Business Brilliant

Here's my review of Business Brilliant; It's also on Amazon.com

There is a huge difference in the way middle class Americans think, and the reasonably wealthy. In this book, the millionaire's assets are between 10-30 million dollars.

The author shows multiple results of a survey with a typical middle class worker, and a wealthier (but not rich) counterpart.

A few high points I got out of the book:

Wealthy people tend to be the ones that own the business, not work for someone else. Wealthier people tend to take greater risks, not mad schemes, but they tend to not fear going outside their comfort zone. Don't think outside the box...own the box.

Most middle class people think that loving what you do is key. Most millionaires make money in boring businesses, not cutting edge businesses they have a passion for. Sure, follow what interests you, but own the business. Control the business.

Middle class people tend to stop doing tasks when they stop getting paid. Millionaires tend to do tasks, because they are interested in the task, regardless of whether they are getting paid. Weird, I thought.

The book asserts, and I agree with a reason women tend to get paid less in the same job as men. They negotiate their salary far less often than men.

Men simply negotiate more...and after a few job changes, this negotiating bias increases. This is information that was new to me. It isn't the entire reason for pay discrepancies, but it is a factor.

Middle class people think it takes a big idea to create wealth. Millionaires tend to be in boring businesses that they do exceedingly well.

Most middle class respondents to the survey said that you should use your own money to create wealth. Millionaires tend to take on outside investors, and use little of their own money. This is the sole finding in the book, that I am not comfortable with...meaning, I would only use my own money. I'm sure that this is slowing me down, but it's a personal choice.

Millionaires are better connected. They know far more people, who don't know each other, than middle class consumers. Millionaires know more investors, suppliers, and people that can help them in business. Wealthier people know more people...who know more people. It's one of the reasons the wealthy get wealthier. Middle class workers don't form, and then use this web of connections that millionaires do. Millionaires also tend to partner with the strongest and wealthiest player. Connections are Currency.

Middle class people tend to think "Win-Win" in negotiations. Wealthier people are more "Win-Whatever you'll tolerate". Wealthier people will also walk away from a deal quicker than the middle class.

In negotiations, you always want to be the "least interested" party. That ability to walk away, gives you a huge advantage.

Wealthier people tend to negotiate far more than most. They are also more ruthless and demanding in their negotiations. Interesting.

Wealthier people are far more likely to delegate tasks that they are not expert at, and middle class people tend to want to do most things themselves. It a matter of "I want to improve what my weak points are" VS "Forget my weak points. I'll make my strengths stronger, and delegate my weaknesses" (I'm paraphrasing here). Middle class people feel being "well rounded" is a worthy goal. Millionaires specialize and farm the rest out to cheaper labor.

And, in my opinion, the most important part. Millionaires value defeat and losing. They know it teaches them the most useful skills. Middle class people tend to avoid losing, in all it's meanings. But, for some reason, millionaires don't see defeat the same way. To them it isn't personal, and it's fleeting. Most of us dwell on defeats more than that.

The author surmises, and I tend to agree that social conformity, the urge to fit in is far stronger with the middle class, and far weaker with millionaires.

This has the looks of the next Think And Grow Rich. The author, Lewis Schiff, has made a major contribution here, I think.