Start your own business
70% of companies that start from home succeed within the first three years, compared to only 30% of traditionally structured companies.
Economics is neither flattering nor inclined to give false images that beautify reality or even make it ugly. Therefore, it is not surprising that the direct and frank style of economic analysts on the Bloomberg global economic website, who talked about the world being on the verge of a certain economic recession in the year 2023. This gripping result is The consensus of most economic institutions, even those that use more gentle formulations, such as Goldman Sachs, whose experts described the new year as a year of “prolonged downturn”.
Certainly, entrepreneurs aspiring to build and expand their companies come at the top of the list of those affected by this recession, as they find themselves face to face with the insane rise in prices, specifically with regard to owning or renting a headquarters, warehouse, or store to operate the company; What makes many companies – especially those that provide real, tangible products and not digital services – approach the issuance of a death certificate.
Well, given the fact that the current circumstances are undoubtedly difficult and harsh for every business owner, but who said that you need a large headquarters or warehouse to start your company? In fact, we have a list of companies that everyone around the world knows now that are worth billions of dollars starting from a room and a hall of a home or a kitchen!
Room. from which DELL started
Michael Dell, founder of the tech giant Dell, started his company from a small dorm room – social media
Michael Dell, founder of the tech giant Dell, started his company from a small college dorm room.
At the beginning of the eighties, the American and global market was going through a great recession known historically as the recession of the eighties, when companies were laying off thousands of employees with the rise in energy prices and the prices of basic goods and services, but it seems that this foggy atmosphere of the economy could not dampen the enthusiasm of the university youth, “Michael Dell”, who He had much more ambition than just studying at the University of Texas at Houston, due to his commerce and business journey in his early life before joining the university.
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During his teens, Michael was obsessed with computers that began to spread globally in the late seventies, and he devoted all his time to one goal only: to disassemble these strange devices and put them back together again. When he joined the university, he noticed that students were accepting computers as an emerging trend in that era, so he decided to establish a small company to assemble computer parts under the name “B Sales”. And sure enough, for an expatriate college student with no money, the company’s headquarters was the small dorm room of several square meters, some for the mattress he lay on, and the rest for the appliances he assembled.
Dell’s activity began by marketing the collected devices to students on campus and selling them at reasonable prices for students, which made him collect good profits. He recycled them by renting a small apartment and re-launching his company again under the name “Dell” with a capital not exceeding $1,000, in the middle of the year 1984, we use three employees to receive orders. Later, Dell was able to produce the first simple computer designed by the company, and raise the quality of the assembled devices, until it reached revenues of one million dollars at the end of the year.
By 1987, with investor money raining down on the promising company, Dell began its global expansion to Europe, then announced the company’s listing for public subscription in 1988 to become a public company that reaped behind it a huge funding round of $30 million that helped it spread around the world. By 1992, Dell was listed as one of the Fortune 500 companies in the world, and Michael Dell was listed as the youngest global CEO of a company to make the list.
Today, Michael Dell’s fortune is estimated at about $45 billion, and the revenues generated by Dell (according to 2021 data) exceed $100 billion annually. And at a time when the “Dell” brand bears reference to the quality of its products from various devices, it also always represents a case study that is taught periodically in colleges of management and business as one of the most famous self-made models of huge technical empires that started from a small room in university housing.
Hall. I started with Spanx
Sarah Blakely is in the early stages of founding Span, which she launched from her small home, and turned into a global company worth billions of dollars – social media
Sarah Blakely is in the early stages of founding Span, which she launched from her small home and turned into a multi-billion dollar global company.
Directly after graduating from the university, Sarah Blakely obtained a quick training at the Walt Disney Company, from which she moved to occupy her first regular job as a sales representative for a company specialized in selling and distributing fax machines, which were among the most used devices in the eighties and early nineties. The nature of her work as a sales representative required her to spend most of her time outside the home to roam between companies and institutions in Florida, one of the US states with the highest levels of humidity and heat.
Therefore, Sarah Blakely carefully chooses her clothes to suit the nature of her work, so that she is very comfortable, and at the same time does not show signs of sweating or moisture. She was already able to access these clothes, but she did not find socks with these specifications in the market, so she herself designed a kind of comfortable socks that outperform those in the market. This made her, with her marketing instincts as a salesperson, feel that she had come up with a great product that might find a real market opportunity.
With her enthusiasm for the idea, she offered a number of factories to produce her socks, provided that she would take care of the design and marketing. Many factories refused, until it was finally accepted by a small factory that agreed to its offer, and manufactured 3,000 pairs of socks to pay for them after selling them. This was the starting point for Blakely, who founded a company called Spanx, designed her own logo, with a capital of only $ 5,000, and is located in her “home hall”!
Sarah Blakely entered the Forbes lists as the youngest self-made billionaire in the world in 2012.
In the year 2000, and from Blakely’s home hall, which turned into a “warehouse” to receive supplies and send them to customers, Spanx products began to gradually appear in the American market, until Sarah was able to sign an agreement with a large store in America to display her socks in 7 stores. Later, Blakely sent her product to a number of American talk shows, led by the Oprah Winfrey program, which showed the benefits of the product to the public. What made the huge demand for buying.
By 2012, that is, 12 years after launching her company in her home, the fax machine sales representative occupied her place in the Forbes list as the youngest self-made billionaire in the world, and also in the list of the 100 most influential people around the world.
Kitchen. Mrs. Fields started from it
Debbie Fields has mastered making cakes and sweets since she was young, and turned her hobby into a successful project that has generated millions of dollars social media.
Debbie Fields has mastered cake and pastry making since she was young, and turned her hobby into a successful multi-million dollar business.
As for “Debbie Fields”, her life was completely traditional by her birth in an ordinary American family to a father who works as a metal welder, a housewife mother and 4 brothers.
These circumstances made her stick to her mother in the kitchen all day; So she learned the basics of cooking, especially making delicious sweets, which she mastered brilliantly, to the point that made her excited to launch her small project when she was only 12 years old, as she made sweets and cakes and then sold them at affordable prices to friends and neighbors.
Despite the simplicity of what she does, she has already managed to save some money to buy an old used car, which she has turned into a mobile shop to sell her sweets.
Later, “Debbie” got married and got busy in married life a little, but she returned again – after giving birth to 5 children – to her first ambition to start a brand bearing her name, after dazzling all her friends and relatives with the splendor of sweets and baked goods that she cooked on social occasions.
In the year 1977, Mrs. “Debbie” decided to transform her project, which she started from the kitchen, into a small shop. “. Mrs. Debbie made sweets and distributed them herself or through representatives everywhere you would expect to find customers, starting from restaurants, through employees, and not ending with passing customers.
The “Mrs. Fields” store achieved tremendous success in subsequent years, with the increasing demand for franchise and franchise companies – that is, the purchase of the brand – until the number of its branches in America reached 160 branches 7 years after its opening, in addition to international branches that generate millions of dollars in profits.
By the advent of the nineties, “Debbie Fields” sold her entire stake in her companies to global investors for millions of dollars, and the American housewife returned to performing her normal task of raising her children and devoting herself to her family life, as well as writing entrepreneurial books and talking about her experience as a businesswoman who earned millions of dollars from something. The only one she loved since childhood: making sweets in the kitchen!
Home Based Business
It seems that the year 2023 will be an extension of the activity of home companies, which the world as a whole began to familiarize with since the beginning of the pandemic in the year 2020.
In fact, “Dell” and “Spanx” and “Mrs. Fields” are limited examples among the millions of companies and small projects that start in “Home Based Business”, many of which later turned into giant companies. According to the most available statistics on this sector, which are figures from the American market, of course, the United States has more than 33 million small businesses, almost half of which are established and run at home. More plainly, there are about 15 million small businesses in America that work from home.
This huge number of companies operating from home pumps about $ 430billion annually into the American market.
According to the Small Projects Management Authority, only 20% of projects that start from home are subject to failure, which is a small percentage that means that only one project out of every 5 small home projects fails completely.
While about 60% of the small projects that were established in homes continued to work from home, even after 3 years of establishing the project.
The figures also say that the minimum amount of capital used to establish home companies ranges between 3-5 thousand dollars in America, and that 70% of companies that started from home succeeded during the first three years, compared to only 30% of traditional regular companies. This indicates a high success rate for small businesses working from home.
In the end, it seems that the year 2023 will be an extension of the activity of home companies, with which the world as a whole began to familiarize itself with it since the beginning of the pandemic in the year 2020, except that the total and partial closures to confront the epidemic will not be the reason this time for starting companies from home, but rather the global recession that causes High prices of offices, employment, and rental of shops and warehouses.
So, maybe it’s time to rethink once again making use of your home hall, kitchen or bedroom to establish your small business.