Randy Jones | July 8, 2009

One of the not-so-pretty laws of capitalism is that the new money calls the shots. It is not the creator of the genius idea or the smart manager who reaps the reward—it is the provider of the capital who gets rich. That is why another unwritten rule of M&A is “Shoot the founder.” All too often when lone-ranger founders, who think they can do it all, need—or are forced—to raise capital to get the business off the ground or to scale up, they quickly find themselves pushed out of the way, with nothing to do and as much to show for their efforts. Fully 94 percent of RMITS have the title “Founder” on their resumes; fewer than 20 percent, however, have taken their companies public.

Most who have retained ownership cite the short-term thinking of Wall Street as a key reason. When a company is forced to manage from quarter to quarter, as opposed to taking the long view, employees become commodities—and management becomes groupthink.

Category: #3: BYOB (Be Your Own Boss), Business and Entrepreneurship, The Richest Man in Town book, The Twelve Commandments | No Comments »
Tags: Coburn Optical Industries, Federal Reserve Board, Frontier Hotel and Casino, Jepson Corp., Kuhlman, Las Vegas, Phil Ruffin, Robert (Bob) Jepson, Shoot the founder, Total convenience stores, Trump International Hotel and Tower, Wichita Greyhound Racing Park

Randy Jones | July 6, 2009

Over this Independence Day weekend, I was thinking about how one of our defining traits as Americans is our strong emphasis on the individual. I’ve written about the benefits of partnering with someone who complements your perfect pitch so that you can be free to play to your strengths. Dennis Albaugh, the richest man in Des Moines, Iowa, told me, “I have always hired people who are smarter than I am.” I heard this refrain from virtually every RMIT I interviewed: selecting the right team, the right employees, and the best advisers is essential to their success. But make no mistake—there can only be one king.

Category: #3: BYOB (Be Your Own Boss), Business and Entrepreneurship, The Richest Man in Town book | No Comments »
Tags: Akron, Dennis Albaugh, Florida, Independence Day, Jim Oelschlager, Jorge Perez, Louis XIV, Miami, Oak Associates, Ohio, Related Group, Stephen Ross

Randy Jones | June 26, 2009

Our Puritan work ethic dictates that we have to strive to overcome our weaknesses, face our deficits head on, take the bull by the horns. Well, that’s bull. If you can stay away from the things that don’t bring you joy and excitement, that aren’t of interest to you, you free yourself to use your strengths. If you’re not a numbers person, you shouldn’t be an accountant. If you can’t play guitar, forget being a rock star. If you aren’t good at basketball, don’t dream of your day in the NBA. RMITs divest themselves of the things they don’t naturally excel at, enjoy, or find emotionally and intellectually stimulating. They seek more pleasure, less pain.

Category: #2: Find Your Perfect Pitch, The Richest Man in Town book, The Twelve Commandments | No Comments »
Tags: Florida, Fred Levin, Jack Kemp, Pensacola

Randy Jones | June 5, 2009

Jonathan Nelson learned the power of harnessing your unique talents in a music class in college, and it has served him well. He barely passed the class—appreciating Beethoven is harder when you don’t have perfect pitch—but now, as CEO of Providence Equity Partners, he is not only the richest man in Providence, he is the wealthiest man in the state. (It may be the smallest state in the Union, but there’s still some Texas-size money in Rhode Island; Nelson is worth at least $2 billion.) PEP acquired the movie studio MGM a few years ago, and the big question, he told me, was “What would we do with James Bond—who will be the next Bond?”

Category: #2: Find Your Perfect Pitch, The Richest Man in Town book, The Twelve Commandments | No Comments »
Tags: Barbara Broccoli, Casino Royale, Cubby Broccoli, Daniel Craig, Ian Fleming, James Bond, Jonathan Nelson, MGM, perfect pitch, Providence Equity Partners