Business
by Josh Kaufman
Can you teach yourself business?
Josh Kaufman chose not to go to business school. While working at Procter & Gamble, he read business books instead and shared his reading list online. The Personal MBA sets out the core ideas from all that reading in plain words, for anyone running or joining a business.
Hear a sample · read by Laura
Every business, Kaufman says, does five things. It creates something of value, markets it, sells it and delivers it, and its finances bring in enough money to keep it going. Take away any one of those and you don't have a business.
Every business is limited by the size and quality of the market it serves. Kaufman calls this the Iron Law of the Market. If too few people want what you sell, or they can't pay for it, no amount of skill or effort will make up for it.
Kaufman lists twelve standard ways to offer value. Beyond products and services there are subscriptions, resale, leases, loans, insurance, agency, capital, options, shared resources and gathering an audience. Running down the list can turn up a new way to sell what you already have.
Kaufman says there are only four ways to grow revenue. Win more customers, make each sale bigger, get customers to buy more often, or raise your prices. Knowing which lever you're pulling makes it easier to see what to try next.
When people compare offers, Kaufman says, they weigh economic values such as efficiency, speed, reliability, ease of use, flexibility, status, looks, emotional pull and cost. Find out which two or three matter most to your customers, and improve those first.
Self-taught
You can learn the core of business on your own, without a pricey degree.
Five parts
Every business must create value, market it, sell it, deliver it and manage the money.
Core drives
People buy to meet core human drives, like getting things, bonding, learning and defending.
Systems
A business is a system, so change one part and watch what happens to the rest.
Guiding structure
Your surroundings shape what you do, so set them up to help you.
Hot take · true or myth?
An MBA is the surest route to a successful business career.
Myth. Kaufman argues business school is expensive, often leaves graduates in debt, and teaches much you can learn alone. He cites research that found little link between the degree and later career success.
One thing to try
Take a business you know, your own or your employer's. Write down which of Kaufman's four revenue levers it leans on now. Then pick one it ignores, such as getting customers to buy more often, and sketch a small test you could start this week.
Knotd has the key ideas from 250+ non-fiction books, each in a few minutes, in plain words. The Personal MBA comes with a Hot Take round and a Name That Idea round to make it stick.
Get the whole book on KnotdOpen in the appCan you teach yourself business? Josh Kaufman chose not to go to business school. While working at Procter & Gamble, he read business books instead and shared his reading list online. The Personal MBA sets out the core ideas from all that reading in plain words, for anyone running or joining a business.
Five parts of every business; The Iron Law of the Market; Twelve forms of value; Only four ways to earn more; What buyers weigh up.
Take a business you know, your own or your employer's. Write down which of Kaufman's four revenue levers it leans on now. Then pick one it ignores, such as getting customers to buy more often, and sketch a small test you could start this week.
Yes. Knotd has the key ideas from The Personal MBA in a few minutes, in plain words, plus a Hot Take round and a Name That Idea round to test them. It's one of 250+ non-fiction books in the app.
