Jim Cramer is a well-known business entrepreneur who has been experiencing both the ups and downs of the business industry during his years of rising in the said field. After finally making a name in business, he then co founded TheStreet. com which is a website hosting several business tips for the new entrepreneur hopefuls who are coming into the word of business. Mostly in his writing, Cramer uses an entertaining approach so as to hold the attention of his readers. Perhaps the fact that what he usually writes is about his own life, his own successes and failures, the authored articles that he writes become undoubtedly factual.
Being both an experienced business man and an experienced writer, the integration of Cramer’s experiences with his wits indeed make a perfect combination for coming up with the perfect type o business-encouragement book. About the Book After becoming a successful entrepreneur himself, Cramer finds himself wanting to affect other people’s lives in a more meaningful way rather than just being able to gain profit from them. The creation of his book “Real Money” is primarily based from his aim of making a difference in other people’s lives.
The practical advice that he places forward for his readers is indeed useful and applicable even by novice entrepreneurs. He strongly believes that by an hour a day education on business techniques, even the youngest and less-learned entrepreneur could succeeds in business. As a result, the book of Cramer became one of the most sought after reading material by both young and old business enthusiasts. The humorous approach of Cramer in relating his own experiences in business indeed became one of the key reasons behind the said book’s success in the industry. Contents and Summary
In this particular read, Cramer points out the importance of common sense along with factual research. The ability of the learning entrepreneur to examine the field he is entering is one of the primary attitudes that a hopeful entrepreneur should posses. Constant regard of the finances is also an important factor when a person is getting ready to making business engagements with other companies. Although a novice entrepreneur may have the capital that he needs to be able to put up the business he wants, it does not ensure him of the success that he aims for.
Contrary to the belief that people who have ample resources such as capital are the ones who are marked to succeed in business. There is more to business rather than just money. Noticeably, in the society today, successful business people are the ones who are able to come up with effective techniques in dealing with finances and balancing the budget with all the activities that need to be attended to when the business is being pushed through. This is what Cramer points out clearly. According to his, the techniques of business entrepreneurs are the ones giving them the chance in making a name in the said filed of industry.
To clarify the said strategic approach in money investment in business, he discusses the 25 primary rules in investing. The said rules are listed as follows: 1. Bulls, bears make money, pigs get slaughtered. 2. It’s OK to pay the taxes. 3. Don’t buy all at once. 4. Buy damaged stocks, not damaged companies. 5. Diversify to control risk 6. Do your stock homework. 7. No one made a dime by panicking. 8. Buy best-of-breed companies. 9. Defend some stocks, not all. 10. Bad buys won’t become takeovers. 11. Don’t own too many names. 12. Cash is for winners. 13. No woulda, shoulda couldas. 14. Expect, don’t fear corrections.
Don’t forget bonds. 16. Never subsidize losers with winners. 17. Check hope at the door. 18. Be flexible. 19. When the chiefs retreat, so should you. 20. Giving up on value is a sin. 21. Be a TV critic. 22. Wait 30 days after preannouncements 23. Beware of Wall Street hype. 24. Explain your picks. 25. There’s always a bull market. Taking from the 25 rules, “Bulls” are used to refer to the major companies that are able to make a positive reputation in the field of business. They are the ones who were courageous enough when they were still starting to take the risk of investing their money. However, they were not just investing on anything.
Contrary to the knowledge of many, they intended to invest their money on something that they were quite knowledgeable about. Being sure of what is being done in the business that one enters is a primary key to business victory. Once the risk is taken, there’s not turning back. An entrepreneur should be strong enough to face the challenges of the risk that he took. Being fully determined in wanting the victory in business ventures certainly gives at least 45% of the actual result of the efforts. Indeed, nothing is magic in business. Once a decision is made, it should be made strong and be implemented using the right technique.
By doing so, everything else is controlled well along with the finances, the production cost and the profit. At times, when plans fail entrepreneurs, especially the novice ones, feel like as if they are already loosing hope. One thing that entrepreneurs should remember is that failures should only make them stronger. Knowing the wrong thing that they have done before should actually empower them to move on with a better technique the next time they re-open another door of business opportunity. Certainly, the courage of facing the challenges of engaging in business should be strengthened enough through every failure experienced.
Critique Using his own experiences within the pages of the book has actually made the book of Cramer a fine read for business beginners. His encouraging approach in making business hopefuls realize that failures are simply part of the risk and that they should be utilized as a form of empowerment indeed makes this particular book different form other business manual types of authored reading materials. Aside from using his experiences, the utilization of the most common language possible helps the newly acquainted readers to understand what he wanted to send as a message to the readers clearly.
It could be noticed that he seldom used technical terms that may not be understandable to the layman’s view. This has made his writing one of the most wanted business-based advice that novice entrepreneurs could use towards their journey to business success. Overall Reaction and Recommendation The book of Cramer is indeed a practical reading material for anybody wanting to start-up a business. The counseling it gives to the business hopefuls indeed makes a strong impact on how the said individuals should face the challenges of the risk of starting a new source of income.
Whether the business may be small scale or large scale, the advice of Cramer based upon his own experiences are indeed undoubtedly useful for everybody wanting to understand business in a deeper yet humorous way.
BIBLIOGRAPHY
James J. Cramer. (2005). Jim Cramer’s Real Money: Sane Investing in an Insane World. Simon & Schuster Publishing. David A. Aaker. (2001). Developing Business Strategies, 6th Edition. Wiley; 6 edition. Harvard Business School. (2005). Strategy: Create and Implement the Best Strategy for Your Business. Harvard Business School Press.