You can learn a lot about personal finance by looking at the growth of the nation’s largest corporations. How does a small business grow into a household name with offices or franchises around the world? How do you grow your wealth in a similar manner? It’s all about risk management, marketing, accounting, and balancing a budget.
In the following paragraphs, you’ll read about different corporations who’ve thrived in their markets, and outlasted and out-earned their competition. No matter your opinion on these corporations, there’s no denying you know who they are, and that they’re worth a fortune. Here’s what you can learn about building your personal wealth from the nation’s biggest corporations.
From Humble Beginnings…
Google.com was registered as a domain on September 15th, 1997. Google was operated out of a garage until February 1999, and after PC Magazine wrote that the search engine had “an uncanny knack for returning extremely relevant results.” The magazine included Google on its list of Top 100 Web Sites for 1998.
Although this bit of news was enough to catapult the company’s status, it was an initial $100,000 investment from Andy Bechtolsheim that allowed the company’s founders to hire a single employee, and set up a workspace in a garage. The seed money wasn’t used to rent a fancy office space; instead, it was used to build the company and hire the right individual to take Google to the next level.
Your takeaway should be that smart investments are responsible investments. For example, if you see a significant return on your investment, why not put those dollars into an interest paying savings account? It’s not a good idea to just spend it on goods and services that have no future wealth building value.
Innovation and Marketing Yourself
McDonalds invented the drive-thru restaurant, and it was this innovation that built its popularity. Google, obviously, innovated the world’s most intuitive search engine. Apple invented the smart phone, and innovated numerous other devices. And, Walmart offered “the lowest prices anytime, anywhere.”
These innovations were great, and you can be an innovator yourself. Or, you can invest in innovations. Look to invest your dollars in products and services that will see growth overtime, and you may just make yourself rich on a small, initial investment. Healthcare and technology are both industries that are seeing new innovations.
Marketing was essential for all of these brands. Google found itself in PC Magazine, McDonalds built their restaurants with unforgettable arches and red and white tile. Walmart guaranteed low prices to its customers, and Apple prided itself on having the most creative commercials, such as their iconic 1984 Super Bowl ad.
Here’s the takeaway: you should want to stand out in your business. Even if you’re emulating another business, your advertisements should stick out to people. Use memorable colors, make your commercials funny, and match prices. As far as investments are concerned, invest in companies that understand how to rebrand themselves and continue to be long-term successful because people recognize the business.
Considering McDonald’s stock received an A- rating by Morningstar, an investment research firm, McDonald’s offers a low-default risk stock, so the fast food company is still a good investment. In fact, most large corporations with long-term sustainability are okay investments if you can afford their higher prices. For more information on corporate stocks and investments, check out http://sleekmoney.com/.
Overall, you can and should take a look at successful businesses to determine how to emulate their behaviors and thus build your own wealth. You can learn a lot from these companies, but the biggest takeaway is that everything takes time.
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