"The Personal MBA" by Josh Kaufman is a non-fiction book that aims to provide a comprehensive and practical overview of key business concepts and principles without the need for a traditional MBA (Master of Business Administration) degree. It offers a condensed and accessible approach to learning about various aspects of business.Josh Kaufman is an independent business adviser and the author of two international bestsellers: The Personal MBA and The First 20 Hours: How to Learn Anything, Fast. His website JoshKaufman.net was listed as one of Forbes’ Top 100 Websites For Entrepreneurs.

Summary & Key Learnings

The book is structured into several sections that cover different areas of business, such as marketing, sales, finance, leadership, and more. Kaufman synthesises a wide range of business theories and practices into clear and understandable language, presenting them in a way that anyone can grasp, regardless of their prior business knowledge or educational background.

Throughout the book, Kaufman provides practical insights, actionable advice, and real-world examples to help readers understand and apply the concepts discussed. He emphasises the importance of gaining practical experience and taking action, encouraging readers to apply what they learn to their own ventures or professional endeavors.

"The Personal MBA" challenges the conventional belief that a formal business education is necessary to succeed in the business world. Kaufman argues that by focusing on key principles and developing a strong foundation of business knowledge, individuals can save time, money, and effort compared to pursuing a traditional MBA program.

Overall, the book serves as a comprehensive resource for individuals who want to gain a solid understanding of fundamental business concepts and acquire the skills necessary to excel in the world of business. It offers a practical alternative to a formal business education, providing readers with the tools to navigate the complexities of the business landscape.

Business school: Not only is it extremely expensive – chances are, it won’t pay off.

Despite the high cost, an MBA does not necessarily lead to long-term career success. Researchers from Stanford University and the University of Washington found no correlation between possessing an MBA and measures of success such as increased salary or higher-level positions. Kaufman suggests that learning from experience, conducting online research, and reading books can provide valuable knowledge and skills for a business career.

The perfect business idea balances money and passion.

Kaufman advises against starting a business solely for the purpose of making money and emphasises the importance of choosing a field that you enjoy and have knowledge about. The book mentions that even if a business eventually becomes self-sustaining, it requires a significant amount of work and investment to set up.

Starting a business in a field you like increases the likelihood of sticking with it and allows for better decision-making. Understanding the specific market you're entering enables you to make sound decisions, develop attractive products, and effectively compete. Passion for an idea should be balanced with practicality, as some ideas may not have promising business potential. Explore market entry strategies and the possibility of obtaining the necessary funding.

Leveraging your investments can be rewarding, but it’s also risky.

The book discusses the concept of leverage in investment and highlights its potential for amplifying profits or losses. Leverage refers to using borrowed money to increase profit potential. It explains how leveraging can lead to significant gains with minimal personal capital. For example, by borrowing money to make a big investment, such as purchasing properties, even a small initial capital can result in substantial returns if the investment appreciates.

However, there are risks associated with leverage. While borrowing more money may increase potential profits, it can also amplify losses. The example given shows how a decline in the value of the properties could result in significant losses, exceeding the initial capital invested. Leverage can be a powerful tool in investment, but it carries inherent risks. Investors must exercise caution and be mindful of the potential for amplified losses, as demonstrated by the financial crisis of 2008, which was partly caused by excessive leverage.

We’ve all got needs, and a product that satisfies them will sell.

In order for a product to sell, it must fulfill customers' needs, and the quality alone is not enough. It provides examples such as a vampire having no interest in a solarium and a desperate hiker being willing to pay anything for a bottle of water in the desert. Successful businesses meet one or more of their customers' needs.

Harvard professors Nitin Nohria and Paul Lawrence identified four common human needs or drives:

1. The desire to acquire and collect things, including stamps, shares, and social status. Businesses such as retailers and investment brokerages cater to this need.
2. The drive to bond with others and feel valued and loved. Dating services and companies that enhance desirability, such as perfumeries and beauty salons, fulfill this need.
3. The need to learn and satisfy curiosity.
4. The drive to defend ourselves, loved ones, and property. Security firms and companies selling alarms address this need.

Entrepreneurs are encouraged to consider which of these four drives their business idea can cater to in order to effectively meet customers' needs.

A great product deserves great marketing.

It's important to capture the customers' attention in today's age of social media and information overload. To stand out, businesses need to offer something remarkable and memorable. The medium through which the message is delivered to customers matters. Making the customer feel that the message is personalised and specifically tailored to them increases the likelihood of getting their attention.

Investing in high-quality and personalised ways of informing selected prospective clients, such as hand-addressed FedEx envelopes, can be more effective than spamming mass emails. Additionally, businesses should focus on highlighting the end result or benefit that customers can achieve by using their product. People don't buy products solely for the product itself but for the desired outcome. Testimonials from ordinary individuals who have achieved positive results with the product can be a powerful way to demonstrate the product's value and attract customers.

Even when clients are reluctant, there are ways to make a sale.

It's important to address the customers' fears and objections in the sales process. Understanding and overcoming customers' objections can increase sales.

Customers are often cautious and fear making a bad choice, leading to a major barrier to purchase. To mitigate this, sales experts take on the risk by offering guarantees or return policies, allowing customers to try out products and return them if they are not satisfied. This strategy helps build trust and encourages customers to make a purchase.

Identifying and addressing standard objections, such as concerns about price, product benefits, or timing, is crucial in persuading customers to say "yes" to a purchase. By providing persuasive arguments and countering their objections, salespersons can convince customers that their concerns are unfounded and that the product or service is the right choice for them.

Understanding customers' objections and effectively addressing them through tailored strategies can significantly improve sales outcomes.

To strike a great deal, it helps to prepare.

The book highlights the different stages of a negotiation and emphasises the importance of preparation. The key takeaway is that a successful negotiation involves more than just the final discussion at the conference table.

1. The first stage of negotiation involves setting the stage and making early decisions that can optimise the outlook for the negotiation. This includes ensuring you are negotiating with the right person who has decision-making authority and creating a conducive environment by choosing the most effective setting for presenting your offer.
2. Next, it is crucial to carefully consider the terms of your proposal and make them as attractive as possible to the other party. This may involve researching the industry or market to gather data that can inform your decision-making. Anticipating objections and developing an argumentative strategy to address them is also important, along with determining the concessions and compromises you are willing to make.
3. The final stage of negotiation is the actual discussion, where the preparation done in the earlier stages pays off. By investing time and effort in the initial stages, you will be better prepared and positioned to navigate the negotiation successfully.

Overall, effective negotiation requires thoughtful preparation, consideration of the other party's perspective, and proactive decision-making at each stage of the process.

A good leader is a good communicator.

Effective communication in successfully implementing plans and fostering collaboration within an organisation is extremely important. Providing reasons for requests and sharing intentions can significantly increase compliance and support from others.

Kaufman emphasises that when asking someone to do something, it is essential to provide a reason for the request. A study by Harvard psychologist Ellen Langer showed that people were much more likely to comply when a reason was given. Communicating the why behind a task or goal helps others understand the purpose and align their efforts accordingly.

Furthermore, sharing intentions allows everyone to work in ways that support the plan and adapt when circumstances change. By providing a broader context and larger goal, individuals can make informed decisions and take appropriate actions without constant micromanagement.

Kaufman emphasises the importance of respectful communication. Dismissing or putting others down hinders effective communication and collaboration. It is essential to engage in constructive dialogue, exchanging ideas, and creating an environment where everyone feels valued and comfortable contributing.

In summary, effective communication involves providing reasons for requests, sharing intentions, and promoting respectful and open dialogue. By incorporating these practices, organisations can enhance cooperation, understanding, and the overall success of their plans.

Use your day more effectively by listening to your body.

Setting limits and understanding your natural energy fluctuations to maximize productivity is important. Being too busy and taking on multiple tasks simultaneously can lead to reduced performance and increased stress.

Kaufman compares productivity to juggling, explaining that trying to handle too many tasks at once can result in dropping the metaphorical "balls." Each task brings unexpected demands that require additional time and effort, which can become overwhelming if not accounted for in your schedule.

To optimise productivity, it is crucial to pay attention to your energy levels and work with your natural rhythm. People have different energy fluctuations throughout the day, with mornings generally being a more productive time for many individuals. Additionally, energy tends to cycle in 90-minute intervals, with peaks and troughs within that timeframe.

By being aware of these natural fluctuations, you can capitalize on the periods of high energy and focus on important tasks during those times. Conversely, recognising when your energy is low allows you to take necessary breaks and recharge, preventing burnout and maintaining overall productivity.

In summary, setting limits, understanding your energy fluctuations, and aligning your tasks with your peak productivity periods can help you work more efficiently and maintain a healthy work-life balance.

If you want a thriving business, your product should cater to the core needs of your customers. By communicating confidently and cleverly, you can convince your clients to buy, your employees to cooperate and your business partners to sign your deal.


Actions speak louder than words.

The next time you have to hire a new employee, don’t go for the applicants who performed best in an interview. Instead, do some extra research and find out how an applicant has performed in past months or years. Past performance is the best predictor of future performance.