When Jeanne-Vida Douglas told me she had just about finished writing a business book with her co-author Peter Fritz, I confess I wondered what new angle could possibly be taken on the well-covered subject of running your own business. I’m careful about which business books I buy, wary of those writers who use the book-writing gig only to raise their own profile without sharing anything new. However, I knew Jeanne to be a superb journalist, and I knew that working at BRW would have given her exposure to a richness of business stories to draw on. What I found out when I read The Profit Principle, is that her co-author Peter Fritz, in whose voice the book is written, also carries with him a richness of experience and so much sound guidance for entrepreneurs.
The Profit Principle is written in a straightforward tone with each chapter focused on principles that underpin the success of a business. If you like bullet-pointed lists of what to do and organisational charts then this book would not be for you. But if you like the idea of sitting down with an experienced mentor who can pass on knowledge about the foundations of a successful business, then that’s the feeling and value you’ll get from this book. Anecdotes about entrepreneurs and various business deals illustrate each of the chapters’ themes and every now and again the book treats the reader to a personal letter “from Peter Fritz to Peter Fritz”. These letters are written by the older Peter to his younger self at various stages of his business life. At first I found the letters a bit of an artificial device but then I started to look forward to reading them through the book, as if I was being given a privileged insight into Peter’s life and thoughts that would usually be reserved for his children. Chapters in The Profit Principle include: ‘The First Product is You’, ‘Perfection is the Enemy of Progress’ and ‘How to Be Big Without Being Big’. The chapter that really spoke to me right now was ‘Don’t Fall Into the Investment Trap’ which is full of realistic guidance and starts with this idea: “You’ve got customer, partner, corporate memory, business plans and low-risk approaches to business all covered. I can almost hear that little voice inside your head saying ‘It’s all well and good to talk about mitigating risk and looking for partners, but if only I had a big chunk of cash I could get my business idea off the ground’. Most people think like this and wait for years to get the investment they think they need to start the business of their dreams. This is all wrong.”
The book was so digestible that I read it within a couple of days (I am a fast reader) but also so useful that I intend to re-read the book this month. The second time I read it I will have my highlighter and PC available to note down some pieces of wisdom that I’d like to remind myself to be aware of as I continue to develop my online business. As I read through The Profit Principle, I felt as if the authors were subtly directing their advice to me in particular! So many of the chapters in the book address themes in business development that I am currently confronting; themes such as negotiation, the value of partnerships and not investing too much before you are assured of customers and some income. I would recommend this book to every start-up entrepreneur and to any business person who’s looking for a wise, experienced and personal reminder of the fundamental principles behind growing a successful business. Apparently the book was written largely through meetings between Jeanne and Peter at cafés.
By the end of the book I found myself wishing I could sit down at a café with Peter and download even more information. I suspect both Jeanne and Peter have much more to share. Buy The Profit Principle from online retailer Booktopia and save on the retail price
