Friday, September 28, 2018

What Rich People Know And Desperately Want to Keep Secret

Reviewed by Rae C.
This is a great book! The title is completely misleading, but also great marketing- it makes you want to pick it up and find out what the secrets are!  The book should really be titled “What Successful, Ethical Businesses Know And Are Happy To Share”.  I’ve worked for a lot of small businesses, and many people are just buying themselves a job, or just want to the boss, or are really nothing more than hobbyists or dreamers with no understanding of how to run a business.  In other words, someone who loves to cook and opens a restaurant is not a business person.  This is why most small businesses fail.
If you want to start a business because you want to create a successful enterprise, become a leader in your field, and develop both customers and employees, this is a great place to start.
The book grabbed me because I opened it to the part about the importance of employees- they are just as important as customers.  Too many business people do not consider the knowledge the employee has of the customer, the work environment, and/or the product.  Sher advises consulting employees, developing relationships with employees, and respecting workers.  “Hire Giants, not Dwarves.” “Delegate, don’t try to do everything yourself.”
A successful business develops systems.  He uses McDonald’s as example.  Business owners should be able to set up systems and train other people to follow those systems.  Many small businesses never bother to set up systems, and rely on long term employees or third party contractors.  This does not lead to success.
His instructions on advertising and the actual value of a long term customer is invaluable.  Don’t spend money on advertising unless you know it is going to pay off, and follow his formula for assessing the actual cost of advertising.  Pay attention to the profit from an average sale, and how often a customer purchases from you.
I recommend this book to all business owners and to all aspiring entrepreneurs.

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