University of Minnesota - UMN Executive Leadership Insights
Mistakes Millionaires Make
Book

Mistakes Millionaires Make

Lessons from 30 Successful Entrepreneurs

Harry Clark
Greenleaf Book Group, 2016
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Editorial Rating

8

Qualities

  • Applicable
  • Well Structured
  • Engaging

Recommendation

Entrepreneur and author Harry Clark’s look at millionaires’ financial ups and downs is a pleasure to read, and his candid recollections and advice are fascinating, even when given anonymously. They highlight a neglected subject: experiencing business failure. Stories of success are easy to come by, but Clark’s treatment of mistakes proves far more compelling and informative. Some of the stories and experiences recount the 2008 crisis, and some relate to the real estate bust that pulled down many millionaires. Clark’s presentation of the habitual nature of entrepreneurs and their weaknesses provides a tableau of memorable advice. You’ll hear echoes of the old saying, “A lesson bought is a lesson taught.” While never giving financial advice, getAbstract recommends these tales of learning the hard way to entrepreneurs, investors and students.

Summary

Know Yourself

Any longtime entrepreneur eventually will encounter a recession or some other “wild card event.” With the wisdom of hindsight, entrepreneurs and businesspeople can identify a number of common mistakes. If you learn from the errors of those who’ve achieved success, faltered, been “wiped out” and recovered, you’ll increase your own chances of survival.

Some of the common blunders millionaire entrepreneurs make stem from the nature of the personality of the typical small-business owner. Entrepreneurs, by definition, believe in their own abilities and have the willpower to take risks and even gamble. When entrepreneurs with these qualities tackle projects during a favorable period in the general business environment, “überoptimism” can take over. Self-made millionaires may underappreciate the factors of luck and a general boom in their relevant economic sector. Pride can leave them vulnerable to a fall. Bankruptcy lawyer Bill Lobel warns against “debtor syndrome,” when “you can’t see the downside risk because you are so optimistic that something around the corner will take you over the hump.”

To compensate for this understandable confidence and the ...

About the Author

Harry Clark, a CEO coach and public speaker on entrepreneurship, founded and led multiple companies in a variety of industries. His most recent start-up reached $100 million in sales and hired 450 employees within five years.

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