In 1952, a man who knew nothing about tires bought a small tire shop in Prineville, Oregon. Within a year, he quadrupled its sales to $150,0002. That man was Les Schwab, and his revolutionary approach to business would transform a single store into an empire generating $662 million in annual revenue.
"If I couldn't be proud of my company, if I couldn't pay good wages, if I couldn't have good benefits, if I couldn't have the best employees, then why would I even want to stay in business?"1 These weren't just words – Schwab built his entire business model around this philosophy. He turned conventional wisdom on its head by treating his tire shops like business schools, opening financial books to employees and teaching them to read P&L statements.
The results were extraordinary. By 1986, his 170 stores generated $180 million in sales, with a profit-sharing trust worth $26 million. But what's truly remarkable isn't just the numbers – it's how he achieved them. While competitors focused on cutting costs, Schwab invested in people. His stores became laboratories of leadership, where every employee learned to think like an owner.
Today, as businesses grapple with employee engagement and retention, Schwab's leadership philosophy feels more relevant than ever. His story isn't just about selling tires – it's about building something that lasts, one employee at a time.
