Prioritize integrity and keeping your word, especially in times of failure. Dick Stack sold everything he owned to pay back creditors after his second store failed, which built invaluable trust for his future ventures.
Admit what you don’t know and treat others with respect, regardless of their position. Ed Stack’s transparency about his inexperience with vendors led them to teach and support him, building strong relationships.
Be deeply involved in the ‘one-centimeter level’ of your business, not just high-level strategy. Outliers know all the details, obsess over them, and engage directly with customers to truly understand their operations.
Prioritize self-reliance and financial independence by minimizing long-term debt. Ed Stack learned after a near-bankruptcy that carrying little debt allows you to control your own destiny and remain nimble during turbulence.
When facing a crisis, openly admit your mistakes, explain their root causes, and present a clear plan for corrective action. Ed Stack’s brutal honesty about his company’s errors saved the company during a critical meeting with GE Capital.
Be willing to make decisions based on your values, even if they incur significant financial costs. Ed Stack’s decision to stop selling assault-style rifles, despite a $250 million annual cost, defined the company’s character.
View resistance or opposition as an opportunity to strengthen your proposals. Ed Stack’s father’s constant resistance forced Ed to analyze every angle and make his ideas ‘bulletproof’ before implementation.
Maintain a balance between hands-on tactical involvement and strategic long-term planning. Ed Stack understood the need for both ’time in the store to stay connected’ and ’time away to plan the future’ for the business to survive.
Assemble a board of advisors who are generous with their time but ‘brutal with their opinions.’ Ed Stack’s board often saved him from himself by providing critical, honest feedback.
Understand that not getting what you want can lead to better opportunities. Dick’s discovered Nike and apparel because Puma and Adidas initially rejected them, forcing them to find new paths.
Give opportunities to unknown or emerging brands and partners who are desperate to prove themselves. Dick’s became a major partner for Nike and Under Armour when other established stores wouldn’t, leading to massive growth.
Focus on understanding the deeper emotional needs and aspirations of your customers beyond the product itself. Dick Stack understood that selling a baseball glove was selling a ‘dream,’ which guided their approach.
Adopt a ‘play to win’ mindset rather than just ‘playing not to lose.’ Dick Stack’s fear of failure led to paralysis, while Ed’s desire to grow proactively positioned the company for long-term success.
Analyze competitors’ patterns to identify their weaknesses and exploit them strategically. Dick’s undercut Herman’s prices by running Wednesday ads after studying their predictable Sunday sales inserts.
In important meetings, focus on convincing the quiet observer, as they are often the true decision-maker. Ed Stack secured a crucial loan by addressing the silent man in the back of the GE Capital meeting.
When quantitative data (spreadsheets) and qualitative insights (customer stories) differ, trust the anecdotes. It often means you are measuring the wrong thing, and customer needs ultimately win in retail.
Show conviction in your own venture by investing your own capital, especially when others are skeptical. Ed Stack bought additional shares in Dick’s IPO with his own money when bankers were pushing for a lower price.
Expand slowly and incrementally, and diversify income streams to reduce risk. After his first failure, Dick Stack bought adjacent land for a supermarket to provide rental income, avoiding betting everything on one roll.
Don’t let the fear of what could go wrong prevent you from taking action. Ed Stack’s initial ignorance about real estate and construction contracts allowed him to expand into Syracuse, learning valuable lessons along the way.
Commit to working hard, practicing consistently, and continuously improving in all endeavors. Lessons from sports taught Ed Stack that what you get out of any effort is directly proportional to what you put into it.
Recognize that the team’s success is more important than individual ego. Be willing to make personal sacrifices, like taking a demotion or unwanted reassignment, for the greater good of the group.
Be humble in victory and gracious in defeat, learning from both outcomes. Don’t ‘rub your opponent’s nose in it’ when you win, and don’t resent it when you lose.
Give others the gift of belief, especially when they don’t believe in themselves. Dick Stack’s grandmother’s $300 and faith enabled him to start his business when he had nothing else.