Billionaire Diane Hendricks: How She Became America’s Richest Self-Made Woman
With a net worth of $20.9 billion, Diane Hendricks is the richest self-made woman in America. She is the chair of ABC Supply, a wholesale distributor of roofing, siding and windows, which she co-founded with her late husband in 1982.
Under Hendricks’ leadership, the company made the two biggest acquisitions in its history, buying rival Bradco in 2010 and building materials distributor L&W Supply in 2016, Forbes reported. ABC Supply now has over 900 branch locations and brought in $18.5 billion in annual revenue as of 2022.
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Here’s a closer look at how Hendricks built her fortune from the ground up.
Don’t Be Afraid To Get Your Hands Dirty
Before founding ABC Supply, Hendricks and her husband Ken, a roofing contractor, made their living through rental properties. The couple purchased 200 older homes over three years, renovated them and began renting them out to college students.
“I cleaned a lot of toilets,” she told Forbes.
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Customer Service Is Key
Hendricks and her husband started ABC Supply with the purchase of two struggling building supply stores. Their plan was to buy supplies directly from manufacturers and sell to contractors. According to Forbes, “the secret sauce was providing an unheard-of level of customer service in a notoriously unfriendly industry.”
The idea paid off — within five years, ABC had 50 stores and had made about $140 million in sales.
Look for Opportunities in the Downswings
When the real estate market collapsed during the Great Recession, so did business for ABC Supply. From 2006 to 2009, the company’s sales declined 7%, Forbes reported. Instead of throwing in the towel, Hendricks looked for new opportunities and took advantage of fire-sale prices to acquire rival Bradco in 2010.
The acquisition required taking on a big risk — Hendricks gave up 40% of her stake in ABC to a backer on the condition that she could buy it back within five years.
“I still get shivers right now because I felt that I had risked the company that I wanted my children to run,” she told Forbes. “It’s not a company that’s ever going to be for sale.”
Fortunately, the risk paid off and she was able to buy back her stake within four years.
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This article originally appeared on GOBankingRates.com: Billionaire Diane Hendricks: How She Became America’s Richest Self-Made Woman
