Lecture Notes: Paul Orfalea on Founding Kinko's and the Billionaire Lifestyle

Jul 17, 2024

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