Francis Farwell, founder of WinterSilks Inc., a Middleton, Wis., mail-order apparel company, planned to sell his business from the start. Based on that decision, he built the business accordingly. Instead of plowing all his earnings into growth, he made sure the company maintained a sizable free cash flow, making it more attractive to potential buyers. In 1990, Farwell sold out, pocketing several million dollars.
John stayed on and the company continued to operate in approximately the top 5% of the industry, in terms of profitability and return and equity and what not. And in 1995 he actually won the National Customer Service Award with runners up being LL Bean and Lands End who are the giants that I always...(Full transcript available to logged in subscribers.).
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