Book Review: “How To Get Rich” By Felix Dennis
I’ve been reading this book by Felix Dennis, the multimillionaire British magazine magnate and I have to say, it’s a must read for anyone who is thinking about starting a business or anyone who is already running a business.
The reason I’m enjoying reading the book is because Dennis doesn’t beat around the bush with silly and often ineffectual politically correct advise. He just gets to the point and he tells you exactly what he thinks, what he has learned and what advice he would give you if you are thinking of running your own business. There’s no sugar coating here and I love it.
Sample some of the rules he lays out in the book:
However, the central theme weaving throughout the course of this book is to never give up any equity or ownership in a company you have founded because according to Dennis: “Capitalism demands that whoever takes the most risks calls the pipers tune.” Why would you give someone who has taken no risks on your behalf, control of part of your company?
This is also a great book for all employee’s to read because it will highlight for you, in a very real sense, just how expendable you are as an “employee”. According to Dennis, once his employee’s start to get into their forties and late fifties, he pretty much just fires them.
…”By the time talent is in it’s mid to late forties or fifties, it will become very, very, expensive. Young talent can be found and underpaid for a shortwhile, providing the work is challenging enough. Then it will paid at the market rate. Finally, it will reach a stage where it is being paid on past reputation alone. That is when you must part company with it.” This is why lay off’s will never end. They will always be cheaper “talent” available.
If you are an employee and you think your job is safe, get this book. You’ll begin to think otherwise and it will probably be for the better. If you are a business owner who is thinking about giving up ownership or equity, get this book. You won’t do it.
KE
Personally i never read motivational books…But the distilled SEVEN RULES seem very resonable and natural…one can work on those maxims alone
Sometime, and most times the only way to move forward is giving up some ownership…then,you be able to raise the funds and grow. I dont see how selling 1% will give a guy control of the main business …So rule # 5 is OUT.
Razor:
Can’t you raise money by getting a loan from a bank without having to give up ownership? Dennis is actually against Venture capitalists who he believes are essentially economic vultures. i.e. they may give you money, but in exchange for that money, they’ll get control of your company and eventually end up kicking you out.
why would you want to share your power with anyone anyway?
I agree with you that debt financing has more advantages than equity finance because all you are required to do is make mthly premiums,less stress. The problem is that, with the banks , losing your business is actually easier..as soon as cash flow problems start, they call out the loan early or sieze the collateral. On the other hand you have given the other guys some ownership and they are not gonna try to hurt the business. I dont have any statistics but I believe that more new business ventures succeed if they use equity financing. It may keep you on your toes,more reporting….but you can buy out those minority owners as soon as business is booming….only do your legal work right…you know, THOSE CLAUSES.
KE: I don’t get it… I was reading some of the older posts u had… & the comments… It seems the Mhindis in Kenya try to follow Dennis’ rules yet they are castigated… by yourself nonetheless… I can only think you are a racist… and I find this odd coz you live in the USA (unlike me)… and are an immigrant to the USA… or a hypocrite?
Hmmm…
1) Many large Mhindi-owned firms have offices not in the CBD or Westlands or Upper Hill but in less ‘ostentatious’ areas… Many are in noisy crowded Industrial Area…
2) No extra expenses here…
3) Well… since the businesses tend to employ family when they start off… well… true…
4) We know that ain’t gonna happen in Mhindi firms…
5) They try not to…
6) Well… see (1) above
7) Hey… African employers are the WORST lot… and Multinationals & UN the best… Mhindis are somewhere in the middle… One thing for the Mhindis, they do not hire folks who are not needed… UN spends someone else’s money… the sense of ‘family/kijiji’ means many African businesses are hopelessly over-staffed…
Coldtusker:
I don’t castigate Indians for being good business people. More power to them for that. I castigate them for their cultural insularity and racism, especially because they live in an African country! if they have such lowly opinions of black africans, then they should move back to India and live amongst their people.
I’ve also had terrible experiences with indian shop owners here. Following me around their stores if I’m taking too long to find what I want, not saying thank you if I do end up buying something, etc, etc.
These are not good people.
KE;
I have to buy this book. It sounds interesting and informative. Being an employed person,at 25, i have come to the realization that no one ever pays you enough to get rich thus i have decided to start my own business.
All the same, i do think you are somewhat a devils advocate. I just discovered your blog recently and have gone through most of the topics. The capitalist-Vampire very interesting. The topic on Kencall so so sad(but i undersand things are not as bad as you have made them look).
Indians are racists, period! But lets give them kudo’s for being business gurus. I have never been able to fathom how they can be so clever and stupid at the same time? Annoying bunch, trust me, i studied in India. Woudl know better, and the idea for my business is being borrowed from there. Isn’t life interesting?
Can you also try to give constructive criticism in contrast to what you get posted?
Dennis,
What business are you in?