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Dec 15, 2025

How The E Myth Inspired Wave

Why the Book That Changed Small Business Thinking Still Shapes Modern Startups Today

Every once in a while, a book comes along that permanently changes how entrepreneurs see their business. For many founders, that book was The E Myth by Michael Gerber. Long before EOS, OKRs or modern operating systems existed, The E Myth introduced a simple but powerful idea that reshaped the entire small business world.

Your business is a system.
And if you do not intentionally design it, chaos will design it for you.

That idea is the foundation behind Wave.
It is the spark that inspired the way Wave helps founders bring clarity, structure and predictable execution into their company. To understand Wave, you have to understand the philosophy that started it all.

The Problem The E Myth Exposed

The E Myth identified a universal pattern: most small businesses fail not because the founder lacks skill, but because the business lacks structure.

Gerber described the three personalities inside every founder:

  • The Technician who loves the craft
  • The Manager who wants order
  • The Entrepreneur who sees the future

Most founders start companies as Technicians. They are good at what they do. They work hard. They do everything themselves. And they quickly become the bottleneck.

The business cannot scale because the founder is the system.

The E Myth gave a name to the chaos that almost every startup experiences:

  • No processes
  • No delegation
  • No consistency
  • No documented workflows
  • No measurable goals
  • No accountability
  • No operating rhythm

This chaos forces founders to react all day instead of building the business they envisioned.

The E Myth Solution: Systemize the Business

Gerber offered a radical solution for the time.

Create systems for everything.
Document processes.
Build a predictable rhythm.
Design the business like a franchise even if you never plan to franchise.

The idea was not bureaucracy.
It was clarity.

Systems give teams confidence.
Systems give founders freedom.
Systems give businesses stability.

This thinking became the backbone of modern operations books like:

  • Traction
  • Scaling Up
  • Systemology
  • Buy Back Your Time
  • The Checklist Manifesto

Every book that came after is rooted in the same E Myth idea.
That structure is the foundation of success.

How Wave Was Inspired by The E Myth

Wave exists because the core philosophy of The E Myth is still true today, but the tools have not kept up. Founders still face the same problems but with even more complexity.

Teams are remote.
Tool stacks are fragmented.
Information lives everywhere.
Startups move faster than ever.
Everyone is overloaded with notifications.

Designing a company as a system is harder than ever.
Wave was built to solve that.

Here is how The E Myth directly inspired Wave.

1. “Work on the business, not in it”

Gerber’s most famous idea is the heart of Wave.

Founders often spend all day fighting fires:

  • Tasks
  • Emails
  • Slack messages
  • Client needs
  • Team questions
  • Project chaos

Wave gives founders a system to rise above the whirlwind:

  • Scorecards for visibility
  • Rocks for priorities
  • Meetings with structure
  • Processes in Knowledge
  • Tasks connected to goals

Wave turns daily chaos into daily clarity so founders can lead, not react.

2. Processes are the backbone of scale

The E Myth pushed founders to document everything.
Wave built a place to actually do it.

Inside Wave, you can capture:

  • SOPs
  • Playbooks
  • Workflows
  • Training
  • Policies
  • Standards

Knowledge becomes accessible and searchable instead of trapped in someone’s head. This is how startups avoid repeating mistakes and scale faster with fewer bottlenecks.

3. Clear roles and responsibilities prevent chaos

Gerber talked about the importance of an Organizational Chart even in very small companies.

Wave modernizes that through the Accountability Board:

  • Each role is defined
  • Responsibilities are visible
  • Ownership is clear
  • No more blurred lines
  • No more silent expectations

This was a direct extension of the E Myth’s organizational clarity.

4. Systems must create predictable outcomes

The E Myth argued that if something matters, it should be systemized.

Wave applies this to the core elements of team performance:

  • Rocks
  • To dos
  • KPIs
  • Meetings
  • Scorecards

Everything updates on a weekly cadence.
Everything has an owner.
Everything connects to the company vision.

Predictability is the natural result of a structured operating system.

5. The business should empower the founder, not drain them

Gerber saw burnout as the greatest enemy of small business success.
He viewed systems as the path to freedom.

Wave continues that philosophy by giving founders:

  • Fewer tools
  • Less friction
  • More clarity
  • Better visibility
  • A calmer company
  • A more aligned team
  • A roadmap to grow without collapsing

A business without systems drains you.
A business with systems supports you.
Wave exists to create the second outcome.

The E Myth Was the Beginning. Wave Is the Evolution.

The E Myth revealed the problem.
EOS gave it a structure.
OKRs added focus.
Modern tools tried to patch the gaps.

Wave is the next step.
A unified operating system built for how founders actually work today.

Not templates.
Not PDFs.
Not scattered tools.
A complete system designed to bring clarity, alignment and execution into one connected platform.

Gerber helped founders think differently.
Wave helps founders operate differently.

The philosophy is the same.
The tools finally caught up.

Final Thought

The E Myth showed the world that businesses succeed when they operate like systems. Wave carries that idea into the modern startup world by giving founders a unified operating system that turns vision into clarity, chaos into structure and effort into predictable results.