Welcome to another episode of the Startup Junkies Podcast!
In this episode, Caleb talks with Thomas F. “Mack” McLarty, III in an interview from Startup Junkie’s inaugural startup week event in September 2020. Mack is well-renowned for his business acumen, and he served as the White House Chief of Staff for President Bill Clinton’s administration. Caleb and Mack discuss a handful of entrepreneurial topics, as well as several things that Mack attributes to his success. You do not want to miss out on this standout episode!
Shownotes
(1:08) Introducing Mack McLarty
(3:20) The importance of positively impacting others
(6:01) How the late 90s became a golden age for entrepreneurs
(9:15) Closing the capital gap between the Heartland and the Coasts
(12:12) The Ferment Group’s investment criteria
(16:13) Advice for growth-oriented entrepreneurs taking on investors
(18:09) The government’s role in the democratization of innovation
(23:17) Widening investment opportunities while protecting investors
(25:35) Surrounding yourself with quality people
(28:25) Being true to yourself
(34:05) Succession planning
(37:32) Mack McLarty’s game-changing moments
(40:42) Mack McLarty’s legacy
Links
Quotes
“It is essential that the investor be aligned with the management and founder – entrepreneur – and vice versa. That the management and founder be aligned with the investor. As my father liked to often say, have as good a front-end understanding as you possible can have. In other words, understand really what the other is trying to accomplish.” (17:04)
“Human nature being what it is, people are going to naturally want to work for someone they respect, that they trust, and they feel who will be fair and even-handed in giving them an opportunity to succeed.” (27:28)
“If you are not finding meaning in what you’re doing and some joy and sense of accomplishment, you probably should be thinking about maybe shifting that at some point and doing something else.” (19:08)
The Importance of Like-Minded Partnerships
Thomas F. “Mack” McLarty, III is no stranger to achievement and accolade. Former White House Chief of Staff for Bill Clinton’s administration, Mr. McLarty is also an esteemed businessman and entrepreneur. He is Chairman of McLarty Associates, which he co-founded in 1998. McLarty is also the Chairman of the family transportation business McLarty Companies. Before working with President Clinton, Mr. McLarty served as the Chairman and CEO of the natural gas company Arkla, which became the nation’s largest natural gas distributor under McLarty’s leadership.
While McLarty’s business acumen is undeniable, his accomplishments while working with President Clinton cannot be ignored. Mr. McLarty played a role in the North America Free Trade Agreement, the Family and Medical Leave law, the 1994 Summit of the Americas, and the 1993 deficit-reduction package.
Throughout his extraordinarily successful career, it is undeniable that Mr. McLarty has deft skill at surrounding himself with smart, resourceful people with a nose for accomplishment. McLarty credits this skill in developing prosperous partnerships to finding like-minded individuals that value integrity. While partners will not agree with you on everything, they must align with your thinking and philosophy.
“Human nature being what it is, people are going to naturally want to work for someone they respect, that they trust, and they feel who will be fair and even-handed in giving them an opportunity to succeed.” (27:28)
Mr. McLarty’s philosophy on partnership and populating your circle with constructive individuals extends to entrepreneurs who are growth-minded and looking for potential investors. When contemplating bringing on investors, entrepreneurs are not only selling a portion of their business; they are selling their hard work, blood, sweat, and tears. This is a monumental decision, and McLarty believes it deserves to be weighed as such. Here, it is imperative that the investor and entrepreneur are like-minded and share a vision.
“It is essential that the investor be aligned with the management and founder – entrepreneur – and vice versa. That the management and founder be aligned with the investor. As my father liked to often say, have as good a front-end understanding as you possible can have. In other words, understand really what the other is trying to accomplish.” (17:04)
Concerning his achievements and prosperity, McLarty also credits staying true to himself. It is critical to know who you are and to be comfortable in your own skin. Attaining entrepreneurial success demands a level of confidence and commitment to your ideas and projects. You simply cannot withstand the challenges of entrepreneurship if you are not passionate about your business and industry.
“If you are not finding meaning in what you’re doing and some joy and sense of accomplishment, you probably should be thinking about maybe shifting that at some point and doing something else.” (19:08)
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