| If there were an Entrepreneur's Hall of Fame, Wayne | | | | rental chains were purchased. The Company was |
| Huizenga would be a charter member. Most people | | | | listed on the New York Stock Exchange and the |
| recognize the Wayne Huizenga as being the former | | | | funds raised fueled a rapid expansion. The leverage |
| owner of the Florida Marlins baseball team, and the | | | | and muscle that Blockbuster gained was utilized in |
| current owner of the National Football League's Miami | | | | purchasing product from the major Hollywood studios |
| Dolphins. These are the types of gaudy baubles a | | | | at more favorable terms than any competitor could |
| billionaire entrepreneur collects. However, his success | | | | negotiate. Small locally owned stores could not |
| came from the most elemental business: trash hauling. | | | | compete and thousands closed, creating more |
| Mr. Huizenga started as a small time cartage operator | | | | expansion opportunities for Blockbuster. |
| for a waste disposal firm in south Florida. He worked | | | | Blockbuster Video became a growth company with a |
| his way into sales and ultimately bought a small firm. | | | | huge following on Wall Street. Mr. Huizenga had |
| In the 1960's waste disposal was a local, independent, | | | | replicated the success of Waste Management in a |
| mom and pop type of business in the United States | | | | completely different industry. While Blockbuster was |
| as well as in most industrialized countries. There was | | | | at its apex, he sold the business to Viacom. Hauling |
| no scale. Each trash removal firm worked on | | | | garbage is a highly needed, but largely unappreciated |
| contracts negotiated with local governments. There | | | | service. Renting movies is a service that is less |
| was always the fear of political winds changing and | | | | important, but much more desired by the public. The |
| effecting a contractors future status. | | | | same business model worked perfectly in two totally |
| From his perspective as a small time operator in a | | | | opposite areas of opportunity. |
| highly fragmented industry, Wayne Huizenga knew | | | | Blockbuster Video and Waste Management made |
| that he needed a safety net, not wanting to be tied | | | | Wayne Huizenga one of the most recognizable and |
| to a sole municipality for his firm's sustenance. His | | | | successful entrepreneurs of the 20th century. Most |
| idea was elegantly simple: he would build a national | | | | people with but a small slice of this type of |
| firm, with appropriate leverage and economies of | | | | achievement would be completely satisfied and |
| scale, by buying up key independent garbage hauling | | | | content. Not so with Wayne Huizenga! |
| firms in strategically important markets. This would | | | | Seeking another fragmented industry, where the |
| provide the strength to expand in every secondary | | | | opportunity to roll-up local and regional outlets would |
| market and standardize this formerly sclerotic | | | | enable repetition of the Blockbuster Video and |
| industry. | | | | Waste Management successes lead Mr. Huizenga to |
| This idea evolved into Waste Management. Mr. | | | | the world of used car sales and marketing. He |
| Huizenga became a billionaire when his firm, after | | | | immediately recognized the same dysfunctional |
| ascending to the number one spot as an international | | | | market forces, absence of scalability and pricing |
| garbage-hauling firm, with contracts spanning the | | | | inefficiencies so readily apparent in the video rental |
| United States, Europe and Asia, was listed on the | | | | and garbage hauling business. |
| New York Stock Exchange. The simple idea of | | | | During the 1990's auto leasing became wildly popular. |
| consolidating hundreds of independent firms under | | | | These cars are leased for a set term, typically |
| one roof and standardizing the service menu was a | | | | returned with average or below average miles and |
| thoroughly disruptive new business model. Former | | | | dealer maintained. The problem for the automobile |
| owners for these independent businesses were | | | | industry was, and is, the inventory glut that occurs |
| induced to sell by offers of stock, options and | | | | as leased cars are returned. This created a unique |
| management contracts. | | | | opportunity for Wayne Huizenga and his favorite |
| With a billion dollars in hand, Mr. Huizenga could have | | | | business model. |
| retired and collected art, cars, coins or stamps. He | | | | He launched Auto Nation with a public sale of equity |
| could have hung out with the idle rich. Instead, he | | | | on the New York Stock Exchange. Today, Auto |
| applied the business model that created Waste | | | | Nation is the largest seller of late model used cars in |
| Management to a completely different business | | | | the world. Inventory is vast, offering virtually every |
| category: home entertainment. In the 1970's, with the | | | | popular model in great depth and variety. The scale |
| market introduction of first beta-max, and | | | | and national reach of Auto Nation, enables pricing to |
| subsequently VHS technology, and then the rapid | | | | be very sharp, almost always significantly lower than |
| descent of retail pricing for home video players, | | | | local dealers. In addition, all prices are non-negotiable |
| thousands of independent retail stores popped up | | | | and fixed, eliminating one of the major negatives to |
| offering video for rent. The ability to rent a popular | | | | purchasing a car, haggling over price. |
| movie tape and play it when desired in the comfort | | | | Three times, in three totally differing industries, |
| of one's home, was a huge change in behavior and in | | | | Wayne Huizenga has applied a uniquely disruptive |
| the method of delivering entertainment to the | | | | business model that has streamlined sluggish, |
| masses. | | | | non-dynamic business categories. He started very |
| Wayne Huizenga was restless, looking for a new | | | | small. He thought very big. This is a perfect template |
| challenge and open to any opportunity that offered | | | | for every prospective entrepreneur to study and |
| huge potential upside rewards. He saw it in a small, | | | | utilize. A version of this strategy is often customized |
| but growing firm: Blockbuster Video. Today, the | | | | and applied to industry specific opportunities. This can |
| consumer recognizes the Blockbuster brand as a | | | | be performed on a local, regional, national or |
| generic term for home entertainment. 25 years ago, | | | | international basis. |
| Blockbuster was one of a handful of movie rental | | | | Entrepreneurial business models come in unlimited |
| chains, several sold franchises to fuel growth, all were | | | | varieties. There is no single, linear textbook approach |
| regional, struggling for capital to fund expansion, and | | | | that fits unilaterally for every project. The |
| competing against locally owned stores. The same | | | | entrepreneur that will customize a strategy offering |
| fragmented industry distribution channels that existed | | | | beneficial disruptive features applicable to their |
| in the garbage removal business were immediately | | | | product has the greatest potential for huge rewards. |
| obvious to Wayne Huizenga. He pounced. | | | | Innovate, create, and think outside of the box: the |
| After purchasing Blockbuster Video, Mr. Huizenga | | | | marketplace has an unquenchable thirst for new, |
| began the same type of assimilation program he | | | | different, exciting products and business models. |
| pursued with Waste Management. Small, local video | | | | |