Right books for entrepreneurs

One of the most common questions I am asked by entrepreneurs is what book I would recommend that they read. It is difficult to know what idea or concept would be most beneficial to a business owner at any given point in time, but I have found several books that seem to resonate with a wide audience. The following books were chosen because entrepreneurs I have known have successfully utilized the concepts contained within them.

A basic book that enjoys wide popularity among entrepreneurs is "The E-Myth Revisited" by Michael E. Gerber. The book is rich in concepts and stories. Gerber closes the book with the comment, "What you'll discover when you look at your business through your E-Myth eyes is that the gap (what needs to do done to create the business of your dreams) is always created by the absence of systems, the absence of a proprietary way of doing business that successfully differentiates your business from everyone else's."

If you are interested in developing a more significant strategy for your company or need to retool your existing strategy, "Inside the Tornado" by Geoffrey A. Moore is a great read. His book focuses on the high technology sector but has lessons that can help any company struggling to identify a winning strategy. A key concept in the book deals with adapting your plans to the company's stage in its life cycle. Moore contends that "the winning strategy does not just change as we move from stage to stage; it actually reverses the prior strategy."

Jim Collins' book, "Good to Great," explores "how you take a good organization and turn it into one that produces sustained great results, using whatever definition of results best applies to your organization." He offers several insights into what he has found in companies that have become "great." Executives who channel their ego or self-interest into "ambition that is first and foremost for the institution, not themselves" tend to be more successful.

A focal point in the book is a discussion of how to develop a model for moving from good to great. Collins proposes that you need a deep understanding of three areas in your company: what you are passionate about, what you can be the best in the world at and what drives your economic engine. Using the model is a big leap for many companies, but well worth the effort.

Have you ever wondered why great companies can fail? Clayton M. Christensen attempts to answer this question in his book, "The Innovator's Dilemma." The author offers a set of rules for dealing with the disruptive innovations that change the competitive landscape in businesses. He suggests that we become aware of when to abandon traditional business practices as they may be only "situationally appropriate." The book targets "manufacturing and service businesses - - high tech or low -- in slowly evolving or rapidly changing environments." Though broad in its definition, the book delivers a good test for the entrepreneur in assessing whether a disruptive change may be upon the firm.

Another category of book that is helpful to have available as a reference is the "how to" book. These books cover topics such as creating a business plan, financing options, legal issues and harvesting. From the many on the market, the following books are recommended: "Small Business Management -- Entrepreneurship and Beyond" by Timothy S. Hatten and "The Portable MBA in Entrepreneurship" by William D. Bygrave.

When selecting a book, involve your entire management team in reading and discussing the issues. Often we are only a concept or two away from making the leap to the next level.

Good reading!

Gary Williams is associated with the BYU Center for Entrepreneurship. He can be reached via e-mail at cfe@byu.edu.

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