In 1915, J. Paul Getty sold his first oil well lease for $15,000

When J. Paul Getty found oil in Stone Bluff, Oklahoma, in 1916, he was thrilled. To avoid being a "hindrance" to the drilling crew because of his excitement, he went to Tulsa and waited for news updates. With no phones available, he relied on a friend returning by train. Finally, he got the news: Getty had struck oil! His first well was pumping out 30 barrels per hour, marking his entry into the oil business with a big success. The father, initially trained as a lawyer, ventured into the oil industry in 1903. He had a talent for discovering oil, drilling a total of 43 wells, and striking oil in 42 of them. His son joined him in the oil fields in 1910 and 1911, eventually entering the business full-time in 1914.

In 1916, he and his father co-founded Getty Oil; he owned 30% of the stock

In 1915, J. Paul Getty teamed up with his father. Getty took on the task of searching for oil in untamed areas, known as wildcatting. In return, he earned 30% of the profits. This partnership led to the founding of the Getty Oil Company in 1916, where Getty was granted 30% ownership in company stock. He kept on exploring as a wildcatter, working hands-on as a geologist, handling explosives, and doing general oilfield work. He bought and sold drilling rights, and analyzed scientific reports, but believed much of his success came down to “plain luck”.

Getty became a millionaire at 24 and was set to retire

Getty lived a lavish lifestyle in Los Angeles during World War I as a wealthy young man. Although he wanted to retire, his parents convinced him to keep working because many people depended on his company for their jobs. In 1919, he returned to the oil industry and started drilling in Southern California. He worked closely with his teams, boosting their spirits and productivity. During the Depression, the value of the oil company's stock plummeted. Then, in 1930, after his father passed away, Getty found himself managing his father's estate while also overseeing Getty Oil and his own independent drilling projects.

J. Paul Getty's Oil Ventures and Business Expansion

J. Paul Getty started establishing a "self-contained oil business" by investing in major oil companies in Southern California. In 1932, he acquired Tide Water Associated Oil Company through a challenging merger that lasted nearly 20 years. By the late 1930s, Getty became the leader of the Mission Corporation. He bought the Hotel Pierre in New York City for $2.3 million and also acquired a hotel in Acapulco, Mexico.

Getty wanted to join World War II but was deemed too old. Instead, he focused on his aircraft company, which played a crucial role in the war. He took charge and ramped up production, staying at the plant throughout the war. Afterward, he ventured into oil exploration in Saudi Arabia, where he eventually struck oil, yielding 13 million barrels. By 1954, he began building his own fleet of oil tankers. Fortune magazine crowned him "The Richest Man in America" in 1957 when he became a billionaire.

Those with a "millionaire mentality" are sharp, informed, and hardworking

Getty believed that anyone can become wealthy through creativity, energy, desire, and imagination. Those who blame their lack of business success on taxes, socialism, labor costs, or competition are just making excuses. If you pay your workers better, they can spend more, boosting the economy. Plus, businesses don’t shut down just because of taxes. Instead of being discouraged by tough competition, use it to drive your business forward. Many potential millionaires often give up prematurely due to negative thinking, which blinds them to potential opportunities.

Key Principles for Successful Business Management

Getty earned money by sticking to these 10 guidelines:

• Stick to businesses you understand well.
• Prioritize quality and scale in what you produce.
• Focus on efficiency to make profits in both personal and business life.
• Stay open to growth opportunities but research thoroughly to avoid over-expanding.
• Manage your business actively, and delegate tasks, but oversee everything yourself.
• Cut costs and increase productivity during good and tough times.
• Be willing to take risks and use loans wisely, but pay them off promptly.
• Always seek out new markets and chances for growth.
• Take pride in your work, honor commitments, resolve issues quickly, and offer great service.
• Wealth brings responsibility; use it to benefit others, like employees and shareholders.

To think like a “millionaire”, you need knowledge, hard work, and a sharp mind. The millionaire mindset emphasizes efficiency, focusing on profits, and being mindful of costs. It involves paying attention to both small details and the overall strategy, staying productive, and finding ways to save money.

Effective executives excel as efficient, loyal, creative problem-solvers

Effective executives are skilled at guiding their team's actions. They are efficient, dedicated, and adept problem-solvers. These leaders think creatively and independently, avoiding micromanagement or blind obedience. They set a good example and can clearly explain tasks. They take responsibility for their team's outcomes, owning up to mistakes in supervision or judgment. They never assign tasks they wouldn't do themselves. They are fair yet firm, providing support and understanding. Good executives give public praise and private criticism. They distinguish between facts and opinions and make calculated risks based on good judgment. 

Getty, drawing from his experience as a wildcatter, understood the importance of directly overseeing oil field operations on-site rather than maintaining a separate office to minimize costs. He contrasted this efficient approach with modern corporations that tend to overspend on extravagant administrative expenses, which can detract from their core operations. Getty exemplified efficiency with his Middle East oil operation managed by only 50 administrative staff and his Italian facilities, including a refinery and oil storage, run by just 15 individuals, showcasing his streamlined resource allocation in oil production.

Executives are more worried about job security than workload

Getty, as a boss, viewed stress complaints and feeling overworked as weaknesses. He suggested using positive psychology to enhance productivity and handle challenging employees. Acting as a hands-on executive, Getty believed in leading by example and guiding rather than pushing people to boost productivity. He encouraged employers to recognize that employees are thoughtful individuals who value being asked for their opinions.

He stressed the importance of mutual trust for developing positive interactions. When negativity takes hold, it can have serious consequences. New employees who feel their efforts aren't valued often disconnect from the company. This disengagement can lead to various negative behaviors, including theft, which they might rationalize due to feeling alienated by the company. As people become more negative and hostile, management responds by imposing more rules, further pushing employees away.

Getty supported labor unions for fair bargaining and higher living standards.

Getty surprised his staff during labor contract talks by taking a straightforward approach. Instead of using intermediaries, he spoke directly to the union representatives and informed them that their demands were too high. He provided reports on the company's profits and margins to support his stance. This straightforward tactic caught the union negotiators off guard, leading them to accept his initial offer. As productivity improved within a year, Getty revisited the negotiations and raised wages accordingly.

Getty believed in being upfront with labor unions. He thought they valued honesty and facts, making logical decisions once informed. He never faced issues with unions because he respected their right to negotiate together. Getty saw how unions lifted workers' living standards, often pushing for better pay, improved conditions, and shorter hours. He saw these aims as reasonable and aligned with modern business needs. Recognizing that workers were also consumers, Getty understood that higher union incomes boosted the economy. He disagreed strongly with those who criticized unions without appreciating their members' positive impact. When company leaders grasp what unions want, including supporting their employer's success, they see the value of good labor relations. Getty viewed unions as crucial business allies.

Learn Adversity: Lessons from Successful Executives

Successful executives in American business have faced and overcome adversity through strategic resilience. When challenges arose, these leaders remained composed, assessing the situation and formulating comprehensive plans with available resources. They took the necessary time to strategize effectively and made sacrifices as needed to execute their recovery plans. Recognizing the importance of maintaining energy, confidence, purpose, and assertiveness, these executives emphasized clear goals and contingency plans to navigate competitive landscapes and emerge stronger.

Getty valued enduring wealth that serves society's needs

Getty was a serious art collector who appreciated the beauty and creativity in art. He saw art not only as something inspiring but also as a smart investment. For instance, in 1938, Getty bought the Ardabil Persian carpet for $68,000. This carpet was one of the finest in the Western world. Twenty years later, he donated it to the Los Angeles County Museum of Art. By then, its value had soared to $1 million—15 times what Getty had paid for it. Getty generously made numerous gifts like this to the museum.

He received around 3,000 letters monthly for jobs, money, or marriage.

J. Paul Getty, who was married five times without feeling any marriage truly succeeded, saw his four adult sons begin their careers in the oil business by working at the company's gas stations, starting with tasks like changing oil and fixing tires. Getty received an astonishing 3,000 letters monthly from strangers seeking jobs, asking for money (often millions of dollars), or even proposing marriage. Despite his immense wealth, Getty believed true richness came from pursuing “lasting values” and doing what one loves, criticizing those who equated status with financial success and emphasizing the importance of principles and creating lasting benefits for society, much like his father did. This, he believed, was the real essence of wealth.