Since the beginning of this year, I read quite a few interesting business books. Here I just share with you my thoughts. What I like the books, and what I don’t like them.

- “Cashflow quadrants: rich dad’s guide to financial freedom”. It’s the best seller of New York Times. The author, Robert Kiyosaki, wrote dozens of books on achieving financial freedom. Among his books, I like “Cashflow quadrants” best. It categorizes people into four groups: Employee, Self employed, Business owner, and Investor. People in different groups have very different mindsets and they cannot understand each other. This book describes the value system of the people in each group, and their relations to financial freedom. I don’t endorse all Robert’s idea however (see his wikipage for detail). Most of his books are motivational without any detailed plan to achieve success. But still, you can only achieve what you can imagine (remember the law of attraction?). After all, the most difficult thing is to start. For this, I like a quote from the book: Many people will not head down the street until all the lights are green. That’s why they don’t go anywhere.

- “Secrets of the millionaire mind: mastering the inner game of wealth”. The author, Harv Eker, is the founder of Peak Potentials Training, a personal development company. Many people may have already heard about the company. Similar to the books by Robert Kiyosaki, this book is also focused on changing the “inside”. It describes 17 mindsets that successful business owner possess.

- “E-myth mastery: the seven essential disciplines for building a world class company”. It’s author, Michael E Gerber, is the founder of E-myth worldwide, a small-business development company. Frankly, he is a so so writer. If it is not highly recommended by a successful business person, I wouldn’t finish the first part. But yes, it is a great book. According to that business person, it is a business bible. It provides step by step illustration on the seven most important aspects of company building. It is a cook book for small businesses. To me, it provides some real contents, which is very different from the previous two books. But still, the book focuses the entire first part (which is also the not so well written part) on changing mindset… I like two notions from the book: work on your business, not in it. business is building a system.

- “Four hour work week”. My opinion on the book changed a lot while I listened to it (I read the audio book, which I don’t think a good source). When I listened to the middle of the book, I thought,hmm … he doesn’t know how to do business. After all, he is in his 20s when he writes the book. He’s very lucky to be successful in the very beginning. He views business as hard rigid guidelines, but in fact business composes another very important aspect: social. Business is also very social, so relations are very important. But later, as I listened more and more, I found I liked the book a lot better. The book gives very detailed instructions on dealing with different situations, achieving the goal of maximizing profitability. Even though I still think he’s very rigid in doing business, I like all the other points he wants to make.

If we say the first two books are motivational, the last two books provide detailed methods in doing business.

And I have another book to recommend. it is:
- “The millionaire next door: the surprising secrets of americas wealthy”. The authors, Thomas J. Stanley and William D. Danko, spent twenty years studying the affluents of the Americans. In the book, they used a lot of statistics, numbers, and examples to show who the millionaires are. If you don’t know what makes millionaires, or if you “think” you know what makes millionaires, just read the book. It will surprise you. In a very short summary, most millionaires are frugal, well planned, and disciplined. They are PAWs (Prodigious Accumulator of Wealth).

If I ask a hundred people what business is, I will get a hundred different answers. Just drop me a message. I will tell you what I think. Maybe we can learn from each other

=== What we wanted to do

1. Build Vertical Search Engines For Financial Industry.
2. To give money managers edge against competitors.
3. To let money managers gain deep insight of market.
4. To help money managers to improve their investment return.

=== Targeted Customers
1. It is for Enterprise Customers
2. Potential customers are hedge funds, investment banks, financial institutions, fund managers, and other money manager.

=== The reasons why we started this effort
1. This business is close to money (and lots of money in the financial industry). We assume that people are willing to pay to gain edge. Because the cost of our product and services is negligible comparing to the potential extra investment return they will get.
2. Founders have been interested in finance and investment activities.
3. We had implemented vertical search engines for other industries.

=== Reasons caused our failure:
1. Personally, we did not know many people in the financial industry, therefore, we cannot get early customers. We know how to build vertical search engines, but we do not know the market well.
2. We were not well known in the industry before we started this business. Marketing is expensive and there were no easy and low cost way to get our name out. (Low cost methods, SEO and Google Adwords, Adsense did not work).
3. We did not have a sale channel to sell our products and services. So we had do direct sales. Founders took lot of time to do direct sales.
4. The market is smaller than we expected. For example, there are total 8000+ hedge funds. However, only these engaged in quantitative and short term trading are interested in our services, these solely rely on fundamental analysis are not interested in our services. The accessible market is a much smaller market (and we do not know people in the fields to help us accessible the market).
5. We can show potential customers that we have a better search engine, but we cannot prove this will increase their investment return.
6. We are not in New York City, instead in Silicon Valley.
7. Lots of money managers has some kind of in-house development.
8. The “rule of thumb” in the investment community is that, if something works (which can increase your investment return), you will keep secrete for yourself; If you are selling it, very likely it does not work.
9. Financial industry is a very old, very matured industry. It is highly competitive. Anything under the Sun had been tried before. (Just thinking about how many technical indicators have been created and how many finance related websites on this world). Other vendors had approached our potential customers with  something similar to ours in the past. Our potential customers were really skeptics about the value of our services.
10. Some potential customers asked exclusive right of our products. One requirement they imposed before they were willing to pay for our services was that we can not sell the products to other customers in next 6 months or 12 months. Theyed claimed that if everyone uses this, it became useless.
11. We could not get outside investment. We tried to grow this business organically. Without funding make it hard to hire good sales people and to do marketing promotion.
12. The technical entry barrier of our business was low. Anyone from Google or Yahoo can build similar search engines. It is hard to differentiate us technically, which further proves the importance of marketing and sales channels.
13. Founders did not have sales experience in the past.
14. We could not leverage our previous experience and connections.

=== What we have got right
1. We build a vertical search engine in very short time, collect more than 10 Tera-Bytes text data. Our crawler is powerful and faster.