Three Books Every Business Owner Should ReadBusiness — January 15th, 2018
In my time as business owner, I’ve come across a few pivotal books that I love and quickly recommend to everyone. The kind of books that quake the earth around you because they're that good and that perspective-changing.
I also want to encourage anyone interested in branding to make their investment holistic. Updating the look and feel of your business can only go so far—which is why it’s also a great idea to spend time improving your services and making plans for your financial goals (e.g. tightening any loose areas in your pricing, creating systems, or dropping a service that costs more in time and money than it makes).
I highly suggest checking these out from your local library (or purchasing from Amazon) and reading them to help you level up this year. As you work through the following books, take notes and make a list of tasks, so you can take action on what you learn.
Profit First by Mike Michalowicz
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This book will give you the tools and confidence to manage your business finances wisely. He flips the concept of revenue – expenses = profit and creates a system for you to get in your own way and only spend what you have allocated in your expense account. I have set this up for both my personal and business bank accounts, and it is a game changer. In just a few seconds, I can log in to my account and see exactly how much I have to pay myself, taxes, profit, and business expenses. And I know exactly what to do with incoming deposits. Read this one first.
The Pumpkin Plan by Mike Michalowicz
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Book number two on my list is also written by Mike Michalowicz. He has been at rock bottom and managed to turn it all around to create multiple million dollar businesses, so it’s safe to say his advice is sound. This book will inspire you to specialize and focus your business, instead of working with a large audience and offering many different services. He uses the analogy of growing a massive, prize-winning pumpkin, hence the name of the book. Definitely a great one to read as you invest in branding and strive to separate yourself from the crowd.
The 80/20 Principle by Richard Koch
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The last book is one that I’m still reading, but it’s a really cool idea. Richard presents the concept (backed by a ton of evidence and research) that 20 percent of products sold typically generate 80 percent of a business’ income. Or this can be 20 percent of your time spent working will generate 80 percent of your income. The ratio is not always a clean 80/20, but it is a great relationship to look for as we spend time improving your business and services. I should warn you that this is the most technical book of the three, so after the intro, feel free to jump around to the sections that interest you the most.
Have you read any of these, or do you recommend a great book that isn't on this list? If so, please share your thoughts in the comments below.