Decoded: 17 Secrets to Jay-Zs

Entrepreneurial Success
The record industry is known for chewing musicians
up and spitting them out.
Apparently Jay-Z didnt get the memo.
In the last 20 years, Jay-Z (a.k.a. Shawn Carter) has
amassed a personal worth of $450 million while
turning the music business on its head. Sure, hes had
hit records and sold out shows but the real wealth
comes from his businesses (Rocawear and Roc-A-
Fella Records).
Keep reading to find out how Jay-Z became not just
one of the greatest rappers of all time, but one of the
greatest entrepreneurs of the 21
st
century.
#1 Hustle
Without the work, the magic wont come.
Jay-Z, from Decoded
Jay-Z was born Shawn Corey Carter in 1969. He grew
up in Marcy, a housing project in Brooklyn, New
York City. In 1982, Jay-Zs father left and his mother
had to support her family alone. It was by following
her example that Jay-Z got his unrelenting work ethic
his hustle.
Look what I embody: the soul of a hustler.
Jay-Z, from What More Can I Say?
There wasnt a lot of opportunity for ambitious Marcy
kids like Shawn. Given the choice between applying
for a job at McDonalds or becoming a drug dealer, he
chose the latter. In Brooklyn, that was the definition
of a hustler: somebody who hit the streets to sell
drugs.
But Jay-Z fit another definition of the word hustler: an
energetic go-getter. Even as he continued to work as a
dealer, Jay-Z never lifted his eyes from the goal of
becoming a great rapper. He and his friend Jaz would
lock themselves in a room for hours on end, just
working on their technique. Its that type of hustle
that allowed Jay-Z to develop into one of the greatest
rappers of all time.
Im far from being god, but I work god damn hard.
Jay-Z, from Breathe Easy
Now Jay-Z runs legitimate businesses instead of
selling illegal drugs, but hes still got the energy of
hustler. More than anything else, that has been the
engine behind his success.
#2 Dont Wait Until You Have Everything You
Need
It just got to a point where it was, like, Make this
decision, because this is something you really love and you
love to do. Its time to really focus on and then get serious
about it, give it your all. And once I did that, it was no
looking back from there.
Jay-Z, Interview with Forbes
Jay-Z didnt have a drum kit or Pro Tools growing up,
but that didnt stop him from making beats to rap
over (he used his fist and a kitchen table).
Likewise, when Jay-Z first started Rock-A-Fella
records the company office didnt have desks,
computers, or air-conditioning, but the company still
put out hit records and turned a profit.
If you want something badly enough, you can make it
happen. Dont let imperfect circumstances prevent
you from executing your goals.
#3 People Help People who Help Themselves
Young Jay-Zs pounding on the kitchen table annoyed
his siblings, but his mom saw something else: a
budding passion in her son. She bought her son a
boom box for his birthday so that he could continue
to grow as a rapper.
If Jay-Z hadnt shown his drive to improve as a
rapper, then his mother never would have splurged
on a boom box. Since he did, he received a powerful
new gift on his artistic journey.
When people see that you are pursuing a goal, theyll
want to help. But dont expect any gifts from others
until youre doing everything you can to help
yourself.
#4 Carry a Notebook with You
As a budding teenager rapper, Jay-Z always had a
pencil and paper on him. He remembers, If I was
crossing a street with my friends and a rhyme came to
me, Id break out my binder, spread it on a mailbox or
lamppost and write the rhyme before I crossed the
street.
Whether youre a writer or an entrepreneur, you
never know when inspiration will strike. Make sure
you have a way to write it down or record it so you
wont forget.
#5 Dont Run Your Mouth

Jay-Z was still struggling to break through into the
music business when his collaborator, Jaz, got a big
record deal from EMI. Jaz was going to London to
record and he wanted Jay-Z to come along.
When Jay-Z told his crew about it, their response was
less than enthusiastic. They felt like they were being
deserted and told him that rappers were just being
used by the music industry.
Of course, Jay-Z ignored their negativity, but he also
learned a valuable lesson: sometimes its best to keep
your mouth shut about your aspirations. From then
on, Jay-Z says he knew he wanted to get a record deal
of his own, but that he didnt go around talking
about it to even [his] closest friends.
Its tempting to share your dreams and goals with
people, but be careful not to talk too much.
Sometimes even your closest friends and family
members wont be able to see your vision and their
response will be discouraging. Actions speak louder
than words.
#6 Skills are Transferrable
Jay-Z never went to business school. But that hasnt
stopped him founding $100 million companies and
serving as a co-brand director for Budweiser Select.
While others were out getting their MBA, Jay-Z was
learning real-life business skills on the streets. He
learned sales, management, and promotion on the
streets, so its no surprise that he slipped comfortably
into the many roles of an entrepreneur.
We all have a breadth of experience to draw from.
Always keep a look out for how your skills in one
field can be used in another.
#7 Know How to Handle Rejection
Jay-Z was turned down by every label in the industry.
So did he give up on his dream of becoming a
professional rapper? No. He started his own record
label.
Jay-Z was offered a weak endorsement deal from
Iceberg Apparel, even though Jays shout-outs for the
clothing company were boosting their sales through
the roof. So did he accept their offer? No. He started a
competing clothing line and sold it ten years later for
$200 million.
Jay-Z has an amazing knack for bouncing back from
rejection. We would all benefit from adopting this
mindset.
#8 Make a Plan
When Jay-Z, Damon Dash, and Kareem Burke
founded Roc-A-Fella Records in 1994, they drew up a
business plan. Jay recalls, We made short and long-
term projections, we kept it realistic, but the key thing
is that we wrote it down, which is as important as
visualization in realizing success.
Sometimes we think we know how its all going to
play out in our head, but theres something powerful
and clarifying about actually writing things out.
If you havent already put together a short business
plan, do it today. You dont have to follow it exactly
(in fact, you probably shouldnt) but having made a
plan and wrote it down is invaluable.
#9 Dont Take Your Eyes off the Prize
You can want success all you want, but to get it, you
cant falter. You cant slip. You cant sleep. One eye open,
for real, and forever.
Jay-Z, Decoded
Its a common story in the entertainment industry: an
up-and-coming artist gets a little taste of success and
then everything comes crashing down when they get
caught up in the lifestyle (i.e. parties, drugs, and
alcohol).
The same thing happens to entrepreneurs. Letting a
little bit of success coax you into laziness or over-
indulgence is an easy way to run your fledgling
business into the ground.
Jay-Zs music and business career took off at
simultaneously but he managed to keep a level head.
Even when he was selling drugs, he wasnt using
them. Even though he rapped about champagne and
margaritas, he was only a light drinker. Jay prefers to
be sober so that he can, stay focused on making
money.
Its this ability to resist temptation that has allowed
Jay-Z to turn his initial success into a business empire
that will likely be around long after hes gone.
#10 Dream Enormous

Id rather die enormous than live dormant.
Jay-Z, from Can I live
As a poor kid growing up in a housing project,
nobody ever told Jay-Z he could one day be worth
$450 million or that he would pack Madison Square
Garden.
But he did have a sixth-grade teacher named Miss
Lowden who must have seen something in young
Shawn Carter. That little show of support gave Jay-Z
the confidence to imagine a life beyond the projects.
Accomplishing enormous goals starts with the ability
to imagine them and the willingness to pursue them.
Jay-Zs Five Biggest Accomplishments
(1) 14-time Grammy Winner (1999-2012)
(2) Became President and CEO of Def Jam Records
(2004)
(3) Jay-Z sold his portion of Rocawear for $204
million (2007)
(4) Most Number One Albums for a Solo Artist on
the Billboard 200 (11)
(5) Two Albums ranked in Rolling Stone magazines
list of the 500 greatest albums of all time
#11 Art and Business Can (and Should) Co-Exist
The other part of commercialization is the idea that
artists should only be thinking about their art, not about
the business side of what we do [but] when I committed
to a career in rap, I wasnt taking a vow of poverty. I saw it
as another hustle, one that happened to coincide with my
natural talents and the culture I loved. I was an eager
hustler and a reluctant artist. But the irony of it is that to
make the hustle work, really work, over the long term, you
have to be a true artist, too.
Jay-Z, from Decoded
Theres a good reason people think of art and
business as mortal enemies. When money starts to
influence creative decisions, the art suffers.
But Jay-Zs proven that art and business can actually
benefit one another when combined carefully.
#12 Demand Respect
Either love me or leave me alone.
Jay-Z, from Public Service Announcement
In 1999, Jay-Z won his first Grammy award: Best Rap
Album for Vol. 2 Hard Knock Life.
But he was nowhere to be found at the ceremony that
night. Jay-Z had boycotted the Grammys because he
didnt think they gave the rightful respect to hip-
hop. So even though attending the event would have
been good for Jays career, he passed it by.
He who does not feel me is not real to me.
Jay-Z, from H to the Izzo
It wasnt the first time Jay-Z made such a stand.
Since his first album, Jay-Z had been mentioning
Cristal (a luxury brand of champagne). But when
Frederic Rouzaud, the managing director of the
company, disrespected the bling lifestyle in The
Economist, Jay-Z drew a line in the sand: That was it
for me. I released a statement saying that I would
never drink Cristal or promote it in any way or serve
it at my clubs ever again.
Jay-Z clearly has zero tolerance for disrespect and as
a result hes very rarely disrespected.
#13 Accept Help from Mentors
Entrepreneurs and artists tend to be strong-minded
individuals. Jay-Z is both, but that hasnt stopped him
from seeking the guidance of a host of mentors
through the years.
A good mentor has already been in your position.
That means they can see what steps you need to take
and what mistakes you must avoid all while still
giving you room to breathe and grow on your own. If
you dont yet have a mentor on your entrepreneurial
journey, get one.
Without the role models below, Jay-Z couldnt have
become the entrepreneur, rapper, and championship-
caliber performer that he is today.
Some of Jay-Zs Mentors:
Russell Simmons Co-Founder of Def Jam Records

Hed discovered a way to work in the legit world but to
live the dream of the hustler: independence, wealth, and
success outside of the mainstreams rule.
The Notorious B.I.G. Rapper

I loved that he described what a lot of hustlers were going
through in the streets dissed and feared by teachers and
parents and neighbors and cops, broke, working a corner to
try to get some bread for basic s*** as more than some
glamorous alternative to having a real job.
Michael Jordan Six-time NBA Champion

The thing that distinguished Jordan wasnt just his talent,
but his discipline, his laser-like commitment to excellence.
Thats something I always respect, especially in people who
have great natural talents already.
[Excerpts from Decoded]
#14 Ignore Trends
In 2009, the hot trend in hip-hop was auto-tune. T-
Pain was scoring hit after hit with perfectly-pitched,
synthetic vocals (see Flo Ridas Low).

But Jay-Z didnt jump on the bandwagon. In fact, his
big single that year was called D.O.A. (Death of
Auto-Tune). The song was everything auto-tune
wasnt: dissonant, noisy, and off-pitch.
Watch the video here.
D.O.A. won a Grammy Award for Best Rap Solo
Performance. But more importantly, it made a
statement and allowed Jay-Z to stay true to himself.
As he wrote in Decoded, You cant fake whatever
the current trend is if its not you, because it might
work for a second, but its a house of sand.
Following the latest fad isnt a good strategy for long-
term success. You can make a more powerful
statement by marching to the beat of your own drum,
even if that means standing apart from the crowd.
#15 Start a Blog
In April 2011, Jay-Z dove into a new industry:
blogging.
His site, Life + Times features articles on whatevers
on Jays mind: music, sports, technology, and fashion.
Its worth checking out just for its sleek, tile-based
design.
Why would a rap mogul worth $450 million start a
blog?
Jay realized that blogging was more than just another
way to speak his mind. Publishing content online
allows him to expand his influence and grow a loyal
audience which will ultimately be good for his
bottom line.
Note: If youre a regular Income Diary reader, you
probably already have a website. If not, then heres a
guide on how to get started.
#16 Entrepreneurship Empowers You to Change
the World
Jay-Zs success has allowed him to help the world in
ways that would never have been possible if he
hadnt become an entrepreneur.
Along with P Diddy, Jay-Z donated one million
dollars to aid the people of New Orleans after
Hurricane Katrina struck in 2005. After meeting with
United Nations Secretary General Kofi Annan in 2006,
Jay-Z pledged to help promote awareness of the
global water shortage on his upcoming world tour.
In 2008, US presidential candidate Barack Obama
asked Jay-Z to help support his campaign. Jay put on
a series of concerts to get out the vote. Just like that,
Jay-Z had helped elect the first black president in
United States history.
If Jay-Z had stayed selling drugs, he would have kept
making good money (though he likely would have
been caught before long). But he never would have
been able to make the positive impact on the world
that he has an artist and entrepreneur.
#17 Have an Empire State of Mind
Im not a businessman. Im a business, man.
Jay-Z, from Diamonds for Sierra Leone

The reason Jay-Z is so much wealthier than other
entertainers is because hes more than just an
entertainer: hes an empire. He has owned night
clubs, record labels, clothing lines, restaurants, and
hes currently part-owner of the New Jersey Nets.
More than that, Jay-Z learned quickly what other
entrepreneurs are just now learning: that business is
more personal than ever. He has said, My brands are
an extension of me. Theyre close to me. Its not like
running GM, where theres no emotional
attachment.
Jay-Z is his business, hes selling his lifestyle and
were buying.