Business Ideas: Learning from Geniuses
Do you know what is the main difference between outstanding businessmen and mediocre ones? They did not work in the current system. Instead, their business ideas became a new system for doing business. Therefore, we propose to look at the famous business geniuses not as billionaires, philanthropists and playboys. How about inventors? And not only specific things, but also the ways of their production and promotion.
We’ll tell you about three outstanding entrepreneurs and the business innovations that propelled them to the pinnacle of success.
Henry Ford Business Ideas
Henry Ford is known as the man who turned the automobile from a luxury into a means of transportation. Therefore, the emphasis in his merits is not on a specific car, but on the method of its production. If you want details, read his biography on our blog. Or Henry Ford’s own book, My Life, My Achievements.
Once upon a time, the industrial revolution began in the world. One of its elements was the emergence of machine production. People divided the stages of making an object not only among themselves, but also between special machines. We do not know who was the first to come up with the idea of moving from a manufactory to a factory. But we know for sure that the mass production of cars in a conveyor belt is the work of Henry Ford.
Henry Ford invents the automobile
No, of course, Henry Ford did not invent the car itself, but its mass model. The first car carried people without the participation of Mr. Ford. In creating Ford, his business ideas did not come from scratch. Innovation elsewhere. The main idea was Henry Ford that the future belongs to cars accessible to everyone. So, the car must have a rising price. And the production of such a scale to satisfy all requests.
When the Ford Motor Company opened, its CEO thought of every detail. He took care not only about WHAT to release, but also about HOW exactly.
Production of Henry Ford: machine and conveyor
When a boy named Henry lived on a farm, he was upset by one curious circumstance. He believed that farmers put in more labor than they receive product. As an adult, he built a grain thresher. She worked on gasoline and saved the farmer’s time. But the real time savings began in Henry Ford’s own factory. He took as a basis a promising direction – the conveyor.
If you want to sell an expensive thing cheaply, you need to simplify its production. There was an opinion that a car is not a toy for you. You can’t just take it and make it without sky-high qualifications and a long assembly. And Ford said yes. Henry Ford’s production moved to the assembly line. Each worker honed his skills to the ideal at a particular facility. So he saved on specialists. Imagine: the engine was prepared by 84 workers, and each of them did something different! The work flowed, and the car was made up of many parts. Wages at Ford Motor Company factories were rising. Time for the manufacture of "Ford" – decreased.
The assembly line of Henry Ford in just a couple of months reduced the time for assembling a car to 2 hours. This speed improved the lives of the workers. So they got the usual 8-hour working day and paid vacation. And all mankind has a budget car.
Ford’s championship in the automotive industry held a record time. But for the world, his merit is not only in the budget car. He launched the production of complex equipment on the conveyor. And it made life easier for many inventors.
Isaac Singer Business Ideas
Isaac Singer is known as the creator of the famous sewing machine. It is famous: a patent for such a technical innovation has been issued more than once. But these were bulky and uncomfortable designs. It was difficult for seamstresses to work for them. And housewives – and even more so. Singer improved the finished model and brought it to the top in sales.
What he really invented from scratch is the franchise business. Franchising most often pops up with the name of Ray Kroc – the man who gave the world McDonald’s. If you are interested in his story, you can get acquainted with it in our material. And now you have the secrets of the founder of a franchise business.
Singer sewing machine
It’s funny to say, but the invention took only 10 days. That is how long it took the young talent to make a splash in the light industry. Isaac Singer took a ready-made sewing machine as a basis. I analyzed all its shortcomings (and, believe me, there were many). And figured out how to fix it. As a result, the machine has a foot pedal, a board table and a horizontal shuttle. And seamstresses have free hands for work, a comfortable surface and a continuous seam.
By the way, the price of a Singer sewing machine has seriously increased over time. So if your grandmother has such an “old lady" in the attic, congratulations. You have just found a very fast and easy way to make money.
Singer’s sewing machines were snapped up like hot cakes. New business ideas were required for the mass sale of goods. And Isaac Singer came up with franchising.
Franchising as a new business
The peculiarity of the production of equipment is that it tends to break. Customers need a vital service with repairs and other services. Isaac Singer successfully sold his cars in all states of America. But he failed to establish a quality service for the equipment. However, he found another way out of the situation – franchising.
The businessman began trading in the rights to sell and service his cars. And they regularly bought the rights, because Singer’s business was going uphill. This is how the first distributors appeared. And this is in the middle of the nineteenth century, by the way. In the end, both the case itself and the Isaac Singer franchise left their mark on history. And doing business like franchising helps companies become global corporations.
As you can see, the business ideas of Isaac Singer were so good that they quickly scattered around the world. And over time, they turned out to be even more relevant than his sewing machines.
Carl Rehnborg’s business ideas
It is difficult to imagine modern business without network marketing. But the name of its creator, Karl Rehnborg, is known to a few. Indeed, the creation has surpassed the creator. Meanwhile, the history of the emergence of MLM (Multi-Level Marketing) is very entertaining. So here are some facts about network marketing and its emergence.
Network Marketing: A Business Idea from Jail
Carl Rehnborg, the representative of the American company in Shanghai, landed right in the millstones of history. The armed coup and the new Chinese dictatorship sent him and hundreds of other Americans to prison. The conditions for the prisoners were very harsh. A chemist by training, Rehnborg quickly realized that a prisoner’s diet would not last long. He began to extract vitamins from improvised things. Not only local plants were used, but also rusty nails. The chemist whittled them into his plate, convincing the inmates of the need for iron. Most laughed at him, and some believed and did the same. It was they who were able to survive the imprisonment and return to their homeland.
Now Karl Rehnborg had strong evidence in favor of vitamins. A few experiments – and the miracle drug is ready. But a formula and a business idea are not the key to success.
Why network marketing?
Karl Rehnborg distributed his first vitamins for free to friends and acquaintances. But they ignored his invention. Then Rehnborg asked for money for his supplement. And people are interested in the product! In addition, nutritional supplements have proven to be truly beneficial. Customers told their friends about the vitamins, and those friends told theirs, and orders grew. So Karl Rehnborg came up with the organization of the world’s first network business.
Carl Rehnborg founded California Vitamins. And he invited his friends to distribute his product for the money from sales. Moreover, payments were also made for attracting new sellers. The scheme proved so effective that the business literally took off. Other entrepreneurs learned about network marketing as a business phenomenon. And many have followed this path. An additional plus – MLM saves money on advertising. If Henry Ford said that he was ready to spend $ 3 out of 4 on advertising, then Karl Rehnborg got it for free!
By the way, not only Rehnborg’s business ideas have survived to this day, but also his company. True, now it is known under the name "Amway".
