1,000 Dollars & an Idea: Entrepreneur to Billionaire

by Sam Wyly Narrated by Phil Gigante

Overview

The rags-to-riches story of an amazing business wizard-from the Louisiana cotton fields to the worlds of computers, retailing, fast food, high finance, and green energy-life lessons from a man ahead of the pack and ahead of his time.

"My work is to create companies and build them," says the billionaire whom Fortune magazine, over thirty years ago, characterized as "one of the most, if not the most, important entrepreneurs" of the century. This was even before Wyly contributed to nearly every great technological, service industry, and investment business breakthrough in the second half of the twentieth century.

Now, in his fast-paced, fascinating, and candid memoir, Wyly reveals the thought processes, relationships, and financial machinations behind the building of his diverse businesses over the last four decades.

Here's the story of how he worked his way through Louisiana Tech selling class rings and why, after his first job in which he broke sales records for IBM (along with Ross Perot, a fellow IBM salesman) and a brief stint at Honeywell, he decided to risk $1,000 of his savings to found the first "computer utility" company in the business world. This was in 1963. Two years later, he took his University Computing Company public and became an instant millionaire.

Never losing his entrepreneurial spirit, Wyly undertook one challenge after another, such as:

• Waging a successful anti-monopoly battle against AT&T, enabling him to build a "telephone highway" for computers
• Growing the modest Bonanza Steak House chain, which he "inherited" as the result of a bad debt, to a total of 600 outlets before selling it for a huge profit
• Creating a new systems software company, Sterling Software, which he eventually sold for $4 billion
• Dividending Sterling Commerce to public shareholders and selling to AT&T for $4 billion in 2000
• Expanding the small arts-and-crafts chain Michaels Stores from 10 to 1,000 stores before selling it for $6 billion in 2006
• Founding Green Mountain Energy, which has become the largest and most profitable green business in the country.

Part autobiography and part inspirational self-help business guide, Wyly not only provides his homespun life lessons in the practice of starting and building businesses, but he also delivers refreshing new insights into how many American businesses operated from the 1950s to the present.

Editorial Reviews

Publishers Weekly

Country boy makes good in this down-home tale of self-made multimillionaire Wyly. In his humble post-Depression Louisiana roots, Wyly learned his first business lessons from football strategy, his fathera's tiny newspaper business and his mothera's bargaining skills. A lucky meeting propelled him to the University of Michigana's Business School and his first corporate job at IBM, where he had to work fast to keep from succumbing to culture shock as he discovered "there aina't no Bubbas in Michigan." Energetic and restless, he soon left IBM for Honeywell and then created his own technology companies, rescuing failing businesses, founding Green Mountain Energy and devoting himself to environmentalism. Citing Sam Walton as a hero and Ross Perot as a personal friend, Wyly stresses the power and privilege of self-creation and speaks honestly about what hea's learned: that failure is crucial to achieving success, independent thought is imperative, luck serendipitous and power useless unless it is wielded for good. Though the message is a good one, the meandering storytelling and not well-known author might make this book a hard sell to a trade audience. (Sept.)

Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

Library Journal

As a highly successful entrepreneur who has been involved in a steady stream of successful business ventures, Wyly could have felt compelled simply to write the usual autobiography. Instead he also shares with the reader a set of universal lessons that he learned throughout his life and that he adroitly weaves into his story. Starting with his experiences growing up on a Depression-era cotton farm in Louisiana through his early days as salesman for IBM and Honeywell, Wyly lures the reader into his tale. The stories about his role leading companies such as Sterling Software, Bonanza Steakhouses, Michaels Stores, and Green Mountain Energy, among others, will also capture the attention of the general business reader. His description of his involvement in these ventures and the lessons he learned therein, when combined with business advice gleaned from years of interaction with such leading capitalists as Ross Perot, Michael Milken, and T. Boone Pickens, help to make this a solid business memoir; recommended for business collections.-Richard Paustenbaugh, Oklahoma State Univ., Stillwater

Kirkus Reviews

Self-made billionaire Wyly offers a business pep talk wrapped in a memoir. A Depression baby in Delhi, La., the author grew to maturity in the Texas money patch. That's about all the personal material he offers, aside from tributes to his parents and brother. His chronicle of lucrative investment begins with a shrewd innovation back in the day when punch cards were state-of-the-art. Expanding from marketing computer-system software, the entrepreneurial Wyly devoted his energies to petroleum, minerals, service stations, seaports, paper and banking. The Bonanza Steakhouse chain and Michaels craft-supply retailers were among his picks. Today the tycoon invests in hedge funds and has embarked on efforts to clean up the environment, all with the fortune derived over four decades from IPOs, takeovers, raids, spin-offs, acquisitions and junk-bond funding by Mike Milken, a financier the author respects. Wyly does not like Charles Wang and his gang at Computer Associates. Though he may sometimes be disappointed with "my boy Bush" (our current president), he ceaselessly adheres to the teachings of, among others, Tom Watson Sr. (the IBM Thinker), Sam Walton (the Sage of Bentonville) and Mary Baker Eddy (founder of the Church of Christ, Scientist). His philosophy is quite folksy. "Business is a lot like football," he asserts; "roots are good"; "obstacles are only challenges." His humor is without frills. Asked what would help his business, the manager of Informatics' Military Division got a good laugh from the suits when he replied, "A good war!" When considering a business, he advises, ask yourself if you can create customers: "Will the dogs eat the dog food?" Wyly may drive a Prius, but hisautobiography is authentically Texan. From nearly dirt poor to filthy rich, it's his audacious, happy story and he's sticking to it.

DECEMBER 2008 - AudioFile

This rags-to-riches memoir recounts the business life of Sam Wyly as he made his way from IBM salesman in the early 1960s to the owner of Sterling Software and Michael's stores, as well as a chain of restaurants, among other companies. Along the way, Wyly tells of his investment strategies, his business partners, his successes, and his failures. Phil Gigante reads this business story with a steady voice that lulls listeners instead of exciting them. In addition to the occasional odd pronunciation, Gigante's voice is barely modulated, and he fails to engage emotionally. Nonetheless, this title offers an interesting view of how to invest in your business, making it grow while weathering an ever-changing economy. M.B.K. © AudioFile 2008, Portland, Maine

Product Details

BN ID:	2940169931907
Publisher:	Brilliance Audio
Publication date:	09/01/2008
Edition description:	Unabridged
Sales rank:	1,088,808

Read an Excerpt

1,000 DOLLARS AND AN IDEA

Entrepreneur to Billionaire

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By SAM WYLY
Newmarket Press
Copyright © 2008

Sam Wyly
All right reserved.


ISBN: 978-1-55704-803-5

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Chapter One "Beat Tallulah"

Business is a lot like football.

You work hard preparing all week to score more touchdowns than the other guy. Sometimes you do that by running the ball better than him, and sometimes you do that by throwing the ball better than him, but sometimes the other guy is just too good and he stops you. Sometimes you come up short of the first down or goal line and have to settle for three points, and sometimes you have to bet the whole game on a "Hail Mary" pass in the very last second, and sometimes if you've prepared better and worked harder, your receiver is in the end zone, unmanned, and he catches the ball. But sometimes the other guy has worked even harder and prepared even better and scouted you so well that all the luck goes his way and you walk away battered and bloodied and think to yourself, "I don't want to do this again next week." But you do, you go through it all over again, because it's playing the game that matters.

And although there's certainly no prerequisite that every entrepreneur should have played football in high school or college or even just in some sandlot league, had I not played in high school, my outlook on entrepreneurship would be very different.

Football taught me about setting goals, coping with fear, using leverage, maximizing assets, and understanding weaknesses. Football also taught me about losing. As an entrepreneur, if you don't know about losing, you can't learn how to win.

When my brother, Charles, and I started high school in Delhi, Louisiana (he was one year older than me), Mama decided we ought to be able to play music, so I took up the drums and Charles took up the trumpet. But one afternoon I found Mama's scrapbook of newspaper clippings devoted to my Dad's high school football team. There were faded pictures of him and his teammates-their hair parted in the middle, 1920s style-and as I looked at those pictures and read every one of the stories about Dad's games, I found myself feeling immensely proud of him. So he and I started talking football, and when he saw how interested I was, on New Year's Day 1949, he drove Charles, my friend Pat Patterson, and me all the way to New Orleans-528 miles round-trip, which we did in one day-just to see North Carolina play Oklahoma in the Sugar Bowl. North Carolina were the heavy favorites with their star halfback "Choo Choo Charlie" Justice, but Choo Choo had an upset stomach that morning and the Sooners upset the Tar Heels that afternoon, 14-6. It was a great football game and a journey of epic proportions for a bunch of country boys from a town where most people had never been more than 20 miles from where they woke up.

On the drive down and on the way back home, Dad told us great stories about his high school football days, his beloved Louisiana State University Tigers and legends, like Knute Rockne and the Four Horsemen of Notre Dame. He talked about always playing to the best of your ability, about good sportsmanship, and he quoted Grantland Rice's famous lines:

For when the One Great Scorer comes to mark against your name, He writes-not that you won or lost-but how you played the game.

I was thrilled by all this, but Mama was less than thrilled because she knew boys got hurt playing football and she didn't want her sons to have anything to do with it. But, in Delhi, football was hard to avoid.

There are two good movies about what high school sports mean in small towns across America: Friday Night Lights about football in Odessa, Texas, and Hoosiers about basketball in Milan, Indiana. In Delhi, football was the town religion. Our battles with neighboring towns were won and lost to grand notions of victory and defeat, triumph and humiliation. Every Friday night during the season a lot was at stake. It was something very important, something very tangible.

In my mind, football became a way to be like my dad, to earn respect and to be an important part of the school and the town. So in the summer between my freshman and sophomore years, I exchanged my drums and tasseled marching hat for shoulder pads and a helmet.

I was only 5'7" and 155 pounds, too small to be a noseguard, but that's where the coach put me and I was teeth-gritted determined to make the team. It was the first big goal I ever set for myself.

Setting a goal and then going after it is difficult for some people. For me, it's as natural as waking up in the morning.

You begin by defining what you want. But to decide that, you have to know who you are. I think that's probably the key to getting it right. If you don't know who you are, becoming an entrepreneur can be a very expensive way of finding out. My wife, Cheryl, says: "Be careful what you wish for 'cause you just might get it."

Next, a goal needs to be realistic. Many people yearn for the pot of gold at the end of the rainbow but have no idea how to find a rainbow. Or they aren't willing to put in the time looking for one, or don't have the courage to walk all the way to the end of it.

Everyone needs a mission, no matter what it is: dominating the global marketplace with a product, losing 5 pounds, or just putting money aside to save for something special. The feelings that arise when you think of yourself as being on a mission become the fuel that keeps you moving even when your spirit lags or times get tough. Over the years I've also found that whatever someone's ultimate goal might be, the easiest way to get there is to map out a course with smaller goals along the way. You find one small thing you can do, and you keep on doing it.

Little victories add up.

Coach Raymond Richards was a deacon in the Baptist church. His tall, slender appearance and quiet demeanor masked a highly competitive soul. He'd come from Arkansas full of new ideas about training, discipline, and strategy when it came to coaching football. He was demanding and gave his all and expected us to do the same.

We were small and inexperienced but, on the first day, he made it clear that we were going to be in better physical shape than any of our opponents. He taught us to focus on what we could attain, which was superior endurance, rather than worry about what we didn't have, which was size and experience.

He taught me that if you want to win, you have to emphasize what you are and what you can do. He also taught me that before you go into battle you look at your own strengths, then you look at your opponent's strengths, and then you work out how to maximize the first and how to minimize the second. He taught me to study the opportunities and the obstacles until I understood them, and then to boil everything down to just a few key things that needed to fall into place.

August in Louisiana is hot, and doing push-ups, running laps, and doing wind sprints on a dusty field under the burning glare of the afternoon sun were nothing short of brutal. It was so bad one afternoon that, after running sprints for the fourth time, I collapsed in front of Coach Richards and pleaded for mercy. I didn't have another sprint left in me. He wasn't buying it.

He said to me, "There is no limit to the endurance of a sixteen-year-old boy."

He made me get up and keep running. He wasn't being mean; he was teaching me to recognize the huge reservoir of energy, enthusiasm, and strength that we all have within us. He was teaching me that what we perceive as our limitations are often only mental obstacles.

Charles was put at halfback and me at noseguard, and because we both wanted it so bad and worked so hard, we both made the team.

I had achieved my goal and could have stopped right there, but in my head that goal was just one milestone on a long trail. Achieving that goal simply meant I could now move on to the next goal, going from benchwarmer to the starting lineup.

Being innately forward-looking and progress-oriented, once one mountaintop is reached, I look over the horizon for the next mountaintop. Just as the pioneers knew how to scout the horizon for the first signs of a rainstorm or daybreak or danger, anyone looking to get ahead in life-especially anyone who wants to be in the business of building companies-needs the ability to spot opportunities, and to do that you keep your eyes on the horizon.

On the most basic level, you learn to see what's there by being engaged with the world, by being in touch with your own internal compass and sense of direction.

When I lined up at noseguard, I was giving away 30 pounds or more to the guy opposite me. But Coach Richards would tell me, "So what if you're small in a big guy's game? You're quick and you're smart and you're tough." And he'd remind me, "It's not the size of the dog in the fight, it's the size of the fight in the dog."

That's why I worked harder than anyone else to build up my strength and to get into better shape. During an average practice, I'd sweat off six pounds. I'd throw myself into those heavy blocking dummies and push them across the field as Coach Richards rode on the back. He worked me on angles of attack and timing. Being small, I could get down real low, and being strong, I could hit the guy real hard, using the power in my legs to lift him up and out of the way. Coach Richards was the one who first told me it was called "leverage."

I was fueled by my belief that there was nothing I couldn't do. Every time I got bashed and ground into the dirt, I got up, dusted off, and headed back for another go. Sure enough, I made the starting lineup. And later, long before the term "leveraged buyout" was invented, I was using the same football techniques in business, going after much larger companies by relying on agility, quickness, smarts, and the leverage of other people's money.

Having made the starting team in my first year, I moved on to my next goal for my second year. This time my new goal wasn't just for me, it was for the team. My battle cry was, "Beat Tallulah!"

They were the Darth Vaders of northeast Louisiana football, thirty minutes east of us down Highway 80, about halfway to Vicksburg. They were also the five-time State Champs. We played them every year on Thanksgiving Day, and every year on Thanksgiving Day they whipped us.

This year, I was determined, would be different.

To begin with, we were now a year older and a year wiser. Also, oil had been discovered in Delhi, and not just a little bit of it, so we were living smack in the middle of a frontier boomtown, which meant all sorts of new people were coming to town. Many of them were oil workers-roughnecks and roustabouts-and they had some good-sized kids who might otherwise have been playing for schools in East Texas or in the rich, natural gas land of south Louisiana. Now they were playing for Delhi. It changed the dynamics of our team, and that is how I started learning about how teams succeed.

Whether you are talking about sports or you are looking at corporate competition, each individual player is essential and yet, oddly enough, winning isn't determined by any one person. In football, if the front line doesn't open up holes, the backs have no place to run. If the backs can't run, the quarterback has fewer options, like no one to pass to. Survival in football, just like survival in business, depends on many varied factors synchronized together to create something much larger that somehow works in unison, each varied factor complementing and expanding the others.

The dictionary word for that is "synergy." If you put an egg, some water, some flour, some sugar, some chocolate, and some pecans on a table, all you have are the ingredients. If you know how to mix them and make them work together, you can wind up with a prize-winning batch of brownies. The result is greater than the sum of its parts.

Understanding that, and with these big kids coming on the team, Coach Richards introduced a new defensive strategy: a five-man line with four linebackers. Being the smallest guy on the field meant that if I was going to play my part, I needed to be the smartest guy on the field. So I memorized what I had to do for each play, and then worked out what everyone else had to do. I neutralized my size disadvantage by maximizing my quickness, instincts, and flexibility. In a game of split-second decisions, playing well meant playing smart. And just like that, we started winning football games.

Then we played Tallulah.

It was Thanksgiving Day, 1950. And it was a brutal game. We came off the field with cleat gashes, bruises, fat lips, and bloodied noses. The begrudgers were sure we'd be beaten, and we were losing 12-7 in the fourth quarter, when my brother, Charles, shot out of the backfield and our quarterback hit him cutting back across the center. Three Tallulah guys had a shot at him, but the first two bounced off and the last dove into empty space just as Charles reached the end zone.

We won 13-12.

I'd never felt better in my life. Beating Tallulah had been so big in my mind, such an enormous mountain to climb, that I could not think of anything beyond that. Then, in the exhilaration of our celebration, I suddenly realized that we were now in the playoffs for the State Championships.

It was the first time in five years that Tallulah would not be playing for the title, which made beating them that much sweeter. As I was walking off the field at the end of the game, though, I felt a tinge of sadness when I saw my Tallulah cousin, Flo Montgomery, crying over their loss.

On a cold and rainy night in Cajun country, we played for all the marbles against Clinton, a town north of Baton Rouge. We were losing 14-7 but, through sheer determination, little by little we brought the ball all the way down to the goal line. We could taste the touchdown coming, which would tie the game, and we knew that if we tied them, we could beat them.

They stopped us four inches short. It was a terrible disappointment, but as I dragged my aching body to the locker room, I decided this defeat simply meant we had a new goal to set. We'd been whipped by a bigger, more powerful team. The next goal had to be that next time we would not let that happen.

In football, just like in business and just like in life, the best teacher of all is failure.

Charles won himself a football scholarship to Northwestern State in Natchitoches, but there was a funny rule in those days that allowed graduating seniors who were under nineteen years old and had played fewer than four seasons to postpone their college enrollment and stay eligible in high school for one more semester. He was our best running back and, in my mind, keeping him on the team meant that if we really wanted to be State Champions-and believe me, I really wanted that-it was entirely within our reach.

That was another lesson I learned on the gridiron: never let failure predetermine your future.

So Charles signed on for another season, ran riot against our opponents, and halfway through the season we were unbeaten. We'd mauled six teams, outscoring them by a merciless 200-13.

Around town, the begrudgers had faded into the woodwork, and people were telling us the championship title was ours for the taking. Unfortunately, some of us made the mistake of believing that.

The Winnsboro Wildcats came to Delhi after losing to teams we had already trounced, and in our minds we'd whip them without shaking the dust off our boots. But we were so overly impressed with ourselves and so believed our own press clippings that, before we knew what had happened, we were down 14-0.

Confident is good but overconfident can be fatal, and I have seen this same disease of overconfidence afflict more company managers and chief executives than I care to mention. I call it the Terrible P's: Pictures in the newspaper, Perks, Power, and Prestige go straight to their heads. These afflicted managers and CEOs fall under a kind of spell, lulled into a state of inertia by the seduction of so much attention and flattery. When that happens, it is time for those people either to regain their integrity or to move on. If they will not do either, someone had better kick them out.

This is exactly what Coach Richards did to us. He pulled our whole starting lineup off the field and put in the second string. I kept thinking, "Maybe a few guys needed to be pulled, but all of us?"

(Continues...)

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Excerpted from 1,000 DOLLARS AND AN IDEA by SAM WYLY Copyright © 2008 by Sam Wyly. Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
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