Many people think that starting a business, and having it succeed is just luck. It may be because the perception that it is. The real truth is that setting up a business, and making it succeed puts you in a state of mind that will make you grasp opportunities as they come along. This is quite true of a large construction company in my state that was on the brink of catastrophe when nature provided the area with a disastrous flood in August 1955. The three brothers who owned this company were in a position to capitalize on the disaster. Although the were on the brink of going out of business the disaster provided their company with a plethora of new business that they were able to take advantage of. Today, 52 years later this small construction company is one of the leading construction companies in the US. The three original brothers who were there in 1955 are still alive, and have turned the operation of the company over to their son’s and grandson’s.
There is no doubt that they had some really good luck in being able to take advantage of the disaster when it came their way. The real truth though is they were in such a mindset that when disaster came calling they were able to use it to their advantage.
Although the company was founded by their father in the early 1920’s it remained dormant for many years until the three brothers got out of the service at the end of WW II. They reformed the company after the war and for many years it staggered along. This was a period when they were forced to borrow machinery a,d equipment from other contractors to keep their heads above water.
I can remember one episode very vividly because it involved my own family. My father was going to swing some iron in conjunction with a factory building he was building a year before the 1955 flood, and the founders came to him to see if they could get the job. My father gave them the job. When they showed up on the jobsite I didn’t see their name on the crane they would have too use. Instead there was the name of some other construction company painted on the crane.
Sometime after the flood the three brothers got to fighting among themselves. They got into such a row that they wound up firing each other. Then they thought about what they just did, and realized that no one was running the company. With that they cast about for a consigliore, and came up with one of the two brightest people I have ever known. They tasked this man with operating the company which he has done ever since. It wasn’t luck that they came up with their consigliore it was more mindset between the three brothers.
This mindset was also sufficient for them to hand off the day-by-day operations of the company, and changed the roll of the brothers from forming policy to that of forming long range strategy. It has been an extremely successful company. For a company that probably has over a billion dollars in revenue per year it is still privately held.
Showing posts with label succeed. Show all posts
Showing posts with label succeed. Show all posts
Saturday, June 9, 2007
Starting with Nothing
If you wait until you have enough money to start a business, you never will. One of the most common misconceptions about starting a business is that if you don’t have enough money behind you; you will fail. The truth is that with any startup it is far better to be broke. Being broke immediately gives you a truly tremendous advantage. It makes you think for yourself. By giving your startup the advantage of being broke will also make you work that much harder to make it succeed. One might say truthfully that the sinews of war aren’t gold; they are effort.
If you don’t think that starting a business is like starting a war you should read the 6th Century BC book by the Chinese General Sun Tzu; The Art of War. The lessons given in this book are ageless, and apply to making war or equally starting a business. During the Gulf War in 1991 Norman Schwarzkopf and his generals used Sun Tzu’s book to plan the Hail Mary Run that outflanked the Iraqi’s. It is also fodder for many of the military academies around the world. A translation of this book can be found on the internet. Read it before you start anything!
Another very good book you should read is “The Prince” by Nicolo Machiavelli. This book was bedside reading for two of the greatest tyrants of the twentieth century: Adolph Hitler and Joseph Stalin. This is a fifteenth century treatise on political science, and although it was written over 500 years ago its message is also timeless. Its real message is that it will tell you about human nature, and that hasn’t changed for thousands of years.
Now that I have armed you with two of the greatest treatises in warfare, or business, now is the time to form your own business. First things first though you should have immersed yourself in the lessons of these two books. Write down on paper exactly what you intend to do. This is also very important because it focuses your thoughts on the business, and when your thoughts stray as they will; you always have a reference point to go back too.
Starting a business is like getting married. You do it when you are prepared, not when you are ready. In the same vein you should have a woman who is also committed to your plans. If you don’t, God help you. The relationship between man and woman has smashed empires let alone businesses.
About starting with no money, well you get up in the morning don’t you?
Just remember that capital is wealth, it isn’t necessarily money. The things you already have will be enough to start with; the rest will come to you with time anyway. A very wise man once said, “Money is worth a nickel a bushel.”
If you don’t think that starting a business is like starting a war you should read the 6th Century BC book by the Chinese General Sun Tzu; The Art of War. The lessons given in this book are ageless, and apply to making war or equally starting a business. During the Gulf War in 1991 Norman Schwarzkopf and his generals used Sun Tzu’s book to plan the Hail Mary Run that outflanked the Iraqi’s. It is also fodder for many of the military academies around the world. A translation of this book can be found on the internet. Read it before you start anything!
Another very good book you should read is “The Prince” by Nicolo Machiavelli. This book was bedside reading for two of the greatest tyrants of the twentieth century: Adolph Hitler and Joseph Stalin. This is a fifteenth century treatise on political science, and although it was written over 500 years ago its message is also timeless. Its real message is that it will tell you about human nature, and that hasn’t changed for thousands of years.
Now that I have armed you with two of the greatest treatises in warfare, or business, now is the time to form your own business. First things first though you should have immersed yourself in the lessons of these two books. Write down on paper exactly what you intend to do. This is also very important because it focuses your thoughts on the business, and when your thoughts stray as they will; you always have a reference point to go back too.
Starting a business is like getting married. You do it when you are prepared, not when you are ready. In the same vein you should have a woman who is also committed to your plans. If you don’t, God help you. The relationship between man and woman has smashed empires let alone businesses.
About starting with no money, well you get up in the morning don’t you?
Just remember that capital is wealth, it isn’t necessarily money. The things you already have will be enough to start with; the rest will come to you with time anyway. A very wise man once said, “Money is worth a nickel a bushel.”
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