Everything I needed to be successful in business I learned in Jewish Day School

After graduating law school and practicing for two years, I launched an airline ticket business, which was quickly profitable. I sold that business in 1991 and then launched Hotel Reservations Network, which became hotels.com. I sold the balance of my interest in hotels.com in 2003 and after a five-year non-compete launched getaroom.com. Recently during our weekly Friday night dinner discussion, I mentioned that getaroom.com is growing and profitable and reached some new milestones.

My mother asked me, “How did you know what to do at this company and the others to make them succeed? You didn’t go to business school or work in a big company.”

She was right. I didn’t have formal business training other than a basic course in accounting and finance. No work experience in a business. No internships. No mentors.

My answer surprised her. “I owe all of my business success to you and Dad for sending me to a Jewish Day School. That’s where I learned about the best book to running a successful business ever written – the Bible.”

• Do your homework

I learned the principle of due diligence through Talmudic study. For years, I studied debates among rabbinical scholars. Nothing was taken for granted – all arguments were considered and debated. I learned to ask why and to make sure I understood the issues. Studying alone was not enough. We were paired with other students and spent much of our time discussing the issues with the the person we were paired with before the next class. We learned to tear each other’s arguments apart. We read every commentary on the topic we could find.

I approached business the same way. I did my homework. I researched the competition. I tested the market. There is no shortcut for doing your homework in a business and understanding the competitive landscape. Major mistakes can be avoided and opportunities found by speaking to experts and analysts, doing market studies and focus groups, analyzing expenses and doing your homework – due diligence.

• Treat your employees fairly

One of the most difficult parts of running a business is dealing with employee issues. Employees can be demanding: raises, time off, expenses, conflicts and more. When confronted with these issues, I just thought about the principle of paying employees on time: “The wages of a worker shall not remain with you all night until the morning” (Lev 19:13). The Torah commands us not to take advantage of your employees: “You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger” (Deut, 24:14). This taught me to always treat employees equally and fairly.

I applied an absolute level of fairness among all our employees. It is always difficult to say no, but when you develop a reputation for fairness to your employees, they respect you and know that they were treated properly.

• Have the highest level of customer service

There is a high level of customer service issues in the travel business. Flight delays, lost luggage, noisy rooms, housekeeping issues and more. There are also many that try to take advantage of the system. I employed a very simple standard for customer care: “Love your neighbor like yourself” (Lev. 19:18) – put yourself in the shoes of the customer and treat them as you want to be treated. While many companies struggle with how to handle customer service, following this standard is the best way to build a long term loyal customer base.

We all prefer to patronize businesses that are fair on returns/exchanges and that treat us well. When we launched getaroom.com, top customer service was a great competitive advantage in a marketplace of foreign outsourcing and cost cutting. The high level of customer service has differentiated us in the marketplace. Treat your customers the way you’d want to be treated.

• Be honest with customers

I was constantly confronted with dilemmas: How much do we disclose to customers? Do we deliver exactly what was ordered or something inferior to make a higher profit? Do we put in slightly less weight than the amount the customer believes they are paying for? These answers are easy when you follow the Bible’s guidance: “You shall have just balances and just weights” (Lev. 19:36).

Even if your customer won’t find out – don’t cheat them. “Do not… put a stumbling block before the blind” (Lev. 19:14) means do not take advantage when the other party doesn’t know what you are doing to them. We are often confronted with situations that can increase profits by cutting corners. Why not increase profits by using a cheaper material or a second hand product or use lower cost components although the customer believes you are using high end components. When confronted with these dilemmas, the answer is easy when following the biblical principle of not putting a stumbling block before the blind.  

• Always act as if you are being watched

Your customer overpays you –you receive a refund twice. – at the cash register you are given $100 instead of $10 in change. Do you keep the funds that were mistakenly given you or do you give it back?

The Sages say, “Know what is above you: An eye that sees” (Ethics of the Fathers, 2:1) When you realize that someone is always watching you, the answer is easy. You act differently and work under a higher standard.

• Build a reputation for integrity and honesty.

The Talmud discusses the questions one is asked in the heavenly court at the end of one’s life (Shabbat 31a). The first question asked is: Were you honest in your business dealings? This is the first question because it’s the true measure of one’s success in life. There is no greater temptation to cheat than in a business setting. If you overcome this temptation, you will reach a higher level of character that others esteem. As the Medrash says, “If one is honest in his business dealings and people esteem him, it is accounted to him as though he had fulfilled the whole Torah” (Mechilta B’Shalach 1).

• Be humble: accept and encourage criticism.

“He who loves instruction loves knowledge, but he who hates correction is stupid” (Proverbs 12:1). Judaism teaches us to be humble. Accept and encourage criticism, especially from your employees. My best ideas came from customers and employees. We read every customer and employee suggestion carefully. By creating an environment that allows suggestions and criticism, you can improve your business and allow employees and customers to feel part of the business.

• What to do once you are profitable

The Torah teaches us not only how to build a successful business, but what to do once it is successful. The Bible teaches us to be socially responsible and not forget about those that don’t have food to eat. We have a social responsibility to our communities, and are obligated to donate a portion of our profits to the needy. Encourage your employees, partners and customers to be charitable. Match your employee charitable giving to encourage them. Encourage your employees to do community service. Use your business as a vehicle for community improvement. “The generous soul will be made rich, and he who waters will also be watered himself” (Proverbs 11:24).

• View your work as a means, not an end

When we help others, we feel fulfilled. As King Solomon said, “Our work is meaningless unless it is to do good” (Ecclesiastes 3:12–13).

BOB DIENER is founder of Hotels.com and Getaroom.com. He practiced law with Gibson Dunn & Crutcher, managed a hedge fund, and regularly lectures at the University of Florida and Cornell Law School. He is also the former editor of the Cornell Law Review and is on KGO radio every Sunday morning.