Entrepreneur Profile
Andrew J. Abernathey, Managing Member/Founder, Ritaway Capital Management
Mini Bio
Andrew J. Abernathey is managing member and founder of Ritaway Capital Management, a value-oriented boutique investment partnership based in Fargo, North Dakota.
Name: Andrew J. Abernathey
Title: Managing Member/Founder
Company: Ritaway Capital Management
Years in business: 7
Business location: Fargo, ND
Number of employees: 9
Chief product: Investment management
Website: andrewabernathey.com
1. First of all, how is business these days?
Business is great! We've had our challenges, but we've positioned ourselves well with what we think will eventually happen with interest rates and infrastructure spending. We've built a great team with a lot of educated people who will help us continue to grow.
2. What led you to start your own business?
I started out investing my own money at the age of 14, then I found a deal that I needed more capital for. When I went and raised the capital for the project, I liked how it all came together. Since then, I've raised more capital and continued to grow our portfolio.
3. What sources did you use for startup capital?
I was born and raised on a family farm near the Canadian border in North Dakota. My first investors (and to this day, a majority of my investors) were other farmers next door.
4. What do you think is your biggest business strength?
I think we have two great business strengths. Our first is that we are a boutique partnership/fund, which allows us to maneuver much quicker and contribute to a much higher return for partners than the average fund. Our second strength is that our team owns over 20 percent of the funds we manage, which keeps our incentives aligned and our head in the game.
5. What do you enjoy most about owning your own business?
I enjoy that I am in 100 percent control of my own destiny. If things go great, it's because of my initial idea. If they go bad, then I have no one to blame but myself.
6. What’s your least favorite part of running a business?
The hardest part for me is not letting my emotions get in the way. I like to see the best in people, and that can sometimes be a bad thing.
7. What do you think are important entrepreneurial skills to have?
I think there are a few important skills entrepreneurs should have. Be in control of your emotions as much as possible, be perseverant, never say never, and know how to communicate with others.
8. What are some challenges you’ve faced in business and how did you overcome them?
I've faced lots of challenges so far in my short career. It's always important to be open-minded and accepting of others' ideas. I've had investments go down in value, I've had employees turn out to be not who they said they were, I've had to let go of a CEO before having another one in line, and much more.
9. What do you wish you’d known before you started out?
I wish I would have known that Rome wasn't built in a day. It's OK to build slow, and it isn't healthy to be hard on yourself.
10. What is the smartest move you have made with your business so far?
The smartest move I've made so far is putting together an amazing advisory board and getting a senior advisor to look through all the investments we make.
11. How do you find new customers? What do you do to make sure they become return customers?
I like when partners/investors are referred to me by my current partners. It's a warm introduction, but it also shows me and the new partner that our current partners like what they see in Ritaway.
12. What’s your management style with employees?
I am very hands-off; I like to delegate and keep an eye from a distance. Your employees are people, not puppets. If you let them do their jobs, you'll be amazed at how well they perform.
13. What are some other companies or entrepreneurs you admire, and why?
My idol has always been Warren Buffet and his company, Berkshire Hathaway. I find it amazing that it was built from a few investors in Omaha, Nebraska, to now a multi-billion dollar corporation. Buffet has remained humble the entire time, and is living proof that running a business is a marathon, not a sprint.
14. Do you have a favorite inspirational quote?
"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."—Warren Buffet
15. What new initiatives are you working on?
We've been working on setting up our first separately managed accounts for clients who are wanting to invest a large amount of capital, but don't want to be locked in for eight years like our other funds.
16. What advice would you give to someone hoping to start a business similar to yours?
Start investing with your own money, even if it's $4,000 or less. Do well on your own before you try raising money from others.
See full list of Entrepreneur and Business Executive Profiles
