Henry Ford’s success did not come in his first attempt to become an entrepreneur, but it was only his third project that led to the greatest success in its history, the Motor Ford Company (1903), with which he put automobiles within reach of the middle class.
Here are the 5 keys to success that are found in the phrases of Henry Ford.
“Innovation without execution is hallucination” .- Henry Ford.
Ford was not an inventor but an innovator. Thanks to its in-line assembly model, mass production originated on a scale never seen before.
However, remember that Ford did not invent the car, it simply took a product that already existed, improved it, and sold it as a new product to a market that could never have it before.
“If I had asked people what they wanted, they would have told me faster horses.” – Henry Ford.
Ford achieved its success by offering a solution to a problem that people didn’t know they had.
As an engineer, Ford wanted to develop a custom form of transportation, but before doing so, it did extensive market research to find out what people needed and how much they were willing to pay.
“Quality means doing things right when no one is watching.” – Henry Ford.
Despite the great success that Ford achieved in the early 20th century with its Model T, its work ethic never changed.
The entrepreneur knew that mass production could cause the quality of his product to decline over time.
But the reputation of his name was so important to him that he never allowed that to happen.
“I have observed that efficient people advance while the rest lose their time” .- Henry Ford.
Ford’s company was based on the efficiency of its production line.
Online assembly allowed him to produce cars quickly and cheaply.
But it also opened the door for him to pay his employees better wages.
This in turn allowed the company to retain them for longer and train them for the growth of the firm.
“There is nothing that is really difficult, just a lot of small problems.” – Henry Ford.
Ford never thought his name would be iconic in the auto industry 68 years after his death.
He started his company by developing a product. then designing a production model that would allow it to have competitive prices.
And then extensively studying the market and finally launching a strong advertising campaign.
What led to Henry Ford’s success as an entrepreneur his personal wealth?
Henry Ford had an excellent business idea but did not have the capital to execute it. The banks didn’t want to grant him financing, but that didn’t stop him.
He proceeded to build a business model based on the OPM (Other People Money) strategy by following the following steps:
- He first proceeded to borrow money from his friends since he needed to show the existence of a minimum capital that would serve to support the seriousness of the project and the commitment acquired.
- Then he created a network of relationships with the future dealers of his cars. From them, he managed to agree to pay in cash for the cost of the cars that he sent them without having to be sold first.
- Finally, he negotiated with the input suppliers a 30-day term schedule for the payment of the raw materials that they provided.
The conjunction of steps b and c was key to generating the cash flow he needed to finance his business idea.
Henry Ford was actually using the OPM strategy by funding himself from its suppliers and distributors.
He would produce the cars in less than 30 days and close the loop with financing obtained from suppliers.
Which one is the reason for entrepreneurial success?
For an entrepreneur to be successful, qualities such as the following are necessary:
Motivation and attitude:
To start a business and start making a profit, takes time and effort.
It is important to have a clear idea of our reasons for starting a business.
And to have the passion and positive attitude that are necessary to stay motivated and to achieve business success.
Every good company should have a clear business plan, outlining the business and how it plans to meet its objectives.
The business plan should be simple and concise. In addition, it must reflect a good knowledge of the market.
In order to know if your business is doing well, it is important to keep proper accounting records.
These records help us with the day-to-day running of the business and allow us to identify potential challenges that need to be addressed.
Knowledge of the competition:
It is necessary to understand the market in which we are operating. There will be other companies that will already be competing for the same clients.
We have to be creative and think about how we can make our business stand out from the rest.
How did Henry Ford get rich?
This businessman, who is considered the most influential in the history of the United States, built an economic empire through innovative production methods.
With the introduction of the Ford T in the automobile market, transportation, and industry in the United States were completely revolutionized.
In less than 20 years, after its creation, Ford turned an expensive and practically unknown product into an affordable and mass-consumption.
That allowed it to cover 60% of the world market until today.
The Ford pioneer not only invented the cheap car but also designed a new manufacturing process that ultimately changed the fledgling industry of the 20th century.
In this way, the automobile giant became the catalyst of modern consumer culture, achieving the status of the father of mass production chains.
Is Ford owned by GM?
Yes, Ford is owned by GM (General Motor) company. They are the largest automobile brand in the USA.
Both GM and Ford are leaders and powerful competitors in the global automobile industry.