A journey from small business to a most profitable business empire !

FROM SMALL BUSINESS TO A BUSINESS EMPIRE ?

10 % of the world’s population controls 80% of the world’s money! It’s a frightening statistic but it’s also a very enlightening statistic, because these people are stellar examples of how to earn money. They have never succumbed to destiny; instead of blaming poverty or their poor family background they have concentrated on well thought out plans to make money without capital. Money can be made without capital. There are numerous examples of this around us and yes it’s a deliberate act. Very few people just stumble upon a treasure. Most billionaires in the world today are very smart people with smart and bright ideas being the cornerstones of their successful empires. There will never be scarcity of funds for people with sound ideas and business plans. Investors keep scouring the map in search of ideas that can generate profit. Create a new and unique product, market it properly and investors will come running to you desperate for a chance to make money. In the process they will make you rich. All you need to do is make them like your idea. Let us check as how some ordinary people made billions with their ideas.

1. Ingvar Kampard – Retail

This man has a net worth of $22 billion. He was born on a form to a poor family but from childhood he had a penchant for business so he began by selling odds and ends such as matches, pen, fish etc. He realized that buying in wholesale and selling individually was profitable so he kept on increasing the number of items he sold. He eventually had enough money to open his first store by the name of IKEA. Now I know most of you recognize this name because right now IKEA has more than 296 stores in about 36 countries around the world, selling furniture, furnishing as well as bathroom and kitchen items and in the process making Ingvar Kampard the 5th richest man in the world and the richest man in Europe. His journey took him from selling matches to the 5th richest man in the world. How much did you reckon he spent on the first lot of goods he bought to sell onwards? Let’s be generous and say $5 although I have a sneaking suspicion that it might not even have been a complete dollar.

Kampard’s Road to Success

•He started by buying from sub dealers and by recognizing that the customer is foremost. He moved onto purchasing in bulk and in doing so he was able to offer discounts to his customer. He was willing to go the extra mile for his customer and started out as a merchant on a bicycle who went from customer to customer providing them what they needed at a discount.
•When he had enough money he opened a store. Later on he started selling furniture at his store that was made locally. He started advertising in the local papers and thereby building himself a brand.
•He soon realized that his earlier items did not give as much profit as furniture so he turned his store into just a furniture retail outlet. In the beginning he had catalogues that he showed to his customers to choose from later on he opened a showroom so people could look at the real product.
•He had always been selling at a discount but due to local competition his suppliers stopped supplying him. He did not give up but instead started making his own designs as well as set up a factory to manufacture them.
•He had the brilliant idea of furniture in parts that the consumer could assemble himself. This saved the consumer transportation costs while saving IKEA warehouse costs.
•He created unique designs tailored to the needs of his customers and even though he was becoming popular his prices remained competitive. He did his utmost to reduce overhead as well as manufacturing costs. Thereby leaving all competition behind.
•The final thing he did was that he never resorted to just manufacturing. He was also the retailer thus eliminating the middle man that is responsible for driving the prices of a product to astronomical values.
The Tricks of the Trade
Realize that the customer should be your top priority. Provide them the best possible product at the lowest possible price. Make sure you are not over pricing and do everything in your power to facilitate the customer. Also understand that initial investment is not as important as the idea itself. Be innovative and creative; this way you will wipe the floor with your so-called competitors. Concentrate on what sells and why it sells. Ingvar realized that furniture sells and it sells based on its design, ease of assembly and price. The definition of innovation changes with time, so does the type of design that sells as well as the needs of the customer but there will always remain opportunities to create billions out of nothing.

2. Amancio Ortega – Fashion

He is the son of father who was a railroad worker and a mother who worked as a maid to support the family. His net worth at the moment is $18 billion. He started off as a gofer for a shirt maker. He worked for various tailors and got an intricate understanding of how the cost went up as the product started from the manufacturer and finally reached the consumer. He like Ingvar Kampard realized that middle men were an impediment to a successful business and made up his mind to never involve middlemen in his business. Ortega never had a higher education; he did all his learning in the field while working for different employers. He was appointed a manager at a local store where he came to another realization that the real buyers who could fork out real money were wealthy people but they had demands. He set out to design high quality clothes while incorporating in them the latest fashions. At just 27 years of age he launched a company that made bathrobes. Notice that this is a product targeted at the high end society. 8 years later he opened his first store by the name of ZARA and now his company INDITEX has more than 4000 stores in over 71 countries.

His Ideas
He understood the consumer market so he made high quality products that he made available to all. He realized that high quality will sell no matter what whereas if you aimed too low there was a chance of failure. He speeded up the process by supplying new designs within a matter of weeks. His competitors that took up to six months for the same were left way behind. He did not shy away from expenses once his business had settled. He hired the best designers for his company as well as integrating the latest computer technology in his setup. Lastly he made what people wanted; designs that were in fashion.

His Road to Success
He started off as a delivery boy but was always looking to move up the ladder. Like all the examples I have shared with you up till now he had complete knowledge of his field by the time he decided to set up his own business. While working for others he was already noticing trends and fine tuning his future business venture. He made best quality and fashionable garments available to all kinds of customers. From a delivery boy to making bathrobes to becoming a billionaire was his route to success. All the ideas that made him successful were based on noticing consumer trends and by placing the consumer on top of his priority list. That is what made him a billionaire.
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