The Knowledge Project with Shane Parrish

#190 Brad Jacobs — How To Build a Billion Dollar Company: The Unconventional Playbook

Mar 19, 2024

Brad Jacobs, a seasoned business executive, shares insights on building billion-dollar companies. Topics include reading people during interviews, the role of AI in business, spotting trends early, and focusing on key aspects for success. Jacobs' background in math and music influences his strategic decision-making. He emphasizes the importance of parental influences, balancing feedback, and maximizing shareholder value through strategic acquisitions. The podcast delves into company diligence, balancing speed and quality, and defining success in business and personal relationships.

01:39:09

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Episode guests

Brad Jacobs

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Quick takeaways

Adaptability in business planning is vital for seizing emerging opportunities and navigating changing landscapes effectively.

AI represents a transformative trend in technology with benefits like enhanced medicine and rational thinking, but raises concerns about changing human characteristics.

Rational thinking enhances decision-making and resilience in business, emphasizing the importance of psychological capital and constructive thinking.

A contrarian mindset, positive work culture, and prudent industry selection are crucial for successful ventures, effective leadership, and sustainable growth.

Deep dives

Flexibility and Adaptability in Business Planning

Being flexible in business planning is crucial as life, markets, and economies constantly change. Rigid plans hinder the ability to capitalize on emerging opportunities, leading to missed chances for growth and profitability. Adaptability allows for seizing new prospects and navigating evolving landscapes effectively.

Give full attention and be nonjudgmental

03:06

Investing in Psychological Well-being for Rational Thinking

01:11

Effective Questioning for Company Assessment

01:46

Maintaining Manageable Debt Levels for Business Sustainability

01:21

Introduction

2min

Exploring AI, Human Nature, and Business Practices

3min

The Future of Technology: A Path Towards Human Evolution

7min

Embracing a Contrarian Path in Business

27min

Parental Influences and Leadership Development

16min

Maximizing shareholder value through strategic acquisitions

9min

In-depth Analysis of Company Diligence Process and Decision-making

2min

Balancing Speed and Quality in Business Operations

26min

Defining Success in Business and Personal Relationships

3min

Brad Jacobs doesn't just build big companies – he builds industry giants. As the founder of eight multibillion-dollar companies, he's cracked the code on scaling businesses from zero to billions. In this conversation, the secrets he's earned over decades.

You'll discover where billion-dollar opportunities are hiding in plain sight, how to spot massive trends years before your competitors, and the most crucial factor determining a company's success.

Currently serving as Chairman and CEO of QXO, Jacobs brings a mathematician's precision and a musician's creativity to scaling businesses. His track record speaks for itself: every company he's founded has reached billion-dollar status or beyond.

(00:00) Intro

(04:44) The future of AI

(07:21) How to think rationally

(08:48) The major trend

(10:57) The research process

(13:29) On asking better questions

(19:35) On rearranging your brain

(22:23) On music, math, simplicity, and business

(32:26) Leverage, debt, and optionality

(35:11) What it takes to take contrarian bets

(40:45) Confidence and parents

(50:21) Why negative-only feedback is detrimental for employees

(56:14) Money lessons

(58:13) A deep dive on M&A (Jacobs' secret sauce to growing his companies)

(01:07:51) Questions to immediately get to know anyone

(01:11:14) On boards and board meetings

(01:16:57) On decision-making

(01:23:37) The role of capital markets

(01:25:41) The type of person you don't want to hire

(01:31:16) The best capital allocators

(01:33:53) Biggest lesson Jacobs learned from the past year

(01:37:20) On success

Watch the episode on YouTube: https://www.youtube.com/c/theknowledgeproject/videos

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Sponsors:

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The Knowledge Project with Shane Parrish

#190 Brad Jacobs — How To Build a Billion Dollar Company: The Unconventional Playbook

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Flexibility and Adaptability in Business Planning

AI and Technological Trends

Importance of Rational Thinking and Psychological Capital

Contrarian Approach and Confidence Building

Creating a Positive Work Culture and Gratitude

Rationale Behind M&A Strategy and Value Creation

Integration Strategy and Standardization

Effective Decision-Making and Capital Allocation

Give full attention and be nonjudgmental

Investing in Psychological Well-being for Rational Thinking

Effective Questioning for Company Assessment

Maintaining Manageable Debt Levels for Business Sustainability

Get the Snipd
podcast app

AI-powered
podcast player

Discover
highlights

Save any
moment

Share
& Export

AI-powered
podcast player

Discover
highlights

The Knowledge Project with Shane Parrish

#190 Brad Jacobs — How To Build a Billion Dollar Company: The Unconventional Playbook

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Flexibility and Adaptability in Business Planning

AI and Technological Trends

Importance of Rational Thinking and Psychological Capital

Contrarian Approach and Confidence Building

Creating a Positive Work Culture and Gratitude

Rationale Behind M&A Strategy and Value Creation

Integration Strategy and Standardization

Effective Decision-Making and Capital Allocation

Give full attention and be nonjudgmental

Investing in Psychological Well-being for Rational Thinking

Effective Questioning for Company Assessment

Maintaining Manageable Debt Levels for Business Sustainability

Get the Snipdpodcast app

AI-poweredpodcast player

Discoverhighlights

Save anymoment

Share& Export

AI-poweredpodcast player

Discoverhighlights

Get the Snipd
podcast app

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highlights

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moment

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& Export

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highlights