Jay-Z:, The Mogul: From Life in the Projects to Leading an Empire

When most people look at rappers or hear stories about them, they generally have perceptions of low-brow, ghetto, law-breaking thugs, who are up to no good. But those who are familiar with Shawn Carter, better known as Jay-Z, know that he is not just a mere rapper to be lumped along in that category. In contrast, he has established himself an empire and as of 2010, is estimated to have a net worth of about $450 million. Not only is he in the music business, he is involved in apparel, sports, cosmetics, bars, and real estate, and has proven to be a successful mogul. But by looking at his childhood, this tremendously successful future appeared far-fetched and very unlikely.

Jay-Z grew up in the projects near Brooklyn, New York with a tumultuous childhood, abandoned by his father and having been raised by his mother, transferring high-schools on multiple occasions and eventually dropping out, and turning to selling drugs to earn money. But his interest and talent for music has been apparent from a young age, free-styling and writing lyrics in his home to later rapping with more established rappers in the scene by the time he was in his teens, whose successes he would soon surpass. But perhaps growing up in the projects and his desire to escape the life of poverty was what gave him the necessary desire to be as ambitious as he has become.

Jay-Z's knack for entrepreneurship also came at a young age, when he decided to form his own independent record label with Damon Dash and Kareem "Biggs" Burke, rather than waiting around for a major label to sign him. This label, created in 1996, was named Roc-A-Fella Records, named after the oil tycoon John Rockefeller, coincidentally signaling the success of Jay-Z to come. Releasing his first album through Roc-A-Fella Records, he later went on to become CEO, signing successful artists such as Kanye West and Twista. After Roc-A-Fella Records became a success in its own right, it was sold to Def Jam Recordings, which contracted Jay-Z to become President and CEO. During his tenure, he furthered the success of Def Jam Recordings by signing successful acts such as Rihanna and Ne-Yo. He has said that he was reluctant on accepting the job, since he was never the "suit" type. However, his first hand experience as an artist as well as owning a record company made him a good fit for the position. Jay-Z's insights and the relationships he developed as an artist gave him respect amongst his peers -- both in performance-side and business-side. His persona and leadership style, influenced by his time lifestyle as rapper, a 180 degree turn from a typical executive or officer, provided the corporation with a much needed breath of fresh-air especially welcoming during the continuing downturn of sales affecting the music industry.

But Jay-Z's success went beyond his familiar territory of the music industry. He started a successful clothing line with Dash called Rocawear (named after their record label) for which Jay-Z later became the sole owner before selling it off (while retaining some stake) for $204 million. Furthermore, his enthusiasm for sports led him to become part owner of the NBA Team New York Jets and created the 40/40 Club, an upscale sports bar that started off in New York City and later expanded to Chicago, Las Vegas, and Atlantic City. But it doesn't stop there. Jay-Z is also an investor in a cosmetics line called Carol's Daughter and in real estate, with plans of building luxury hotels called J Hotels. He has said in many interviews that he likes change and likes challenges.

This trait, along with his ambitious desires and enterprising spirit has contributed to his diversified investments, and continued growth. Jay-Z takes a lot of risk with starting new business ventures in different industries, but they are all calculated risks, researching extensively and partnering with knowledgeable people. He thinks about the future and what careers have longevity, ensuring he can maintain his luxurious lifestyle after his rapping days are over. As big as his persona is as a rapper, Jay-Z is much more subdued off stage, exemplifying a quiet leadership that is based more on example. He is much less showy, as his successes speak for himself. He is family-oriented in terms of dealing with his colleagues and partners, trading insights along the way. What's important, he works hard. He just doesn't put his name on things and let others handle -- he is hands on and puts a lot of hours and time into his ventures, whether it is endorsement deals such as his S. Carter line of Reebok shoes (S. Carter Collection) or strategic partnerships such as being a co-brand director for Anheuser-Busch's Budweiser Select. A true entrepreneur, he dabbles in various industries and businesses that diversifies his assets and allows him to penetrate almost every facet of the world entertainment and lifestyle industries.

His track record shows that it was not only luck that made his ventures successful; it was also combined with talent, personality, drive, and surrounding himself with smart people. At this pace, it doesn't look like he is ever going to stop growing. Perhaps it's too early to have written an autobiography about his life, but adding author to his credentials certainly goes along with him theme of constantly expanding. As he has famously rapped, "I'm not a businessman; I'm a business, man."