Shut up and read

Houston billionaire Tilman Fertitta shares his business tips and expertise in his new book

Tilman Fertitta's new book, "Shut Up and Listen!" is on its way to being a bestseller. Photo by J. Thomas Ford

Tilman Fertitta can't lose. Sitting in his palatial office nestled in the towering Post Oak Hotel in Uptown, the sole owner of Fertitta Entertainment, the restaurant giant Landry's, the Golden Nugget Casinos and Hotels, and the NBA's Houston Rockets — not to mention the star of the TV reality show Billion Dollar Buyer — is taking a quick moment to bask in his success.

And why not? On top of being the world's richest restauranteur and Houston's most recognizable billionaire, Fertitta currently boasts a best seller with his new business book, Shut Up and Listen! As CultureMap reported, he just acquired Del Frisco's luxury steakhouse chain, adding to his impressive and extensive restaurant empire. And speaking of acquisitions: Soon, his Houston Rockets will unleash the powerhouse duo of James Harden and new teammate Russell Westbrook, who came to Houston in a massive trade with Oklahoma City.

Fertitta has just made the national media rounds promoting Shut Up and Listen! and looked quite comfortable doing so. "A lot of owners don't talk to the media and they don't know how to do it," he tells CultureMap, "but I've been doing it for 30 years and it just doesn't phase me."

Shut Up and Listen! is a Tilman tell-all. But rather than a life story, the book is a how-to for the business-minded. No-nonsense nuggets such as the "Tilmanisms" teach principles such as the 95/5 rule (focus on the 5 percent of the operation that isn't perfect and fix it) and offer hardcore reminders such as "when things are bad, eat the weak and grow your business." Doubters, take note: Shut Up has landed on the Publishers Weekly's and USA Today's Best Sellers lists.

CultureMap sat down with Fertitta during a rare break to talk books, business, and his beloved Bayou City.

CultureMap: You're a Texan titan of industry, a major local benefactor, you own one of the most buzzworthy teams in all of pro sports, and you're the star of your own reality TV show. Can we now say — in Houston — that you're way bigger than Mark Cuban?

Tilman Fertitta: [Laughs] Oh, I don't know about that. Mark is a special guy and we're lucky to have him in Texas.

CM: You've been actively involved with the Rockets and the University of Houston sports programs. Using your 95/5 rule, can you share any of the 5 percent of what you found wrong with the Rockets and UH?

TF: At UH, the 5 percent was we wanted to have good coaches and we wanted to improve our facilities. That's the 5 percent we realized that if we wanted to compete at the highest level of basketball and football, that's what we'd have to do.

For the Rockets, we're gonna make sure we can put the basketball team we can on the court with the best coaches every single year. I'm not a sit-on-my-hands guy — it's let's keep getting better.

CM: Why is giving back to your hometown important to you?

TF: This is where I grew up and Houston's been very good to me. I've been around a long time and I've watched people come and go in the '80s, the '90s, the 2000s, and the 2010s. It's fun to have lasted this long and been a player through so many decades.

CM: There's an old adage that says, 'Do one thing and do it well.' But you're doing a lot of things well. When do you know, as a business owner, to diversify?

TF: Systems and operations are very important. Everybody wants to do more deals. If you understand the Big Box Theory, you make more out of a bigger box. In the beginning, I knew I always wanted to be successful. Today, I know what I know and I know — and what I don't know.

CM: Are there some industries outside your wheelhouse that are on your radar?

TF: I've never done egotistical businesses; I've always had to make the numbers work — because I never use anyone else's money. A lot of times, people who do egotistical businesses are using somebody else's money.

The only egotistical business I've done is probably the Post Oak Hotel here. But I did it because I got tired of people saying, 'Houston doesn't have an unbelievable hotel.' It's truly one of the finest hotels in the country.

CM: How important is it to find a mentor for success?

TF: I never had that one mentor. I looked at a lot of different people and said, 'Gosh, I like what they're doing.' I remember seeing George Mitchell and what he was doing in Galveston and The Woodlands. I would watch different people doing different things, but I never had that one mentor. I studied a lot of different people.
I'll never win an Emmy or a Grammy, but to me, if you can get on the Forbes 400, that's very special, because that's how you're measured.

CM: You've got this new book out that will hopefully inspire a generation of entrepreneurs. Are there any books that inspired you?

TF: Outliers inspired me. I do believe that different people are blessed with different abilities and you've got to find the ability that God gave you and seize on it.

I thought that I would always write a life story book, but Harper Collins approached me and said they wanted a business management book. I can't tell you how many times we sat around with my close group and edited this book at the end and went through it five times and read it. If we found a paragraph that was boring, we got rid of it or rewrote it.

CM: What about people who may never be an entrepreneur or owner — how can they become more successful with your book?

TF: Whether you're trying to go up the corporate ladder or you want to be an entrepreneur, it just tells you that you can separate yourself from anybody else. And it's easy to separate yourself from anybody else — I was never the smartest guy in the room or the best student. But the people who want to be successful are successful.

CM: There's a Tilmanism that teaches hiring people who are stronger than you. What are some key traits of a real leader?

TF: Anybody is a good leader in great times. First off, it's somebody who everybody in the room respects. And it somebody who knows what they know and what they don't know. Work is battle and being successful is a battle, and everybody wants to go into battle with a strong leader.

I can tell you this: You could talk to everybody who works for me and they'd tell you, 'He's a really hard person to work for, but I wouldn't want to work for anybody else.'

CM: With your travel schedule and empire, do you ever feel that you have more in common with a president of a country than a CEO?

TF: You know, it's funny, I told [Bill] Clinton once, 'I'm gonna still have these jets and helicopters when you're trying to hitch a ride.' I'm a very political person — on both sides — because I'm in business and I never know who's gonna be in power.

I would have no fear of being president tomorrow because it's about making hard decisions. I think a lot of presidents have never been in business and they don't even know how to make decisions. I make a tough decision every single day.

But, you know, I'm probably too honest to be a politician — I like to tell the truth. And I don't want to be beholden to anybody.

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This article originally ran on CultureMap.

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Building Houston

 
 

CERAWeek attendees identified the four energy tech companies to watch. Photo via Getty Images

Wondering what energy tech companies you should keep an eye on? Wonder no more.

As a part of 2021 CERAWeek by IHS Markit, the Rice Alliance for Technology and Entrepreneurship hosted a virtual pitch competition today featuring 20 companies in four sessions. Each entrepreneur had four minutes to pitch, and then a few more to take questions from industry experts.

"Of the companies here today, we've intentionally selected a diverse group," says Brad Burke, managing director of the Rice Alliance at the start of the event. "They range from companies looking for their seed funding to companies that have raised $20 million or more."

The following companies pitched at the event: Acoustic Wells, ALLY ENERGY, Bluefield Technologies, Cemvita Factory, Connectus Global, Damorphe, Ovopod Ltd., DrillDocs, GreenFire Energy, inerG, Locus Bio-Energy Solutions, Nesh, Pythias Analytics, REVOLUTION Turbine Technologies, Revterra, ROCSOLE, Senslytics, Subsea Micropiles, Syzygy Plasmonics, Transitional Energy, and Universal Subsea.

At the end of each session, attendees voted via Zoom poll on which startup had the most potential. According to the event attendees, the most promising energy tech companies are:

REVOLUTION Turbine Technologies

Asheville, North Carolina-based REVOLUTION Turbine Technologies is working to "put a green spin on power." The company's micro-Expansion Turbine System produces green power for digital oilfield and pipeline initiatives through the recovery of excess natural gas pressure.

"RTT's technology provides a scalable, clean energy source to reliably power digital oilfield and pipeline initiatives at a significantly low operating cost," says Christopher Bean, founder and CEO, in his presentation. "Never has it been more important to make production and pipeline operations greener, safer, and efficient."

Connectus Global

Connectus Global, based in Calgary, provides custom technology solutions that can increase productivity, profits, and competitiveness. Connectus' Real-Time Location System, or RTLS, uses Ultra-Wide Band for communication and triangulation while hosting a Radio Frequency Identification Device, which come in the form of badges, tags, and receivers.

"In our first year, we received $800,000 in revenue and are on track to hit our numbers — $3.6 million — at the end of this fiscal year," says Mike Anderson, CEO of the company, in his presentation." We have a global white labeling agreement with Honeywell and we make up about 75 percent of their digitized workforce management portfolio."

The company's U.S. office is located in Houston.

DrillDocs

Houston-based DrillDocs has created an automated drilling cuttings characterization service, called CleanSight, that supports an operator's understanding of their wellbore's state of stability and cleanness in real time.

"We're taking computer vision to the drilling rig," says Calvin Holt, CEO and co-founder at DrillDocs, in his presentation. "Now for the first time, drilling and geomechanics teams will have unique, real-time data to ascertain the well's condition."

Revterra

Revterra, a Houston-based company and inaugural Greentown Houston member company, is creating a flywheel energy storage system for long-duration grid-scale applications.

"For those of us in Texas, the power outages we experienced a couple weeks ago are a stark reminder that the stability and the resiliency of our electric grid should be a top priority as we transition to low-emission power sources," says Ben Jawdat, founder and CEO at Revterra, in his presentation. "Energy storage is a critical element in both grid stability and enabling our transition to sustainable energy."

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