Rejected by 51 Banks: Persistence Pays Off – Jack Stack

Jack Stack

📄 You may have heard of Jack Stack. Jack is CEO of SRC (Springfield Remanufacturing Company) in Springfield, Missouri. He has authored several books and the first one is titled the Great Game of Business. Jack and a team of local executives bought the company from the parent owner, International Harvester, a few years before IH company finally went bankrupt.

Jack and his team didn't really know what they were doing but had a vision and a desire to keep their jobs. They mustered together about $100,000 and were turned down by 51 banks. How about that for persistence? Finally, the 52nd bank loaned them the money in what many have called the greatest leveraged buyout in U.S. history, a 90 to 1 debt to equity ratio. Now, I would call that rocky soil!

When you are paying 22 percent interest, you've got to scramble. So, they made nearly all their 100 employees owners and taught everyone how to read a financial statement. They met weekly in department meetings and reviewed their P&L statement, projections, and analyzed their cash flow.

Everyone got on an incentive plan. Every employee was made a stockholder. They ended up creating what is known today as Open Book Management and have grown the business by 20 times. They took the desperation of their rocky soil experience and created many divisions in what I believe is an outstanding biblical model for running a successful business. Very similar to what Paul Orfalea did in building Kinko's into a $2 billion dollar business. For innovators who are not willing to quit, rocky soil* brings out the best. It cracks open hearts and souls to receive new visions required to survive and thrive.

*The Untold Secret that creates True Wealth" book

SRC website is www.srcreman.com

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