Just when you thought that successful business owners don’t have the time to curl up in bed to read a book, you’d be surprised to know that average entrepreneurs read at least one book a week. Even someone as successful as Bill Gates, the founder of Microsoft, squeezes in 50 books a year to get up to speed with trends and learn new insights from authors worldwide.
Successful entrepreneurs are known to be voracious readers. They use books to enhance their cognitive and analytical skills, find innovative solutions to some of their businesses’ most pressing problems, or discover new opportunities to grow their company.
For new startup business owners, this includes reading finance books that will help maximize resources and make more informed decisions.
Below is a list of some of the most influential finance books that will help startup owners like you foster a healthy relationship with money. Since cash flow is king, you’d need to get all the information you can get to learn:
- How to spend your money wisely.
- Where to invest your resources.
- What to cut back and what to get more of.
- How to save money that will protect your business during emergencies.
6 money books to start reading now
1. “Never Split the Difference: Negotiating As If Your Life Depended on It” by Christopher Voss and Tahl Raz
In business, everything is a negotiation. Often, people negotiate to get their partner to agree to their terms. In other cases, people will resort to agreeing with what their negotiation partner said to end the conversation.
“Never Split the Difference” explains that the way to negotiate is to approach it with empathy. Listen intently to what your partner is saying, and then communicate to show you’ve understood what the other person is saying.
This book is a must-read for new startup owners who need to master the power of mirroring or reflecting what your negotiation partner is telling you. It also teaches you how you can leverage empathy and close listening skills to secure more deals and create a positive experience throughout the process.
2. “4-Hour Workweek: Escape 9-5, Live Anywhere, and Join The New Rich” by Timothy Ferriss
If this is your first time leaving your 9-5 corporate job to start your entrepreneurial journey, this book is for you. Timothy Ferriss’ “4-Hour Workweek” teaches you how to pursue your passions while freeing up 90% of your time.
While this book serves as a manual for new business owners who want to maximize their resources, it can also teach you how to use your money in the right places to yield better returns. Ferriss demonstrates how you can leverage automation to eliminate mundane tasks, the power of delegation, and how to get optimum results in a short time.
Ferriss said: “If you can free your time and location, your money is automatically worth 3 to 10 times as much.”
3. “The Psychology of Money: Money Lessons on Wealth, Greed, and Happiness” by Morgan Housel
In “The Psychology of Money,” Morgan Housel explains how you can use psychology to create better relationships with money. In one chapter, Housel tells us the relationship between luck and risk. Some people may make good decisions that lead to poor financial outcomes. Others can make bad decisions that lead to good financial outcomes.
Also, Housel explained that it’s more important to have flexibility and control over your time. He said, “The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays.”
“The Psychology of Money” combines anecdotes, real-life stories, research and advice for readers. Whether you want to improve how you handle money on a personal or business level, Housel will help you understand the factors involved in your behavior toward it.
This book is a must-read for new entrepreneurs who have a hard time managing their business finances. Knowing the psychology behind our decisions in getting, handling, keeping and spending money will go a long way in making better financial decisions in the future.
4. “The Intelligent Investor: The Definitive Book on Value Investing” by Benjamin Graham
Economist Benjamin Graham wrote “The Intelligent Investor” in 1949, but it’s been continually updated since. The book is written for long-term investors and not for people who want to earn profit immediately.
In “The Intelligent Investor,” Graham will teach you to value investing. Graham said that one way to reap more returns is to ignore market noise, analyze an organization’s financial reports and watch out for price-value discrepancies.
This book is so good that even billionaire Warren Buffett describes it as “the best book on investing ever written.” If you are looking to diversify your investments or want to start getting into trading soon, this book is for you.
5. “Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine” by Mike Michalowicz
One of the best books that offer practical advice is “Profit First” by Mike Michalowicz. “Profit First” aims to demonstrate business owners can transform the way they run their business by adopting the Profit First System.
In the traditional accounting method, business owners and accountants would deduct expenses from revenues and leave the owner’s remaining amount (profit). In the Profit First System, you take a percentage from each sale as profit even before paying off your bills, debts and other expenses.
“Profit First” is an excellent book for business owners struggling to make a profit or experiencing net loss despite generating revenue. Michalowicz ultimately helps startups and small business owners prevent bankruptcy and achieve long-term, sustainable growth.
6. “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy” by Thomas Stanley and William Danko
Last but not least is “The Millionaire Next Door” by Thomas Stanley and William Danko, a book that’s almost always on every entrepreneur’s bookshelves.
“The Millionaire Next Door” states that wealthy people are usually not the ones who will flash their new BMWs in the neighborhood. Usually, you’d find them mowing the lawn wearing nothing but a simple T-shirt, shorts and rubber slippers.
In other words, Stanley and Danko tell us that truly rich people don’t look the way most of us think about millionaires. The book meticulously explores how wealthy households operate and how millionaires live their lives in order to keep their wealth and become more successful.
Continuous education is key to better financial management
As you grow your startup, make sure you spend time learning new things and upgrading your skill set. Books can be your source of inspiration when nurturing your business, but there are other ways to learn. You can get a mentor to guide you in the right direction, sign up for classes, or surround yourself with like-minded business owners. That way, you maximize learning to grow your business.
Originally published March 25, 2022.