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Becoming An Industrialist

YoungPadawan

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(Preface: sorry, a little buzzed on a Friday night)

Had a thought recently: what is it that separates a regular businessman(woman) from becoming an industrialist?

What are the qualities, that takes a simple businessperson to touching every corner of the globe?

I think a crucial element is distribution. But something that I've started to realize is how important joint ventures/deals are.

Think about this:

What do Jeff Bezo's and John Rockefeller have in common?

Well, first off, they have/had the most sophistocated distribution system of their time.

The second thing, is Jeff Bezo's had mega deals, 1st with book publishers (which he later screwed over) and then with UPS to get products from 3rd parties to Amazon's fulfillment centers cheaply. John Rockefeller had deals with the rail lines (which he also screwed over when he built pipelines, but that's beside the point).

What I believe the key was to their success? Reinforcing feedback loops. (Look up system thinking)

What is something that creates more of itself?

The most basic answer: money. The more money you have, the more you can invest which creates more money.

The more businesses you own, the more money you create, so you can buy more businesses.

The more deals you have, the more money each deal makes for you, the more people you can hire to make deals for you.

It is exponential. The only limit is how big your mind can think.

What are your thoughts? Do you think it's only possible to become an industrialist in a developing country? (Africa, parts of SouthEast Asia, etc.)
 

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100k

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Yes, having the right distribution model and being able to scale quickly (through JV if possible) is really important.

Was looking into those two things like 2 days ago.

Here are a few useful links for you to check out;

View: https://www.youtube.com/watch?v=Mhdag5pWUNg


View: https://www.youtube.com/watch?v=xBHLt5NNUWc&feature=youtu.be&t=7771


View: https://www.youtube.com/watch?v=09FBdCa9Cl4





Basically, you want to JV with other companies already established in the marketplace, but aren't in direct competition with you.

Approach them to for a JV where they lend their reputation/their brand/their network/their customers/their distribution channels and you cover the cost of putting the JV together - and give them a % of the profits made.

So you might decide to set up a company that will manufacture recyclable plastic packaging that dissolves in water to be used by all distributors, wholesalers and manufacturers that handle pallets.


You'd then contact the National Association of Wholesaler-Distributors https://www.naw.org/ and offer them 10% of profits for all the new business they generate you. They already have a mailing list and access to all of the distributors in the USA.... all they'd have to do is send an email letting their members know that you're offering a super awesome product that is good for the environment (and you cover the cost of writing the copy & sending the letters/emails).

Welp - that's one idea you could execute on. I kinda put together just to give you an example.

View: https://www.youtube.com/watch?v=0LWgbBPZ6Ho


Contact the person / company that owns the technology and have them licence their tech to you in return for a % of the profits you make (you'd of course want exclusive rights to north America for the pallet category).
 

SparksCW

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Amazing. I'm sat here on a Saturday morning when everyones out at the beach stressing that I'm struggling to grow my business and then you go and post this.

I'm not going to start a packaging company :rofl: but the concept has given me some ideas.

Thank you.
 

LittleWolfie

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(Preface: sorry, a little buzzed on a Friday night)

Think about this:

What do Jeff Bezo's and John Rockefeller have in common?
Cofounders, standard oil was Rockefeller and Henry flagner and Amazon was Mr and Mrs Bezos in year 1.

There is often one who ends up in the limelight, no one wants to read about the equally important quiet behind the scenes person .

Also rich parents, Jeff's parents gave him $300,000 to start amazon and Rockefeller's dad gave him the equivelant of $30,000 in today's money.

How would an extra 30k or 300k change your approach to fastlane?

I'd bet Africa produces a few Rockefellers (once someone builds out the basic infrastructure)
 
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YoungPadawan

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GPM

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Also rich parents, Jeff's parents gave him $300,000 to start amazon and Rockefeller's dad gave him the equivelant of $30,000 in today's money.
LOL!

So 300k from dad is what made Amazon? What about JD's worthless brother who essentially stole from him his entire life, why didn't he create standard oil.

These belief systems at work make me want to smash my head into a wall until I puke blood. Seriously, get your head out of your asses.

There are 2 successful Koch brothers, and some more that no one has ever heard of. They were all born into the same circumstances and share similar ginetics, so why didn't that silver spoon and rich daddy make them billionaires as well? I thought it just took daddy's money.
 

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LOL!

So 300k from dad is what made Amazon? What about JD's worthless brother who essentially stole from him his entire life, why didn't he create standard oil.

These belief systems at work make me want to smash my head into a wall until I puke blood. Seriously, get your head out of your asses.

There are 2 successful Koch brothers, and some more that no one has ever heard of. They were all born into the same circumstances and share similar ginetics, so why didn't that silver spoon and rich daddy make them billionaires as well? I thought it just took daddy's money.
He was already on my ignore list. LOL. My ignore list is like AI.

Anyone that sounds like Malcom Gladwell, where success always gets some kind of asterisk, gets the axe.
 
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YoungPadawan

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LOL!

So 300k from dad is what made Amazon? What about JD's worthless brother who essentially stole from him his entire life, why didn't he create standard oil.

These belief systems at work make me want to smash my head into a wall until I puke blood. Seriously, get your head out of your asses.

There are 2 successful Koch brothers, and some more that no one has ever heard of. They were all born into the same circumstances and share similar ginetics, so why didn't that silver spoon and rich daddy make them billionaires as well? I thought it just took daddy's money.
Bahaha, precisely. I read Rockefellers biography a while back, and I remember Rockefeller begging his brother to keep his standard oil stock. Then the idiot sold it and tried to start up his own oil business, if I remember the book correctly.

Wherever a person is in their life is by their own making, good or bad. The choices you make in life shape your future.
 

LittleWolfie

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So 300k from dad is what made Amazon?
Of course not, notice how I also mentioned the importance of Jeff's co-founder, Mrs (Mackenzie) Bezos in my post.

I'm simply saying one of the things they had in common was wealthy parents(they were also both men)

What about JD's worthless brother who essentially stole from him his entire life, why didn't he create standard oil.
Because of lack of Henry Flanger equivalent, distribution systems and hard work (at the very least) he only had part of the puzzle.

I note you make no mention of the importance of co-founders also discussed in my post.

If you are unwilling to open your mind when an answer to a question is something unexpected,then avoid asking it.

These belief systems at work make me want to smash my head into a wall until I puke blood. Seriously, get your head out of your asses.
This is a fact recoded in history, you asked what they had in common and I told you. No belief is required, if I'm wrong then point me to the sources where either this is untrue or examples of industrialists without wealthy parents and that will get my head out. I need to be shown examples,if you are unable to easily produce any,what does that tell us?

I know it plays against the Gary Vee narrative however the evidence is that money is an important part of the equation,when you look at process so far all these come from nothing people have had something to invest first.

. They were all born into the same circumstances and share similar ginetics, so why didn't that silver spoon and rich daddy make them billionaires as well?
Huh,that is interesting, sounds like the koch brothers would be very interesting to study.

I thought it just took daddy's money.
What kind of moron thinks that? It is about as stupid as thinking that money is unimportant.
 

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There are 2 successful Koch brothers, and some more that no one has ever heard of. They were all born into the same circumstances and share similar ginetics, so why didn't that silver spoon and rich daddy make them billionaires as well? I thought it just took daddy's money.
There are four Koch brothers.

The only one who isn't a huge success is the oldest, Fred Jr. He had an artistic bent from a child.

Fred Koch poured his energy into the three younger brothers. Most of that into Charles Koch, the smartest of the four.

Charles and David (RIP) run Koch Industries, the 2nd largest private company in America.

William, David's twin, is the founder, president, and CEO of Oxbow, the 184th largest private company in America.


So, it seems silver spoons do help.
 

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LittleWolfie

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That is very interesting,thanks @Rawseed

I wonder if the father's decision to pour the energy in to the younger sons was before or after the eldest one's decision to commit his life to the art world.

It makes sense,if you have no interest in business,that you will be unlikely to grow a large businesses empire.
 
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YoungPadawan

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Cofounders, standard oil was Rockefeller and Henry flagner and Amazon was Mr and Mrs Bezos in year 1.

There is often one who ends up in the limelight, no one wants to read about the equally important quiet behind the scenes person .

Also rich parents, Jeff's parents gave him $300,000 to start amazon and Rockefeller's dad gave him the equivelant of $30,000 in today's money.

How would an extra 30k or 300k change your approach to fastlane?

I'd bet Africa produces a few Rockefellers (once someone builds out the basic infrastructure)
The thing is, Rockefeller didn't have a pot to piss in when he first moved to Cleveland. He had nothing.

He got a regular J.O.B. to build some funds first. Then he became a commission merchant, selling different foodstuffs, which he became good at and got a significant amount of money from. It was through doing this merchandising where he first heard of the oil business.

Sure, Henry Flanger was an important part of the story. But I would argue that I think Rockefeller would have done well regardless. It's all about creating opportunities for yourself, getting out into the world, and being in the right place at the right time.

That's how you create your own "luck."
 

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Cofounders, standard oil was Rockefeller and Henry flagner and Amazon was Mr and Mrs Bezos in year 1.

There is often one who ends up in the limelight, no one wants to read about the equally important quiet behind the scenes person .

Also rich parents, Jeff's parents gave him $300,000 to start amazon and Rockefeller's dad gave him the equivelant of $30,000 in today's money.

How would an extra 30k or 300k change your approach to fastlane?

I'd bet Africa produces a few Rockefellers (once someone builds out the basic infrastructure)
Africa has already helped produce quite a few modern industrialists, except they all speak Mandarin and Cantonese not Xhosa or Swahili.

That's actually an excellent example of a feedback loop currently in action:

Chinese firms offer to build a mine, dam, develop an oilfield etc. Kenya jumps at the offer, knowing it will provide X amount of local jobs.

But we have a problem. There's no local road connecting the area to a major port. Luckily, the friendly Chinese Infrastructure Bank is willing to loan you the billions required to build one of the nicest, most advanced railways in all of Africa.

Such nice folks, aren't they?

Wait, none of the African firms are able to develop such a vast infrastructure project. Not to worry, the Chinese infrastructure bank has sweetened the loan deal by pulling some strings to convince one of the Chinese engineering firms to help Kenya out.

A few years of delays, cost overruns and interest payments have been quite hard on the Kenyan government - and not surprisingly, the CIB is very cooperative and extends the loan period from 15 to 30 years.

Should Kenya find itself in trouble down the road, the eternally gracious Chinese have written in a clause in the renegotiation agreement that they will take the Mombasa port off their hands so they don't have to fret over the expenses of running such a large sea port.

And this is happening literally all over Africa and the rest of the developing world.

A full scale entrenchment of OBOR has the potential to make American post-war industrialization look like a 13 year old with a piggy bank.
 

Matt Sun

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I wonder when did Rockefeller stoped being and entrepreneur and decided to start throwing democratic goverments in latin america and all over the world to put dictators to secure access to those country's oil...
 

Kevin88660

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Of course not, notice how I also mentioned the importance of Jeff's co-founder, Mrs (Mackenzie) Bezos in my post.

I'm simply saying one of the things they had in common was wealthy parents(they were also both men)



Because of lack of Henry Flanger equivalent, distribution systems and hard work (at the very least) he only had part of the puzzle.

I note you make no mention of the importance of co-founders also discussed in my post.

If you are unwilling to open your mind when an answer to a question is something unexpected,then avoid asking it.



This is a fact recoded in history, you asked what they had in common and I told you. No belief is required, if I'm wrong then point me to the sources where either this is untrue or examples of industrialists without wealthy parents and that will get my head out. I need to be shown examples,if you are unable to easily produce any,what does that tell us?

I know it plays against the Gary Vee narrative however the evidence is that money is an important part of the equation,when you look at process so far all these come from nothing people have had something to invest first.


Huh,that is interesting, sounds like the koch brothers would be very interesting to study.



What kind of moron thinks that? It is about as stupid as thinking that money is unimportant.
Well I agree with you. Pointing out someone has rich parents is not discrediting their efforts.

But I think this place is not short of thought police who assume you are trying to spread the defeatist view that “oh look they have wealthy parents thats why they make it, rest of us have zero chance...”. I just find it funny to warrant such a big reaction.
 

Kevin88660

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Africa has already helped produce quite a few modern industrialists, except they all speak Mandarin and Cantonese not Xhosa or Swahili.

That's actually an excellent example of a feedback loop currently in action:

Chinese firms offer to build a mine, dam, develop an oilfield etc. Kenya jumps at the offer, knowing it will provide X amount of local jobs.

But we have a problem. There's no local road connecting the area to a major port. Luckily, the friendly Chinese Infrastructure Bank is willing to loan you the billions required to build one of the nicest, most advanced railways in all of Africa.

Such nice folks, aren't they?

Wait, none of the African firms are able to develop such a vast infrastructure project. Not to worry, the Chinese infrastructure bank has sweetened the loan deal by pulling some strings to convince one of the Chinese engineering firms to help Kenya out.

A few years of delays, cost overruns and interest payments have been quite hard on the Kenyan government - and not surprisingly, the CIB is very cooperative and extends the loan period from 15 to 30 years.

Should Kenya find itself in trouble down the road, the eternally gracious Chinese have written in a clause in the renegotiation agreement that they will take the Mombasa port off their hands so they don't have to fret over the expenses of running such a large sea port.

And this is happening literally all over Africa and the rest of the developing world.

A full scale entrenchment of OBOR has the potential to make American post-war industrialization look like a 13 year old with a piggy bank.
I am in South East Asia. We are feeling the impact of the China trend.

The surge in Real Estate prices has been partly due to Chinese investors for the past few years.
 

100k

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(Preface: sorry, a little buzzed on a Friday night)

Had a thought recently: what is it that separates a regular businessman(woman) from becoming an industrialist?

What are the qualities, that takes a simple businessperson to touching every corner of the globe?

I think a crucial element is distribution. But something that I've started to realize is how important joint ventures/deals are.

Think about this:

What do Jeff Bezo's and John Rockefeller have in common?

Well, first off, they have/had the most sophistocated distribution system of their time.

The second thing, is Jeff Bezo's had mega deals, 1st with book publishers (which he later screwed over) and then with UPS to get products from 3rd parties to Amazon's fulfillment centers cheaply. John Rockefeller had deals with the rail lines (which he also screwed over when he built pipelines, but that's beside the point).

What I believe the key was to their success? Reinforcing feedback loops. (Look up system thinking)

What is something that creates more of itself?

The most basic answer: money. The more money you have, the more you can invest which creates more money.

The more businesses you own, the more money you create, so you can buy more businesses.

The more deals you have, the more money each deal makes for you, the more people you can hire to make deals for you.

It is exponential. The only limit is how big your mind can think.

What are your thoughts? Do you think it's only possible to become an industrialist in a developing country? (Africa, parts of SouthEast Asia, etc.)
I wonder when did Rockefeller stoped being and entrepreneur and decided to start throwing democratic goverments in latin america and all over the world to put dictators to secure access to those country's oil...
So long as you can raise the capital (most likely from investors or by issuing a corporate / retail bond) its pretty easy to become an industrialist - even if you don't know a thing about that stuff.

You don't need to reinvent the wheel.

You don't need to go to school and get a degree in industrial chemical engineering.

You can literally hire people that have those expertise and they'll do everything from research the viability of your plans, design the premises, find & acquire the industrial machinery you'll need, provide you with a process (i.e standard operating procedures), show you how to market etc.

Basically they offer a franchise service - but for industrial application.

Its called "Turnkey project".





Other manufacturing activities you can look into are: SDK and CKD.

SDK & CKD is where you import semi-knocked down or complete knocked down goods i.e goods that are not 100% ready for the end user, and you add value to them by assembling them and turning them into complete goods and then selling them to distributors or wholesalers.


You can buy anything from smartphones, tvs, buses, cars, ships to houses and anything in between as SDK/CKD, add value to it and resell for a profit. And you'd essentially be an industrialist.

This was in fact how the South Korea kickstarted their industrialization and to a certain degree Japan.

View: https://youtu.be/FpMc3OLq36w?t=1645


This is a really good documentary, def. worth watching if you want to know how to industrialize a nation or become the next "Rockefeller" .
 

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