He finally came to the realization that he wasn’t meant to be an employee. He gave up on having a job and instead focused on his business, which he had begun while he was a student.
Go Where No One Has Gone Before
Billionaires are not afraid to be different or first in a new field, no matter how much controversy they stir.
Cho Tak Wong was one of the first entrepreneurs in his country when the Communist Party began to reform the system in the early 1980s. Cho Tak Wong was among the first private factory owners in China, acquiring a factory no one dared to take over as it was run by the Communist Party. In 1993, he became the first in his industry to list a company on a stock exchange and, two years later, the first in China to install an independent board of directors. In 2004, he became the first Chinese businessman to win an anti-dumping case in America. He was also the first—and probably only—entrepreneur in China to give a state subsidy back to the government, as it was unused in the 2008 financial crisis.
Tim Draper, the legendary Silicon Valley investor, adeptly taps into virgin areas of business. He is considered the inventor of viral marketing, which revolutionized the start-up scene. He was the founding investor in Hotmail, the world’s first webmail service. While the founders searched for a way to grow their customer base with virtually no marketing budget, he told them to add the following sign-up link below each email sent via Hotmail by its users: “P.S.: I love you. Get your free e-mail at Hotmail.”
The founders were reluctant. Tim needed weeks to convince the founders of the merits of this strategy. The team finally agreed to include the line without the “I love you” part. This created a so-called “viral loop.” Each email sent using Hotmail became a simultaneous invitation to use the service. Hotmail’s growth became exponential within a few hours. After six months, the company went from zero to 1 million users. The next million only took three weeks, and it rose upward from that point on.
Hüsnü Özyegin was the only Turkish student while he studied at Oregon State University, and became the second Turkish student ever to enroll in Harvard Business School. He was also the only person in Turkey to ask the Treasury for a banking license as a professional, even though he had little capital to operate a bank. Nobody had accomplished this before, but he was granted the license and achieved astounding success.
Kim Beom-Su—the Korean mobile tycoon whose Kakao messenger is used by virtually 100% of smartphone owners in his country—ventured several times into undiscovered business territory. Back in the 1990s, when there were no fixed web standards, he invented a gaming system in which players were connected over the Internet and could play Tetris or Korean Chess against each other. This revolutionary concept was a precursor of today’s online games.
When the dot.com bubble burst and money became tight, his company was in dire need of a revenue stream. He came up with the “freemium” business model in gaming, in which gamers could play for free but paid for additional features. “People could do most of the things for free, but if they wanted premium functions or service, they could pay $4 per month,” he explains. When they launched the premium membership program, they were nervous about how it might perform, since paid online games that existed at that time weren’t well received and were struggling financially. “But on the day we opened this service we hit $79,000 and knew it was a success.”
His status as a pioneer became solidified with his company’s next ventures. The Hangame portal became the first to offer virtual items and avatars in games. With Kakao, his next company, he found a way to monetize a mobile messenger by offering a platform for third-party games and charging a commission for it. The Korean game market grew more than 20 times, and his concept became a successful new business model around the world.
More recently, Kim Beom-Su solved another industry problem by figuring out how to sell content to mobile users when they were accustomed to receiving everything for free. After two years of searching for a solution, he created KakaoPage—a platform on which users may read comics and books or watch cartoons and videos generated by other site visitors for free. The catch: If customers want to read the next chapter or see the next episode one week earlier than the no-charge users, they need to pay. The model was a win-win for users, creators, and for Kakao.
Create Trends
Chip Wilson created four companies that manufacture different types of clothing. At first, the focus was on general fashion, but then he set up Westbeach to produce beach and surf clothing five to seven years ahead of this trend. Next, he forged a skating business, once again before it became trendy. As he describes: “I’d put the concept out there and nobody would believe it. So I’ve always been in a world where I’ve had to just do it, what I wanted.”
Westbeach Surf Company had been known as a surf/skate company, but Chip began to see that sales were starting to decline and snowboarding was coming up. He wanted to make snowboard clothing for this newly emerging customer base. “But the people in the company were so ingrained in surf and skate that they didn’t want to change.”
Chip changed the company name to Westbeach Snowboard and initiated the manufacture of baggy snowboarding pants with a “gangster” look. Chip’s statement puts in perspective how far ahead of the trend they were: “Snowboarding had gone from three companies in 1987 to about 500 companies in 1993.”
He then discovered that nobody paid enough attention to women’s sportswear. That’s when he stumbled upon yoga and went with a gut feeling. In 1998, based on his experiences with technical fabrics and sportswear, he developed a tightly worn fabric that looked great on women’s legs and butts. Thus Lululemon was born.
Chip set up the first yoga store in Vancouver, where the only yoga classes in town took place. Several years later, Lululemon became a major sportswear brand with over 300 locations and billions in revenue, competing with brands such as Nike and Under Armour. With this venture, Chip became a billionaire.
He is unrelenting when it comes to anticipating “the next big thing.” Despite his track record, he once again encountered fierce resistance when he sought to evolve Lululemon into the realm of mindfulness. That’s how the idea for Kit and Ace was born: a brand that takes the best principles of athletic wear and applies them to clothing that can be worn all day.
But Chip is also a great innovator in the realm of business models. In 1980, he invented the vertical business model in clothing retailing. “There was nobody doing it,” he recalls. “Almost everyone said what I was doing was not right, but it always seemed to work.”
Think Different
All billionaires think different as part of their DNA. They think independently, challenge the status quo, and refuse to accept the old truths. Billionaires look for their own truths outside the mainstream.
Petter Stordalen advises people to “be scared when everybody is satisfied and there are only blue skies, and be brave when everybody’s scared. Because if you do what everybody is doing, you will never succeed. If you came up with a new toothpaste, it’s too late. You need to do something differently. But you can also change an old industry, like I did with hotels.” Petter told me: “Don’t be afraid to be different. Sell yourself as best as you can and don’t listen to others.”
Billionaires view things from their own perspectives. They see things as they could be instead of seeing them exactly as they are.
When Petter Stordalen, known as the Hotel King, saw the old post building in Gothenburg, he said it’s perfect for a hotel. The objections were powerful: “No, no, no, it’s the old post office. It’s over 100 years old. It’s been closed for 15 years.”
Petter held his ground: “It’s a hotel.”
“No, Petter, it’s not, and it’s under strict rules. You can’t do anything with it, you can’t change anything.”
Petter bought it anyway. After eliminating all of the bureaucratic obstacles and remodeling the building and area, it became a huge success. In fact, the area has become the new center of town.
I
t is unlikely you will reach the billionaire level if you are a follower and go head-to-head against the harsh competition. Instead, find a hole in the system and exploit it. Also, don’t follow the seemingly obvious truths, and steer clear of options that are “apparent.”
Sergey Galitskiy has a sober view: “You should not believe in obvious decisions that are important. You should not take faith in simple decisions. You always have to doubt everything, even the most obvious decisions, and this is the key to success.”
Vladimir Gordeychuk, Sergey’s business partner, confirms that “Sergey never believes in anything. He always doubts everything. He has his own opinion about every single situation.”
Billionaires never let the opinion of others decide their actions or self-worth. As Lirio Parisotto puts it: “Of course, everybody prefers applause instead of complaints. But in some way, I think for the billionaires it doesn’t matter whether they get applause or discouragement. They have their own inner standards, and they are their own judge. They are prepared for criticism. They know today you get applause, and it’s possible tomorrow you are in trouble. If people complain today about you, tomorrow maybe they applaud. So billionaires have personality enough to stand over it. I don’t need anybody to tell me I do the wrong thing when I do it. I know I do the wrong thing. So the greatest criticism comes from me.”
Live Your Own Life
Personal independence seems to be an important component of billionaires’ lives. Not only do they insist on this for themselves, they also look to pass their independent mindsets onto their children. They want them to become free-thinking persons in their own right.
Contrary to what most parents say to their children, Petter Stordalen repeatedly tells his own kids that grades in school aren’t important. He stresses to them: “Be happy with all the things you do. Choose your way, not my way. Not the way your mother wants you to take. Choose your life. Live your life the way you want to live it. Do whatever you want as long as you are happy with what you do.”
Tony Tan Caktiong has a similar philosophy with his children: “I think I want them to know how to enjoy their life and live their life based on their own needs and passion. You don’t live your life to follow somebody’s beliefs or society’s beliefs, so whatever is your passion you live toward that passion.”
As Hüsnü Özyegin often mentions during graduation ceremonies at his university: “Don’t do what your parents tell you, but do what you want to do in life; otherwise you will regret it. If you do what you want to do in life and you are unhappy, you take the responsibility. But if somebody else tells you what to do in life and you end up unhappy, then it’s your mistake to listen to them.”
Caution: A Potential Downside
There is also a flip side to billionaires’ individualism.
Earlier in this chapter I addressed how billionaires do it their own way and don’t take advice from others. But you shouldn’t give up cooperation in favor of individualism.
When Hangame became the number one gaming company in Korea, there was a tight competitor, Netmarble, that offered Brian Kim Beom-Su an opportunity to develop some joint projects. “I thought we were the top company at that time, so we didn’t need their help and coldly sent him away.”
Brian thought the gap between them would increase, but it didn’t. Hangame struggled to stay at the top. If they had partnered, they might have performed better. “But I couldn’t break out of the bias of thinking what I have is bigger and that I could do it on my own, so I learned that instead of doing things on your own, sometimes things could be greater if you do it together.” Brian considers this one of the biggest mistakes in his business career.
On the other hand, don’t shy away from seeking help or advice when needed, especially if it falls into an area of weakness. You must know yourself and act accordingly. An aversion to assistance may lead to making simple mistakes or being overwhelmed with the amount of work on your hands.
Chip Wilson believes this can become a major limitation. “I wanted to do it all myself and I wanted to make all my mistakes. I didn’t want to be responsible to anybody else for the mistakes that I’d made. It’s been a real limitation, because I find that people really do want to help.”
As you’ve seen in this chapter, billionaires are nonconformists who demonstrate individualism at an early age when they break more than a few rules. Over the years they learn to trust their instincts and go against the grain, even when everyone around them thinks they are out of their minds and advise them against taking chances.
Knowing when to make the leap versus when to run in the opposite direction often means the difference between bankruptcy and billions. Are you bold enough to become a nonconformist?
- Drifters don’t know or don’t understand the rules, and they fail to follow them.
- Millionaires know all the rules and excel in applying them proficiently.
- Billionaires know all the rules, but they are aware those are created by men. They look for a hole in the system and exploit it to their advantage. They create new rules, new paradigms.
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CHAPTER 14
Outwork Them All with Passion
It has been my observation that most people get ahead during the time other people waste.
—Henry Ford
There is no way around hard work. The more effort you put in, the higher your chance of being successful. So be diligent.
People say things like “work smart, not hard.” It’s nonsense. You should work smart and hard in order to be able to compete with those who do. Your only advantage is the effort you put in.
Sergey Galitskiy built Magnit, with 17,000 supermarkets the largest food retailer in Russia. When I interviewed him in his mahogany office, I asked him for advice to somebody who wants to be as successful as him. His advice: “Don’t think that you are better than others. Only by working harder can you achieve more than the others.” For him, one of the top three most important qualities for a businessperson is diligence. “You have to be very industrious because your intellect will never supersede that of other people too much. And only by working harder can you defeat those.”
Don’t think that you are better than others. Only by working harder can you achieve more than the others.
— Sergey Galitskiy #BillionDollarGoldNuggets
Be Diligent
Mohed Altrad, the world leader in scaffolding and the World Entrepreneur of the Year 2015, argues along these lines as well:
You could be talented, you could be a visionary, but you have to work. I have a rugby club here in Montpellier, and one of the most important rugby clubs in Europe. Last year, we won the European Cup. You have talented guys, talented players, but they don’t work hard. I tell them, “You have to work hard, because talent is not enough.” So work hard!
Jack Cowin got the right attitude from his father, who used to tell him, “You can achieve whatever you want to achieve if you work hard enough at it.”
You have to be very industrious because your intellect will never supersede that of other people too much.
— Sergey Galitskiy #BillionDollarGoldNuggets
It may sound like a cliché, but most billionaires name hard work as an essential part of their success secret.
Hüsnü Özyegin’s life motto is “hard work.” He told me that in his classes there were always people who were smarter than he was. But he was always able to outwork them. Even now he never thinks of himself as the smartest guy in the room. But he believes he can prevail by his effort. This is also the core of the message he shares with his students: “If you believe and you work hard, you can be successful like me.”
You could be talented, you could be a visionary, but you have to work.
— Mohed Altrad #BillionDollarGoldNuggets
Lirio Parisotto thinks “the value is made of character. You win if you work and study.”
Ron
Sim had to learn this great life lesson when he failed his secondary school entry exam. He learned that without diligence there is no result.
Everybody went to secondary school, and I had to repeat. So I woke up, and I topped the class when I repeated. Because I was determined to say “I’ve got to come back.”
You can achieve whatever you want to achieve if you work hard enough at it.
— Jack Cowin #BillionDollarGoldNuggets
ABW = Always Be Working
Hard work may be a vague concept for you, and different people may associate it with different intensity. Let’s make it concrete.
You win if you work and study.
— Lirio Parisotto #BillionDollarGoldNuggets
Working hard has two dimensions: working with high intensity and working long hours.
At the peak of their performance, many billionaires work every waking hour. It means up to 18 hours a day and 8 hours on weekends. They don’t take days off and work also on weekends, especially in the first years of their business. A 105-hour workweek has three times as many hours as a 35-hour workweek. It is clear you accomplish much more in the first case. So invest the time and keep on grinding. Always be working.
Sometimes, you will need to work for three days straight or sleep at the company, like Frank Stronach did at the beginning of his business.
When I had my first factory, or the second, there were times when I made a commitment to deliver the product on time. The most I did was worked 72 hours straight through to get it done. I had very good stamina.
In the first few years, I worked weekends, Saturdays, and Sundays also. I had one desire: never to be hungry anymore and to be free. And I could see, I could see the progression. So I said 10 years, then I’ll be free, and then I can do whatever I want to do.
Cho Tak Wong was selling fruit with his father before he started with his own business. His mother had to wipe away her tears when waking him up at 2 a.m. He remembers the lack of sleep and his huge work quota:
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