Today we have an amazing story about a guy who started out just looking for some extra income with a part-time job but ended up turning it into a billion dollar business.
Click the player to listen to this episode of The BIGG Success Show Podcast. Below is a summary of our discussion.
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Jim McCann started out as a social worker, which didn’t pay so well. So, in the early 1970s, he got a part-time job in a floral shop to earn a little extra money. In 1976, he took the plunge and started his own flower business.
Let’s go to The Professor’s Whiteboard as we break down 5 lessons learned from the part-timer who built a billion dollar business.
Jim McCann started out as a social worker, which didn’t pay so well. So, in the early 1970s, he got a part-time job in a floral shop to earn a little extra money. In 1976, he took the plunge and started his own flower business.
1) Always look for opportunities
Jim could have looked at the situation of needing a part-time job as a negative. Instead, he found his BIGG opportunity! The key is to have a grasp on your current situation with a positive outlook, have a willingness to explore new ideas, and trust that things will work out well.
Jim did well in the business, but his one little shop didn’t make that much money. So, he opened another one. Then another one. By 1983, he was running a small chain of fourteen stores.
2) Scale smartly
He only succeeded moderately. But it was enough to think he should try another store. And then he did it again. You may only jump from A to F, not A to Z.
And Jim was ready for an even bigger challenge!
He had an epiphany, one day while getting ready for work. He was listening to the radio as he shaved when he got his BIGG idea: He would build a nationwide flower service!
To support that vision, he thought he needed a memorable toll-free number. He found a company for sale that owned 1-800-FLOWERS. What a great phone number! So he decided to buy them.
3) Don’t be afraid to go for it all
Once or twice in your business career you have to be willing to bet it all. We’ll translate that as you’ve got to be willing to make a BIGG move when an opportunity presents itself. That’s what is going to take you from F to Z.
BUT buying this company was a terrible mistake!
The company had filed for bankruptcy. It was no longer an operating company. In fact, its only asset was the phone number he wanted. But Jim agreed to assume all the liabilities as well. He figured that they couldn’t have any significant debt since they were no longer an operating company.
This is how he got burned!
Once Jim owned the business, he started uncovering the extent of the debt. It was over $7 million! He nearly lost everything he had worked so hard for the previous ten years. His friends told him he should just give up and file for bankruptcy.
4) Don’t skimp on due diligence
When you buy a company, you want to get access to all of their financials. You’re going to talk with customers, employees, vendors, landlords, financiers and the like.
But Jim made up his mind that he would persevere!
He realized that he would have to scale up bigger and faster than he had planned. He used his original company’s assets and good reputation to borrow even more.
It took about five years to get back on his feet, but he did it!
The Professor & Mary-Lynn have an interesting conversation about due diligence. Learn more about this process starting at 7:15. Click the player about to listen.
5) Cover your assets
One of the biggest reasons businesses fail is because they don’t have access to capital. Cash is king, but capital reserves are worth gold. Protect your borrowing capacity and watch your profit margins.
Jim’s next move was to establish an early internet presence. That increased sales even more!
He took his flower company public in 1999. Last year, 1-800-FLOWERS recorded sales of nearly $1.5 billion!
Jim McCann turned a part-time job into a billion dollar business.
Jim’s story proves you can build a significant business even if you are just trying to make a few extra bucks from a part-time job. The key is to just take action and do something that moves you towards a goal. It leads to BIGG success!
George “The Professor” & Mary-Lynn
Co-Founders, BIGG Success
Sources
Stop and Sell the Roses, by Jim McCann
1-800-FLOWERS
Jim McCann: My Biggest Mistake, August 1998, Inc.
Direct link to The Bigg Success Show audio file | podcast:
http://traffic.libsyn.com/forcedn/biggsuccess/01065-071321.mp3
