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Built from Scratch: How a Couple of Regular Guys Grew The Home Depot from Nothing to $30 Billion
When a friend told Bernie Marcus and Arthur Blank that, "You've just been hit in the ass by a golden horseshoe," they thought he was crazy. After all, both had just been fired. What the friend, Ken Langone, meant was that they now had the opportunity to create the kind of wide-open warehouse store that would help spark a consumer revolution through low prices, excellent customer service, and wide availability of products.
Built from Scratch is the story of how two incredibly determined and creative people-and their associates-built a business from nothing to 761 stores and $30 billion in sales in a mere twenty years.
Built from Scratch tells many colorful stories associated with The Home Depot's founding and meteoric rise; shows that a company can be a tough, growth-oriented competitor and still maintain a high sense of responsibility to the community; and provides great lessons useful to people in any business, from start-ups to the Fortune 500.
Great Stories
"Ming the Merciless": The inside account of the man who fired Arthur Blank and Bernie Marcus
"My people don't drive Cadillacs!" How Ross Perot almost got involved with The Home Depot
"Take this job and shove it!" The banker who put his career on the line to get The Home Depot the loan that enabled it to survive
"Folks, I tell ya, if these Atlanta stores were any bigger, we'd be paying Alabama sales tax." Home Depot's first good ol' southern advertising campaign
A Company with a Conscience
When disasters like the Oklahoma City bombing or Hurricane Andrew happen, Home Depot associates don't ask for permission to respond. They react from their hearts-whether that means keeping their store open all night or being on the scene with volunteers and relief supplies.
The Home Depot doesn't just contribute money to organizations like Habitat for Humanity and Christmas in April, but also provides its people to help lead and grow these community efforts.
Great Lessons
Know your customer: In The Home Depot's case, customers don't pay for wider aisles and a pretty store, but for a wide assortment and low prices
Why everyday low prices mean more sales overall: The marketing philosophy The Home Depot learned from talking with Sam Walton
Market leadership: Why The Home Depot never goes to a major new market with plans to open just a few stores
The strategy for profitable growth: How The Home Depot redefined its U.S. market from its $135 billion traditional "do-it-yourself" base to a much larger pond of $365 billion
How to change the rules of the game: How The Home Depot bypassed almost all middlemen, allowing it to pass on huge savings to customers
Built from Scratch is the firsthand account of how two regular guys created one of the greatest entrepreneurial successes of the last twenty years.
Bernie Marcus is a cofounder of The Home Depot and currently serves as chairman of the board. From the company's inception until 1997, he served as CEO. With his wife, Billie Marcus, he founded the Marcus Developmental Resource Center, which provides support services for mentally impaired children and their parents. He sits on many boards of directors, including the New York Stock Exchange, and participates in many civic organizations, including the City of Hope, a cancer research center.
Arthur Blank is a cofounder of The Home Depot and is the company's president and CEO. He serves on the board of trustees of several organizations, including the North Carolina Outward Bound School, the Carter Center, Emory University, and the National Conference of Christians and Jews. He was inducted into the Babson College Academy of Distinguished Entrepreneurs and was honored by the City of Hope for his fund-raising leadership.
Bob Andelman lives with his wife and daughter in St. Petersburg, Florida, and has collaborated on many bestselling business books, including Mean Business and The Profit Zone.
352 pages, Hardcover
First published April 27, 1999
241 people are currently reading
3342 people want to read
About the author
Bernie Marcus
6 books8 followersBernard Marcus was an American billionaire businessman. He co-founded Home Depot in 1978. He was the company's first CEO and first chairman until retiring in 2002. In November 2024, Forbes estimated his net worth at US$10.3 billion.
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September 1, 2025
I’ve worked at The Home Depot as a sales associate for almost 10 years now.* It’s the longest I have ever stayed at one job, ever. My normal m.o. prior to HD is, after about three years, I get bored in a job and I go looking elsewhere. So, what broke the cycle?
To be honest, I like working for the Depot. I never thought I’d like retail, and while some days it’s torture, I honestly like being able to help people find what they’re looking for and finish home projects. I think I’m pretty good at it, too.
Of course, a major factor is simply the fact that I have a wife and kid now, and I basically need the stability that having a full-time gig provides, such as a weekly paycheck and benefits. And, since I made the decision not to be a teacher (both a tough and not-so-tough decision, emotionally and spiritually), I’m certainly not going to begrudge a career in retail, especially at one of the largest and most successful home improvement retail chains in the world.
But sticking around almost 10 years at the same workplace, with no thoughts of leaving, doesn’t come about simply due to a steady paycheck. I wouldn’t have stayed that long at a job that I thought of in terms of “meh, it’s an okay job.”
There’s something about working at the Depot that makes me want to stay, and, not only stay, but eventually work my way up the ladder of the company.
It’s what co-owners Bernie Marcus and Arthur Blank refer to as the “culture” of the Home Depot. Somewhat hard to describe but nevertheless present and tangible to anyone who works there for a long enough period of time, this “culture” embodies both a sense of familial belonging and a sincere living of hard-core values.
There’s nothing schmaltzy or cheesy about it. It’s not a touchy-feely love-fest. There are, of course, some days that I want to strangle some of my managers and co-workers. There are some days that I want to say “fuck you” to a customer so badly that I salivate at the thought. Some days, I would love to call in sick... while I’m working the floor.
Then again, maybe that’s exactly why the Home Depot feels like a family. I love my family, but they drive me crazy, and I sometimes dread having to spend time with them.
“Built From Scratch”, written in 1999, is Marcus/Blank’s business memoir/credo.
They fashion themselves two “regular guys” who took an idea and built a home improvement retail empire that is worth billions today out of nothing. This is slightly disingenuous, because it makes them sound like two poor schlemiels who, by sheer luck, “fell into” the home improvement business.
In truth, both guys were fairly successful businessmen prior to teaming up to open the first Home Depot. They built up a lot of equity of knowledge, experience, and business acumen in several successful (and some not-so-successful) companies prior to the Depot. They probably failed more times than they succeeded, but what made them outliers was that “x-factor” of never getting down or giving up.
Still, the story of the Home Depot’s origin is a pretty fascinating one. From a business perspective, it is probably a gold standard by which many new retail stores try to reach. Much like Sam Walton’s “Walmart” (the comparison is intentional, as Marcus/Blank both knew and respected Walton as a businessman), the Home Depot has continually shaped and altered the face of the retail industry and the “big box store” model.
“Built From Scratch” isn’t a book that I can recommend to just anybody. It’s not exactly pleasure reading, unless you have an MBA or actually read magazines like “Forbes” or “Money”, neither of which I have ever read.
To people like me, parts of the book will be boring and uninteresting. Anytime numbers are brought up, or phrases such as “stock options”, “IPOs”, and “leveraged buyouts” are used, my mind glazes over. It’s as exciting as watching grass grow or paint dry, in my opinion.
That said, “Built From Scratch” touches on the tangible (and some intangible) things that make the Depot unique in the business world.
Firstly, it’s the values: Marcus and Blank built their company on a few key concepts---taking care of customers, each other, and the community---that some companies may emulate and spout as dogma, but at the Depot, it never feels like the company is simply paying lip service to these ideas.
From day one, as an associate, it is pounded into you: take care of the customer. Treat them the way you would want to be treated if you were a customer. Sure, it’s the Golden Rule, corporate version, but it’s something that they actually believe. After a while, when you hear it enough, you are going to believe it, too.
Marcus/Blank were insane about making sure customers left the store happy. They recount several stories in which one or both of them would travel miles to another store (sometimes a competitor’s) to buy a product that a customer couldn’t find at their store. Some of their experiences were, in truth, nutso. But the point was made clear: give the customers what they want or, at least, let them know that you are working to get them what they want. From a practical business sense, a happy customer is a repeat customer.
Within the culture of the store, taking care of each other is just as important as taking care of customers. Happy employees are productive employees. Logical. But it’s more than logic, sometimes. It cultivates an atmosphere of mutual respect, compassion, and honest charity that, occasionally, seems lacking in the rest of the world.
Finally, community outreach: It sometimes sounds like a church, with the Depot’s “mission” to “give back” to the community and “build relationships”. Again, though, it never seems like lip service, as the results of the Depot’s good deeds are evident, whether it’s helping local Boy Scout troops build garden boxes and playground sets at local parks or sending supplies and manpower to places hit hard by natural disasters.
I hope I don’t sound like a cult member talking up its cult leaders because that’s far from the truth.
I don’t agree with everything the Home Depot does. As with most of corporate America, I have problems with the fundamental capitalistic infatuation with the bottom line. I know that, in most cases, profit is really the underlying motive behind everything that is done. I'm also well aware of the ridiculous amount of money that Marcus has given to the Republican Party and Trump's campaign personally. Frankly, the thought disgusts me.
But somedays, when I don’t come to work grumpy, when I don’t have to deal with annoying customers, and when I actually get along with my managers (these are extremely rare days, mind you), I actually enjoy walking the aisles, laughing with co-workers over coffee, and helping customers out. And sometimes that actually feels like enough.
*9/1/2025 addendum: I'm still here. I've been at my Home Depot for 15 years now, 16 in March of 2026. I still like my job, too.
To be honest, I like working for the Depot. I never thought I’d like retail, and while some days it’s torture, I honestly like being able to help people find what they’re looking for and finish home projects. I think I’m pretty good at it, too.
Of course, a major factor is simply the fact that I have a wife and kid now, and I basically need the stability that having a full-time gig provides, such as a weekly paycheck and benefits. And, since I made the decision not to be a teacher (both a tough and not-so-tough decision, emotionally and spiritually), I’m certainly not going to begrudge a career in retail, especially at one of the largest and most successful home improvement retail chains in the world.
But sticking around almost 10 years at the same workplace, with no thoughts of leaving, doesn’t come about simply due to a steady paycheck. I wouldn’t have stayed that long at a job that I thought of in terms of “meh, it’s an okay job.”
There’s something about working at the Depot that makes me want to stay, and, not only stay, but eventually work my way up the ladder of the company.
It’s what co-owners Bernie Marcus and Arthur Blank refer to as the “culture” of the Home Depot. Somewhat hard to describe but nevertheless present and tangible to anyone who works there for a long enough period of time, this “culture” embodies both a sense of familial belonging and a sincere living of hard-core values.
There’s nothing schmaltzy or cheesy about it. It’s not a touchy-feely love-fest. There are, of course, some days that I want to strangle some of my managers and co-workers. There are some days that I want to say “fuck you” to a customer so badly that I salivate at the thought. Some days, I would love to call in sick... while I’m working the floor.
Then again, maybe that’s exactly why the Home Depot feels like a family. I love my family, but they drive me crazy, and I sometimes dread having to spend time with them.
“Built From Scratch”, written in 1999, is Marcus/Blank’s business memoir/credo.
They fashion themselves two “regular guys” who took an idea and built a home improvement retail empire that is worth billions today out of nothing. This is slightly disingenuous, because it makes them sound like two poor schlemiels who, by sheer luck, “fell into” the home improvement business.
In truth, both guys were fairly successful businessmen prior to teaming up to open the first Home Depot. They built up a lot of equity of knowledge, experience, and business acumen in several successful (and some not-so-successful) companies prior to the Depot. They probably failed more times than they succeeded, but what made them outliers was that “x-factor” of never getting down or giving up.
Still, the story of the Home Depot’s origin is a pretty fascinating one. From a business perspective, it is probably a gold standard by which many new retail stores try to reach. Much like Sam Walton’s “Walmart” (the comparison is intentional, as Marcus/Blank both knew and respected Walton as a businessman), the Home Depot has continually shaped and altered the face of the retail industry and the “big box store” model.
“Built From Scratch” isn’t a book that I can recommend to just anybody. It’s not exactly pleasure reading, unless you have an MBA or actually read magazines like “Forbes” or “Money”, neither of which I have ever read.
To people like me, parts of the book will be boring and uninteresting. Anytime numbers are brought up, or phrases such as “stock options”, “IPOs”, and “leveraged buyouts” are used, my mind glazes over. It’s as exciting as watching grass grow or paint dry, in my opinion.
That said, “Built From Scratch” touches on the tangible (and some intangible) things that make the Depot unique in the business world.
Firstly, it’s the values: Marcus and Blank built their company on a few key concepts---taking care of customers, each other, and the community---that some companies may emulate and spout as dogma, but at the Depot, it never feels like the company is simply paying lip service to these ideas.
From day one, as an associate, it is pounded into you: take care of the customer. Treat them the way you would want to be treated if you were a customer. Sure, it’s the Golden Rule, corporate version, but it’s something that they actually believe. After a while, when you hear it enough, you are going to believe it, too.
Marcus/Blank were insane about making sure customers left the store happy. They recount several stories in which one or both of them would travel miles to another store (sometimes a competitor’s) to buy a product that a customer couldn’t find at their store. Some of their experiences were, in truth, nutso. But the point was made clear: give the customers what they want or, at least, let them know that you are working to get them what they want. From a practical business sense, a happy customer is a repeat customer.
Within the culture of the store, taking care of each other is just as important as taking care of customers. Happy employees are productive employees. Logical. But it’s more than logic, sometimes. It cultivates an atmosphere of mutual respect, compassion, and honest charity that, occasionally, seems lacking in the rest of the world.
Finally, community outreach: It sometimes sounds like a church, with the Depot’s “mission” to “give back” to the community and “build relationships”. Again, though, it never seems like lip service, as the results of the Depot’s good deeds are evident, whether it’s helping local Boy Scout troops build garden boxes and playground sets at local parks or sending supplies and manpower to places hit hard by natural disasters.
I hope I don’t sound like a cult member talking up its cult leaders because that’s far from the truth.
I don’t agree with everything the Home Depot does. As with most of corporate America, I have problems with the fundamental capitalistic infatuation with the bottom line. I know that, in most cases, profit is really the underlying motive behind everything that is done. I'm also well aware of the ridiculous amount of money that Marcus has given to the Republican Party and Trump's campaign personally. Frankly, the thought disgusts me.
But somedays, when I don’t come to work grumpy, when I don’t have to deal with annoying customers, and when I actually get along with my managers (these are extremely rare days, mind you), I actually enjoy walking the aisles, laughing with co-workers over coffee, and helping customers out. And sometimes that actually feels like enough.
*9/1/2025 addendum: I'm still here. I've been at my Home Depot for 15 years now, 16 in March of 2026. I still like my job, too.
January 11, 2015
Was hoping to learn something about business but to be truthful, just listening to them made me think they were lucky (in the right place at the right time). Not that they weren't smart about it, they just didn't have a ton of skill in the first place. I made a purchase from Home Depot and put the store to the test. I waited one day after the return date on my receipt to return a product. Under no circumstances would they take it back - odd how the book contradicts this. Perhaps when the founders retired, so did the values of the company?
June 9, 2018
Good information - felt like an advertisement for how great Home Depot is rather than a focus on insights from the company's founders. They spent a ton of time defending themselves and the lawsuits they dealt with in for discrimination. They discuss how they grew a retail giant, but I got all the same information with much more personal insight from Sam Walton's biography. I would not read this again, nor would I recommend it in light of the other biographies available.
March 12, 2021
Read for our work book club. If anything, this book taught me I'm not cut out to be a businesswoman... I'm afraid to take risks especially where money is involved, therefore I forfeit financial reward. These guys really did change the retail landscape for home improvement supplies, made themselves a LOT of money in the process, but tried to build their company foundation with honest values to benefit shareholders, employees, customers and community in the process.
July 3, 2020
I tried so hard to give this book more than a one star yet found myself coming to this unfortunate conclusion. Perhaps the litany of fantastic books I read proceeding it influenced my relative rating.
Yet, everything about it falls short. The writing and storytelling is weak. The conversations and quotes from the company’s history seem one-sidedly fabricated. And the lessons espoused within are largely inapplicable in today’s 21st century, internet-driven business culture.
One positive, however, is the authors relatively large depth of detail concerning The Home Depot’s operations. While this part of the book was insightful, it was not enough to overcome the rest of the pitfalls.
Props to the authors on their fantastic accomplishment of building The Home Depot from scratch. But they were destined to be entrepreneurs, not writers and storytellers.
Yet, everything about it falls short. The writing and storytelling is weak. The conversations and quotes from the company’s history seem one-sidedly fabricated. And the lessons espoused within are largely inapplicable in today’s 21st century, internet-driven business culture.
One positive, however, is the authors relatively large depth of detail concerning The Home Depot’s operations. While this part of the book was insightful, it was not enough to overcome the rest of the pitfalls.
Props to the authors on their fantastic accomplishment of building The Home Depot from scratch. But they were destined to be entrepreneurs, not writers and storytellers.
April 16, 2019
Probably between 3-4 stars. Would have liked it a bit more if they would have condensed those last few chapters. Overall, really like what they created and the vision they had. I like the company they created and their focus on the customer - and that it is in everything they do. Love how they hire and the culture they create. I think they definitely have a recipe for long term success.
April 18, 2025
Bernie Marcus (1929-2024) and Arthur Blank (1942-) co-founded the Home Depot, a Georgia-based home improvement warehouse chain that has stores all over North America, in 1978. Their 1999 business memoir, written alongside professional writer Bob Andelman, tells the story of the founding of Home Depot 20 years on in typical braggadocious business speak of the late '90s. I found this book interesting in parts, dry and repetitive in other parts. It would be interesting to get an updated afterward to this book now that the Home Depot is nearing its 50th anniversary -- the stores today seem quite different from how Marcus and Blank describe them 25 years ago.
Further reading: business founders brag about their businesses
Sam Walton: Made In America by Sam Walton and John Huey (1992; Walmart)
Becoming Trader Joe: How I Did Business My Way and Still Beat the Big Guys by Joe Coulombe and Patty Civarelli (2021)
Delivering Happiness: A Path to Profits, Passion, and Purpose by Tony Tsieh (Zappo's; 2010)
My statistics:
Book 119 for 2025
Book 2045 cumulatively
Further reading: business founders brag about their businesses
Sam Walton: Made In America by Sam Walton and John Huey (1992; Walmart)
Becoming Trader Joe: How I Did Business My Way and Still Beat the Big Guys by Joe Coulombe and Patty Civarelli (2021)
Delivering Happiness: A Path to Profits, Passion, and Purpose by Tony Tsieh (Zappo's; 2010)
My statistics:
Book 119 for 2025
Book 2045 cumulatively
January 11, 2023
There are some really great business lessons in here. To distill it: tireless focus on your customer, treating your employees well, delegation and empowerment throughout the organization, shared mission and vision.
It's interesting to hear stories about how folks were working crazy hours to get stores running. I wonder if such a success story could happen these days. Fostering that kind of loyalty and dedication is impressive and rare.
It's interesting to hear stories about how folks were working crazy hours to get stores running. I wonder if such a success story could happen these days. Fostering that kind of loyalty and dedication is impressive and rare.
August 24, 2025
interesting and inspirational. love when good people succeed
September 18, 2025
Interesting to see how they started, evolved and grew.
October 15, 2022
It's like I need to read at least 20 founder books before I can separate winner's bias from what makes a company unique, but this counts as one of the 20.
February 22, 2017
Great business autobiography by the two founders of Home Depot, a fantastic retail business that would multiplied initial investment in IPO by 5,500 times or near 28% annualised return (almost 10 ppt a year higher than Walmart during the same period). And it's a business that continues to perform despite the emergence of e-commerce that has hurt most of other offline retailers.
The success of Home Depot (even in the face of Amazon) also highlight the very interesting nature of retail businesses: the merchandising (getting the right products to sell, and presenting them to catch interests), and the operation (supply chain efficiency). While the company's store model is the three legged stool: wide variety, low prices and obsessive focus on customer service, the last one was proven crucial because the former two are easy to be copied. And to have great customer service, it has to have a fantastic corporate culture of empowering (employees to make decisions with ownership mindset), it has to start from the top, and it has to be applied religiously across the company.
Some great quotes from the book: "Bureaucracy is giving in to stupidity and ignoring common sense. When you know something is wrong and you don't challenge it, you have become bureaucratic." and "The root cause of creating a bureaucratic environment is when people are afraid to make mistakes."
The book also talk about Home Depot's inverted pyramid management structure, where management are to support the front employees. Home Depot's headquarter is called "Super Support Center".
This is also exactly what Nguyen Duc Tai, founder of Mobile World (MWG VN) said about his own corporate culture:
http://cafebiz.vn/kim-tu-thap-nguoc-m...
Another interesting point to note is that: Culture is exportable and language is not a barrier.
The success of Home Depot (even in the face of Amazon) also highlight the very interesting nature of retail businesses: the merchandising (getting the right products to sell, and presenting them to catch interests), and the operation (supply chain efficiency). While the company's store model is the three legged stool: wide variety, low prices and obsessive focus on customer service, the last one was proven crucial because the former two are easy to be copied. And to have great customer service, it has to have a fantastic corporate culture of empowering (employees to make decisions with ownership mindset), it has to start from the top, and it has to be applied religiously across the company.
Some great quotes from the book: "Bureaucracy is giving in to stupidity and ignoring common sense. When you know something is wrong and you don't challenge it, you have become bureaucratic." and "The root cause of creating a bureaucratic environment is when people are afraid to make mistakes."
The book also talk about Home Depot's inverted pyramid management structure, where management are to support the front employees. Home Depot's headquarter is called "Super Support Center".
This is also exactly what Nguyen Duc Tai, founder of Mobile World (MWG VN) said about his own corporate culture:
http://cafebiz.vn/kim-tu-thap-nguoc-m...
Another interesting point to note is that: Culture is exportable and language is not a barrier.
December 18, 2024
I enjoyed hearing him tell of the early days and how he got his start. The latter half of the book has more operational and business advice. It's good but feels different than reading a biography at that point. I stuck it out because I hate not finishing books, but it required determination to finish. Their vision and tenacity are inspiring though.
December 5, 2024
It's amazing what this group was able to do out of nothing. Great book for business entrepreneurs and salespeople.
November 30, 2024
Similar to the Walmart story with a great category destroying vision, customer and store/associate centricity, great camaraderie of co-founders, decentralized operations but on the ground supervision and governance (Bernie incognito, calls from stores/customers at corporate office “support center”). Associates work as of they own stores. Focus on customers and stores vs competition.
November 6, 2024
This is a remarkable story of how two men with very humble beginnings, Bernie Marcus and Arthur Blank, built The Home Depot. The book vividly details the strong culture that has driven The Home Depot’s success, emphasizing a commitment to doing the right thing and prioritizing the customer. It’s no wonder it’s become one of the most successful retail stores in America today.
I rated it three stars because some sections delved too deeply into the specifics of retail operations. While it’s clear that both Marcus and Blank were passionate about these details, it may not be as engaging for other readers.
I rated it three stars because some sections delved too deeply into the specifics of retail operations. While it’s clear that both Marcus and Blank were passionate about these details, it may not be as engaging for other readers.
July 13, 2015
The key take aways from the book are how important sticking to your core values is to your ultimate success and how sticking to your guns during times of adversity makes or breaks you. This isn't the best written book out there and it's a little dated but it's a quick read, inspirational for aspiring entrepreneurs, and has some timeless business lessons that apply as much today as back then, perhaps more so.
November 8, 2020
- Don't always obey the rules because they're common sense: if something isn't right for you, change the rules and do what's right for you
- Inverted pyramid: home depot believes in customers and store associates on the top, while senior executives on the bottom. They try to retain the entrepreneur value and ask: how can executives service others?
- In retail - and just in about any other sector, customer is the key. It's easy to see money making as the primary goal and loose sight of the long term prize of the satisfaction of your customers
- Scaling: it's very important to think of scaling early on, pass down knowledge into people who would implement them and improve them
- Biggest lesson: always surround yourself with people who are better than you
- Leave the sinking ship: there are plenty of signs beforehand (like the case of "Two Guys" in the book) of a business /others slowly collapsing. It's important to realize that and jump out when logical
- Transactional vs relationship: while it might seem like transactional would gain in the short term, a bad reputation with others would ruin this person in the long run: its better to loose a little in the short term to build a meaningful relationship
- Sometimes a bad news isn't the end of sentence: it would put talented people into a better position. Founding of the home depot was because they were fired from successful prior job.
- Ignore law suit if all possible: even one could win on court, the lawyers will make the bulk of the money. Often it's way better to walk away than a long messy legal fight
- Partnership worked for Home Depot because both founders posses 2 different skills: one on technical one on operational
- People is so important: always associate yourself with great people. It takes time to build such network so when you need to you can reliably find them
- Home Depot initially did poorly, but as sales grew, they intentionally hid that, trying to create an illusion that they're simply "self distrusting" to their competitors
- Talented people do things a different way - let them. Don't be afraid of letting conventional wisdom to be broken
- A lot of times things could go wrong, but if the fundamental looks good, don't give up just because of the process looks bad
- Think in long terms: cultivating customer base is far more benefits in the long term than making a short term sale
- Believe in trust, not micromanagement
- People who work with you ought to have the same financial incentives as you - rather than being a salary slave with you
- Focus on the person, rather than their educational levels
- Work smart, not hard
- Talk to lawyers before each important step to avoid lawsuit and legal liabilities that could arise in the future
- Things change constantly - what worked before doesn't mean will continue to work. While it's foolish to chase after competitors, constant rethink of the business model is a must
- Patience, patience, patience: only expand when you have perfected the craft (McDonald's Ray Kroc echoed the same theme)
- Keep a look out for the little guys doing things differently: it's these people who WILL change the world. It's far more
- "Payroll is not an expenses for us, but an investment" - pay the best people the bets price, as long as you get the best return, it's well worth it
- While merger seems very attractive to grow the business, many times the clash of culture means it's not worth it - it was echoed in the early days of Dollar General merger. Oftentimes it's far better to grow the business organically. Be patient! Quality, not quantity. Stress is a major cost too.
- Before each expansion, always make sure to have enough human resources reserve - you're only as good as your people
- Most analysts only look at short term, quarter to quarter earnings. Their shortsightness would prove to be a great way to find a bargain on the long term
- Never think what you know anything. Rather, always listen to your customer and change based on what your customer says
- Always be decentralized. Always delegate work. The people on top should only pick the right overall direction, and the right people. And let the people on the ground do the world. The people in the top should ask "what can I do to help people on the ground" rather than "how can I manage them and squeeze more penny out of each venture"
- People like responsibilities and flexibilities - let them. Give people as much power and trust as possible - same theme echoed by McDonald's Ray Kroc
- If you don't watch dollars, they add up quickly - scrutinize every single dollar spent
- Teach, delegate, don't do - so people can continue your logic. Absolutely communicate with people why you do certain things
- People who work for you should have the ability to challenge you and abide with common sense - they shouldn't be afraid to make mistakes
- Unannounced store walk: flattens out top and bottom people, so head could always have an idea with what's going on beneath
- Allow people who disagree with you, and have the guts to tell you so and push ahead - make sure people who work with you have skin in the game, so they have every incentives to fight for their rights - and ultimately yours, too
- Inverted pyramid: home depot believes in customers and store associates on the top, while senior executives on the bottom. They try to retain the entrepreneur value and ask: how can executives service others?
- In retail - and just in about any other sector, customer is the key. It's easy to see money making as the primary goal and loose sight of the long term prize of the satisfaction of your customers
- Scaling: it's very important to think of scaling early on, pass down knowledge into people who would implement them and improve them
- Biggest lesson: always surround yourself with people who are better than you
- Leave the sinking ship: there are plenty of signs beforehand (like the case of "Two Guys" in the book) of a business /others slowly collapsing. It's important to realize that and jump out when logical
- Transactional vs relationship: while it might seem like transactional would gain in the short term, a bad reputation with others would ruin this person in the long run: its better to loose a little in the short term to build a meaningful relationship
- Sometimes a bad news isn't the end of sentence: it would put talented people into a better position. Founding of the home depot was because they were fired from successful prior job.
- Ignore law suit if all possible: even one could win on court, the lawyers will make the bulk of the money. Often it's way better to walk away than a long messy legal fight
- Partnership worked for Home Depot because both founders posses 2 different skills: one on technical one on operational
- People is so important: always associate yourself with great people. It takes time to build such network so when you need to you can reliably find them
- Home Depot initially did poorly, but as sales grew, they intentionally hid that, trying to create an illusion that they're simply "self distrusting" to their competitors
- Talented people do things a different way - let them. Don't be afraid of letting conventional wisdom to be broken
- A lot of times things could go wrong, but if the fundamental looks good, don't give up just because of the process looks bad
- Think in long terms: cultivating customer base is far more benefits in the long term than making a short term sale
- Believe in trust, not micromanagement
- People who work with you ought to have the same financial incentives as you - rather than being a salary slave with you
- Focus on the person, rather than their educational levels
- Work smart, not hard
- Talk to lawyers before each important step to avoid lawsuit and legal liabilities that could arise in the future
- Things change constantly - what worked before doesn't mean will continue to work. While it's foolish to chase after competitors, constant rethink of the business model is a must
- Patience, patience, patience: only expand when you have perfected the craft (McDonald's Ray Kroc echoed the same theme)
- Keep a look out for the little guys doing things differently: it's these people who WILL change the world. It's far more
- "Payroll is not an expenses for us, but an investment" - pay the best people the bets price, as long as you get the best return, it's well worth it
- While merger seems very attractive to grow the business, many times the clash of culture means it's not worth it - it was echoed in the early days of Dollar General merger. Oftentimes it's far better to grow the business organically. Be patient! Quality, not quantity. Stress is a major cost too.
- Before each expansion, always make sure to have enough human resources reserve - you're only as good as your people
- Most analysts only look at short term, quarter to quarter earnings. Their shortsightness would prove to be a great way to find a bargain on the long term
- Never think what you know anything. Rather, always listen to your customer and change based on what your customer says
- Always be decentralized. Always delegate work. The people on top should only pick the right overall direction, and the right people. And let the people on the ground do the world. The people in the top should ask "what can I do to help people on the ground" rather than "how can I manage them and squeeze more penny out of each venture"
- People like responsibilities and flexibilities - let them. Give people as much power and trust as possible - same theme echoed by McDonald's Ray Kroc
- If you don't watch dollars, they add up quickly - scrutinize every single dollar spent
- Teach, delegate, don't do - so people can continue your logic. Absolutely communicate with people why you do certain things
- People who work for you should have the ability to challenge you and abide with common sense - they shouldn't be afraid to make mistakes
- Unannounced store walk: flattens out top and bottom people, so head could always have an idea with what's going on beneath
- Allow people who disagree with you, and have the guts to tell you so and push ahead - make sure people who work with you have skin in the game, so they have every incentives to fight for their rights - and ultimately yours, too
June 4, 2024
Understand the customer and provide great service, treat your employees very well, build strong relationships, a lot of work, risk, dedication, listen more than speaking are basics/core values of a successful business like
the Home Depot. Interesting to travel through the years/decades in the Home Depot’s journey. Enjoyed the chapter about Ben Hill, director of Consumer Affairs.
the Home Depot. Interesting to travel through the years/decades in the Home Depot’s journey. Enjoyed the chapter about Ben Hill, director of Consumer Affairs.
April 8, 2007
It's a self-serving vanity read, but a lot of the business principles are still sound nonetheless.
Shortly after this book was published co-author Arthur Blank was escorted out the CEO position by his good friend co-author Bernie Marcus.
But that's just business.
Shortly after this book was published co-author Arthur Blank was escorted out the CEO position by his good friend co-author Bernie Marcus.
But that's just business.
April 7, 2008
Very readable and surprisingly candid. To say that Home Depot grew "from nothing" is misleading, these guys were well bankrolled by investors, but it still a great story. I think their successors strayed from the customer service ethic and should read this book.
March 15, 2024
The first 100 pages about the origins and initial growth of the company made for interesting reading, worthy of five stars. The remainder of the book seemed more like repetitive corporate cheerleading.
April 21, 2024
Good way to get to know retailing and Home Depot better. Educational stories behind ”everyday low prices” and where their rivals failed were the best parts. Narrative flow unfortunately wasn’t very captivating, making the overall experience quite average.
October 28, 2024
Nothing mind-blowingly crazy eye opening, but it's a well written history of a legendary company based on culture and business principles as well as how they maintained those.
I would give it 4.5/5 if I could, 4 is not fair, 5 is too much.
I would give it 4.5/5 if I could, 4 is not fair, 5 is too much.
August 3, 2016
Couldn't get into this book, didn't end up finishing it. There are some interesting business stories, but I couldn't identify with the founder's motivations.
June 16, 2024
Great read. Great story. Great business experience, lessons and more.
October 5, 2024
Interesting!
August 21, 2018
I was recently recommended this book by a devoted football fan. One of the authors, Arthur Blank, is currently the owner of the Atlanta Falcons. His aim is to create one of the strongest franchises in the NFL - a challenge well in line with building a company from scratch.
I am grateful for the tip. It has been a true pleasure to read this book. I nodded frequently in agreement. There is much to like: the "regular guys", the camaraderie, the bravery, the bold decisions and the outcome. But in the end, it’s all about character and values. For a believer in values it is fascinating to see that doing the right thing can be so rewarding, on such a grand scale. Reading the book, one almost experiences it oneself. The only other corporate biography that has given me the same insider feeling is Bertil Torekull’s book on IKEA.
I think business managers, analysts and most others can learn a lot from this book by the two co-founders of Home Depot. It is written as a memoir without pointers, almost as a novel. The reader must draw his or her own conclusions. The set-up helps. The 16 chapters have titles like “The Financier”, “The Merchant, act 1”, “Growth” and “How we manage”. We have heard the wordings before - it is usual common corporate language. The unusual thing is the courage to implement them into action so vividly.
Running a large retail operation is complexity in a nutshell. Without their mutual value system, the founders would not have been able to make their decisions so fast, nor communicated them so efficiently. One is reminded of how important management-by-walking-around is. Without turning the pyramid upside down and truly delegating to the personnel meeting the customers, they would not have succeeded at all. The genuine respect for stakeholders, whether they are customers, employees, suppliers or the community in general is impressive. The following are some parts of the story that truly amaze me: To start with, it is not easy to run a partnership of two for such a long period, over 20 years, without running into some serious relationship problems. The authors certainly have done something close to unique here. I can only speculate that their quite early success and their focus on creating something extra-ordinary helped them in this aspect.
Secondly, the founders would probably not have succeeded without the help of financier Ken Langone. Everyone involved in investment banking should have Langone as a role model for how to do business. The parts in the book concerning Langone are among the best. The book’s highlight is the episode when the founders turned down the offer from Ross Perot of sponsoring the creation of Home Depot. Perot was at that time Langone’s most important client and he still supported the decision. The reason why Marcus decided not to cooperate with Perot is thought provoking. I am stunned by the bravery.
Finally, the founders claim they succeeded partly because they did not do detailed NPV calculations all the time. Instead, they wanted to do “the right things”. No Wall Street analyst would start a new business with far below industry average margins and hope for a higher market share. These entre- preneurs truly understood their customers, just like IKEA’s Mr. Kamprad does. They “knew” being fair to the customers would be rewarded by an expanding market share. Professor Clay Christensen has written extensively on the subject of how informed NPV calculations nevertheless can mislead good business decisions. The Home Depot story is evidence of that.
I am convinced The Falcons will be a strong long- term contender for the play-offs in the NFL. It is hard to beat teams with long-term focus, common values and strong characters.
I am grateful for the tip. It has been a true pleasure to read this book. I nodded frequently in agreement. There is much to like: the "regular guys", the camaraderie, the bravery, the bold decisions and the outcome. But in the end, it’s all about character and values. For a believer in values it is fascinating to see that doing the right thing can be so rewarding, on such a grand scale. Reading the book, one almost experiences it oneself. The only other corporate biography that has given me the same insider feeling is Bertil Torekull’s book on IKEA.
I think business managers, analysts and most others can learn a lot from this book by the two co-founders of Home Depot. It is written as a memoir without pointers, almost as a novel. The reader must draw his or her own conclusions. The set-up helps. The 16 chapters have titles like “The Financier”, “The Merchant, act 1”, “Growth” and “How we manage”. We have heard the wordings before - it is usual common corporate language. The unusual thing is the courage to implement them into action so vividly.
Running a large retail operation is complexity in a nutshell. Without their mutual value system, the founders would not have been able to make their decisions so fast, nor communicated them so efficiently. One is reminded of how important management-by-walking-around is. Without turning the pyramid upside down and truly delegating to the personnel meeting the customers, they would not have succeeded at all. The genuine respect for stakeholders, whether they are customers, employees, suppliers or the community in general is impressive. The following are some parts of the story that truly amaze me: To start with, it is not easy to run a partnership of two for such a long period, over 20 years, without running into some serious relationship problems. The authors certainly have done something close to unique here. I can only speculate that their quite early success and their focus on creating something extra-ordinary helped them in this aspect.
Secondly, the founders would probably not have succeeded without the help of financier Ken Langone. Everyone involved in investment banking should have Langone as a role model for how to do business. The parts in the book concerning Langone are among the best. The book’s highlight is the episode when the founders turned down the offer from Ross Perot of sponsoring the creation of Home Depot. Perot was at that time Langone’s most important client and he still supported the decision. The reason why Marcus decided not to cooperate with Perot is thought provoking. I am stunned by the bravery.
Finally, the founders claim they succeeded partly because they did not do detailed NPV calculations all the time. Instead, they wanted to do “the right things”. No Wall Street analyst would start a new business with far below industry average margins and hope for a higher market share. These entre- preneurs truly understood their customers, just like IKEA’s Mr. Kamprad does. They “knew” being fair to the customers would be rewarded by an expanding market share. Professor Clay Christensen has written extensively on the subject of how informed NPV calculations nevertheless can mislead good business decisions. The Home Depot story is evidence of that.
I am convinced The Falcons will be a strong long- term contender for the play-offs in the NFL. It is hard to beat teams with long-term focus, common values and strong characters.
June 3, 2018
This is a business book about the founding (and growing) of the Home Depot. Within the stories and anecdotes are some timeliness business principles such as putting the customers needs first and the “inverted pyramid” in which the company’s executives are at the bottom. More specifically, it's about the founding of the Home Depot by three hardware retail veterans that simply saw the writing on the wall in terms of what customers wanted. It’s also interesting to hear that they essentially “created demand” for DIY by offering classes and making home repair and improvement less intimidating to the “common man."
Ultimately I think Bernie Marcus and Arthur Blank were trying to tell their story; about how a huge company started as a small company with regional stores in Atlanta. Particularly interesting are the early days when cash was tight and they were constantly having to go back to the well with banks and their investors to make payroll and buy inventory. The entirety of the company existed on 12 pieces of paper…it gives hope to the entrepreneur that we’re all just figuring it out as we go; fighting fires all the time and simply trying to provide an excellent and valuable service.
The executives wanted to revolutionize hardware retail; prior to the Home Depot the home improvement business was mostly handled by contractors (pros) and many of the local hardware stores sold fewer products at a higher price (to protect their industry-standard 40% margins). Given that this book was written in the late 90s it’s very interesting for me to read given the current turmoil for big box retail. Bernie and Arthur talk about their only nationwide competitor being Sears (at the time) and the labor intensity of having to price goods by hand in their earlier stores (resulting in many “overnight” shifts for their early associates). Despite it’s age, there are many principles in the book that hold true today. Chief among them is ensuring great customer service to the end user; and empowering your boots on the ground associates to reach that goal however they feel is most appropriate. At the time, Home Depot’s decentralized ordering and management was revolutionary; but it likely was crucial in it’s reaching the scale it is today. I wonder if that customer centricity still pervades the company culture?
The story is one of interest for anyone who might have an entrepreneurial bent. No matter what company and what founder a theme seems to run through the stories of early companies - things go wrong and you have to adapt. All throughout the book the authors say that they train their associates (like boot camp) but then send them “into war where they have to adapt.” In fact, training is where people [should] learn to think on their feet. Founding a successful company…one that is the size that Home Depot is now…is not easy. It takes a lot of skill, resourcefulness, hard work and (oftentimes) luck.
Ultimately I think Bernie Marcus and Arthur Blank were trying to tell their story; about how a huge company started as a small company with regional stores in Atlanta. Particularly interesting are the early days when cash was tight and they were constantly having to go back to the well with banks and their investors to make payroll and buy inventory. The entirety of the company existed on 12 pieces of paper…it gives hope to the entrepreneur that we’re all just figuring it out as we go; fighting fires all the time and simply trying to provide an excellent and valuable service.
The executives wanted to revolutionize hardware retail; prior to the Home Depot the home improvement business was mostly handled by contractors (pros) and many of the local hardware stores sold fewer products at a higher price (to protect their industry-standard 40% margins). Given that this book was written in the late 90s it’s very interesting for me to read given the current turmoil for big box retail. Bernie and Arthur talk about their only nationwide competitor being Sears (at the time) and the labor intensity of having to price goods by hand in their earlier stores (resulting in many “overnight” shifts for their early associates). Despite it’s age, there are many principles in the book that hold true today. Chief among them is ensuring great customer service to the end user; and empowering your boots on the ground associates to reach that goal however they feel is most appropriate. At the time, Home Depot’s decentralized ordering and management was revolutionary; but it likely was crucial in it’s reaching the scale it is today. I wonder if that customer centricity still pervades the company culture?
The story is one of interest for anyone who might have an entrepreneurial bent. No matter what company and what founder a theme seems to run through the stories of early companies - things go wrong and you have to adapt. All throughout the book the authors say that they train their associates (like boot camp) but then send them “into war where they have to adapt.” In fact, training is where people [should] learn to think on their feet. Founding a successful company…one that is the size that Home Depot is now…is not easy. It takes a lot of skill, resourcefulness, hard work and (oftentimes) luck.
January 2, 2019
TLDR - Great insight into the history of the company, but 20 years later it's totally out of touch with the way HD does business today. Craig Menear (current CEO) and his leadership might want to give it a read.
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I really enjoy founder based books that dive into the history of how a company made it big. Overall, the book is good but it has a few drawbacks that effected my rating.
1. There is a continual first person switching throughout the book that get's really confusing. Sometimes it's Arthur and other times Bernie and it's not always clear up front when the switch is taking place.
2. There is a lot of redundancy in the language used and structure to the book. It could have benefited from some additional editing.
3. But the most frustrating bit is how the content and message this book has to offer, seems so far different from what you experience when you go to a HomeDepot store today.
Granted, this book was written nearly 20 years ago, but I've been shopping at HD stores for about that long. The book portents that HD is a customer service fanatic company. There are many specific (and shocking) examples where at the beginnings the HD employees went to great lengths to provide customer service. While things do change they (Bernie and Arthur) make a point to say some things never will. The reality is though as a customer it certainly doesn't feel that way to me. I found it strange to like a book less purely based on what the company has become, but nevertheless it just felt disingenuous as I flipped through page after page of customer service first righteousness. I can't say for sure if this was BS when the book was written, or just become BS the moment after Bernie/Arthur retired, but for anyone that shops at HD today - I suggest checking this book out for a laugh at the very least.
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I really enjoy founder based books that dive into the history of how a company made it big. Overall, the book is good but it has a few drawbacks that effected my rating.
1. There is a continual first person switching throughout the book that get's really confusing. Sometimes it's Arthur and other times Bernie and it's not always clear up front when the switch is taking place.
2. There is a lot of redundancy in the language used and structure to the book. It could have benefited from some additional editing.
3. But the most frustrating bit is how the content and message this book has to offer, seems so far different from what you experience when you go to a HomeDepot store today.
Granted, this book was written nearly 20 years ago, but I've been shopping at HD stores for about that long. The book portents that HD is a customer service fanatic company. There are many specific (and shocking) examples where at the beginnings the HD employees went to great lengths to provide customer service. While things do change they (Bernie and Arthur) make a point to say some things never will. The reality is though as a customer it certainly doesn't feel that way to me. I found it strange to like a book less purely based on what the company has become, but nevertheless it just felt disingenuous as I flipped through page after page of customer service first righteousness. I can't say for sure if this was BS when the book was written, or just become BS the moment after Bernie/Arthur retired, but for anyone that shops at HD today - I suggest checking this book out for a laugh at the very least.
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