How Tillman Fertitta Got Rich When He Started Doing This

## The Road to Extraordinary Success: Lessons from a Restaurant Magnate

In the world of business, few stories are as compelling and instructive as that of Tillman Fertitta, an entrepreneur who catapulted from owning a single restaurant in Texas to becoming a global restaurateur with a sprawling empire that includes 600 establishments across 36 states and over 15 countries. His ventures extend beyond restaurants, encompassing hotels, casinos, aquariums, and even ownership of the Houston Rockets NBA franchise. Fertitta's journey offers invaluable lessons in resilience, strategic thinking, and relentless ambition. Here, we delve into the principles and experiences that have defined his extraordinary success.

### 1. **Eliminating "No" from Your Vocabulary**

One of Fertitta's core philosophies is to remove the word "no" from your vocabulary. This principle extends to customer service, where he emphasizes the importance of never saying no to a customer. "Worry about your customer," he insists, because there are no spare customers. This mindset is about going above and beyond to meet customer needs, creating a unique value proposition that separates your business from the competition.

### 2. **Adopting the 95-5 Rule**

Fertitta champions the 95-5 rule, which involves focusing on the critical 5% of actions that yield 95% of results. This approach requires identifying the key activities that drive success in your business and honing in on them with laser-like focus. It’s about prioritizing the most impactful actions and executing them with excellence.

### 3. **Being the Best in Any Position**

Fertitta believes in excelling in whatever role you occupy. Whether you are in the mailroom or behind a camera, his advice is to strive to be the best. This principle of being a "bull" in any position highlights the importance of dedication and professionalism in every aspect of your work. It’s about developing a mindset of superiority in your field, regardless of the specific role you play.

### 4. **The Importance of Persistence**

Fertitta’s story is a testament to the power of persistence. During the economic downturn of the late 1980s, many businesses around him were filing for bankruptcy. However, Fertitta kept punching, refusing to give up. He recalls doing business with several banks, all of which failed before he did. This persistence allowed him to survive the tough times and eventually thrive when conditions improved.

### 5. **Learning from Every Experience**

Despite his immense success, Fertitta remains a perpetual learner. He advises against ever thinking you know it all. Every day is an opportunity to learn and improve. This humility and openness to learning have been crucial in navigating the complexities of various industries.

### 6. **Understanding the Cycles of Business**

Fertitta emphasizes the cyclical nature of business. He warns that when times are good, it's easy to forget that bad times will come again, and vice versa. This awareness helps in preparing for downturns and capitalizing on upswings, ensuring long-term sustainability and growth.

### 7. **The Role of Fear and Worry**

While Fertitta claims to be fearless, he admits to worrying about everything. This paradoxical approach involves not fearing challenges but constantly worrying about potential pitfalls. This worry keeps him vigilant and prepared, ensuring that he is always ready to tackle any issues that arise.

### 8. **Leveraging Natural Talents**

Fertitta believes in leveraging your natural talents. He knew from a young age that he had a knack for business. This self-awareness allowed him to

focus his efforts on areas where he naturally excelled. He advises others to identify their innate strengths and build their careers around them. This doesn’t mean ignoring areas of weakness but rather, finding ways to complement them through partnerships or strategic hiring.

### 9. **Strategic Partnerships and Delegation**

Fertitta is known for his ability to spot talent and make strategic partnerships. He suggests not partnering with someone who has the same skill set as you but rather finding individuals whose strengths complement your weaknesses. This approach allows for a more balanced and effective team.

### 10. **Due Diligence in Business Deals**

In business, Fertitta emphasizes the importance of due diligence. Before making any deals, he thoroughly analyzes key factors such as occupancy costs, lease terms, and profit margins. This meticulous attention to detail ensures that he only engages in ventures that have a high likelihood of success.

### 11. **Continuous Self-Improvement**

Despite his success, Fertitta continues to improve himself, particularly in areas outside his comfort zone, like technology. He makes it a point to understand the fundamentals of every department within his company. This not only makes him a well-rounded leader but also ensures he can effectively oversee all aspects of his business.

### 12. **Building a Resilient Workforce**

Fertitta values long-term loyalty and has built a team where many have stayed with him for decades. He attributes this to clear communication, setting high expectations, and fostering an environment where employees know exactly where they stand. His leadership style, while demanding, earns respect and loyalty.

### 13. **Evaluating Career Moves**

For those looking to build successful careers, Fertitta advises careful evaluation of potential employers. Factors to consider include the company's liquidity, stability, growth potential, and whether they are a likely acquisition target. He stresses the importance of choosing a company where there is a clear path for career advancement.

### 14. **Opportunism and Timing**

Throughout his career, Fertitta has demonstrated a keen sense of timing and opportunism. For example, he took his company public at a time when restaurant chains were hot on Wall Street and later took it private during an economic downturn. This strategic timing has played a crucial role in his financial success.

### 15. **Philanthropy and Community Involvement**

Beyond his business ventures, Fertitta is heavily involved in philanthropy. He serves as chairman of several charitable organizations and is the longest-running chairman of the board of regents for the University of Houston. His commitment to giving back underscores the importance of philanthropy in his life and career.

### 16. **Staying Grounded Amidst Success**

Despite his vast wealth and success, Fertitta remains grounded. He constantly reminds himself and others that success is fleeting and that complacency can lead to downfall. This mindset helps him stay focused and driven, always striving for improvement.

### 17. **Lessons from Early Life**

Fertitta’s entrepreneurial spirit was evident from a young age. Whether it was selling candy in junior high or trading on the stock market in high school, he was always looking for ways to make money. These early experiences laid the foundation for his later success, teaching him valuable lessons about sales, finance, and hard work.

### 18. **Navigating Economic Downturns**

Fertitta’s ability to navigate economic downturns has been crucial to his success. During the late 1980s recession, he pivoted from real estate development to the restaurant industry, a move that proved highly successful. His adaptability and resilience have enabled him to weather various economic storms.

### 19. **Importance of Knowing Your Business**

One of Fertitta’s key principles is knowing your business inside and out. This involves understanding every aspect, from financials to operations. By being intimately familiar with his business, he can make informed decisions and quickly identify and address problems.

### 20. **Salesmanship and Negotiation**

Fertitta attributes much of his success to his skills in salesmanship and negotiation. He views every interaction, whether raising debt or selling equity, as a sales opportunity. This approach has helped him secure financing, attract investors, and close deals.

### 21. **Managing a Public Company**

During his 18 years running a public company, Fertitta learned the importance of managing shareholder expectations and navigating regulatory requirements. His experience in the public markets provided valuable insights into corporate governance and financial management.

### 22. **Expanding Beyond Restaurants**

Fertitta’s business acumen extends beyond the restaurant industry. He has successfully ventured into hotels, casinos, aquariums, and sports franchises. This diversification not only mitigates risk but also capitalizes on various market opportunities.

### 23. **Maintaining a Personal Brand**

Fertitta has built a strong personal brand, characterized by his charisma and bullish attitude. This brand is reinforced through his appearances on television, such as CNBC's "Billion Dollar Buyer," and his book "Shut Up and Listen." His public persona complements his business ventures, enhancing his reputation and reach.

### 24. **Balancing Work and Life**

Despite his demanding career, Fertitta emphasizes the importance of balancing work with personal life. He believes that maintaining this balance is crucial for long-term success and personal well-being.

### 25. **Adapting to Change**

Fertitta's success is partly due to his ability to adapt to change. Whether it's shifting economic conditions, evolving consumer preferences, or new technological advancements, he remains flexible and ready to pivot as needed. This adaptability ensures that his businesses stay relevant and competitive.

### 26. **Building a Scalable Business Model**

Fertitta has focused on building a scalable business model, particularly in his restaurant ventures. By standardizing operations and maintaining strict quality control, he ensures that each new restaurant maintains the same high standards as the original.

### 27. **Investing in Innovation**

Innovation is a key driver of Fertitta's success. He continually seeks out new ideas and technologies to improve his businesses. This commitment to innovation keeps his ventures at the forefront of their industries.

### 28. **Global Expansion**

Fertitta's business empire spans the globe, with establishments in over 15 countries. This international presence not only broadens his market but also diversifies his revenue streams, providing stability and growth potential.

### 29. **Commitment to Excellence**

Fertitta's commitment to excellence is evident in every aspect of his business. From customer service to operational efficiency, he strives for the highest standards. This dedication to excellence has earned him numerous awards and accolades.

### 30. **Learning from Failures**

Fertitta views failures as learning opportunities. He believes that every setback provides valuable lessons that can help improve future performance. This perspective enables him to bounce back from failures stronger and more resilient.

### 31. **Mentorship and Leadership**

As a leader, Fertitta places great importance on mentorship. He actively mentors his employees, helping them develop their skills and advance their careers. This focus on mentorship fosters a strong, loyal workforce and contributes to the overall success of his businesses.

### 32. **Strategic Risk-Taking**

Fertitta is not afraid to take calculated risks. His strategic risk-taking has led to significant rewards, including the growth of his business empire and his substantial net worth. However, he always ensures that these risks are well-researched and carefully considered.

### 33. **Importance of Customer Experience**

Customer experience is a top priority for Fertitta. He believes that providing an exceptional experience is key to building a loyal customer base. This focus on customer satisfaction drives repeat business and positive word-of-mouth.

### 34. **Utilizing Data and Analytics**

Fertitta leverages data and analytics to make informed business decisions. By analyzing customer behavior, market trends, and financial performance, he can identify opportunities for improvement and growth.

### 35. **Effective Marketing Strategies**

Effective marketing is crucial to Fertitta's success. He employs a variety of marketing strategies to promote his businesses, from traditional advertising to social media and public relations. These efforts help attract new customers and retain existing ones.

### 36. **Embracing Technology**

Fertitta embraces technology to streamline operations and enhance customer experience. From advanced point-of-sale systems to customer relationship management software, he utilizes technology to improve efficiency and service quality.

### 37. **Building a Strong Corporate Culture**

A strong corporate culture is vital to Fertitta's businesses. He fosters a culture of excellence, teamwork, and continuous improvement. This positive culture attracts top talent and drives high performance.

### 38. **Community Engagement**

Fertitta is deeply committed to community engagement. He supports various charitable organizations and initiatives, contributing to the well-being of the communities where his businesses operate. This commitment to social responsibility enhances his company's reputation and builds goodwill.

### 39. **Navigating Regulatory Challenges**

Operating in multiple industries and countries presents regulatory challenges. Fertitta navigates these complexities by staying informed about relevant laws and regulations and ensuring compliance. This proactive approach helps avoid legal issues and maintains the integrity of his businesses.

### 40. **Visionary Leadership**

Fertitta's visionary leadership sets him apart. He has a clear vision for the future of his businesses and works tirelessly to achieve it. This visionary approach inspires his team and drives the ongoing growth and success of his enterprises.

### 41. **Conclusion**

Tillman Fertitta's journey from a single restaurant owner to a global business magnate is a remarkable story of resilience, strategic thinking, and relentless ambition. His principles—such as eliminating "no" from your vocabulary, adopting the 95-5 rule, being the best in any position, and continually learning—offer valuable lessons for aspiring entrepreneurs and business leaders. By understanding and applying these principles, individuals can enhance their chances of achieving extraordinary success in their own ventures.