You will never meet a successful entrepreneur or business owner who is not an avid learner – constantly reading or consuming other content to expand his or her knowledge. I am constantly reading: in the mornings, on the way to the office, in the evenings and almost any time I have downtime. In the internet age there are many mediums available and it all depends on personal preference. Some people like podcasts, some like reading blogs, and some browse Reddit for inspiration – there is no right or wrong way to do it as long as you are consistently learning new things.
Many people will tell you learn more by doing than reading (and it’s true) but that shouldn’t stop you learning from others in your favorite format. As much as I love reading blogs and listening to podcasts, sometimes it is nice to get away from your PC/tablet/phone and read a good old fashioned paperback book!
Here are some of the best books for entrepreneurs that I would recommend to anyone who is thinking of starting a business, already runs a business or is potentially looking to sell a business at some stage.
Built To Sell
What is it and why?
Written by John Warrillow, this book is essential reading for anyone considering starting a business or anyone who already has an established company but still finds themselves working 60 hour weeks with no end in sight. As business brokers, we are always helping clients position their businesses for sale and many of the fundamentals we use are covered in this book. For many, positioning a business for sale is an after-thought, but after reading this book it will become habitual.
It’s a very easy read and whilst the story within may seem too good to be true, there are
lessons to be learned regardless of what stage you are at with business.
What is it and why?
A widely recommended book, especially in expat entrepreneur circles – Tim Ferriss’ best seller is a worthwhile read for anyone with, or thinking of starting a business. Whilst I found much of the book to be idealistic and unrealistic to replicate, if you ignore the hype and focus on the lessons and ideologies there is still a lot to be learned. The book is also quite practical – with a number of tips and tools that are easy to apply to your own life or business.
What is it and why?
This is a very old book focused on the fundamentals of personal finance which can also be applied to running a business. The principles taught within the book will help you build a company that will thrive in the long run and remain cashflow positive even through the hard times. So often businesses fail because they over-extend and do not have reserves to see them through lean months. The book is also helpful for website buyers discussing the importance of “making thy gold multiply” but in a measured way. Investing your life savings in a business is never a sensible idea, but putting a portion of income aside for business acquisitions can be.
What is it and why?
Similar to The 4-Hour Work Week, Rich Dad Poor Dad is a book recommended by a number of people but it is important to not take the story within as literal. The book focuses on buying assets and reducing liabilities/debts which is something we try to instil in our clients at FE International. Buying a solid business can create an income stream for life and it’s not always about making the highest return, it’s also about stability. As a business owner, you will also get into the habit of reinvesting in your business (often your greatest asset) rather than being tempted to withdraw earnings to buy a new shiny car [or other liability].
How to Win Friends and Influence People
What is it and why?
Whilst this sounds like a book for people who have trouble making friends, it is an ideal book for anyone with a business that deals with people (hint: that’s everyone!). Many of the lessons within are based on old examples that may not be applicable in today’s society, there is still a lot to be learned whether you are trying to build better relationships with clients, manage your team better or generally persuade more people to believe to buy your product/service. Warren Buffet also recommends it – so if my recommendation isn’t enough, hopefully his is.
What is it and why?
Probably one of my favorite books from the list, I first read The Tipping Point a number of years ago, yet still refer to it on a regular basis, especially when dealing with owners of small websites that are struggling to see success and are getting impatient, despite doing all of the fundamentals right. In business, it is essential to be patient, if you are always expecting overnight success you are only going to be disappointed. The book focuses on the “tipping point” which is the stage at which ideas, trends and behaviours get to a point where they spread virally. Whilst changing the world or creating a unicorn is most likely out of reach for most people, even the smallest of businesses can hit a stage where they reach a tipping point and become sustainably successful.
What is it and why?
When I find an author I like whether on a blog or a book, I tend to do whatever I can to read everything else they write. Whilst Malcolm Gladwell’s Outliers is not really a book about business it does help you understand what factors can affect the success of an individual (and therefore, a business). Many business owners get stuck in an infinite loop worried about their competitors/peers but often forget there are externalities outside of their control that can help make others successful. By focusing attention on your own business and ignoring the “unfair” advantages others have, you will live a happier life and not be constantly doubting yourself.
What is it and why?
No-one likes a grammar-nazi but for those of us who went to school many years ago, it is easy to forget the fundamentals of grammar and this book is a relatively fun way to refresh your memory of English class. If you operate a business (especially online) the ability to communicate effectively through writing is essential and many would argue you gain credibility through accurate spelling and grammar. This book won’t turn your life around, but is an easy read, especially if you are like me and rely on auto-correct to solve any writing related issues!
What is it and why?
First recommended to me by David, this book is a look into how our minds work and what influences our decisions. Most people naturally make fast and instinctive decisions but after reading this you will learn to be slower and more rational in your thinking which leads to better decision making. It’s not the easiest of reads and takes quite a bit of time to get through, so I cheated with this one and actually got the audio book instead. It’s also perfect if you need a little extra help getting off to sleep at night (sorry David!)
What is it and why?
A more recent book from the author of Built to Sell, The Automatic Customer discusses the practical benefits of a subscription business. At FE International, SaaS businesses are always popular and we have also seen a recent trend in ecommerce subscription businesses – and the main driver of this is the fact these businesses have recurring revenue. If you run a business that’s largely reliant on one-time sales then it’s definitely worth a read. Even creating a relatively small recurring income stream can help your business grow, improve your cashflow and ultimately help you build a business that is more valuable and desirable to buyers. There are a number of practical examples within the book, so even if you are in an industry that hasn’t been disrupted for years, there are ideas you can borrow from other industries and apply to your own.
The list above is by no means exhaustive, but if you are stuck for new books to read, hopefully it will provide some inspiration regardless of what stage you are at with your business. What book should I read next? Please comment below