Book Review of the Cash Flow Quadrant

I’ve been wanting to review this book for some time now and I hope I do it justice with my quick overview. I’ll try to keep it simple as the book sometimes sounds a lot like a late night get rich quick scheme but there are slices of nuggets in there that are worth picking it up. What I find interesting is that I started reading it thinking that it would be the least interesting in the Rich Dad series for me and turned out to be a gold mine in psychological perspectives and human to human interactions. Having grown up around many of the types of people this book explains, I thought I’d break down the most important concepts in the book.

If you own a business than you need to read the “Cash Flow Quadrant” by Robert Kiyosaki which by far I think is one of the best psychological analysis of the business world as a whole. In the book he splits all of society up into four basic categories, Employees, Self-Employed, Business Owners and Investors. Without going into much of the books other more infomercial like components you need to understand this is actually a very astute comparison to make. I grew up in a very business minded home and was always taught to stay in school and get the piece of paper but think differently about what it is that I want to do with my life. The examples in the book came to life for me because I’ve seen every aspect of them first hand as you probably have as well, but it’s important to note that there is no right or wrong position to be in one of the 4 categories, you can be successful in all of them, but what is important is the mindset you have in the process.

He goes on to explain that Employees use words like “benefits” and “security”. He says that what he thinks drives them sometimes is fear but I think it’s more a factor of stability, there’s nothing wrong with that if what you’re looking for is a stable life, it’s just most Employees don’t prepare for the lack of stability towards the end of their lives and usually hand their money over to a sales man who sells them on a bond or securities portfolio and that’s when most get into trouble.

The Self employed in the book are like my father, again nothing bad about being a lone wolf or a specialist at something and working for yourself but for them money is not important, “independence” and “freedom” are. They are sometimes considered experts in their fields and like to do things their own way. Quality of work is much more important than money.

Business owners look for the best Employee’s and the Self Employed and are the ones that look to hire them so that they can keep their minds busy with the occupation of thinking. This may seem wrong as many Self Employed people consider themselves Business Owners but the book gives an interesting difference between the two. If you can walk away from your business without having a hand in it letting managers and the people you’ve hired to handle the day to day concerns than you’re a Business Owner, a real Business Owner can leave his business for a year, and return to find it more profitable. They build a system that is capable of running on its own, with capable managers. There are not that many good Business Owners in the world that can do this successfully but the occupation of thinking that I was discussing before involves focusing your energies on new Products, business concepts and ideas of course.

Investors make money with money. They don’t have to work because their money is working for them. This is how the book says “great wealth is made” but most people aren’t looking for that so it really doesn’t matter. To those that are but have never successfully gotten to that point, it’s their way of thinking that tends to keep them from being able to achieve it, like a Self Employed person wanting to make millions when they won’t hire anyone else, or the Employee hoping to invest in the stock market all the while someone is collecting fees for every stock purchased or month gone by. If wealth is the number of days one can survive without physically working and still maintain their standard of living, then investors can simply do nothing and their grandchildren will still be provided for. Some investors are considered employees, but only in their own corporations and for tax reasons.

If you haven’t had a chance to read it, pick it up on Amazon for cheap or get the audio book, it’s well worth the read to understand at a psychological level how people in business really think and what drives them.

Book Review of Twitter Power

I’d been looking for a good social media book that just focused on using Twitter as a platform, as more of my friends convinced me to use platforms like TweetDeck to simplify my social media footprint I picked up Twitter Power 2.0 after hearing much about the writer. All in all it’s a great book for beginners, it covers the basic concepts of twitter pretty well and teaches you the do’s and don’ts of the platform. It also gives you some pretty easy to understand tools and how best to use them so over all a great book for those looking to get more from their relationships on Twitter. I’ve provided a basic chapter breakdown below from the book to give you a better idea of the topics discussed and I hope you pick it up and try some of what’s in here for your own personal or corporate brand.

Introduction: What Can Twitter Do for You?

Chapter 1: An Introduction to the Social Media Landscape.

  • So What Exactly Is Social Media?
  • Social Media, So What? Why Social Media Really Is a Big Deal.
  • The Different Types of Social Media Sites—Content to Suit Every Market.
  • A Closer Look at Microblogging.
  • Introducing . . . Twitter!

Chapter 2: What Is Twitter and Why Is It So Powerful?

  • Twitter and Its Successes.
  • The Power of Twitter’s Immediate Feedback.
  • Instant Access to Smart People 24/7.

Chapter 3: Getting Started the Right Way on Twitter.

  • Signing Up—Does Twitter Have the Web’s Most Friendly Registration Page?
  • Who’s on Twitter? Your First Followers!
  • Create an Inviting Twitter Profile.
  • Choosing Your Twitter Picture.
  • Designing Your Twitter Profile.
  • Designing a Commercial Background Image for Twitter.
  • Choosing the Right Colors.
  • Notices to Notice.
  • Tweeting with Your Mobile Phone.
  • Sending Your Very First Tweet.
  • Becoming a Follower.
  • A Word about Security.

Chapter 4: Building a Following on Twitter.

  • Quantity or Quality: Choosing the Type of Following You Want.
  • Quality: How to Be Intentional about Creating Your Own Network of Experts.
  • Quantity: Seven Killer Strategies to Reaching Critical Mass on Twitter.
  • Twitterank and Page Rank.

Chapter 5: The Art of the Tweet.

  • Tweet Etiquette.
  • The Benefits of Following before Twittering.
  • How to Join a Conversation.
  • How to Be Interesting on Twitter.
  • How to Drive Behavior.

Chapter 6: The Magic of Connecting with Customers on Twitter.

  • Identifying Problems and Soliciting Feedback.
  • Discovering Your Top Fans, Promoters, and Evangelists.
  • Your Micro Help Desk.

Chapter 7: Leveraging Twitter for Team Communication.

  • Twitter for Virtual Team Leaders.
  • Creating a Twitter Account for a Virtual Team.
  • Building a Team with Twitter.

Chapter 8: Using Twitter to Help Build Your Brand.

  • Create a Story.
  • Portraying Your Brand with Your Profile.
  • Tweet style—What to Say When You’re Building a Brand to Create Value and How to Say It.
  • Reinforce the Core Message.
  • Repetition, Repetition, Repetition.
  • Writing the Tweets.
  • Win Retweets.
  • Create Hashtags and Run Hashtag Chats.

Chapter 9: Leveraging the Power of Twitter to Drive Behavior in Your Followers.

  • Driving Followers to a Web Site.
  • Promoting a Blog on Twitter.
  • Twitter as a Resource for Post Ideas.
  • Driving Followers to the Mall.
  • Can You Put Affiliate Links on Twitter?
  • Driving Followers to Register.
  • Tracking Results and Testing Strategies.
  • Tracking Multiple Tweets.
  • Making the Most of Twitter’s Trends.

Chapter 10: Quick Ways to Make Money on Twitter.

  • Earn with Advertising on Twitter.
  • Offer Specialized Services.
  • Barter, Buy, and Sell Your Way to Profit.

Chapter 11: Beyond Twitter.com: Third-Party Tools You Will Want to Know About.

  • SocialOomph.
  • Twitterrific.
  • Twhirl.
  • Twitterfeed.
  • Trendistic.
  • Twellow.
  • TweetBeep.
  • TwitterCounter.
  • TweetDeck.
  • TwitThis.
  • TweetAways.
  • HootSuite.
  • TwitPic.

Chapter 12: Building Powerful Solutions on Top of the Twitter Platform.

  • So What Is an API Anyway?
  • What Can You Do With Twitter’s API? Automating Your Twitter Experience.
  • Creating Your Twitter App.

Chapter 13: Putting It All Together.

  • A 30-Day Plan for Dominating Twitter.

Chapter 14: Power Twitterers.

All in all like I said before it’s a great book for beginner twitter users, for those of us who have been using the service for some years now, it helps you focus your efforts in a much more robust and compelling way. Enjoy.

Book Overview of ReWork

With it’s short two to three page chapters, ReWork seemed like a simple enough book to read and go through. The ideas were very different than anything I’ve read and after researching the company 37 Signals I understand why, they are essentially an old fashioned profits company using modern day tools. The concepts and principles they address would have worked in the days of Henry Ford with the Model T or Ray Crock with his burgers. Focus on making money and on the customers, not on anything else. The best line in the book is that they don’t build their software for the Fortune 500 companies, they design them for the Fortune 5 Million small businesses that need good products. I loved their brash and to the point ideas which I’ll share a bit below chapter by chapter.

FIRST

  • The new reality – This explained the new realities of business, very good jumping off point.

TAKEDOWNS

  • Ignore the real world – This helps you focus on your business and not the competition.
  • Learning from mistakes is overrated – Winners always win again, losers rarely get a second chance.
  • Planning is guessingWhy grow? – Stop planning for your success and start making it.
  • Workaholism – The employee you think is doing the most work may be wasting the most time, look for efficiency over dedication.
  • Enough with “entrepreneurs” – Rename yourself as a Starter instead of an Entrepreneur or be forced to be looked at as a joke.

GO

  • Make a dent in the universe – Do something truly amazing in your industry.
  • Scratch your own itch – Solve a problem that you want solved before you solve it for anyone else.
  • Start making something – Don’t just talk about the product you think would be great, make it yourself.
  • No time is no excuse – You can work a full time job and still follow your passions, if you really want it.
  • Draw a line in the sand – Don’t add things just because your customers want it, you make your products great, not your customers.
  • Mission statement impossible – Don’t just say you have a mission statement, let your work show others.
  • Outside money is Plan Z – Don’t trust anyone else to finance your business, it will lead to the downfall or loss of your business.
  • You need less than you think – You don’t need fancy offices to run a business, restrict yourself on purpose.
  • Start a business, not a start-up – Forget about starting a business just for the sake of starting one, create something with real value.
  • Building to flip is building to flop – If you’re not doing what you love now, you’re in the wrong business.
  • Less mass – Don’t try to grow big, make your profits grow big but keep your company as small as possible.

PROGRESS

  • Embrace constraints – Artificially restrain yourself and you find out just how much you can accomplish.
  • Build half, not half-ass – Don’t add all the features your market gives, do the ones you think are most important.
  • Start at the epicenter – Get in, get down and get dirty.
  • Ignore the details early on – Don’t worry about the details, worry about the big picture.
  • Making the call is making progress – Sell, sell and sell some more.
  • Be a curator – Be careful with what your company is doing and how it’s doing it.
  • Throw less at the problem – Don’t use money as a means to solve a problem, use your brain.
  • Focus on what won’t change – Features come and go, the basics are forever.
  • Tone is in your fingers – Enough said.
  • Sell your by-products – Recycle your short comings and ideas as a by product of what you do.
  • Launch now – Don’t start tomorrow something you can do today.

PRODUCTIVITY

  • Illusions of agreement – Get it down now, not get it down in writing.
  • Reasons to quit – Be willing to quit and move on to something better.
  • Interruption is the enemy of productivity – Have a time of silence at your company, a few hours of just work no communication.
  • Meetings are toxic – Don’t start them or have them and if you do restrict them to less than 30 minutes.
  • Good enough is fine – Trying to be Great is the enemy of the Good.
  • Quick wins – Getting in quickly is better than a slow loss due to perfection.
  • Don’t be a hero – Don’t try to save something you don’t want to save, focus on the now not the past.
  • Go to sleep – Get rest, you won’t be any better at something if your exhausted.
  • Your estimates suck – Over estimate and under promise.
  • Long lists don’t get done – Don’t make lists, make decisions of what you can do now.
  • Make tiny decisions – Same as the last chapter.

COMPETITORS

  • Don’t copy – Imitation is the great form of getting to second place.
  • Decommoditize your product – Make something that no one else can compete with.
  • Pick a fight – Find your opponent and be better and more agile then they are.
  • Underdo your competition – Give less features than your competitors by making it simpler for your users.
  • Who cares what they’re doing? – Ignore the noise, focus on your company, products and customers and forget about the rest.

EVOLUTION

  • Say no by default – Be willing to tell people no and then find out if what they want is a good idea.
  • Let your customers outgrow you – Be willing to offer your competitions number to a customer that needs more than you can provide.
  • Don’t confuse enthusiasm with priority – Focus on priorities more than feelings.
  • Be at-home good – Keep your home in good company.
  • Don’t write it down – Do things now and not later if you can.

PROMOTION

  • Welcome obscurity – Be glad that no one except for your customers know about you, keep competition in the dark.
  • Build an audience – Create a community of people that like what you do.
  • Out-teach your competition – Train your customers, don’t just sell to them.
  • Emulate chefs – Do what celebrity cooks do.
  • Go behind the scenes – Show your audience how you run your company.
  • Nobody likes plastic flowers – Be honest and direct to your customers, not fake and pretty.
  • Press releases are spam – Ignore the press crowd, they hinder more than help.
  • Forget about the Wall Street Journal – Media is self serving and only wants their interests over yours.
  • Drug dealers get it right – Emulate Drug dealers not in what they sell but how they run their businesses.
  • Marketing is not a department – Teach everyone in your company how to handle marketing, not just a select few.
  • The myth of the overnight sensation – If you do it right people will think you came out of nowhere when you’ve been around for decades.

HIRING

  • Do it yourself first – Try a job first before you hire someone to do it.
  • Hire when it hurts – Only hire someone when it’s costing you real money to do it yourself.
  • Pass on great people – Turn down great hires for the right kind of employees.
  • Strangers at a cocktail party – Don’t allow your business to be come too impersonal, know everyone personally.
  • Resumes are ridiculous – Ignore a resume, test out employees and then try them on a temporary basis.
  • Years of irrelevance – Forget about the work history, look at innovation.
  • Forget about formal education – College is good but not the defining factor for hiring.
  • Everybody works – You need to work as hard as your people, only then do you show them true leadership.
  • Hire managers of one – Hire people that don’t need to be managed.
  • Hire great writers – Hire people with exceptional writing skills, this is important for any position.
  • The best are everywhere – Your best hires can come from anywhere, be willing to look there too.
  • Test-drive employees – Hire people on a temp basis and then take them on full time if they work out.

DAMAGE CONTROL

  • Own your bad news – Be honest and forthcoming when you make a mistake.
  • Speed changes everything – Be quick to respond to problems, don’t linger thinking about how you’ll spin it.
  • How to say you’re sorry – Be sorry when it’s your fault and don’t pretend you’re perfect.
  • Put everyone on the front lines – Have everyone be accountable directly to a customer.
  • Take a deep breath – Get through problems with a sense of collective patience and calmness.

CULTURE

  • You don’t create a culture – Figure out who your employees are, not who you want them to be.
  • Decisions are temporary – Be willing to change your companies direction at the drop of a dime, literally.
  • Skip the rock stars – Don’t hire the famous guy to solve a problem, there’s no real proof that he can solve yours.
  • They’re not thirteen – Your employees are all adults, treat them as such and don’t coddle them like children.
  • Send people home at 5:00 – Make everyone leave when it’s time to leave, they will be better for it.
  • Don’t scar on the first cut – You’re going to get burned, deal with it and move on.
  • Sound like you – Be yourself in business
  • Four-letter words – Be willing to curse if the situation demands it, again be yourself.
  • ASAP is poison – Prioritize what needs priority, don’t make everything a priority.

CONCLUSION

  • Inspiration is perishable – Your ideas will fade away or no longer be good, work on them now not later.

These ideas are powerful in the right hands so I definately suggest anyone either running a business or planning on starting one read this. A must read for the Technology crowd as well.

Book Overview of Delivering Happiness

This book is great for those who are in the customer service business and would like to see an example of a company truly committed to the concept of customer first for everything. Tony Hseish tries to ignore elegance and the importance of speaking well and writes the book in the same format that he talks and though there are many grammatical errors which he chooses to keep in the book, the founder of a billion dollar company does a great job at explaining his feelings not just about how he started his online shoe business but goes into massive detail about what he sees as the necessary things companies need to do to maintain a good corporate atmosphere as well as presenting the customer with the wow factor in every sale. Below is an important breakdown of the ten corps principles talked about in the book.

Top 10 ways to improve customer service…

1 ) Make customer service a priority for the whole company, not just a department, it has to come from the top.

2 ) Make Wow a verb that is part of your companies every day vocabulary

3 ) Empower and entrust your customer service reps, trust that they want to provide great service, no escalations to a supervisor

4 ) Realize that it is Okay to fire customers who abuse your employees

5 ) Don’t measure call times, don’t force employees to up sell, don’t use scripts

6 ) Don’t hide your 1800 number, it’s a message to both your customers and employees

7 ) View each call as an investment in building customer service brand, not as an expense you want to minimize.

8 ) Have the entire company celebrate great services, tell stories of wow to everyone in your company so that they know how to act.

9 ) Find and hire people who are already passionate about customer service.

10 ) Give great service to everyone, customers, employees and vendors.

Click here to order Delivering Happiness

Book Overview of WWGD?

In WWGD? Jeff Jarvis tries to reverse-engineer the success of the fastest growing company in the history of the world, the one company that truly understands how to succeed in the internet age, and then takes those lessons and applies them to a number of industries, companies, and institutions, from carmakers to restaurants to universities to governments.  Below is a breakdown of some of the most important points in the book, it will help give you an idea of the important of openness.

1 ) Rethink your Customer Relationships
- Give the people control, we will use it. (Dell Hell)
- Your worst customer is your best friend.
- Your best customer is your partner.

2 ) Rethink your Website Architecture
- The link changes everything
- Do what you do best and link to the rest.
- Join a Network / Be a platform
- Think distributed

3 ) Rethink your Public Persona
- If you’re not search-able, you won’t be found
- Everybody needs a little SEO
- Life is public, so is business
- Your customers are your ad agency.

4 ) Rethink your View of Society
- Elegant Organization (Mark Zuckerberg)

5 ) Rethink the Economy of your Business
- Small is the new big
- Manage abundance (don’t control scarcity)
- Join the open-source, gift economy
- The mass market is dead – long live the mass of niches
- Google com-modifies everything
- Welcome to the Google economy

6 ) Rethink the Reality of your Products or Services
- Atoms are a drag
- Middlemen are doomed
- Free is a business model
- Decide what business you’re in

7 ) Rethink your Attitude towards customers and competition
- There is an inverse relationship between control and trust (David Weinberg-er)
- Trust the people, they are smarter than you think
- Listen and never stop

8 ) Rethink your Business and Personal Ethics
- Make mistakes well
- Life is a beta
- Be honest
- Be transparent
- Collaborate
- Don’t be evil

9 ) Rethink the Speed in which you run your Business
- Answers are instantaneous
- Life is live
- Mobs form in a flash

10 ) Rethink your Imperatives and be willing to Cannibalize yourself
- Beware the cash cow in the coalmine
- Encourage, enable and protect innovation
- Simplify, Simplify
- Get out of the way (Craig New-mark)

The rest of the book is spent covering what happens when you take these principles and apply them to other industries such as a Google Energy Company, Google Airways and Google Automobile Manufacturer. Jarvis also goes over the ideas of recreating entire industries such as Insurance using a system of openness and innovation. Click here to order What Would Google Do?…