Wealth Making: How Michael Dell Made His Wealth
One of the things I really like doing is studying the lives of successful business people. Learning from their experiences one does not only see how to recognise a business idea or opportunity, but also some useful business start up and success strategies. You will equally be able to avoid the mistakes they made and save yourself from making wrong decisions and losing big money. Above all by following their pathway to wealth, you stand a better chance of being wealthy too.
At the age of 12 young Michael Dell had started showing traits of a great entrepreneur by recognising a business opportunity in collecting stamps. With $2, 000 made from this business he knew his wealth was already piled up for him in business. He only needed to continue to apply his remarkable innate ability to identify business opportunities with high money making potential.
At the age of 16 Dellâ€™s business mind pointed out to him that there could be new people living in his Houston neighbourhood who may need newspaper subscription. Therefore, getting the Cityâ€™s mortgage and marriage license list he made contact with these people and got their subscriptions. This proved to be a very profitable business idea as Dell raked in more than $18, 000 only in the first year of selling newspapers. Though he was still in high school, he had started making real money and building his wealth so much that before he graduated from high school he was already ridding a BMW car.
An important business success factor I donâ€™t want you to miss about Dellâ€™s business experience up to this time is his development of people skill. To be successful, make money and build wealth in business an entrepreneur must be able to reach out and relate with people. They must develop the ability to boldly present their service or product to people to buy. This is critical to their ability to make wealth.
Again, bringing his exceptional ability to spot juicy business opportunities, in his dormitory room at the University of Texas where he was studying biology to become a physician, he birthed a business idea that revolutionised the computer sales industry.
In 1984, with the price of computers at $3, 000, Dell had a business idea. He noticed that if he bought the computer parts separately it would only cost him $600. And if he assembled them he could bring the price down greatly from $3, 000 for buyers and still make good profit for himself. He immediately saw a big business opportunity here to make good money and he left school to set up his business which he named PCâ€™s Limited.
True to his belief that the idea would work, Dellâ€™s PC Limited immediately became a big success. Applying a unique system of building computers for individuals to suite their purpose at a highly reduced price from branded ones, Dellâ€™s PC Limited made $6 million in sales in its first year in business. From then on Dell continued to pile up his wealth into the billions.
The bottom line about how Dell built his wealth is two-fold. One, his exceptional ability to identify business opportunities, which in a nutshell is to render good service to people. Two, his focus on finding a way to bring down the market price of computers. This he did by reaching out directly to buyers and cutting out middle men, thereby allowing more people to have access to his computers, while equally making some money in between.
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