Overview
This interview with Paul Orfalea, founder of Kinko's, covers his journey building the business, his experience with wealth, key decisions, lessons on entrepreneurship, failures, philanthropy, and reflections on life and happiness after selling his company.
Building Kinko's and Running the Business
- Kinko's was expanded through constant day-to-day improvements and personal involvement rather than grand plans.
- Orfalea focused on making the business run smoothly without his direct presence, emphasizing strong systems and leadership.
- Top revenue year during his tenure was about $3 billion.
- Key to growth included experimenting with new services and products, observing customer needs, and maximizing margins.
- Business was always “for sale”—it served him, not the other way around.
- Stressed the importance of risk-taking and a culture that allowed for experimentation.
Entrepreneurship Philosophy & Advice
- Entrepreneurship is not for everyone; it comes with high stress and ambiguity.
- Personal objectivity is essential—avoid becoming emotionally owned by the business.
- Marginal decision-making is critical: small choices shape business outcomes.
- Success often comes from a mix of relentless effort, constant worry, and significant luck.
- Advice for aspiring entrepreneurs: reflect deeply on your motivation and tolerance for stress before starting.
Wealth, Spending, and Giving
- After selling, Orfalea experienced relief, not elation, from financial burdens.
- Major purchases included real estate, an airplane, novelty items (e.g., a tank), but he regrets some "big shot" spending.
- Currently prioritizes philanthropy, especially educational and dental programs for disadvantaged children.
- Prefers direct involvement in charitable projects, focusing on equalizing opportunities in public education.
Reflections on Work-Life Balance and Happiness
- Work, love, and play must be balanced for a fulfilling life.
- Enjoyed his children and intentionally made time for family and recreation.
- Stress and responsibility took a toll; selling the company brought peace of mind.
- Finds happiness now in simplicity, teaching, and giving back, rather than possessions or status.
Leadership & Company Culture
- Success depended on great managers—morale at the store level was critical.
- Celebrated achievements through traditions, recognition, and annual gatherings.
- Emphasized candid communication, though sometimes regretted not being more direct.
- Avoided rigid rules and HR bureaucracy to maintain a flexible, dynamic environment.
Lessons from Failure and Luck
- Many side businesses failed; experimentation was constant, with only a few winning big.
- Cautions against arrogance and overconfidence; humility and self-awareness are vital.
- Luck (timing, location, key people) played a significant role in his success.
Life and Legacy
- Legacy was never a major motivator; is skeptical of concern over being remembered.
- Defines personal success as having adult children who want to spend time with you.
- Believes strong family foundations and genuine relationships outweigh financial achievement.
Recommendations / Advice
- Assess your comfort with uncertainty before choosing entrepreneurship.
- Develop strong financial skills early and teach them to your children.
- Invest in experiences and relationships, not just material wealth.
- Maintain humility and be wary of letting success feed arrogance.