Paul Orfalea on Founding Kinko's and the Billionaire Lifestyle

Early Life and Founding Kinko's

• Paul Orfalea: Founder of Kinko's
• Described struggling with reading and school
  • Always a saver, taught children to be successful through school or money
• Founded Kinko's to save money and create wealth

Success and Sale of Kinko's

• Kinko's achieved $3 billion in revenue at its peak
  • Sold to a New York firm in 1997 for $1.5 billion
  • FedEx later acquired it for $2.6 billion
• Advice: Sell your business and leave immediately, avoid prolonging involvement

Business Philosophy

• Business as an Instrument for Happiness
  • Orfalea emphasized owning your business rather than it owning you
  • Objective relationship with work is important
• Decision-Making and Management
  • Comfortable with ambiguity, relies on instinct and marginal decisions
  • Advocated risk-taking and avoiding becoming defensive

Entrepreneurship Insights

• Scaling Kinko's
  • Operations should run well without the owner's constant involvement
  • Daily efforts to improve operations
  • Cultivation of a risk-taking culture
• Marketing and Customer Service
  • Focused on enhancing customer experience
  • Experimentation with new ideas to meet customer needs (e.g., calendars, reserve book rooms)

Post-Sale Reflections

• Emotional and Financial Impact
  • Relief from financial problems after selling
  • Business ownership becomes a burden over time
• Advice for New Entrepreneurs
  • Entrepreneurship involves sleepless nights and ambiguity
  • Importance of savviness with money from an early age

Personal Finance and Investments

• Diversification Strategy
  • Invested in stocks, real estate, and business
  • Shift towards real estate and liquid instruments with age
• Caution Against Venture Capital
  • Compared venture capitalists to hitchhikers
• Notable Purchases and Regrets
  • Bought an airplane to be a big shot
  • Post-sale investments in unnecessary real estate and equities