A Review of EntreLeadership by Dave Ramsey

During the holidays, I like to read genuine, paper-based books.  One chill morning, I was pleased to find in my stocking, a gift from one of my favorite, well-meaning family members: A book by Dave Ramsey called EntreLeadership.

I had heard of his success, but I had also heard reasons why Dave Ramsey is wrong.  However, I am a sucker for anything to do with business or entrepreneurship.  So, I read the book. 

Before I dissect Dave, some context is necessary.  To me, original research synthesized with mind-blowing implications for business, life and the future of mankind, written by a true thought leader, make for a great book.  In other words, the author’s work should be supported by facts.  Books such as Blink by Malcom Gladwell (how people make decisions) and Stumbling Upon Happiness (how people become “happy”) by Dan Gilbert fit this description.  EntreLeadership definitely does not.

Before I tell you what I liked about the book, let me give you its glaring weaknesses:

·         Oversimplification.  Sorry Dave – nothing about business is that simple.  Even the fine virtue of hard work (hardly a revolutionary concept) has been known to fail occasionally in business.

·         One dimensional.  If you are an engineer thinking about starting a flower arranging business on the side – Dave’s steps to success will be helpful.  Just say on the other hand you have a brilliant software concept you want developed.  Heed Dave’s advice at your own risk.  Your software developers may not stick around if you do as Dave does and tell your employees they “are stealing your money” by showing up at 8:10 (Dave’s office opens at 8:00 sharp).  No, people with skills don’t put up with that when millions of other startups are starving for talent.   

·         He’s too focused on debt as a big obstacle for business.  Dave doesn’t agree with debt.  Guess what Dave.  Hardly anybody can get a business loan these days.  Not even prime borrowers.  Bank of America started 2012 off by stating they are calling in existing business loans.  Even if they wanted to do so – there are no aspiring business people leveraging themselves to the hilt like it is 2005. 

·         Dave scoffs education (except for his Financial Peace Academy - $2,000 for 11 seminars).  He may be on to something.  If you want to start a window washing business –just get out there, have passion and do it.  However, if you are excited about a more complex field (e.g. medical devices or market research) – you just may need some academic background before you hang your shingle out.

·         Technology!  In a “practical” book about business the failure to mention technology is an inexcusable oversight.  It’s by far the most important, multi-decade trend reshaping every business from Mom and Pop’s shop to Google.  Any leader that ignores technology is clueless.    

In summary, Dave’s book is not all bad.  It’s not Jim Collins’ Good to Great (which actually includes research).  It’s more along the lines of Chicken Soup for the Soul.  And I truly mean that in a soft, nice sort of way.  For the high school student, the disgruntled cubicle grunt or bored retiree thinking about starting a business there is inspirational value.  So, yes in the end I am recommending the book –depending on who you are. For the serious business leader seeking an edge in the fast moving market place known as USA, I am going to ironically repeat some Dave Ramsey wisdom: Save your money!