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(word processor parameters LM=8, RM=75, TM=2, BM=2)
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Taken from KeelyNet BBS (214) 324-3501
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Sponsored by Vangard Sciences
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PO BOX 1031
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Mesquite, TX 75150
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There are ABSOLUTELY NO RESTRICTIONS
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on duplicating, publishing or distributing the
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files on KeelyNet except where noted!
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October 27, 1992
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PEROTBUS.ASC
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--------------------------------------------------------------------
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This file was laboriously transcribed at KeelyNet from
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the Perot video entitled,
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"How to Build a Business & Create Jobs"
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Perot is such an inspiration to all thinking Americans that this
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info should be in print for easier reference, study and
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contemplation. Enjoy!
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All those who study the alternative sciences are ACUTELY aware of
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what research efforts in these areas WOULD LEAD TO if properly
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funded.
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Since our studies in blocking gravity or building over-unity energy
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generators require somewhat extensive electronics/mechanical labs,
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we are trying to get a research facility together. We at KeelyNet
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believe we have the keys/contacts to unlock one or both of these
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areas in addition to other interesting product possibilities.
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An 85,000 square foot building has been located and we are seeking
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funding for $10 million to span a five year period as support and
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backing for several researchers to be involved in several projects.
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The primary thrust of the VANGARD SCIENCES RESEARCH CENTER is to
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function as an Inventors' Co-Op to create new technologies and
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devices that will be marketed or contracted for manufacturing. This
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center will also provide for conferences, educational programs, a
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major computer network, study center and other profit centers to
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help sustain and grow this center as a revolutionary new business.
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Ross Perot is an outstanding leader and inspiration for everyone to
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try their hand at business. He started out on $1000 with a radical
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new idea. We are looking into several approaches to achieving our
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own goal of establishing this research center.
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--------------------------------------------------------------------
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Tips from Ross Perot's Business Experience
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in Perot's own words
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Small business right now is being starved for two things, CREDIT and
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CAPITAL.
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Industries of the future, Biotech, Microelectronics, Commercial
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Aircraft, Robotics, Software, Computers, so on and so forth.
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--------------------------------------------------------------------
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Page 1
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How does a person prepare for starting his own business?
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My advice to the person who is considering starting a small business
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is :
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Serve an apprenticeship in an industry you are really excited
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about. Let's assume you have a Masters Degree in Business
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from Harvard, go to work 2nd and 3rd shift on the factory
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floor, learn it from the bottom up, (get to) really know that
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business, work there a few years, INSIST on doing EVERY job
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and one of these days, a light is going on in your head and
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you're going to have a REALLY unorthodox idea, an UNMET NEED.
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The way you find it, is by burying yourself in an industry
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YOU ADORE. That's the way you identify the unmet need and
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THEN you have the GERM OF THE IDEA to START YOUR OWN COMPANY!
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--------------------------------------------------------------------
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What are the most important characteristics of a business founder?
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Here is a profile, they're not the brightest people you ever met and
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certainly I put myself in that category. They KNOW their strengths
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and weaknesses. They surround themselves with people MORE talented
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than they are BECAUSE they know THEIR strengths and weaknesses, and
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each person in the organization PLAYS to his or her STRENGTHS.
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There is a second characteristic, these people DON'T UNDERSTAND
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FAILURE, they don't KNOW when they've lost. If you wrote a book
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about any of them, again and again and again, they were beaten but
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just never recognized it and went on to build a great company.
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So, they have a level of perseverance and stick-to-it've ness that
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is really unique. Now, they are people that others will respect and
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trust. They are very simple people as a group.
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They do what they say they will do, therefore they EARN the trust
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and respect of people around them. And the ones who build the great
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companies, live with their customers.
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Sam Walton, standing on the floor of Wal-Mart, the richest man in
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America, day after day after day. He didn't have to hire
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consultants to tell him what his customers thought, they were
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talking to Sam. There is a lesson here, the President of the United
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States needs to be out there listening to the people also and not
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taking polls. All these big corporations have financial reports and
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consultant studies. Sam was out there, he had their finger tip
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feel, nothing will ever replace it. Those are the characteristics.
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--------------------------------------------------------------------
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What if nobody likes that new business idea though?
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Well there is good news and bad news folks, for example, my idea was
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considered so bad, that I was stuck with the whole thing, now that
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was painful in the early years, but that was pretty nice when it
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worked. You can make it work, I had no financial support, nobody
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would buy my stock, nobody would loan me any money, and here's the
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good news, if you have to bootstrap it, it is cold rolled stainless
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steel when you finish it because you have developed a pump.
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You make a little money and you invest it back in the company, you
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make a little more and you invest it back in the company and pretty
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Page 2
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soon it looks like an oil well in the Middle East just pumping
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money.
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Whereas, if you go the other way, see, you had too much money
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around. Now that my businesses are very successful, we keep money
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as a very scarce commodity. Now if people don't listen to anything
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else I say tonite, please listen to this, brains, wits, creative
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talents of a small high talent team will beat massive capital
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spending 10 times out of 10.
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So I use money like you use water going across Death Valley, you
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conserve it and you use the brains and wits of your people. I could
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tell you a thousand stories.
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--------------------------------------------------------------------
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Then that is your philosophy about spending money in a new company?
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In a new company or a big company, see, use the talent, brains and
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wits of your people and don't just throw money at every problem that
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comes by.
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--------------------------------------------------------------------
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What is the most important trait that the founder must possess in
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the early days?
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Well, he has to have several, but one is, he just has to do
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this...see the Wright Brothers HAD to fly. Two bicycle repairmen,
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they had no business trying but they had to fly. Thomas Edison HAD
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to invent the electric light. I think he tried every way in the
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world and finally got down to his last option when he GOT IT, but he
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HAD to do it.
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That's a common characteristic, then beyond that is this point I
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made earlier, know your strengths and weaknesses, surround yourself
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with talented people. In summary, this very critical factor here is
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recognizing that you can only do so much and getting the MULTIPLIER
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of the talented team. Then you can grow, otherwise you're a one man
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genius operation.
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Only a handful of people in our great country can create jobs, but
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thousands of honest, decent people, many brighter than you who
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created the company are willing to work at those jobs but they are
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totally dependent on you to keep an environment that protects their
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jobs and creates thousands of new jobs each year.
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Now the quality that got you going, the fact that you persevered,
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the fact that you didn't quit, the fact that you didn't recognize
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failure, the fact that you didn't know you had failed is the most
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important quality you can have when you have a worldwide operation
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and tens of thousands of people all over the world.
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Just always focus on what you have to do AND DO IT!
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--------------------------------------------------------------------
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What is the single most important objective that the creator of a
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new business must have?
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If you don't listen to anything else I say tonite, it's got to be
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the best in the world. The best in the world, you say, now wait a
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minute, how about the best in Idaho. Sorry, best in Texas, NO, best
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in the US, NO. We live in a tiny little world, we're stuck with it
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and your theme song ought to be nobody does it better, nobody does
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Page 3
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it half as well as you and your team. Then you'll have people all
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over the world coming around with bright notebooks trying to copy
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you. Now that's where I'd like to see all of you.
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--------------------------------------------------------------------
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What are some important other objectives?
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Service to your customer. The Customer is KING, if you just make
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the customer king, everything will work out, see, if the customer is
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king, then you've got to have the best people to make the best
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products to serve your customer. In order to attract and keep the
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best people you've got to have an environment where their goals and
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dreams materialize too. So, it all just sort of fits together.
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--------------------------------------------------------------------
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Is it important to write down what your company is going to be
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before you start it?
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It's the most important thing you'll do. I did it on a yellow pad,
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before I started my first company. All my hopes and all my goals
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and philosophies were there, I wouldn't consider starting a business
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without doing it, very simply and very straight-forwardly and have
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everybody in your company know what their philosophies are, that's
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the easy part. Then you as the founder have to live them day in and
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day out.
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People don't care what you preach, their interested in what you
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practice. The worst thing you can do is have these lofty goals and
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objectives and then not practice them. Live them, have everybody in
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your company committed to them.
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On the interview of new employees, discuss them with them and they
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should be so specific that people are really excited about them or
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do not want to be a part of your company, but at least they know
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what they are getting into and they know you live it. As you build
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your company, a lot of your satisfaction will come, if you run your
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business in the center of the field of ethical behavior and not
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along the sidelines.
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Unfortunately, in the 80's in business, a lot of companies got cute,
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the question was, is it legal or illegal, never ask yourself that.
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You're only question is, is it right or wrong? Live in the center
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of the field. Your customers will appreciate that, the people that
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work with you will appreciate that and once you go public, believe
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me, your stockholders will appreciate that.
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--------------------------------------------------------------------
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How does the founder of a new company decide who to hire?
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It's the most important decision you'll make. You want very, very
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talented people. Over the years I used to talk to our recruiters
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and I said look, I don't care who you are, I don't care where you
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come from, I don't care where you went to school, I don't care if
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you went to school, I don't care what race you are, I don't care
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what color you are, I don't care what religion you are.
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Finally one of the recruiters, since we are in a high tech business
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would say well Ross do you care about anything? I said you bet, I
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care about what you can do and I care about what you've done lately.
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Then we'd have a little talk on that because lately is everything,
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you run into a lot of talented people who want to kick the ball
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through the goal once and then walk around and display their
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Page 4
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clippings. Once you kick the ball through the goal, that's
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yesterday's news. What are you going to do tomorrow?
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That's the way business (works), the faster you run, the faster you
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have to run. Particularly true in a global economy. The other
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thing is, look for people who have a history of success. You say,
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don't you want a cookie cutter, MBA, 3.6 grade average, etc. No,
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none of that means anything.
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Look for people who have a history of success since childhood. Look
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for people who have a pattern of being the best. Look for people who
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love to win because you're going to be in brutal competition. You
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don't have to watch sports in this country anymore to satisfy your
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competitive instincts, because all of us are playing in a worldwide
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superbowl all day every day for our jobs.
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So look for people who love to compete and love to win. And I
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stressed this so hard one day, one of the fellows said, well what if
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we run out of people who love to win, I said, well just get people
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who can't stand to lose. Because if you have people who have that
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motivation, on their own they have all this initiative and
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creativity and you've got to set your people free.
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A lot of these big companies keep people reigned in, I have a bust
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of John Paul Jones right outside my office, he became a great Naval
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hero because one enlisted man, acting on his own initiative and not
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under John Paul Jones orders saved the day and made John Paul Jones
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a hero. Everybody who works with me, when they walk past that, they
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smile because they know that means, if there is something that needs
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to be done, figure out what to do and use your head, don't wait for
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me to tell you what to do, and in 9 cases out of 9, they'll come up
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with a better idea than I had anyhow.
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Now that's the way you get THE MULTIPLIER. A few other thumbrules,
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if you have a corporate politician, fire him, if you find somebody
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who is stealing, cheating or taking advantage of other people, in my
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companies that will get you a free trip halfway around the world.
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Only I fire those people, now that gets the word out that you don't
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do that, that you work together in good faith and your ethical
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standards are very high.
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These are little things, but these are the difference between good
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and great. Create a professional work environment where people are
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having fun while they build the finest products. That is so
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important and most people don't ever talk about it, but as long as
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you're going to work hard, as long as you're going to be the best,
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it's pretty important to look forward to it every morning and walk
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out the door every night grinning.
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Now we have another ground rule in my companies that I would
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encourage you to adopt. Never go home at night mad, if you're upset
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about something, go into whoever you need to talk to, get it off
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your chest, get it worked out, come back in in the morning grinning.
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--------------------------------------------------------------------
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How important is the customer to all of this?
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It's all important, ALL IMPORTANT, unfortunately in our country we
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tend to forget the customer in many cases and as soon as you do, you
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Page 5
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lose touch with the customer, your business will deteriorate. It'll
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take awhile, but anytime you think about that, go back to my story
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about Mr. Walton, make sure that as you build your company, that you
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know what your customers are thinking. That you are really, really
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close to your customer.
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I'll sum it up, LIsten to your customer very carefully, get a
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Miracle Ear if you need it, then listen, listen, listen to your
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front line people who work with the customer and you will know what
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to do, you won't have to guess and you won't have to hire
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consultants, you will know what to do.
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--------------------------------------------------------------------
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Should the company have clearly stated philosophies about the
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selection and treatment of the people in the company?
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Absolutely, and my advice is very simple here, all you have to do in
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figuring out how to treat your people is say how do you want to be
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treated? That's fascinating. You just wonder if some of these big
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companies ever thought of that.
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Just treat people the way you would like to be treated, is it wiser
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for you to have me work for you or with you? The answer is obvious.
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Is it wiser for you to treat me like dirt? Or to treat me as an
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equal, and with dignity and respect. The answer is obvious.
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Now, there is something in all of us, I'm third shift, high school
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dropout, working on the loading dock, minimum wage and you're CEO.
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Right in here, there is something inside me that says I'm unique,
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I'm special. There's only one person in the world like me, I am a
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human being, I've got a name, I don't want to be any of these three.
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Just call me Ross, do you follow me?
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Now, if you will treat me with dignity and respect, and treat me as
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a human being, and here's one unsolicited piece of advice, to all
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you fellows running companies, make sure that the folks that I just
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described, your entry level people, have the same benefits you have,
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they need them and that sends a message to the troops. A parable is
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the old military message, First feed the troops in combat, then you
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feed the officers.
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Entry people need that health care, if you didn't have it, you could
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pay for it out of your pocket. Very basic stuff, but you can build
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an esprit and a team spirit that just makes it unfair for you to
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climb in the ring with your competitors, if you treat your people as
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equals, and you all team up together and take on the world and beat
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them 10 times out of 10. That's what the game is all about.
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--------------------------------------------------------------------
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How do you handle the problems of fair treatment of women in the
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workplace?
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Well, women are so talented in my business, that the men are at a
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disadvantage. But, I came up with a very simple rule in the early
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days. I want to have an environment for the women in this company
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where every man in this company would be delighted to have his
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daughter work here. Now that cleans out everything in one phrase, I
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mean that goes for how you treat them, that goes to fair treatment
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in terms of recognition, promotions and so on and so forth, because
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DADS are very protective of their daughters. I want this to be a
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Page 6
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place where you would be delighted to have your daughter work. In
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every single aspect and the rest took care of itself.
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--------------------------------------------------------------------
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What about employee benefits?
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Tiered benefits send a message. If I am entry level and I have
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rotten benefits and you're a senior executive and you have great
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benefits, well I am obviously very different from you. Now I can
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understand that my salary would be different, but to realize that my
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child could get the same medical attention that your's could get
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from the benefits the company provides, sends a message.
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A lot of these big companies have multi-tiered retirement funds, no
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way. You check them, you'll find the executive fund is fully
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funded, you work your way on down, some of those are not fully
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funded. There should be one fund and then I'll guarantee you their
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fully funded.
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--------------------------------------------------------------------
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What about incurring debt to build that new company?
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My advice for people starting new companies is try to avoid debt at
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all costs. If you have to, if it's capital intensive, you do it.
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I'd recommend that you sell shares in the company first, we're going
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to create enormous incentive for people to invest in small companies
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so that it's easy to get cash in that doesn't have to be paid back,
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you don't have that interest clock eating you alive.
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See, every small businessman understands my concern with the
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national debt. Cause his tiny little debt, that interest clock is
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chewing him everyday, when he looks at 4 trillion dollars, he passes
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out. But avoid it, it's like the measles, avoid it if you can, if
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you have to have a little debt, fine, but remember, everything you
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borrow, you gotta pay back. Brains and wits, brains and wits, keep
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the borrowed money down.
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--------------------------------------------------------------------
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How do you gear up that new company so it will compete with the
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established companies?
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It's the easiest thing in the world. They will send in huge armies
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and these armies are bureaucratic. Send in tiny high talent teams,
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you'll beat them 10 times out of 10 and they will dismiss you as a
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loony for showing up and they will go into cardiac arrest when you
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win.
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--------------------------------------------------------------------
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How important is the founder once that new company begins to grow?
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Well that's the interesting part, in my case at least, I just sort
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of sit there and enjoy the action because you have all these
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talented people. There is something I haven't said, you bring in
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all these talented people, you treat them with dignity, everything's
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going well but keep in mind and this is so important for every
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company builder, all of those people had dreams too.
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As the company grows, your dreams are being fulfilled, are these
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people stockholders? Do they have a fair piece of the ownership?
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Are you recognizing and rewarding their extraordinary contribution
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by making them part owners of the company? Now let's assume you're
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doing that. If you do everything all on compensation including
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salaries, bonus, stock options but you don't give people what I call
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Page 7
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their psychic rewards, you're denying them a huge part of it. For
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example, when they do something great, recognize it that day, not
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six months later, that day.
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Recognize it while their still sweating from the effort. The final
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point here though, is you need to get out of the way and let them
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move up and run the company. The ultimate reward for one of your
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hot tigers is to give him your job. Well, you can be Chairman of
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the Board, you can just be on the board. If you're the founder and
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a big stockholder, you don't need a title.
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Keep titles in the background. Keep performance in the foreground.
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Don't have people making their career trying to be a Vice-President.
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Have them make their career trying to win every single competition.
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They'll probably wind up being President or King or whatever you
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want to make them.
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If you could give company presidents just one piece of advice based
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on your experience, what would that be?
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It would be primarily to stay close to your customer. If I could
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have two, I'd say stay close to your front line troops and the
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customer and say three, once you bring all those talented people in
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keep a magic environment where they want to stay and others want to
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come in, then you can grow.
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How do you tap the full potential of each person on your team?
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Well, each person is different, you need to understand, these are
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not like nuts and bolts, these are human beings, each one is
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different, you play to their strengths in order to tap their full
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potential, and you keep an environment where they are free to
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exercise their initiative and creativity.
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The worst thing you can do to talented people is to freeze them in a
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procedure-oriented environment where they are not able to think
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creatively and come up with unorthodox ideas that believe it or not
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are probably ten times better than mine, and very important, very,
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very important, leave a lot of room for the 22-23 year olds that are
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too young, too inexperienced to ever have a great idea, to come into
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your office, kick the door open and say, well why don't we paint it
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purple?
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A radical, unorthodox new idea, most of my net worth today rests
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squarely on the really weird ideas of people too young and too
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inexperienced to have a great idea and all we did is listen, and 9
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times out of 10, we'd take that young tiger and say OK, tough guy,
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if you're so in love with it, here's a small team, here's everything
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you need, just go do it and he'll walk out grinning and 3 months
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later, he or she will have done something that most big companies
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would take 5 years to do and spend hundreds of millions of dollars
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on research and they would come back with it. Now that's the way
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you get things done.
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Ross, as you build a new company, what is the importance of the
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family?
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I think the most important thing I can say to people building
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businesses in this country today, how I started with nothing, wound
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Page 8
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up on the other side of the economic spectrum and I can tell you
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that money is the most over-rated thing in the world. If you make
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money your god in building your company, you probably won't get
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there.
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If you make being the best your goal, you probably will get there
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and financial success will come as a by-product. But on all those
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special days when your children need you at the Little League ball
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field or at the Campfire Girl meetings or at the Girl Scouts
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meetings or at the PTA meetings and all those once-in-a-lifetime
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little opportunities when your children need you, if you're on the
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road and you're not there and you neglect them, you're going to pay
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a terrible price when their grown.
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So, keep your priorities straight. Keep an environment where your
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people can keep their priorities straight, and give a lot of
|
|
attention to your family. Now I've had the interesting experience
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of knowing the wealthiest people in the worldand I can tell you that
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if you have all the marbles and your family is a mess and your
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children are a mess, you can be miserable and unhappy, even though
|
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you're surrounded by things.
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So, keep your priorities straight and from my own perspective, I can
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tell you that I never felt wealthy until my children were grown, til
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they were good citizens with a deep concern for other people and a
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willingness to do something about it. Keep that kind of
|
|
environment, there is a very special time in your life when your
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children are growing up, don't neglect your family to build your
|
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company, if you do, you may wind up wealthy, but miserable.
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|
Here is one that you've got to listen to. Success makes you
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vulnerable, adversity builds strength. But success breeds arrogance
|
|
and complacency. How do you avoid that? Every heavyweight boxer
|
|
pays the price, gets there, becomes the champion of the world, then
|
|
starts his arrogant phase and some young person nobody ever heard of
|
|
knocks him off in the next fight.
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|
|
Relish competition. The more brutal, the better. The bigger, the
|
|
better. The greater the odds against you, the better. That keeps
|
|
your organization lean and hard, always look for the tough ones and
|
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go out to win every single point.
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Summarizing, how important building new businesses, how important is
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|
that to the future of this country?
|
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|
|
It's everything, for example, if we had stayed where we were 50
|
|
years ago, we'd still probably be building buggies and making buggy
|
|
whips and bridles and saddles. You have to keep moving forward.
|
|
|
|
Our great country and God bless the people in Washington, their not
|
|
villains, see, I don't understand brain surgery and they don't
|
|
understand business, and business is our problem and they talk to
|
|
economists. One of the candidates the other night on the debate was
|
|
bragging about how many economists he had on his staff. I just sat
|
|
their cringing, that's like having Faith Healers and Rain Makers.
|
|
These guys got us in this mess we're in.
|
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|
|
Economists base everything on theory, what we need is people with
|
|
practical experience about business that KNOW how to do this. We
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Page 9
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practice 19th century capitalism because that was what used to work.
|
|
Japan and Germany didn't get capitalism until 1945, so they created
|
|
1950 capitalism. We've got 1850 capitalism, their moving towards
|
|
21st century capitalism and we have one of the two political parties
|
|
saying, Let's just keep things the way they are, while the other
|
|
party says, Let's have a little change, but they don't know what
|
|
they're talking about.
|
|
|
|
The people that asked me to go on the ballot are saying, Let's just
|
|
fix it and get ready for the 21st century, pass the American dream
|
|
onto our children. That's what we're talking about. Maybe the best
|
|
summary I could give you of the perserverance I'm talking about, is
|
|
one of Churchill's famous speeches, it's his shortest speech and
|
|
this is the entire speech, "Never give in, never give in, Never,
|
|
Never, Never!"
|
|
|
|
Thank you very much.
|
|
--------------------------------------------------------------------
|
|
For more details on Perot's ideas for how to change our government
|
|
and fix our problems, please read "United We Stand", available at
|
|
all bookstores.
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If you have comments or other information relating to such topics
|
|
as this paper covers, please upload to KeelyNet or send to the
|
|
Vangard Sciences address as listed on the first page.
|
|
Thank you for your consideration, interest and support.
|
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|
Jerry W. Decker.........Ron Barker...........Chuck Henderson
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Vangard Sciences/KeelyNet
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If we can be of service, you may contact
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Jerry at (214) 324-8741 or Ron at (214) 242-9346
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Page 10
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