The hidden rich series (2): The story of the broom family
How do you get rich?
One way is to earn money and become a good worker - there is no shame to it.
Another way is to make it in business. There are three rules how it works:
you put in assets (time, sweat, or capital) to make something high quality;
you make the high quality item low price, so you accumulate volume;
overall the volume amplifies your profit and make you rich, one drop at a time.
Near where I live, the richest family has a house that no one can see from the side of the road. Their ancestors made a fortune - by selling brooms.
The story is kinda amazing, considering their family has an ever green business and their children will always be guaranteed a CEO job.
William Libman started The Libman Company in 1896 with one mission; to make the finest, most durable wire-wound corn brooms. William’s sons, grandsons and great grandchildren have since expanded that mission to include the finest mops, brooms, brushes and cleaning tools.
William Libman left Lithuania for the United States in the 1890’s. He landed in Chicago and started life in the New World by peddling sundries from a pushcart. He sold everything from brooms to clothes-pins. The old-fashioned corn broom was always a top seller. Seeing a need and an opportunity, William Libman opened a corn broom factory on Kinzie Street in Chicago, the commercial heart of the Midwestern broom corn market.
During the height of the Great Depression, William’s three sons, Clarence, Sam and Ben joined their father in the broom making business. They added a new generation of ideas and energy. Although times were hard, the sons looked to the future. They modernized operations and built a second plant in Detroit, Michigan.
“National broom manufacturer’s convention”
In 1932, the sons moved operations out of the big city and into Tuscola, Illinois, a town in the heart of “broom corn country”. 180 miles south of Chicago, Tuscola and the surrounding towns produced much of the 374,000 acres of broom corn harvested each year in the U.S.. Being close to the crop allowed The Libman Company to keep an eye on the harvest, streamline operations and increase production.
Today, the company is like this. It is called an ever green company - never too big, always growing, and no one can sink.
The secret of a billionaire: make 1 dollar profit from each hand crafted beauty, and sell 1 billion of them over the years. Money is more fun when they comes in steady and slow, especially when you are sleeping.