The Dinner Table MBA: 7 Business Lessons from My (Multimillionaire) Parents – Part 1 | RP 104

The Dinner Table MBA: 7 Business Lessons from My (Multimillionaire) Parents – Part 1

I grew up listening to my parents and their friends talk about business, real estate, and the economy.

We covered everything:

• What we thought about the menu and vibe of a friend’s newly opened bed and breakfast

• How one deeply religious family friend dealt with an HR issue involving a member of the queer community

• How our own employees were doing, now that sales volumes were picking up after the pandemic

The result? After 28 years, I don't know much about golf or football... But I do know business – both online and traditional brick-and-mortar.

Here is part 1 of lessons learned from these invaluable dinners... (Part 2 to come)

1. Never let your money sleep

My parents and their friends are always on the look out for new investment or business ideas.

They view residential properties for fun. Not to flip. But to park their money and have rent cover inflation.

One family friend buys and fixes up hotels at premium vacation destinations. He transformed family getaways from an expense into a revenue-generating asset on his balance sheet.

2. Simple and analog works

Our 15-year old business grew to over 7-figures in revenue with just spreadsheets and index cards.

So whenever I think I need a new tool, I think about my mom who uses:

• A paper planner

• Gmail

• Google Sheets

... To run a multimillion dollar logistics business.

Me?

• Notion

• Todoist

• Readwise

• Evernote

• Beehiiv, etc…

Just to write a free newsletter. 😂

3. B2B > B2C

One of my dad’s friends manufactures and supplies belt drives for Japanese car engines.

He landed the deal for that tiny part and built the systems once... And he’s been fulfilling multimillion dollar orders at scale for the past 10+ years.

B2C might have more volume. But B2B has higher deal sizes and less market volatility.

4. Leave money on the table

We break even on some sales just to land a client. But we do it for the long game so that can fulfill wholesale orders, where we make most of our revenue.

My mom has this saying: "That's not our business."

In other words, play the long game. If that's not how we primarily make money, then we don't try to optimize it.

5. Demand first

Our business started when my dad was a sales rep at a fragrance brand. One of his clients asked him if he knew anyone who supplied perfume bottles.

Next thing I knew, my parents jetted off to China to find suppliers and fulfill orders... And the rest is history.

Don't build a solution then create demand. Seek to fill existing needs.

6. Hire people with families

My parents love hiring dedicated family men.

One of our earliest employees was a driver who could barely read. Coming from a small rural town, his only dream was for his daughters to get jobs as maids in the big city.

Fast forward 15 years later.

He manages most of our manufacturing and logistics operations, owns a house and properties, and has put his daughters through college. Now one of them owns a motorcycle parts business in their town.

Committed moms and dads work harder and smarter. Giving them an opportunity amplifies that impact into their families.

7. Pay well

In our office Christmas parties, we don't do a potluck, swap presents, and call it a day.

We have a party where the staff stage dance numbers, enter raffles, and play games to win appliances and cash prizes.

At these year-end parties, the staff also get a bonus the size of their monthly paycheck. We call this 13th month pay. And the staff get this every year.

Don’t wait for people to ask for a raise.

Having the ability to give someone a raise, a bonus, or a promotion is a privilege. Not a burden.

To recap…

1. Never let your money sleep

2. Simple and analog works

3. B2B > B2C

4. Leave money on the table

5. Demand first

6. Hire people with families

7. Pay well

If you liked these lessons, keep an eye out for next week’s email. The next 8 lessons are coming down in the next edition of this newsletter.

😉 You're welcome

A selection of interesting links & fun recommendations.

• 🐦 2 questions to ask if the people you love the most invalidate your chosen career path.

• ❝ “Whenever I get to a low point when I think 'why do I even bother' I just remind myself, this is where most people quit, and this is why they don't win.” — @AlexHormozi

• 📚 How Proust Can Change Your Life by Alain de Boton. From Amazon: “Proust understood that the essence and value of life was the sum of its everyday parts. As relevant today as they were at the turn of the century, Proust's life and work are transformed here into a no-nonsense guide to, among other things, enjoying your vacation, reviving a relationship, achieving original and unclichéd articulation, being a good host, recognizing love, and understanding why you should never sleep with someone on a first date. Who would have thought that Marcel Proust, one of the most important writers of our century, could provide us with such a rich source of insight into how best to live life?”

  This short book helped me improved how I approach friendships, how I embed originality into my writing, and what to do about people who annoy me.

  My favourite lesson? Choose friends who are warm and kind. Not those with whom you can make business deals.

  de Boton quotes Proust: “I do my intellectual work within myself, and once with other people, it’s more or less irrelevant to me that they’re intelligent, as long as they are kind, sincere, etc.”