Sunday, 25 November 2007

Thinking out of the box…..!!

Thinking out of the box…..!!

Many people aren’t aware of what is known as special situations or thinking out of the box that has helped many successful businessmen. This is the ability to be able to make extraordinary situations of out ordinary opportunities.

To explain this better take the following example.

The year 1853 the California Gold rush was in full swing. This was when the people discovered that gold was where they walked everyday. People from all over USA started migrating to California with the dream of making it rich by striking gold.

A 24 year old German immigrant left New York for San Francisco to sell toughed materials that were used to build strong tents and wagon covers.

Miners who were digging gold, weren’t able to do so comfortably because their thin cotton clothing.

That’s when the 24 year old German realized that his toughed material was strong enough to be able to handle the heat and the tough situations under which the miners worked.

The young tailor began stitching pants out of the material that was used to make tents. The material started selling like hot cake with every miner in the country buying at least 2 sets of pants.

Today what started back then as a small business has turned into a giant company called the Levis© Denim company and that young German was none other that Levis Strauss. He is today richer than those who seeked gold in the country.

From the example, we realize that when one thinks out of the box i.e what the others don’t see is when u strike it rich or successful. A number of business men have similar stories to narrate like Levis.

Another eminent business man whose example can be sited for the same is Phil Knight.

In the summer project that Phil had to submit in the University of Oregano, it required that he formulate a business strategy. As an accounting student Phil was also a middle track runner. Back then i.e. in the year 1962 athletic shoes in the USA weren’t as advanced as those that were produced in Japan. Being an athlete Phil suffered to get proper shoes for the track. As a part of the summer project Phil took the help of his coach and mentor Bill Bowerman and started a small company called the Blue Ribbon Shoes. The company would import professional track shoes from a Japan based local shoe company called Onitsuka Tiger.The shoes were initially soled from the back of cars at various schools making athletes aware of its existence. Today the same old company is called Nike and has around 5 outlets in our very own city of Chennai in India and has more than 500 outlets world wide and is the no.1 shoe manufacturing company in the world. Phil thought out of the box and made use of the situation to turn a passion for the tracks into a profession that he cherished all his life.

Like the saying: Successful men don’t do different things, they do things differently.

Through this I am not saying that all of us can start a business and make it rich, but take the game of stock markets for example. If one tracks a company of interest closely, in the long run one can make it rich by investing in them if you learn that an extraordinary move is going to be made by the company.

The best example that I can site is that of Bombay dying. The company’s factory was situated in the heart of the city with the property costing more than a crore. For awhile the government rules did not allow the company’s to declare their assets at the market rate in the balance sheet. Investors observed the company closely but only a few saw the change the government was about to bring in which allowed the company’s to declare assets at market rate that would in turn boost the market value of shares.

Thus if one observes its day to day situations that occur in the world closely, they will realize that opportunities are at the door every moment.

Life isn’t about moments; it’s about the moments that make a life time.

(I know it sounds familiar, but that’s the reality of life.)

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