Podcast Summary: The Determined Society with Shawn French

Episode Title: How He Lost $300M and Came Back Stronger
Host: Shawn French
Guest: Derek Fay
Release Date: June 2, 2025

Introduction

In this compelling episode of The Determined Society, host Shawn French welcomes Derek Fay, a seasoned entrepreneur and the founder of 3F Management. Shawn highlights Derek's remarkable journey from poverty to building over 30 successful businesses, emphasizing his humility and unwavering determination. The conversation delves deep into the challenges Derek faced, including a significant financial loss of $300 million, and explores the strategies he employed to rebound stronger than before.

Derek Fay’s Entrepreneurial Journey

Background and Early Struggles

Derek Fay’s story begins in humble beginnings, born into poverty and overcoming severe adversity. Shawn appreciates Derek's grounded nature, noting, “He started from nothing...by 2023, he was worth some amazing, obscene amount of money” (01:04). Derek discusses how his difficult childhood, marked by abuse and financial hardship, instilled in him resilience and a unique perspective on life and business.

Building 3F Management

Founded in 2002, 3F Management initially operated as a venture capital firm focused on building brands from the ground up. Over the years, Derek successfully built and exited over 30 businesses, achieving seven to nine-figure payoffs. He emphasizes a collaborative approach, stating, “No one has ever worked for me. Everyone has always worked with me” (65:02).

The $300 Million Loss

Facing the Crisis

In 2022, Derek experienced a devastating loss of $300 million, which led to the shutdown of his company and the loss of hundreds of jobs. This episode addresses how Derek navigated this crisis with integrity and accountability.

Handling Responsibility

Derek shares, “I made sure that everyone was paid for everything that they did, and that meant taking a greater loss than I had to” (35:53). He chose to honor his commitments, paying vendors and ensuring his employees were treated fairly despite the financial setback. This decision stemmed from his core values of accountability and integrity.

Recovery and Lessons Learned

Internal Narratives and Confidence

Derek attributes his ability to recover to his "absolute delusional confidence," a mindset he cultivated from a young age. He explains, “My internal dialogue...has come down to my internal dialogue” (22:21). This relentless self-talk helps him push through challenges and continually strive for improvement.

Overcoming Adversity

Shawn and Derek discuss the importance of viewing failures as opportunities for growth. Derek remarks, “What I call it, what I call it [overcoming adversity], it's a long journey” (44:26). They emphasize that success is built on years of hard work and resilience, not overnight achievements.

Strategic Planning and Execution

Derek advocates for long-term vision and strategic planning. He shares a philosophy of reverse engineering goals, breaking down a 10-year vision into manageable steps, which helps in maintaining focus and discipline.

Leadership and Accountability

Taking Responsibility

Derek underscores the importance of accountability in leadership. He states, “If you're not standing in front of your losses, then you are. I'll go as far as say, not just you're not a good leader, you're just not a good person” (37:02). By owning his failures, Derek maintains trust and respect within his teams.

Integrity in Business

Integrity is a recurring theme, with Derek highlighting that true leadership involves consistently doing the right thing, even when it’s difficult. “Integrity is every day. Integrity is not just when people are looking...” (39:32).

Personal Development and Determination

Relentless Pursuit of Goals

Shawn and Derek delve into the essence of determination, with Derek defining it as “relentless” (34:16). They discuss how daily discipline and incremental progress lead to significant achievements over time.

Balancing Emotions and Discipline

The conversation explores managing emotions to maintain focus and execute plans effectively. Derek shares his technique of internal "cheerleader and challenger" voices, which help him stay disciplined: “I call it the cheerleader and the challenger...they work in synergy” (24:24).

Parenting and Legacy

Empowering the Next Generation

Derek talks about his approach to parenting, emphasizing the importance of teaching his children how to think critically rather than dictating their paths. He shares an inspiring story about his daughter choosing a humble car to avoid being perceived as spoiled: “I taught my children to challenge authority...she said, I don't want the kids at my school to think I'm a rich, spoiled kid” (54:05).

Encouraging Entrepreneurship

Both hosts agree on fostering entrepreneurial spirit in their children. Derek proudly recounts how his daughter is already sourcing multimillion-dollar tech companies to run: “She could have walked into a $75 million tech company. Like, I'm the new CEO and I'm figuring out” (55:41).

Conclusion

The episode concludes with Shawn and Derek reflecting on the multifaceted aspects of entrepreneurship, personal development, and leadership. Derek's journey exemplifies the power of resilience, integrity, and relentless determination in overcoming significant setbacks. His insights offer valuable lessons for listeners aspiring to build and sustain successful ventures while maintaining strong personal values.

Notable Quotes:

• Derek Fay (03:39): “Fast success creates no appreciation, and slow success for guys like us who came from nothing...it was decades of ridiculously hard work.”
• Shawn French (25:50): “Don't listen to that voice. Prove them wrong. That's what's keeping you where you're at.”
• Derek Fay (34:16): “In a word, relentless.”
• Derek Fay (39:32): “Integrity is every day. Integrity is not just when people are looking...”

This episode serves as an inspiring testament to overcoming adversity through unwavering determination, ethical leadership, and strategic planning. Derek Fay’s experiences provide a roadmap for aspiring entrepreneurs to navigate their own challenges and achieve long-term success.

Transcription Reference

For accurate timestamps and context, refer to the transcript excerpts provided throughout the summary.