We’re avid readers here at Independent Core Strategies, Inc. Business books make up a large portion of our reading selections. We recently learned that Bill Gates’s favorite business book is “Business Adventures” by John Brooks. The book, which is over 40 years old, details 12 important moments in American industry. Here are a few of the book’s key lessons:
Pay Attention to Your Market
The book uses the case of the Ford Edsel to make this point. Customer needs can change very quickly. Ford learned the hard way that mid-sized cars were no longer on their customers’ radar.
Never Trust Rapid Success
Xerox grew so quickly during its first five years that the company lost sight of its purpose. While they were busy with showy philanthropic efforts, Xerox’s competitors gained ground.
Know When to Scrap It
Brooks uses the federal income tax system as evidence of this maxim. We at Independent Core Strategies, Inc. are inclined to agree. Our tax system has become so convoluted that it creates inefficiency.
People Are Highly Emotional
This can’t be overlooked when making business decisions. The book uses the panic-driven stock market crash of 1962 as an example. After three days of hysteria caused $20 billion in losses, the market rapidly recovered. People can get carried away with rumor and innuendo.
Our team at Independent Core Strategies, Inc. encourages you to read this Bill Gates favorite and gain timeless business insights.