Fred’ Mouawad’s family business is entering its 123th year of growth. They are best known for their jewelry empire. They have been serving royalty, celebrities and notables for four generations. You may know them as the ones behind the $11 million Victoria’s Secret bra and the creator’s of the world’s most expensive necklace, called the L’incomparable, with a price tag of $55 million.
The challenge with most multi-generational businesses is that they fade out with the third generation. This is not the case with billionaire Fred Mouawad. He is a man on a mission. I recently interviewed him and inquired about which principles he is applying to continue the growth of the family enterprise.
There are seven principles that Fred applies daily to all aspects of his business life. These guiding principles position him to build upon his family’s legacy and to drive it into the next generation. Here are the seven principles he outlined:
COURAGE: “It always takes courage to start a new venture. You are likely to meet with failures,” shared Fred. The point is to dig deep, find your courage and drive ahead.
DISCIPLINE: Rich or poor, always be mindful of the numbers. “It’s important to be frugal and mindful of your resources,” encouraged Fred. He emphasizes that each venture must stand on its own two feet.
RESPECT: Always respect your clients, investors, stakeholders and employees. They are the sources of your wealth creation. I once ran into Fred on a 5:30 am
BUILD: If you want to grow from generation to generation, you need to find new markets, new opportunities and fresh ways to create value. You cannot live off the past. You must build into the future. While his father led the core family business, Fred ventured out on his own for two decades. He has built up a portfolio of start-ups at his private holding comany Synergia One Group that now operates in over 18 countries across a wide range of sectors. He continues to look for new opportunities and leverage know-how he has created. His latest enterprise is called Task World. It is an
TALENT: If you want to build, you must constantly onboard great talent. Fred’s principle screen for people are their level of ambition, work ethic and integrity versus experience at big branded schools and corporates. He is willing to take the long view and build the skills required for growth among highly talented people. He points out that the raw talent has the energy and appetite to pursue bigger visions that accompany a start-up.
WISDOM: Fred is armed with an Harvard
GUARDIANSHIP: Guardianship is the mindset that you are the steward of the family enterprise till the next generation is readied for leadership. This means you are responsible for building value for the next generation. This applies if you are the founding entrepreneur or the fourth generation. Guardianship is about taking the long-view. This is rare in a world where it is all about the fast exit.
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