Over the holidays, I touched base with old friends and acquaintances from yesteryear. A discussion with one of my basketball buddies focused on our business journeys throughout our lives. We both chuckled that as teenagers we were paid two dollars per hour to handle small square bales of hay on our family farms and for neighboring dairymen. He said he has been lucky to operate a business that has made him a multimillionaire many times. We agreed to disagree that his success was a result of good luck and timing; it was also a matter of choices that ultimately led to his success.

At the time, I thought this individual was taking a big risk to drop a well-paying job with great fringe benefits to buy into a construction company. However, this choice was extremely wise. He had a great mentor who was an existing business owner with no family members to return to the business.

He learned the power of negotiations and knew the cost of production on projects. His philosophy was always to do projects above breakeven, if possible. He always followed through on the quality of construction even though it may have resulted in a loss. However, he was also wise enough to not make the same mistake twice.

Next, he was particularly lucky that the government expanded a nearby military base, which was a boom for many businesses that added new facilities. Sometimes the trend can be your friend and the timing can be beneficial to the business.

This individual was great at networking with the core people in the business and other influencers such as lenders, accountants and people involved in real estate. He never knew a stranger and associated with the right people.

Another choice he made was the power of investing outside the business. These investments were his war chest of cash that allowed him to capitalize on opportunities. More than once, he bought farms during recessional times at $0.50 on the dollar. The power of cash made these investments possible. 

He also treated his associates and employees with strict guidance and control, but also empathy. He assisted a recovering alcoholic’s family with not only employment, but extra benefits. His key people remained with the business for decades, two of which are now new owners of the business due to his wisdom and mentorship.

This individual was lucky, but hard work and discipline, both of which were exhibited on the basketball court as a player, paid dividends later in life. The right choices, with a little bit of luck, made this individual a multimillionaire next door.