Get personalized recommendations and earn points toward a free book! Before you go Check Out These. 21 Books You've Been Meaning to. Building The Home Depot was a tough, uphill battle from the day we started in a Los EPILOGUE: This story was taken from the book Built from Scratch—How a . The Paperback of the Built from Scratch: How a Couple of Regular Guys Grew the Home Depot from Nothing to $30 Billion by Bernie Marcus.
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Bob Andelman is the author of 11 books, including his first biography, Will Eisner: A Spirited Life. Three of his co-authored books - Built From Scratch (written. Built from Scratch book. Read 39 reviews from the world's largest community for readers. When a friend told Bernie Marcus and Arthur Blank that, You've. Built from Scratch: How a Couple of Regular Guys Grew the Home Depot from Nothing to $30 Billion. Bernie Marcus, Author, Bob Andelman, Author, Arthur.
Click on the Add to next to any video to save to your queue. Click on the Add to next to any article to save to your queue. Click on the Add to next to any podcast episode to save to your queue. Click the Follow button on any author page to keep up with the latest content from your favorite authors. Today, we are the model of what retailing should be. In , when co-founders Bernie Marcus and Arthur Blank stated that they wanted to make The Home Depot the Sears Roebuck of the home-improvement industry, a lot of people laughed at them.
If necessary hire them, even when you don't have the jobs for them because you may not get a second shot at them. Something else happens when you do the right thing. People realize your efforts, and some will take advantage of you, but that will be more than offset by the multitude of others who will become loyal customers for life.
Home Depot always tried to make as many of their employees stockholders as possible, so that they could align the employee associates at HD goals with the corporate goals. He also possessed no understanding of the Home Depot culture as he tried to superimpose his General Electric template on the company. He failed miserably but that's another book. Go the extra mile for the customer. These guys Marcus and Blank were honest about what they faced, and several times this company was touching or facing bankruptcy.
This is an important lesson. The way around it is to have twice as much capital as you think you need. This by itself was worth reading the entire book. This is priceless knowledge. Give people the best price you can, and the finest selection of merchandise.
If you back it up with the industry's best customer service you have found for yourself a business model for success.
It may sound simple, but try executing on it. So let me let you in on a secret. I spent years with Bear Stearns well over 20 years ago as a limited partner.
When I read the early financial stories of Home Depot on Wall Street, I knew that what the founders in this book were saying was the complete unvarnished truth. The story of how Ross Perot, one of America's wealthiest men in the early 's blew having dominant control of this company is now the stuff of myths.
Nevertheless it's a true story. The founders ultimately turned down Ross Perot as a shareholder. They believe Perot to be a control freak. Yes, Perot didn't want the founders driving around in a Cadillac. Perot was a Chevy man. Then there's Ken Langone, the financial guy behind this phenomenal story. Langone may be the only guy in America to be the IPO maven behind two all time American success stories.
Who else can say that? He also made a billion dollars in the process. Langone is a unique, fabulous, walk to the well with you kind of guy. Among Wall Street types, he is unique, and the Street needs many more like him.
There is a story in the book where Langone is involved in a stock sale to a very nasty executive who is very prominent in his own right. Every time the executive refuses to give in to Langone's price, Langone just keeps upping the ante on him.
This goes on for pages. It is uproariously funny, and is deserving of retelling over and over again. You will love this book, and learn an enormous amount about business in the process.
It should probably be required reading for all MBA programs in management. If you have any desire to understand what it takes to dedicate your entire life to building something, especially in the business world than this book is a read for you. There's one more thing that I must get across that is compelling. Having spent my life involved with companies like Home Depot, and high-powered successful people, I have come to the conclusion that it does not have to work out successfully.
There is no such thing as one must succeed, or it was ordained that this must happen. As an example Home Depot could have gone out of business a half dozen times before becoming so financially solvent that the business model had to work. Steve Jobs at Apple could have decided 20 years ago, to license that Apple operating system to the PC industry, and Gates and Microsoft would never have happened.
GM could have decided to build quality cars 25 years ago, instead of building [ Al Gore could have concentrated just a little bit more on Florida in , and George W. Bush would have never been.
John Kerry could have fought off the challenge of the Swift Boat accusations, and Ohio would have gone his way, and with it the election. In the end, it's really a question of who comes through the funnel, and that is not always predictable. As I read this wonderful book, I came to the conclusion once again, that yes, you have to go for it, and dedicate all to getting there, but there is no certitude that you are going to make it.
Good luck. Richard Stoyeck. My wife bought this book and loves the story, the lessons presented and the background it provides on the founders of Home Depot. She has worked for HD for over 20 years all around the US and loves the company and how it was founded where the employees are treated like family.
Great read for those wanting to start their open business, those who have started their own business, and those who want to know what it takes to create a world leading business from scratch!
Very interesting chronicle of the history behind the evolution of The Home Depot! As a 15 year veteran of Home Depot I have lived what the founders created, so I found the book quite interesting to read. The book serves as a great model for how a retail business should be run. The inverted pyramid of corporate management and the companies core values, Take care of the associates on the front lines nes and the rest will take care of itself!
The early history of the organization is well-documented by the principals.
As a Home Depot associate, I found the prevailing philosophy refreshing, as it still is to this day. A good read for anyone, but a very educational one for a new or aspiring associate. A must read for anyone associated with Home Depot especially a company sales representative selling to THD. Great background and insight to how the company started. Quick, fun read. For anyone looking to get into entrepreneurship, this is your jam man!
Good read. See all 69 reviews. site Giveaway allows you to run promotional giveaways in order to create buzz, reward your audience, and attract new followers and customers. Learn more about site Giveaway. This item: Set up a giveaway. Customers who viewed this item also viewed.
Grinding It Out: The Making of McDonald's. For a believer in values it is fascinating to see that doing the right thing can be so rewarding, on such a grand scale. Reading the book, one almost experiences it oneself. I think business managers, analysts and most others can learn a lot from this book by the two co-founders of Home Depot. It is written as a memoir without pointers, almost as a novel. The reader must draw his or her own conclusions. The set-up helps. We have heard the wordings before - it is usual common corporate language.
The unusual thing is the courage to implement them into action so vividly. Running a large retail operation is complexity in a nutshell. Without their mutual value system, the founders would not have been able to make their decisions so fast, nor communicated them so efficiently.
One is reminded of how important management-by-walking-around is. Without turning the pyramid upside down and truly delegating to the personnel meeting the customers, they would not have succeeded at all. The genuine respect for stakeholders, whether they are customers, employees, suppliers or the community in general is impressive.
In , citing trumped up charges that they had allowed an underling to create a fund that was improperly used to fight a union at Handy Dan stores in San Jose, California, Sigoloff did indeed fire Marcus and Blank.
Before they were let go, Marcus and Blank had begun experimenting with discounting in one Handy Dan outlet. They observed that when they marked down items, volume increased and costs as a percentage of sales decreased. They had planned to expand the experiment to other Handy Dan stores. But now they decided to use that plan to strike out on their own. Envisioning a nationwide chain of warehouse stores filled with a wide assortment of products at the lowest possible prices and staffed with trained associates giving absolutely the best customer service in the industry, Blank and Marcus set up shop in two defunct Treasure Island discount stores in suburban Atlanta.
With an infusion of cash from a New York City investment firm, they stocked the shelves with 18, different items-from paint to plumbing fixtures-slashed prices to the bone, and personally hired and trained the staff.
They expected the money to run out before noon. My wife wouldn't let me shave for days. She didn't want me to have a razor in my hands.
While the transplanted New Yorker admits he really didn't appreciate the okra on a culinary level, he did see it as a sign that the fledgling enterprise was on the right track. And it was. Word of mouth began to pull more and more first-time customers into the stores, and before long, the days of paying suppliers straight from the cash register drawer were over.
Inspired by the success of their first two stores, Marcus and Blank decided to open two more stores. Cash was still a little short in those early days, so they had employees stack empty cardboard boxes and paint cans on top shelves to make the stores look more full.