You Can Seize Only What You Can See (Part 1)
In 1930, two brothers overcome with the entrepreneurial spirit that drives so many Americans, picked up their lives and moved from New Hampshire to California.
Fresh out of High School, Dick and Maurice saw few opportunities to make it big in their hometown so they headed West to chase after the American dream.
After a little while in California, their desire to own a business drove them to open a small theater a few miles from Hollywood in Glendale, CA. Five years later, however, they were still struggling to consistently make the $100 that was necessary to pay the rent for their theater so they closed the doors and set out to find new opportunities.
They were determined to succeed and so they kept searching for new avenues to achieve success. In 1937, they found something that worked.
A Changing Culture Presented New Opportunities
Drive in diners were a brand new concept in the 1930’s. With the growing use of the automobile, these park-and-dine restaurants quickly exploded in popularity. Instead of going into the dining room, customers could park outside the diner and carhops would take their orders and deliver the food on trays right to their car windows.
Dick and Maurice embraced this new change in American culture and opened a small drive-in diner in Pasadena just east of Glendale.
The tiny restaurant was an instant success and so in 1940, they moved their operation to San Bernardino to take advantage of the larger population just outside of Los Angeles. Their success exploded. They made $200,000 at their diner that year and they split over $50,000 in profits.
In 1948, they revamped their business model. They eliminated the carhops and started catering to walk-up customers. They streamlined their food production by creating an assembly line style food delivery system. They made it their goal to be able to serve every customer in 30 seconds or less…and they nailed that goal.
In the 1950’s, Dick and Maurice plateaued at $350,000 in annual revenue and they were splitting $100,000 in take-home profits each year. They had arrived. They had achieved their goals and they had no desire to go any higher.
On the front of the building was a sign that read simply, “McDonald’s Hamburgers.”So what was the name of their restaurant? Back in the 1950’s, you could have driven by their small restaurant in San Bernardino. On the front of the building was a sign that read simply, “McDonald’s Hamburgers.” Dick and Maurice McDonald had found the American dream.
Today we enjoy cheap hamburgers and delicious Oreo McFlurries from the world’s largest drive-through restaurant because of the amazing vision and leadership of these two brothers…right?
WRONG
It Took A Partnership With A Great Visionary
Dick and Maurice were financially secure and never worked to grow their business any farther. They never expanded their franchise. They never grew their business model. And if it weren’t for the amazing vision of another man, the McDonald’s name would never have left San Bernerdino, CA.
In 1954, Dick and Maurice were introduced to a man named Ray Kroc who had an amazing vision for what their restaurant could become. Kroc owned a small company that did business with McDonald’s. His company sold machines that made milkshakes. On his first visit to their thriving diner, he immediately envisioned colossal potential.
In 1955, McDonald’s System Inc (later the McDonald’s Corporation) was formed. Kroc partnered with McDonald’s to pursue a dream of creating a national franchise. He foresaw great things and immediately began working long hours to expand the business until ultimately in 1961, he purchased the company for $2.7 million.
Dick and Maurice McDonald were limited because they had no vision for creating a global corporation whereas Ray Kroc’s potential was driven sky-high by his limitless vision for success.
I believe that success can be achieved by almost anyone. Although we are certainly born with certain traits, gifts, and characteristics that define who we are, many of the concepts and principles that fuel success can be learned, practiced and developed.
Vision is one of the cornerstone principles at the heart of this. Vision is everything to a motivated professional. It’s what leads a leader. It creates the target and inspires those who would be followers. A man without a vision is destined to travel in circles.
Group Discussion
Ray Kroc was fueled with a passionate vision that propelled him and his company to great heights. What is your vision? What is your vision driving you and inspiring you to do? Is it propelling you to learn, explore and grow? If so, in what ways?
Can you see how Vision was essential to the success of the McDonald’s Corporation? Can you see how it is essential to your success at home, at your business and with your life ventures?
Derek Jensen
What I have learned is that with no vision the overall purpose of what you’re doing has no meaning. My vision is to encourage college students and anyone else to get involved with social media and not just use it for fun or see it as useless.
Another key thing is to know how you create your vision which is going to be noticed through your passion. I want to do this and have this vision that everyone can benefit themselves from using social media in a certain way and that personal branding will evolve. But, to make my vision come true it needs to be clear.
It’s like an intro to an essay or paper.
My vision is pushing me to practice what I preach, building and staying true to my passion, and I do this by holding many conversations, drawing and writing down many notes, and always reflecting.
I know you’re talking about McDonalds but since Sam Walton (founder of Walmart) was a Beta just like me I am curious to know if his vision of Walmart is evident today?
Nicholas Cardot
Bringing up Sam Walton is a great concept and now I definitely want to research him and use him for future lessons here. I think that there are probably plenty of things that we can learn from his success.
Derek Jensen
My personal opinion on the whole thing with Walmart is that Sam Walton would not be happy with the way it has effected society today. But, I will look forward to your ‘analysis’.
Nicholas Cardot
I agree and disagree. But as I sit back and think about it, I’m not searching through the lives of these men to opinionate whether their enterprises were everything that they hoped them to be but rather I hope to understand the mindset that led them to the level of success that they enjoyed.
Keith
Ray Kroc’s story is really the gem here to me, I watched a documentary about him last year, and I must say it is inspiring to say the least!
Nicholas Cardot
I agree, Keith. Ray Kroc provides us with a remarkable example of a man who’s vision was limitless. Do you remember the name of the documentary? I’d love to take a look at it.
mark
The interesting thing to me here is that there are really two different skill sets that were required to make this work. That is, in addition to making food that people want to eat. The success of McDonalds would not have happened without both the McDonalds family’s vision and Ray Kroc’s vision.
I am motivated to find new ways to work. You said learn, explore and grow – these are fundamental & very human pursuits. We have done many great things because of these basic drives (well, and a few bad things too).
Have a good day!
Nicholas Cardot
You’re right. They both had unique skill sets. I agree with that and I’m excited that you’re motivated to find new ways to work. Together we will learn, explore, and grow…and we’ll use those human desires to drive us to do good.
Bruce Teague
Gotta love Ray Kroc.. McDonalds is one of the only comforts of america I get to enjoy here.
It’s interesting. The first two guys had a vision too. They were just fortunate enough to reach it and had no desire to expand that vision. Is there something wrong with being complacent in big success and not striving for more? or should we always seek to push ourselves?
Nicholas Cardot
You’re right. I’ll be honest though. I want to have a vision that is absolutely sky high. I don’t want to reach that point where I feel content to just sit back and relax. I want to keep growing, influencing, and impacting the lives of those around me. I want to learn new things every day. I want to make new friends and reach new heights. Let’s not stop growing.
Diane C
This was a great article Nick. We need to realize that there is no limit on what we can do if we put our minds to it.
Ron
This is a success story that I will never become tired hearing of or reading to.
I think, the best lesson for me, from this story is their passion and their big heart to follow along what their goal is, no matter what.
Casey Stubbs
Nicholas, I love your blog I am planning on staying here for a while for vision and sharpening.
This appeals to me because I like making money and I enjoy running my business, but my true passion is vision and leadership.
Thanks for this blog on one of my favorite topics.
Nicholas Cardot
I’m the same way, Casey. I love working on my business ventures. I love what I do at work. I love writing. But my passion, like yours, is leadership, influence, success, and vision. These concepts are exciting to me.
Tom
I don’t know if I would want to create the next McDonalds. Which establishment is most likely to give people a positive dining experience? Ray Kroc’s mulitnational corporation or Dick and Maurice’s San Bernadino burger joint? I think there is a lot to be said for keeping your business small and personal. You might have a wider reach with Kroc’s establishment, but you’re most likely to make a deeper connection with Dick and Maurice’s model. Just my two cents.
Nicholas Cardot
I understand your two cents but the question answers itself. Do more people visit Dick and Maurice’s establishment or do more people visit Ray Kroc’s restaurant?
Jasmine Henry
I’m reallly inspired by this. Ray Kroc came up with an idea that was original and unique, the 2 brothers hadn’t even proposed a way to make more money! Ray’s story shows that creativity is key, by challenging the general business model he was able to make a fortune and he did it all by thinking outside of the box. Amazing.
Nicholas Cardot
You’re right. And it wasn’t just about the money. It was about growing and reaching our fullest potential.
AppraiserJenn
Complacency is boring. Of course everbody is different.