This book review is in work. I will add to it as I read through the book. So far the book looks interesting. The author goes over 111 habits of wealthy people. He gives each habit a couple pages of discussion. To read the full discussion, you can buy the book from Amazon here (insert link).
111 Winning Habits
Achievement Habits
- Have a clear vision of the end state of your business and make minor tweaks early in the creation of your business to stay on track towards your end goal. Making minor adjustments to your business early prevents having to make major adjustments during the late stage of your business.
- Achievement requires commitment. “Achievers commit to their dreams while under-achievers just dream”.
- When creating a business, be careful not to create yourself a job. To create wealth you need to remove yourself from doing the day-to-day work and build a team to fill the various roles within the company. Construct your business so that you are easily separable from it.
- Know your competition. Don’t try to start a business that is dominated by few large companies.
- Know your numbers.
- Know the right numbers. Cash flow is the most important number to know.
- Understand the power of compound interest. Get started as early as possible.
- Keep 2 sets of books. One that shows all legitimate expenses. Use that for the IRS. Another that removes all but the most necessary of expenses. Use that when it comes time to sell your business. For example, remove owner compensation above what would be paid to someone assuming the owner’s responsibilities, such as business travel, life insurance premiums, etc.
- The longest lasting and most successful companies are value driven. Value equals quality divided by price. Success in your business is dependent on your ability to provide a product or service that has perceived value.
- The most profitable companies over the long term are those selling goods and services that are high quality. Higher priced products provide a higher return than lower priced products. The ideal product is a high quality, high value product with a low cost of production. Design your company and product or service for profitability.
- Price for profit. Know the value of your product or service and price it accordingly. Most entrepreneurs undervalue their product or service.
- Be efficient with collecting debt owed to your company in exchange for the sales of product or services you provide.
- If something is worth remembering, its worth writing down.
- Utilize low cost high impact advertising.
- Market the right idea into the right niche at the right time. Don’t market a great idea into the wrong niche or at the wrong time.
- Going against the cycle will often times bring big profits.
- Don’t try to grow your business faster than your ability to grow it. [Reviewer’s notes: Most of these habits are explained well in the book. This one isn’t. I’m only guessing at the meaning of this one.]
- Getting lucky rarely has anything to do with luck. Getting lucky is a result hard work and being prepared for success.
- Provide your personal touch. Let your customers know that they are important to you.
- Write succinctly and to the point. Don’t get too wordy.
- Entrepreneurs are risk takers. Take on risks smartly by preparing yourself and your business for the risks you plan to take on. Taking risks without preparation is gambling.
- New businesses often times need to borrow money. Finding a good bank is critical to success. Find one where loan officer turnover is low. Get to know your loan officer. Interview them. Read the book for a list of questions to ask.
To be continued…