This book is a must read for any aspiring or current business owner. I read it cover to cover in a few days, and I will read it again every few years. This single book might be worth more than everything I learned in my MBA combined; it is that good.
Sam Walton was an absolute genius at the following critical success components in business:
1. Understand Your Customer
Money is made by creating value for others and then trading that value for their money. Understanding your customer (chosen benefactor of the value) is absolutely fundamental. Sam understood small town America better than anyone.
2. Create Value for Your Customer
Trying to make money is like pushing on a rope. Focus on creating as much value as possible for as many people as possible. Making money is and always will be a side effect of creating massive value (there are other options, but I would call them taking money and speculation/gambling).
Sam tells a story that I absolutely love. He buys his first store without knowing much of anything (and he gets swindled). He finds himself right across the street from the most successful store in town. What does he do? He spends all his time in his competitor’s store picking up ideas and implementing them in his own store! Sam has probably been in more stores than any human being who ever lived or ever will live. He never stopped looking for and discovering new ideas from others.
4. Recognize and Recruit Top Talent
Sam was able to immediately recognize winners, and he quickly recruited them for his team. Every successful business is built on world-class “A players.” The quality of people determine a business’s success. I would rather own a business with A players and a mediocre business plan than have the best business plan in the world but try to execute it with mediocre people.
5. The Root Word of Culture is Cult
Life is a believing contest. If you believe and are in love with your vision of the future more strongly than others believe theirs, others will adopt your vision as their own. When people believe and fall in love with your vision, they will make that vision reality.
Commit to your business. Believe in it more than anybody else. I think I overcame every single one of my personal shortcomings by the sheer passion I brought to my work. I don’t know if you’re born with this kind of passion, or if you can learn it. But I do know you need it. If you love your work, you’ll be out there every day trying to do it the best you possibly can, and pretty soon everybody around will catch the passion from you— like a fever.”
– Sam Walton
Sam Walton was a genius and self-made billionaire. If you have not read his autobiography yet, what on earth are you waiting for?
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