Sergey Galitskiy is the internationally most respected Russian entrepreneur and self-made billionaire. He created Magnit, one of the largest food retailers in Europe with over 17,000 supermarkets. I interviewed him in Russia, Krasnodar in a two-day interview for my book "The Billion Dollar Secret". In this video I share with you three things that enabled him to become so extremely successful in business.
Sergey Galitskiy on Forbes List of Billionaires:
https://www.forbes.com/profile/sergei-galitsky/#45860c8c75cc
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Follow me on twitter: http://twitter.com/BillionairePal
Follow me on steemit: https://steemit.com/@billionairepal
And read the blog where I test the limits of human capabilities: http://nolimits.co
Buy the book "Ready, Set, Go!" that I have co-authored with Brian Tracy:
E-Book: https://www.amazon.com/Ready-Set-Special-Entrepreneurs-Professionals-ebook/dp/B078WZXJDW/
Hardcover: https://www.amazon.com/Ready-Set-Go-Nick-Nanton/dp/0999171402/
Get free chapter of my upcoming book about billionaire thinking: http://TheBillionDollarSecret.com
VIDEO TRANSCRIPTION
Hi today! Today I will tell you the 3 things that I've learned from Serggey Galitski.
Sergey is a Russian self-made billionaire and the founder of one of the largest food retailers in Europe called Magnit. See you in the next part.
[Music]
Welcome from Russia, from sunny Krasnodar. I'm standing in front of Magnit thunder headquarter.
This is the largest food retailer in entire Europe. The have 10700 shops, hypermarkets, supermarkets, family stores and drogeries.
I just finished 2-day interview with mr. Segey Galitzky.
Mr. Sergey Galitzky is the founder and CEO of Thunder Magnit. He is considered the most respected Russian entrepreneur.
He went from zero to 11,3 billion dollars. This is the valuation Bloomberg is giving him, without any connections to Kremlin
Without oarticipation in shady privatizations and without using natural Russian resources.
So, he is a very inspiring man. We were talking about his success principles, we were talking about the way he managed to become that wealthy
And to build such a wonderful company. You will read about that in my upcoming book The Billion Dollar Secret.
The previous video I recorded aftar my interview with Sergey in Krasnodar some time ago and today I'll tell you about the 3 things that I've learned from him
The first one is about intelligence in businnes; about being intelligent, being smart in contrast to public opinion. Let's say, to mainstream opinion.
Being intelligent isn't the most important thing in business. Much more important is to be adventurous
And self-made billionaires often stress that entrepreneurs are rathar adventurous than intelligent.
Before becoming an entrepreneur Sergey worked for a bank and he had to do with small business people who were customers of this bank.
And he told me the following. I will read it for you.
"When I communicated with the clients in the bank, who were business people, I felt how intellectually weak they were
But I was impressed by the way they think. So, these were people not of a smart mind, but rather of an adventurous mind.
And this made a big impression on me. And you need really to be adventorous in business. You need to be willing to take risks.
And try things that may not work. And Sergey was forced to go in to business because he needed to take care of his young family
And also of the family of his wife, because the father of his wife died and he needed to also to take care of her family.
And his employee wage wasn't enough, especially in Russia in the 90's to support a family.
So, he needed to go into business. He needed to become entrepreneurial. It really was a big adventure in Russia in the 90's after to Soviet Union broke down
And new capitalistic system emerged. It were wild years and dangerous years and they were especially dangerous for people trying to do business.
He told me "When society is breaking, then here we've got a lot of gangsters and sometimes the government and authorities behaved like gangsters, too".
So, there were episods when somebody put a funeral wreath at Sergey's door, for example; or fired a granade into his office. Can you imagine that?
You do business and people are trying to get money out of you with criminal methods, trying to rob you, to blackmail you and so on, and so on...
And on one occasion people with automatic weapon appeared at one of his stores.
And on top of that, when you build a company, especially with the growth that Magnit had, you are not making any money
And Sergey told me that he had to compete against people who were not paying taxes. And they were paying taxed.
So, they had like a huge disadvantage towards the competition. It was so hard to make money and there were so many days
When Sergey was sitting down and wondering whether he will make it; whether he has enough power, enough grit to endure all these difficulties
And all these problems. And at the end become successful as an entrepreneur. And he really did.
So, this being adventurous is a trait for every entrepreneur, it is very important when you want to go in business, when you are in business
It is much more important than actually your brains. The other thing that I want to share with you that I learned from Sergey, and from many other billionaires
Is the diligence. This is for Sergey one of the most important qualities of an entrepreneur. And why is dilligence so important?
It sounds like a cliche "You have to work a lot, you have to work hard"
But what Sergey focuses on is always the brains because he was a chess player and he considers himself quite smart
But what he realized is that it's not enough to be smart. It's not enough to be intelligent.
He told me "Don't think that you are better than others. Only by working harder you can achieve more than the others".
And the other thing he told me is "You have to be very industrious because your intellect will never supersede that of other people too much
And only by working harder you can defeat those.
So, even if you are super intelligent, you can be more intelligent from others only to some degree. Maybe 10%, maybe 20%. I don't know, maybe 30%
But even if you are, the others can just outperform you by working harder. So, it's not enough to think, not enough to be witt, to be smart
You have to work hard because that difference in intellect is always less than you can make up by working hard. This was the 2nd thing that I wanted to share
And the third thing and the most impressive about Magnit, about Sergey, is actually the scale of their business.
Their efficiency and doing the impossible in business. This is so inspiring. Meanwhile Magnit has ovet 17,000 supermarkets and drug stores
Supermarkets huge like a football field and can you imagine what is necessary to open one, just one market?
I made a list of things that you have to do and this is just excerpt of all that you have to do and you have to take care of to open just one supermarket
So, at first you have to find land. Then you have to negotiate and buy it. Then you have to get all the permissions. To build it, to do business
To sell food in that market and so on, and so on. Then you have to actually build the store. Then you have to install all the systems.
The computer sustems, electricity, the communication and so on, and so on. Then you have to hire and train people who will actually run the store.
Then you have to organize supply and logistics and Sergey actually owns also the largest logistics fleet in Russia.
I guess it's over 10,000 trucks because they needed to supply their supermarkets. And then you have to actually supply the market with the merchandise
And then do the marketing campaign to the customers before you open the market.
And now, guess what! At the time when I was interviewing Sergey, they were opening 5 markets, 5 supermarkets each and every day! Can you imagine that?
All days to deuce! They were doing each and every day 5 times. Of course, a process of opening a supermarket is longer than 1 day
You need probably half a year, maybe a year... maybe longer to actually do all these to do's.
So, they have to do in parallel opening hundreds and thousands of supermarkets at the same time.
So, each and every day they can open on average 5 new supermarkets. Can you imagine? How is it possible!? How is it even possible?
And they thought it wouldn't be possible of course at the beginning.
But then they increased their skills, capabilities, efficiency and became at first possible to open 1 supermarket a day.
Then 2 supermarkets a day, then 3 and five. And now I guess they open even more than 5 because when I interviewed him
He had like below 11,000 supermarkets and now they have 17,000. So, it is like 6,000 supermarkets more.
It is I guess maybe 3-4 years since I interviewed him, so you can see it is like over 10 supermarkets a day, right now what they do.
It's just unbelievable. And you see how you can scale the business by perfect organization.
nd I was shown through a supermarket by them and one of the key performance indicators for them is how long they need to train an employee at one job
In order for him to be able to perform in that job and they are like breaking records of automatization
I wouldn't call it maybe artificial intelligence, but it is definetely like computer aided decision making and big data, and so on and so on.
That make it possible for them for example to train supermarket manager just within 2 weeks.
And for a simple job they need maybe 5 days.. below a week for somebody to be able to perform on the highest level, in top performance in that market
It's possible because of the systems that they have in place and the efficiency that they employ and that's why they're able to make money and to grow that fast
So, these are the things that I wanted to share with you today. Of course, I learned much more from Sergey Galitzky.
All of that you will learn in my book The Billion Dollar Secret. Share your ideas, share your thoughts about the topics we were talking about.
What is your opinion about intelligence versus being adventorous; versus being industrious diligent.
What do you think about scaling, efficiency, about doing the impossible in business? These are the topics I talk here about.
So, share this video with your friends, with your loved ones. One day they will thank you for that.
I talk here about the best entrepreneurs in the world, about the self-made billionaires of our times that I've met and interviewed
And gathered their methods, their approach to business, to solving problems, to life.
So, if you liked this video, you will certainly like my other videos. I invite you to watch them. That's it for today. I wish you a fantastic day!
Let's do something extraordinary today!
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