Success in business often comes not from groundbreaking innovations or possessing extraordinary talents, but from unwavering determination, hard work, and a deep commitment to serving customers. This article explores the remarkable stories of two individuals who, with minimal resources, built thriving businesses by focusing on these very principles. Their journeys offer valuable lessons for entrepreneurs and business leaders alike.

The Story of Rose Blumkin: From Immigrant to Furniture Magnate

In 1917, Rose Blumkin arrived in Seattle with nothing but a tag around her neck indicating her destination—Fort Dodge, Iowa. She couldn’t speak English and struggled to learn the language. After moving to Omaha in 1919, she found a small community of Russian Jews, which helped her feel more at home. Her daughter, who attended school, would come home each day and teach her mother the words she learned, allowing Rose to gradually learn English.

For 20 years, Rose saved money by selling used clothing. She brought her family members to the U.S., one by one, and by 1937, she had saved $2,500. With this modest sum, she traveled to Chicago, purchased some furniture, and fulfilled her dream of opening a furniture store.

Despite having no formal education, Rose built a business that she eventually sold to Berkshire Hathaway in 1983 for approximately $60 million. Her business continued to thrive, generating over a billion dollars in revenue. Rose, who worked until she was 103, exemplified the spirit of determination and customer care. Her success was rooted not in unique products, but in her relentless work ethic and dedication to her customers.

The Story of Jack Taylor: Building an Empire from Humble Beginnings

Jack Taylor’s journey began in 1922 in the Midwest. After dropping out of college and serving in World War II, where he earned two Distinguished Flying Crosses, Jack returned to the Midwest and worked various jobs. By age 35, he was a used car salesman at a Cadillac dealership in St. Louis, Missouri.

Jack decided to venture into the car leasing business with his boss, who agreed to the partnership if Jack would halve his salary and contribute $25,000. Jack borrowed the money and started a small car leasing company with just seven vehicles. Business was slow, and Jack employed a clever trick—letting the phone ring a few times to create the illusion of being busy when it was likely the only call of the day.

At age 40, Jack decided to compete in the rental car business, taking on industry giants like Hertz and Avis. Starting with 17 cars, he couldn’t compete on product differences, so he focused on providing superior customer service. He named his company Enterprise, after the aircraft carrier he served on during the war.

Jack’s focus on customer satisfaction paid off. By the time of his death, Enterprise had grown into a company worth more than all its competitors combined. Jack’s success story illustrates that even in a highly competitive market, an ordinary business can achieve extraordinary success by prioritizing the customer experience.

Key Lessons for Entrepreneurs

  1. Persistence and Determination: Both Rose Blumkin and Jack Taylor faced significant challenges and humble beginnings. Their success came not from immediate breakthroughs but from years of persistent effort and a refusal to give up on their dreams.
  2. Customer Focus: A common thread in both stories is a relentless focus on customer satisfaction. Rose built her furniture business on low margins and customer care, while Jack differentiated his rental car company through superior service. Success often comes from consistently delighting customers, making them want to return.
  3. Adaptability and Learning: Jack Taylor’s early ventures were not wildly successful, but he learned from each experience. By the time he entered the rental car business at age 40, he had a clear understanding of what he could do differently to succeed. The ability to learn and adapt is crucial in any business.
  4. Building Through People: As businesses grow, success increasingly depends on the ability to work through others. Both Rose and Jack built companies that could thrive beyond their personal involvement, thanks to their ability to instill their values and customer-focused approach in their employees.
  5. Surround Yourself with Excellence: Success is often influenced by the people around you. Surrounding yourself with individuals who inspire and challenge you to be better can have a profound impact on your personal and professional growth.

Conclusion

The stories of Rose Blumkin and Jack Taylor serve as powerful reminders that success in business is achievable through hard work, customer focus, and a commitment to learning and growth. These principles, more than any single idea or innovation, can turn even the most ordinary business into something extraordinary. For entrepreneurs and business leaders, these lessons are timeless and invaluable on the path to success.

This is market commentary, not personalized financial, real estate, tax, legal, or otherwise advice. It is not and shall never be deemed reasonably sufficient information for the purposes of evaluating a security. I may hold beneficial positions for or against the securities discussed. This content is solely to provide generalized perspective, facts, and commentary.