Built, Not Born summary

Consider this for a moment: If you were selling popcorn, how many buyers would you need to cover your costs and make a profit? Most of what you do in business revolves around answering that kind of fundamental question.

So when it comes to your own business, answer the question of how many buyers you need to cover costs and make a profit on a single page. Become proficient in writing and reading profit and loss statements. Use accurate statistics and data-driven judgments, not your emotions. Above all, be honest. An accurate and truthful cost and profit assessment may reveal that your idea should be abandoned entirely which will save you time and money.

That initial $3,000 Golisano invested in Paychex came from a business he sold. As the business expanded he enlisted partners. Some of them even sold their homes to fund franchises.

Securing sufficient capital is nonnegotiable for any startup. Personal savings and loans can provide initial seed money, but some entrepreneurs turn to relatives, friends, and connections. If you decide to take that route, ensure the lender or investor clearly understands the terms and conditions. And be sure to put everything in writing to avoid disputes later.

So how do you stay in business and earn revenue consistently? Well, here are some proven ideas.

The most sustainable revenue model involves building recurring client relationships rather than chasing one-time sales. So learn to think like software companies that ditched discs and downloads and embraced subscription services.

Paychex has always prioritized training, but what does this multi-billion dollar company look for in potential recruits? It all comes down to attitude – the right attitude. After all, nice people are easier to train and incorporate.

But first, as leader of your business, you need to build a culture rooted in mutual respect, cooperation, fairness, and creativity. If you don’t build it, your company will adopt a different one by default.

Divorce can be messy, but when Golisano sat down to negotiate terms with his first wife, they quickly agreed on a solution. Why was that? It’s simple, really: the agreed terms were mutually beneficial for both parties. And that principle is the one you should apply – everywhere.

So, how can you make a deal that works for everyone? The first step entails walking in the other side’s shoes. Try to understand their situation, their constraints, and their motivations. Learn how much you can concede and still cover your costs and make a profit.

What comes to mind when you hear names like Nike, Apple, Microsoft, Starbucks, Walmart, or any other brand name? Whether your reaction to them is positive or negative, it’s sure to be one or the other.

A positive public profile serves as a magnet attracting customers, talent, and opportunities. That positive image all starts with a great brand name. Your name should inspire trust, but it must be backed up by actions, values, and business outcomes.

Paychex will be Tom Golisano’s lasting legacy, but even he had to step down from the company and take a less active role as chairman of the board.

Whether passing the torch to a child, selling to the highest bidder, or retaining passive ownership in retirement, proactively you should plan for your next step while still on top of your game.