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There comes a time in every entrepreneur’s journey when they realize they have been around the block long enough to know what to do and what not to do in most situations. The Knack: How Street-Smart Entrepreneurs Learn to Handle Whatever Comes Up by Norm Brodsky and Bo Burlingham, experienced entrepreneurs and columnists for Inc. Magazine, do a great job at touching upon some of the most common universal mistakes made by entrepreneurs, while explaining that there is no magic formula for getting it right – as an entrepreneur you have to develop a knack (street smarts) for addressing problems both before and when they arise. The Knack will help you learn to recognize opportunities before they pass you by, to navigate unchartered waters without getting caught in a storm and to effectively address sensitive situations – to make good choices, not familiar ones. Brodsky even explains how kittens – cute, furry little hairballs - can shape the face of your business and how having dinner with a king can give you a competitive edge. Sorry. You’ll have to read the book!

Although the ‘wow’ factor was missing for me – probably because I’ve been around the block – it was a good read. I particularly liked the real-word examples that Brodsky provided throughout the book, not only to make his points, but to also connect with his audience. Aimed at first-time and relatively new entrepreneurs, readers will be able to relate some of the examples presented in The Knack to their own business situations. Rather than simply reading, they will be thinking and reflecting as well – which is good. Entrepreneurs should never be on auto-pilot. They should always be learning from their mistakes, recognizing when something is too good to be true and planning, planning, planning. The Knack will give newbie entrepreneurs a reality check, while reminding seasoned veterans of all the things that can and will go wrong.

As I read the book, I made notations next to statements I felt were particularly important. In no certain order, here are just a few of the many important points that Brodsky and Burlingham bring to light in The Knack:

• A lot of people starting out in business would prefer to have a step-by-step formula or a specific set of rules they could use to achieve their goals. The problem is, there aren’t any. (Introduction, page 3)
• Because sales do not equal cash, and cash is what you need to survive. (Chapter 1, page 13)
• It’s always a mistake to let yourself get too relaxed in business – to ever start thinking you’re out of the woods and safe and secure. (Chapter 1, page 17)
• They often ask me what it takes to be a successful entrepreneur, and I tell them that the most important quality is resilience. (Chapter Two, page 22)
• You have to accept a never-ending flood of complications as a normal part of the business process, and you have to learn to enjoy that process. How? By getting caught up in the fun and excitement of finding solutions. (Chapter Two, page 39)
• If you’re the new kid in town, you can’t compete on price, because you’ll go out of business. (Chapter 3, page 44)
• Don’t try to turn that revolutionary new concept into a business. Find a great old concept instead. (Chapter 3, page 44)
• High gross margins translate into high gross profit, and gross profit is the main source of the cash you’ll need to support yourself and build the business. (Chapter 5, page 77)
• If you have the respect of your competitors, you probably deserve it. (Chapter Seven, page 115)
• Sometimes it really does pay to be nice. (Chapter Seven, page 117)
• Too many low-margin sales can drive you out of business. (Chapter Eight, page 119)
• Small customers are the backbone of a solid, stable, profitable business… (Chapter Eight, page 119)
• Oddly enough, one of the best ways to increase sales is also the most obvious, although you’d be amazed how few people actually use it. I’m talking about listening to your customers. (Chapter Eight, page 126)
• Winning is not just about closing the sale. You win when you close the sale and at the same time lay the foundation for a good relationship that allows you to keep the customer for a long, long time. (Chapter Nine, page 135)
• Make a habit of having small price increases on a regular basis so that you aren’t forced to have a big increase later on. (Chapter Ten, page 153)
• That’s the problem with success. When you fail in business, you can look back, see what you did wrong and learn the appropriate lessons, but it’s often difficult, if not impossible, to figure out why a particular business concept clicks. (Chapter Eleven, page 158)
• To be a good boss, I’ve learned, you need to maintain a certain distance from your employees. (Chapter Twelve, page 166)
• People are extremely loyal, however, to a company that they’re proud of… (Chapter Thirteen, page 182)
• And understand, in most businesses there’s a significant lag time between the hiring of a salesperson and the production of sales… (Chapter Fifteen, page 214)
• No matter how far you go in business, no matter how much you learn, you never know it all. (Chapter Sixteen, page 229)
• Preparation is a crucial competitive edge. (Chapter Sixteen, page 245)
• Whatever your company does, you need to believe in your gut that it’s the most interesting, exciting, worthwhile enterprise you could be engaged in at that moment, or you’re going to have a hard time convincing anyone else… (Chapter Seventeen, page 260)

There are countless other points made in this book; points that are not commonly discussed in the entrepreneur’s circle – out in the real world. That’s why I encourage you to buy The Knack. It’s an excellent addition for the entrepreneur’s library. Pick it up here.

Tags: Bo Burlingham, entrepre, Inc, Inc. magazine, Norm Brodsky, The Knack: How Street Smart Entrepreneurs Learn to Hand