# Unconventional Business Wisdom from the Gulf Experience
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Chapter 1: Insights from a Unique Career
In this discussion, I aim to share some of the more unconventional lessons I've gained throughout my extensive career in finance and business. My 27 years spent in the Arabian Gulf provided experiences that no American business school could adequately prepare one for. Unlike many, I never worked for Western firms; my employers were solely Arab companies, including those from Palestine, Libya, Kuwait, and Saudi Arabia. This journey led me to develop significant expertise in Saudi Arabia, the Gulf Emirates, Jordan, and Egypt. The learning curve was steep, filled with challenges, yet with a few exceptions, I managed to navigate this complex landscape. Some insights are specific to that region, while others resonate universally.
You might recall the aliens known as the Ferengi from the TV show Star Trek: The Next Generation. The Ferengi were depicted as extremely materialistic, adhering to a strict business code called The Rules of Acquisition. In the allegorical context of Star Trek, the Klingons represented the Soviets, and the Romulans mirrored the Chinese. I believe the Ferengi symbolize the Lebanese, who are known for their trading acumen. Drawing from my experiences with Lebanese and other Levantine traders, I've crafted my own set of business rules, inspired by the Ferengi.
Rule #1: Avoid Business with Royals
This rule stands as the foremost principle in any business interaction. Engaging with absolute rulers can lead to dire consequences if anything goes awry. Take, for instance, a scenario where a prominent merchant refuses to sell his hotel to a prince's brother. There’s nothing stopping the royal from resorting to violence, such as vandalizing the hotel or worse. I know an English businessman who is currently imprisoned in a Gulf state, sentenced to ten years for a business disagreement with that country's ruler. He spent two years detained without charges, and when it seemed he might be released, the ruler simply changed the judge to ensure his continued imprisonment. In such instances, the absence of recourse becomes glaringly apparent, and often your own government is too entangled with these regimes to assist you.
Rule #2: Eliminate the Middleman
This advice may seem straightforward: why pay a commission when you can avoid it? However, sometimes middlemen are gatekeepers with unique relationships that allow them to control access. A prime example is Adnan Khashoggi, whose family connections to the Saudi royal family enabled him to act as a crucial intermediary in business dealings. A gatekeeper's value lies in their trust and access, rather than any particular skills. Just ensure that when compensating them, they facilitate your entry.
Rule #3: Focus on Revenues and Costs
At its core, business boils down to two main factors: revenue and expenses. For any venture to be viable, revenues must exceed costs. However, many businesses falter due to insufficient capital—a reality often overlooked due to overly optimistic projections. This tendency to let hope cloud judgment can lead to failure. To counteract this, one must adopt a pragmatic approach to business.
Rule #4: Expect Delays and Higher Costs
Every project inevitably takes longer and incurs more expenses than anticipated. This is an undeniable truth. While budgets and forecasts are helpful, they are rarely accurate. Always ensure you have extra capital set aside for unforeseen challenges. As the saying goes, "If something can go wrong, it will."
In this first video, Mark H. McCormack delves into unconventional wisdom not typically taught in business schools, drawing on his extensive experience.
The second video offers a review of McCormack's influential book, highlighting key insights that challenge conventional business education.
Chapter 2: Practical Lessons from the Field
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