DONALD TRUMP'S Secrets to Deal-Making | The Art of the Deal | Animated Book Summary

Summary

In his book, Donald Trump recounts his early business ventures, detailing his high-stakes deal-making and relentless pursuit of success. He emphasizes the importance of a strong work ethic, strategic thinking, and the influence of his father in shaping his business acumen. Trump's ventures include the transformation of the Commodore Hotel into the Grand Hyatt and the construction of Trump Tower, showcasing his ability to turn challenges into opportunities and his knack for self-promotion.

Takeaways

• 📚 Donald Trump authored a successful business book detailing his experiences and strategies before his political career.
• 🤝 Trump's daily routine in 1987 involved numerous phone calls and impromptu meetings, highlighting his hands-on approach to business.
• 🏡 His wife Ivana played a crucial role in managing their homes and children, as well as contributing to the business by running Trump's Castle.
• 🚀 Trump's deal-making strategy involved setting high goals and relentlessly pursuing them, capitalizing on his ability to think big.
• 🏢 He emphasized the importance of understanding the market and generating interest and excitement for his projects, often preferring to do it himself rather than relying on PR teams.
• 💡 Trump's bold and sometimes controversial personality attracted media attention, which he viewed as beneficial for business despite the mixed press.
• 🏗 His father's influence was significant, teaching him business toughness, competence, and efficiency, especially in negotiating with suppliers.
• 🎓 Trump's education at the Wharton School of Business and early experiences in real estate with his father shaped his business acumen.
• 🏙️ The transformation of the Commodore hotel into the Grand Hyatt and the construction of Trump Tower exemplified Trump's ability to turn around struggling properties into successful ventures.
• 🃏 His entry into the casino business with Trump Plaza and strategic management decisions led to increased profits and business growth.
• ❄️ Trump's acquisition of the Hilton casino-hotel in Atlantic City and the successful renovation of Wollman Rink demonstrated his ability to turn challenges into opportunities.

Q & A

What was Donald Trump's daily routine like in 1987?

In 1987, Trump's daily routine included a large number of phone calls (50-100 per day), short and to the point, along with a dozen or so impromptu meetings. He would leave the office at 6:30 PM, and calls would continue into the evening and throughout the weekend.

Who was the strong woman behind Donald Trump during the time described in the script?

The strong woman behind Donald Trump was his wife, Ivana. She managed their three homes, raised their three children, and even helped in the business by running Trump's Castle, the second hotel and casino complex Trump bought.

What was Trump's approach to deal-making?

Trump's approach to deal-making involved aiming very high and then pushing relentlessly to try and get it. His ability to think big was a great advantage, as many people fear decision-making and success.

How did Donald Trump ensure the success of his ventures?

Trump ensured the success of his ventures by making decisions only after asking lots of questions and getting the opinion of everyone involved, understanding the market, and generating interest and excitement for his products. He also believed in delivering a great product, as no amount of promotion would help if the goods couldn't be delivered.

What influence did Trump's father have on his business approach?

Trump's father, who built rent-controlled property in New York, taught him toughness in business, competence, and efficiency. He also learned to negotiate hard with suppliers and promised reliability in payment and future work to get suppliers to lower prices.

What was Trump's first major project in Manhattan?

Trump's first major project in Manhattan was the renovation of the Commodore hotel, which he redeveloped into the Grand Hyatt with the Hyatt hotel chain as his partner.

How did Trump manage to increase the room rate at the Grand Hyatt?

After several years of negotiation and renovation, Trump increased the room rate from $20.80 in the old Commodore to $115 at the new Grand Hyatt, with over 80% occupancy.

What was the outcome of the Trump Tower project in terms of cost and revenue?

The entire Trump Tower project cost $190 million. Sales of the apartments generated $240 million, and Trump also received $10 million in sales commission plus additional profit from rental of retail and office space.

How did Trump improve the profit of his casino business?

Trump improved the profit of his casino business by hiring the best people from his competitors, paying them more than they were earning, and giving them performance-based bonuses and incentives, which resulted in a profit of $20 million more than projected.

How did Trump handle the situation with Hilton hotels building a rival casino-hotel in Atlantic City?

When Hilton hotels were rejected a gaming license for their casino-hotel in Atlantic City, Trump negotiated a deal to purchase the facility for $320 million, turning a potentially negative situation into a profitable one.

What was the outcome of Trump's offer to rebuild the Wollman Ice Skating Rink in Central Park?

Trump offered to rebuild the Wollman Ice Skating Rink in six months, putting up the $3 million himself. After initial rejection and press coverage, the mayor agreed to a deal where Trump would be paid back the $3 million only upon completion. Trump oversaw the rink being fully built in four months and $750,000 under budget.

Outlines

00:00

📚 Early Career and Business Strategies of Donald Trump

In the late 1980s, Donald Trump, who would later run for President, detailed his business acumen in a successful book. The narrative begins with an insight into his daily routine, characterized by numerous phone calls and impromptu meetings, reflecting his hands-on approach to business. Trump's wife, Ivana, played a pivotal role, managing their homes and contributing to the business by running Trump's Castle. Trump's deal-making strategy involved setting high goals and persistently pursuing them, underpinned by a bold and controversial persona that garnered significant media attention. His business philosophy emphasized the importance of a superior product, market knowledge, and direct involvement in promotion. Trump's father's influence, with lessons in toughness, efficiency, and negotiation, significantly shaped his business practices. His early ventures included a military school education, studies at Wharton School of Business, and collaborations with his father on real estate projects. Trump's move to Manhattan marked the beginning of larger projects, such as the renovation of the Commodore hotel into the Grand Hyatt and the construction of Trump Tower, which exemplified his ability to turn underperforming assets into profitable ventures.

05:01

🏢 Trump's Expansion into Casinos and Public Works

The narrative continues with Trump's foray into the casino business, highlighting his strategic approach to business expansion. Trump Plaza's opening exceeded profit projections, demonstrating Trump's ability to optimize business performance. A shrewd negotiation with Barron Hilton allowed Trump to acquire a rival casino-hotel at a reduced price, turning a potential threat into a profitable asset. The story also recounts Trump's initiative to rebuild the Wollman Ice Skating Rink in Central Park, which had been a failed city project. Trump's offer to complete the rink himself, with a promise to return the money upon completion, was initially rejected but eventually accepted after public pressure. His leadership and daily oversight resulted in the rink's completion in record time and under budget. The paragraph concludes with Trump's commitment to continue leveraging his skills in overcoming obstacles and motivating others, reflecting his determination and business philosophy.

Keywords

💡Deal-making

Deal-making refers to the process of negotiating and finalizing agreements, often in business contexts. In the video, Donald Trump's approach to deal-making is highlighted as a key aspect of his business strategy. He is described as aiming high and pushing relentlessly to achieve his goals, which is exemplified by his various real estate and casino ventures. This concept is central to understanding Trump's business acumen and his ability to secure profitable outcomes.

💡Toughness in business

Toughness in business implies a strong, assertive, and competitive approach to managing and growing a company. Trump's father instilled this trait in him, emphasizing the importance of being tough in an industry with slim profit margins. This keyword is crucial for understanding how Trump navigated the competitive real estate market, as seen in his negotiations with suppliers and his aggressive acquisition strategies.

💡Market knowledge

Market knowledge is the understanding of market dynamics, consumer behavior, and industry trends. It is essential for making informed business decisions. The video emphasizes the importance of market knowledge in Trump's success, as he relies on this to make strategic decisions about his properties and investments. His ability to think big and understand market demands is a significant factor in his business ventures.

💡Public relations

Public relations (PR) involves managing the spread of information between an individual or an organization and the public. In the context of the video, Trump's approach to PR is discussed, where he prefers to generate interest and excitement for his projects himself rather than relying on PR professionals. This highlights his hands-on approach and his understanding of the value of personal branding in business.

💡Product value

Product value refers to the worth or utility that a product offers to its consumers. The video mentions that to make a product valuable, it is crucial to get the word out and generate interest. Trump's focus on creating a buzz around his projects, such as Trump Tower and his casinos, is a testament to his understanding of the importance of product value and marketing in driving sales and success.

💡Casino business

The casino business is a significant part of Trump's portfolio, as detailed in the video. It involves the operation of casinos, which are establishments that offer various gambling activities. Trump's entry into this business with Trump Plaza and his subsequent acquisition of other casino properties like the one from Hilton hotels showcases his diversification strategy and his ability to turn potential competitors into business opportunities.

💡Trump Tower

Trump Tower is a skyscraper in New York City that serves as a symbol of Trump's real estate success. The video describes the construction and sales of Trump Tower, which not only generated significant profits but also attracted high-profile residents. This keyword is pivotal in understanding Trump's real estate achievements and his ability to create iconic properties that command premium values.

💡Strategic partnerships

Strategic partnerships are alliances formed between two or more parties to achieve mutual goals. The video mentions Trump's partnership with the Hyatt hotel chain for the Grand Hyatt New York, where Trump focused on construction while Hyatt managed the hotel. This partnership exemplifies Trump's strategy of leveraging the strengths of others to achieve his business objectives.

💡Performance-based incentives

Performance-based incentives are rewards given to employees based on their performance or the achievement of specific goals. Trump's policy of hiring top talent from competitors and offering them higher pay and performance-based bonuses is mentioned in the video. This approach is linked to his business philosophy of attracting and retaining the best talent to drive profitability and success.

💡Overcoming obstacles

Overcoming obstacles refers to the ability to confront and surmount challenges that arise in the course of achieving goals. The video highlights Trump's promise to continue using his skills in overcoming obstacles, as evidenced by his successful negotiation to rebuild the Wollman Ice Skating Rink in Central Park. This keyword underscores Trump's resilience and problem-solving capabilities in the face of adversity.

💡Motivating people

Motivating people involves inspiring and encouraging others to perform at their best. The video concludes with Trump's commitment to use his skills in motivating people to do their best work. This keyword is integral to understanding Trump's leadership style and his belief in the power of effective motivation in driving team performance and achieving business success.

Highlights

Donald Trump authored a successful business book nearly thirty years ago.

In 1987, Trump's daily routine involved 50-100 phone calls and a dozen impromptu meetings.

Trump's wife Ivana managed their homes and children, and contributed to the business by running Trump’s Castle.

Trump's deal-making strategy involved setting high goals and relentless pushing.

His approach to business was to think big, which he saw as an advantage over others who feared decision-making.

Trump's business philosophy emphasized the importance of market knowledge and effective product promotion.

He believed in generating interest and excitement for his projects, often preferring to do it himself rather than relying on PR.

Trump's bold and sometimes controversial personality attracted media attention, which he viewed as beneficial for business.

He emphasized the importance of delivering a great product, stating that long-term success depends on it.

Trump's father was a significant influence, teaching him business toughness and efficiency.

Trump learned negotiation skills and the value of reliability in payment from his father's real estate business.

At the Wharton School of Business, Trump worked with his father on an apartment complex in Cincinnati, Ohio.

Trump's renovation of the Commodore hotel into the Grand Hyatt was a significant early success.

Trump Tower, a 68-story building, was approved by the city planning commission and became a notable real estate project.

Trump's entry into the casino business with Trump Plaza and his management strategies led to increased profits.

Trump's ability to turn a rival's setback into an opportunity by purchasing an unfinished casino for a reduced price.

Trump's Castle's opening resulted in significant gross income, demonstrating the success of his casino ventures.

Trump's offer to rebuild the Wollman Ice Skating Rink in Central Park showcased his ability to execute projects efficiently.

Throughout his early career, Trump achieved what many considered impossible, showcasing his skills in overcoming obstacles.

Trump committed to continue using his skills in overcoming obstacles and motivating people in his future endeavors.

Transcripts

Before vying to become President of the United States of America, Donald Trump wrote a book

nearly thirty years ago that became one of the most successful business books of all

time.

Trump starts by taking us through a week in his life back in 1987 when he’d just turned

40.

There are a distinct lack of formal meetings but a large amount of phone calls usually

between 50-100 a day, that are short and to the point.

Interspersed between these are a dozen or so impromptu meetings.

After leaving the office at 6.30, the calls continue into the evening and all weekend.

It’s clear that there is a strong woman behind Trump, his wife Ivana looks after their

three homes and raises their three children.

She even helps out on the business side by running Trump’s Castle, the second hotel

and casino complex Trump bought.

When it comes to the specifics of deal-making, Trump aims very high and then pushes relentlessly

to try and get it.

His ability to think big gives him a great advantage as many people fear decision-making

and success.

He doesn’t just run a hotel; he runs a large hotel with a huge casino attached to it.

Any decisions he has to make are made only after asking lots of questions and getting

the opinion of everyone who is involved.

Knowing the market is essential.

To make a product valuable, getting the word out is crucial.

Generating interest and excitement is needed and Trump thinks it’s better to do it himself

than having public relations people to do it for him.

He’s bold, controversial and sometimes outrageous.

This causes the press to write about him both positively and negatively, but from a pure

business viewpoint, the pros of being written about far outweigh the cons.

However, no amount of promotion, excitement and hyperbole will help if you can’t deliver

the goods.

You can’t con people for long.

You need to have a great product.

Trump’s greatest influence growing up was his father.

His father built rent-controlled property in New York and taught him toughness in business

as well as competence and efficiency in an industry where profit margins were so low.

Costs had to be kept down so he learnt how to negotiate hard with suppliers.

His father also promised reliability in payment and the promise of future work as a way of

getting suppliers to lower prices.

These were strategies that his son followed when he moved into the upper market real estate

business.

At the age of 13 Trump enrolled in a military school and later attend Wharton School of

Business.

Whilst studying he worked with his father on an apartment complex they purchased in

Cincinnati, Ohio, which contained 1,200 properties.

They increased the occupancy rate to 100% by improving the look and cleanliness of the

complex and then sold it for a profit.

Trump moved to Manhattan in New York and started working on larger projects.

In 1974 he became interested in buying the Commodore hotel, a dark and dingy place that

was losing money but in a good location next to Grand Central station and the subway.

Trump soon got some designs for the new architecture of the hotel and entered a deal with the Hyatt

hotel chain where they were equal partners.

Trump would build the hotel and Hyatt would manage it once built.

It took several years of negotiation and renovation but when the hotel reopened in September 1980,

they increased the room rate from $20.80 in the old Commodore, to $115 at the new Grand

Hyatt, with over 80% occupancy.

At the same time Trump was negotiating a secret deal to buy some land in a prime location

on 5th Avenue to build a giant glass skyscraper that would become Trump Tower.

The taller and bigger it was, the more apartments he could put in there and the more money he’d

make.

In the end the city planning commission approved a 68 storey building, the tallest residential

building in New York City at the time.

The glamorous tower attracted many stars to purchase apartments, from Steven Spielberg

to Liberace.

Trump moved into one of the penthouse apartments on the top floor with his family in 1983.

The entire Trump Tower project cost $190million.

Sales of the apartments generated $240million.

Trump also received $10million in sales commission plus more profit from rental of retail and

office space.

Trump then moved into the casino business, building the Trump Plaza in 1984.

He had gone into a 50-50 partnership with Holiday Inn but after disagreements in the

partnership, Trump bought out Holiday Inn and owned the whole building by 1986.

Once in sole charge, he tried to improve the profit of the casino by hiring his competitor’s

employees.

His policy was: 1.

Hire the best people from your competitors 2.

Pay them more than they were earning 3.

Give them performance based bonuses and incentives.

The result was a profit of $20million more than was projected.

Soon after Trump Plaza had opened, Trump managed to turn a potentially negative situation into

a positive and profitable one.

Hilton hotels had started building a huge casino-hotel in Atlantic City to rival Trump’s

facility.

Eager to start making a profit, they started construction at the same time as applying

for a gaming licence.

Unfortunately for them, they were rejected a licence just as construction was nearing

completion.

Trump started negotiating with chief executive Barron Hilton and negotiated a cut price deal

of $320million to purchase the facility.

In 1985, Trump’s Castle opened and took a gross income of $131million for the six

months it was open that year.

In May 1986, Trump was in his apartment in Trump Tower, overlooking Wollman Ice Skating

Rink in Central Park.

The rink was supposed to be closed and rebuilt in two and a half years by the city.

Six years later and after nearly $13million spent, they were no nearer to completing the

job.

Trump wrote to the mayor and offered to rebuild the rink in six months, putting up the $3million

dollars himself.

After being rejected at first, the letter leaked to the press, who all sided with Trump.

The negative publicity caused a u-turn from the mayor and a deal was struck, with Trump

getting paid back the $3million only on completion of the project.

Implementing some strong leadership by checking on progress daily, Trump oversaw the rink

fully built in four months and $750,000 under budget.

Donald Trump spent the first two decades of his working life accomplishing things that

many said could not be done.

At the end of his book, he promised to continue to put two of his best skills to good use:

overcoming obstacles and motivating people to do their best work.