28 lessons for running a successful business
I was listening to the Founders Podcast (a favourite of mine) while on a long drive this week and it's when the idea for this week's newsletter came to me.
The host, David Senra, was doing what he does best - breaking down the stories of some of history's greatest founders - in each episode he refers to the book he has read that week on the life of a famous founder.
What struck me and not for the first time, was just how often these people from different backgrounds and in different time periods seem to come across the same lessons.
There seems to be a certain universal nature to business and if you can learn the lessons ahead of time, it will speed up your progress and save you some unneeded heartache.
There is no intentional order to these lessons, so, let's dig in:
Do what you love, follow your passions, and pursue what genuinely interests you.
Not everything you enjoy can be turned into a means of financial gain, but that’s not the point. Engaging in activities you love can introduce you to new people, spark other interests, and unexpectedly open up opportunities that you could never have seen coming. There is no knowing when something you enjoy could evolve into a career or a business. If you consistently follow what excites you, there’s a good chance it will intersect with other opportunities, leading to something meaningful. Never dismiss your hobbies as meaningless or a waste of time.
See work as an essential part of life.
Since I was a child, my father has always said that work is one of the most important things in life. I never understood that then but now as a grown man I believe that to be true. Hard work pushes you forward, drives progress, and gives you something to strive for. It’s also mentally rewarding. Avoiding work or chasing a life of pure leisure rarely leads to fulfilment. There’s a balance to be found, but ultimately, you need to be willing to work, to build and create, to push through hardship and struggle, even when others don’t understand your vision.
You need to understand why you’re doing what you’re doing.
What’s driving you? Is it an internal motivation or an external one? More importantly, is it sustainable in the long run? Without a clear understanding of your ‘why,’ it’s easy to lose direction or burn out when things get tough.
Ideally you have an internal drive or calling because it doesn’t depend on the opinions of others, it's something that's non-negotiable for you, it's just something that you must do.
Read as much as possible.
Fiction, non-fiction, biographies, fantasy—everything. People often recommend technical books or biographies for learning, and they’re valuable, but fiction and creative works expand the mind in a different way.
I’ve always seen creativity as a web. The brain absorbs references from various sources, and over time, connections form, leading to new ideas. Nothing is created in isolation. Every great innovation builds upon previous ideas, improving and evolving. The more diverse your inputs, the greater your potential for creativity and problem-solving.
Quality matters.
The way you do one thing is often the way you do everything. I see this in my work in agriculture—those who take care of the small details tend to run everything to a higher standard. There’s a philosophy in the book Legacy by James Kerr about the New Zealand rugby team. They buy into an idea called "Sweep the Sheds" about how after every training and match, players on the team clean their own dressing room and don’t expect others to do it for them. The thinking behind it is that it instils discipline and humility. That attitude translates into every other area of life and work.
Discipline is non-negotiable.
It applies to your time, your energy, your work, and even what you choose to say no to. Being disciplined isn’t just about doing the right things; it’s also about avoiding the wrong things, distractions and inefficient uses of your time. There are countless paths you could take, but without discipline, you’ll end up scattered and ineffective. Jocko Willink said it best: “Discipline equals freedom”.
Identify what you’re good at and lean into it.
In the early days of your business, you’ll need to be competent across various areas, but as soon as you can, delegate the tasks you’re not great at. If you’re in a partnership, having complementary skills can be a huge advantage, though it also means sharing profits and decisions. Either way, focus on your strengths and be willing to let others handle what they’re better at. The time and space that allows you to double down on your strengths is where the business can really start to move.
It is key though to at least understand the key working parts of your business. Understanding all aspects of your business means that you can make decisions that account for as many variables as possible.
Incentives are crucial in any business.
If you want employees to go the extra mile, they need to feel appreciated and have a reason to care. Whether through financial incentives or other rewards, creating a structure where people feel ownership over their work will lead to better results. The right incentives will remove the need for micromanagement as people will take responsibility naturally.
Countless business owners expect employees to care about the business as much as they do but how could they, it isn’t their baby and they don’t receive the same cut of the reward should the business be successful.
If you incentivise them correctly, you can give them a reason to care.
Cost-cutting is critical.
Be ruthless with unnecessary expenses, but don’t be cheap in areas that matter. There’s a balance—you need to live a comfortable life, and you need to invest in the right people and resources. In my family’s poultry business, cost efficiency is everything. The cost of packaging, electricity, machinery, and downtime all add up. Smart spending and eliminating waste—whether it’s financial waste or wasted effort—are key to running a lean and effective business.
It is in the good times when people forget this rule and as a result they tend to suffer in the bad times.
Consider vertical integration.
Sometimes outsourcing makes sense, especially when dealing with highly technical processes. But often, taking control of more aspects of your business can reduce costs and reveal unexpected opportunities. Many companies that vertically integrate discover by-products or efficiencies they hadn’t considered before.
However, vertical integration isn’t always the answer. In some industries, particularly those requiring high levels of investment, outsourcing to specialised companies makes more sense. The key is to evaluate where it benefits you to take control and where relying on external partners is a better move. Just be cautious—if another company is handling a crucial part of your business, this could become a vulnerability if they ever decided to make a change, increase their price, etc.
Negotiation doesn’t need to be a battle.
It’s not about creating a perfect win-win situation, but both parties should feel they’ve walked away with a fair deal. If you push too hard and leave the other person feeling cheated then they will likely avoid working with you again. Negotiation is about striking a balance—you want the best possible deal, but you also need to build relationships that last. Costco is a great example of a company that negotiates hard but they do it in a way that creates long-term partnerships. Instead of fighting over every penny, the approach should be: “If you can give us X price, we’ll increase our business with you.” This creates an incentive for the other party to work with you rather than against you. If every negotiation feels like a war, it becomes exhausting and unsustainable.
It is important however to make sure you aren’t naïve and don’t allow strong willed individuals to take advantage of you.
“The very important basic premise of what really is a fair deal is a deal where everybody makes money, both the sponsor and the stockholder. That is what it is all about.” - Sam Zell
Manage your ego.
Having an ego isn’t necessarily a bad thing. If you’ve built something from the ground up, it’s natural to have confidence in yourself. But letting that ego be on full display is a mistake. People don’t want to work with someone who comes across as arrogant or self-important. Many of the most successful business leaders—like Sam Walton—had strong egos but presented themselves with humility. It’s about knowing your worth without needing to constantly prove it to others.
Understand your nature.
Some people are naturally aggressive and assertive, while others are more agreeable. Neither approach is inherently better, but you need to be aware of your tendencies and how they influence your decision-making. I used to believe that success in business required an aggressive, hardnose approach because that’s what I saw in my father. But after reading and listening to the stories of various founders, I’ve realised there are different ways to succeed. If you’re naturally agreeable, that doesn’t mean you can’t negotiate hard—you just need to find a method that works for you. If something isn’t in your nature, you can either develop that skill or hire someone who complements your weaknesses.
Reputation is everything.
A strong reputation can save a business in tough times, while a bad one can destroy it overnight. Warren Buffett famously does business on a handshake because his word is trusted. That kind of reputation doesn’t come from clever marketing—it’s built over years of consistent actions. Your reputation is tied to your relationships, and in business, relationships can be the difference between survival and failure.
When the Salomon Brothers crisis hit in the early ’90s, Buffett’s as a main shareholder stepped in as interim chairman and his reputation helped him negotiate a deal with the Federal Reserve and the U.S. Treasury that saved the company.
It’s a reminder that your name and integrity are some of the most valuable assets you have.
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” - Warren Buffett
Silence is a powerful tool.
You don’t need to share every plan, every thought, or every move you’re making. If people always know what you’re doing, they can anticipate and counter it. Some of the most successful business leaders like John D. Rockefeller or Jeff Bezos operated with a degree of secrecy.
I’m not advising dishonesty which some of these founders in the past were known for (John D being a key example) but simply keeping your ideas and strategies close to your chest. If you announce every intention, competitors will find ways to get there before you. Sometimes, the most effective move is to say less and act first.
No is not always a final answer.
This is something I’ve learned from watching my father and other entrepreneurs. Just because someone says no doesn’t mean it’s final. People often give a default “no” out of hesitation or habit, but if you keep pushing, asking the right questions, and making it easy for them to say yes, you’d be surprised how often things can be turned around. Steve Jobs was famous for pushing boundaries, not accepting limitations, and forcing people to reconsider what was possible. Persistence, when applied correctly, can open doors that initially seem shut.
Relationships matter.
Whether it’s customers, suppliers, or employees, prioritising relationships leads to long-term success. Companies like Amazon built their business around customer satisfaction, constantly asking how they could make things easier and cheaper for buyers.
In business, working with suppliers can be challenging, but improving those relationships often leads to better deals, smoother operations, and fewer headaches. Strong relationships create situations where both parties benefit, which is always better than a transactional, short-term mindset.
Never ask people to do something you wouldn’t do yourself.
That doesn’t mean micromanaging or doing every little task—that’s why you hire people. But it does mean being willing to get your hands dirty when necessary. Leading by example builds respect, and people are more likely to work hard for you if they know you understand their role and what it takes to get things done.
"Train people well enough so they can leave, treat them well enough so they don’t want to. And always be willing to do any job you ask of them." - Richard Branson
Set high standards and make sure everyone knows what they are.
Whether it’s suppliers, employees, or customers, clarity in expectations prevents misunderstandings and sets a level of excellence. Standards don’t mean unnecessary bureaucracy, but they do mean having a clear way of doing things that people can follow. The best companies—whether in retail, tech, or manufacturing—have systems in place that ensure quality without unnecessary complexity.
Bureaucracy should be kept to a minimum.
Some level of structure is necessary, especially in industries with compliance requirements, but too much red tape slows everything down. Hiring too many people for tasks that aren’t essential, overcomplicating processes, or making decision-making rigid only hurts a business. Efficiency should always be the goal.
Regain control of your business
Losing control of your business—whether to shareholders, investors, or outside forces—can lead to decisions being made that don’t align with your vision. Henry Ford had to fight to regain control of his company. Steve Jobs was pushed out of Apple, only to return and rebuild it. John Mackey, the founder of Whole Foods regretted selling to Amazon because it took away his ability to run the company as he intended. Business partnerships, public ownership, and external investors all come with trade-offs. The more control you can retain, the more freedom you have to make decisions without interference.
"The best investors are often the entrepreneurs who never sell their businesses." - Nick Sleep
Learn from the mistakes of others.
Reading on and studying the failures and successes of businesses that came before you is crucial in avoiding the same mistakes they made. Jim Casey, the founder of UPS, spent decades fighting restrictive laws that prevented his company from operating freely across the U.S. When FedEx was founded Frederick W. Smith decades later, they bypassed those same regulations by structuring the company as an airline. Learning from others’ experiences can save you years of struggle and help you avoid pitfalls that others have already encountered.
Pay attention to your competitors.
Always pay attention to what other businesses in your industry are doing. Innovation doesn’t happen in isolation. Henry Ford revolutionised manufacturing with the Model T but failed to adapt when competitors improved on his system. General Motors stepped in, offering more options and overtaking Ford in the market. Similarly, UPS underestimated FedEx for years, dismissing them and allowing them to gain ground before reacting. Complacency is dangerous—just because something works today doesn’t mean it will work tomorrow.
Don’t be afraid to ask.
People assume they’ll get a no, so they don’t bother asking in the first place. Steve Jobs once called the founder of Bill Hewlett, the co-founder of Hewlett-Packard, looking for spare parts which he received as well as being offered a summer job. Most people don’t ask, which means there’s an opportunity for those who do. The worst that can happen is someone says no, but more often than not, you’ll be surprised at what you can get just by making the effort.
Avoid debt as much as possible.
In the early days, some level of debt may be necessary, but excessive debt has destroyed more businesses than anything else. When times get tough, those with high levels of debt are the first to go under. The goal should be to build a business that doesn’t rely on borrowing to survive.
It is also of utmost importance to retain a strong cash reserve. Many large businesses with high valuations went under due to poor cash flow.
Go slow, then go fast.
The foundation of a business should be built methodically, with careful attention to structure and management systems. Rushing in too quickly can lead to cracks in that foundation that end up becoming major problems later.
Once the foundation is solid and the business is established, growth can be accelerated strategically. Taking the time to get things right at the start pays off when it’s time to scale. Then you can scale at a much faster pace.
Avoid making stupid decisions.
“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” - Charlie Munger
Charlie Munger’s advice is simple: don’t try to be brilliant—just avoid being stupid. Most business failures aren’t due to a lack of genius but rather a series of avoidable mistakes. Instead of chasing brilliance, focus on making sound decisions and avoiding obvious pitfalls.
Learn all you can about your industry.
Knowledge is power, and in today’s world, there’s no excuse for not being informed. Read, research, talk to people, and fill in the gaps in your understanding. The more you know, the better your decisions will be, and the harder it will be for anyone to outmanoeuvre you.
Sam Zemurray knew the banana trade inside and out, regularly living and working on his plantations. James J. Hill would walk the lines of his Great Northern Railroad to inspect the quality of the lines.
Book Recommendation…
The Art of Learning: An Inner Journey to Optimal Performance
This book is written by Josh Waitzkin, a chess prodigy and Thai Chi Chuan World Champion, Brazilian Jiu Jitsu Black Belt and high-level Foiler. The main takeaway from the book is Josh’s approach to learning new skills and his ability to cut the learning curve in a way that few others can. It is a must-read for anyone who wants to become the best version of themselves in any given field.
__________________________________________________________________
Disclaimer:
As an Amazon Associate I earn from qualifying purchases.
