2006 saw an avalanche of bestselling business books, most of which promised to teach people how to become wealthy quickly and easily. Many of these books offered misleading, contradictory or just plain bad advice, says businessman and author Keith J. Cunningham.
“The only people getting rich off of this glut of incredibly stupid “millionaire” books are the folks who wrote them, ” says Cunningham.
For Cunningham, who has mentored thousands of successful business people, the worst offenders advise readers that the way to get rich is through passive income -- which means you do nothing and the money will do it for you. “They mistakenly think there is no need to be active in your business or your investments,” he says.
Then, there is the fabled promise of working “on” your business compared with “in” your business. According to this theory, you are a “loser” if you are an employee or are self-employed working in your business. “Apparently, only investors and business owners not directly involved in the day-to-day operations of their businesses have the mentality it takes to be millionaires,” he says.
Tell that to Bill Gates, who, in the first years of building Microsoft personally reviewed, and often rewrote, every line of code the company shipped. Michael Dell or Warren Buffet still regularly clock 60 to 70 plus hour workweeks.
Another common myth found in many bestsellers is that it just takes one brilliant idea and then you can be rich. “Lots of people have great ideas,” says Cunningham. “But if you can’t execute on that idea and show how it provides a sustainable competitive advantage, its just a pretty thought.”
“The key to building and sustaining wealth is to learn and master critical business skills,” Cunningham, says. “I believe the most important skill a business person can have is financial literacy, the ability to read and understand financial statements. Otherwise its like an airplane pilot who doesn’t understand what all the flight control dials do.”
The key to riches is to look at the Forbes 400. They didn’t get there by changing their thinking, being passive or reading the latest pop psychology business books. They learned critical business skills, how to market their product and execute sales.
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