one. Mature businesses are built with a clear vision of how the business itself should operate, independent of any single individual. The focus shifts from the product or the work to the system that delivers the product or service consistently. Founders with this perspective ask, "How should this business work?" rather than just "What work needs doing?" They build the business to function smoothly, viewing it as a distinct entity, not just an extension of themselves.
Building a System: The Franchise Prototype Mentality
How can you cultivate this mature perspective? By thinking of your business as a prototype for thousands of identical copies – like a franchise. Even if you never intend to franchise, this mindset forces you to create systems that work reliably, regardless of who is performing the tasks.
- System-Dependent, Not People-Dependent: The goal is to build a business where the system delivers the results, not relying solely on highly skilled (and often expensive or hard-to-find) experts. Document processes meticulously. Create clear, step-by-step instructions for everything, from answering the phone to performing core services. This is crucial for scalability and consistency.
- Consistency is Key: The system ensures every customer receives the same level of quality and service, every time. Think about how large, successful chains achieve consistency – it's through rigorously defined and documented processes. Predictability builds trust.
- Work On Your Business, Not Just In It: Step back from being the primary Specialist. Your role shifts to designing, refining, and managing the systems that allow others to do the work effectively. Your business becomes a mechanism you build and improve, not just a place where you work. This shift in focus is fundamental.
The Path Forward: A Cycle of Development
Building this kind of business isn't a one-time task; it's an ongoing process involving three key activities:
- Innovation: This isn't just about radical new inventions. It’s about constantly looking for better ways to do things – improving processes, customer interactions, service delivery, even small details like how you greet customers or organize the workspace. Continuous improvement is vital.
- Quantification (Analysis): Track everything. Measure the results of your innovations and existing processes using real numbers. How did that change in greeting affect sales? Did the new workflow improve efficiency? Data replaces guesswork and tells you what's actually working.
- Orchestration (Implementation): Once data shows an innovation is effective, document it and make it the new standard procedure for everyone. Eliminate what doesn't work. This hardwires improvements into your system, ensuring consistent positive results. Systematize your successes.
This cycle—Innovate, Quantify, Orchestrate—applied continuously across all aspects of the business, is how you build a mature, system-dependent enterprise that can thrive and grow, ultimately giving you, the founder, more freedom, not less.
By understanding the common pitfalls, recognizing the internal psychological conflicts, and consciously adopting a systems-based approach from the outset (or pivoting towards one), entrepreneurs can dramatically increase their chances of building a sustainable, successful business that truly delivers on its initial promise.
References:
- Gerber, Michael E. (2004). The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It. Harper Business.
This book is the foundational source for the concepts discussed in the article. It elaborates on the "Fatal Assumption" that technical skill equates to business acumen (Part One: The E-Myth and American Small Business), introduces the conflicting roles of the Entrepreneur, Manager, and Technician within the founder (Chapter 6: The Technician, The Manager, and The Entrepreneur), outlines the business development stages of Infancy, Adolescence, and Maturity (Chapters 9-11), and advocates for building a business based on systems using the "Franchise Prototype" model (Part Three: Building a Small Business That Works!). The book emphasizes working on your business, not just in it, through continuous Innovation, Quantification, and Orchestration (Chapter 16: Your Business Development Program).