Here is the entire gist of the book: use envelope-based budgeting (as made famous by, at least in my life, You Need A Budget) for your business. Allocate, say: 45% of your business towards owner's compensation, 10% towards profit, 15% towards tax, 30% towards operating expenses. Use these target percentages to back your way into sustainable salaries / cost structures and grow your business within these parameters, rather than shoveling any liquidity back into the business (because that will cause you to lose discipline and line-of-sight on actual business health.)

I think the book's thesis is good, and even though the true business model of the book is upselling you towards a professional consulting network (not unlike The E-Myth Revisited) it's a quick and easy read — a rare business audiobook where the reader (the author!) enhances rather than dulls the whole thing. I also don't think I'm quite the right target reader, which is not the fault of the book nor its writer.

Of course, there are quibbles:

All in all, I can't fault this book too much — it was quick, entertaining, and responsible for me making a positive change in my business (I am going to split out my omnibus checking account in Mercury into a bunch of sub-accounts!) I do not think you will get better at business strategy after reading this book, but it is something I would recommend to people who are losing sleep over their business's cash flow.

  1. I don't even disagree with the thesis — constraints breed creativity! It was just lazy rhetoric. ↩︎

  2. This is, to be clear, a joke. ↩︎


Lightning bolt
Subscribe to my newsletter

I publish monthly roundups of everything I've written, plus pictures of my corgi.
© 2024 Justin Duke · All rights reserved · have a nice day.