After being fired, Bernie Marcus was advised by Sol Price (founder of Price Club) to forgo a lawsuit. Price showed him a room full of depositions from his own legal battle, explaining that litigation consumes your life and energy, while building something new is the ultimate victory.
Facing a lawsuit that made him want to "walk away from everything," WordPress founder Matt Mullenweg took a short break. He discovered that being away from his life's mission—open source—was more painful than being attacked for it, which re-energized his commitment and provided clarity.
Getting fired can be a powerful catalyst for entrepreneurship. Keith McCullough describes being let go in 2007 as a "blessing" that forced him to re-evaluate his career. It led to the foundational decision to never work for someone else again and ultimately to the creation of his research firm, Hedgeye.
When Bernie Marcus was fired, his friend Ken Langone called it being 'kicked in the ass with a golden horseshoe.' The devastating event was the catalyst that forced him to stop building someone else's company and start The Home Depot, the business he'd already envisioned.
Home Depot's founders were fired from their previous company, a setback that seemed devastating. This perceived failure freed them to pursue their own, more ambitious vision, highlighting how professional setbacks can unlock greater entrepreneurial opportunities.
Opponents with deep pockets can initiate lawsuits not necessarily to win, but to drain a target's financial resources and create immense stress. The astronomical cost and duration of the legal battle serve as the true penalty, forcing many to fold regardless of their case's merit.
Jim Clayton believed over 80% of legal claims originate from a failure to deliver customer satisfaction. Instead of hiring lawyers to fight, he personally called angry customers or visited homes to fix problems, solving the root cause for a fraction of the cost of litigation.
On the verge of closing a crucial deal, Bernie Marcus threw a Boston VC out of his car for demanding cuts to employee healthcare. He prioritized culture over capital, believing the company's foundation rested on taking care of its people, a non-negotiable principle even when facing failure.
When Hexclad's founder suggested using Facebook for community in 2010, his boss's dismissal became the direct motivation for him to leave and start his own, more modern company, exploiting the established player's blind spot.
Beyond financial incentives or strategic differences, a primary driver for a successful partner to spin out from an established firm can be pure ego. The desire to build something independently and prove one's own success is a powerful, albeit rarely admitted, motivation for starting a new venture.
Home Depot's founder, Bernie Marcus, walked away from a crucial $2M investment from Ross Perot over minor control issues, like what car he drove. He prioritized partner alignment over immediate capital, believing a bad partner would inevitably doom the venture, regardless of the money.