In 1954, Ray Kroc founded McDonald’s. He then grew the business to 1,600 restaurants and an annual revenue of $700 million.
He went about founding and growing his business in a very different way to what the typical business owner does.
If you dream of growing your business to the size of McDonald’s, there’s a lesson you can learn from the way it was founded. I reveal the lesson in this video.
THE BEGINNINGS OF MCDONALD’S
Ray Kroc was a milkshake machine salesman in his 50’s. He had a milkshake machine that could make 5 milkshakes at once, and he would sell them to restaurants. Typically, each restaurant would order one machine.
Then, a San Bernardino restaurant called McDonald’s orders 5 of them.
Ray Kroc never made such a big sale before, so he decides to go and visit the restaurant. He sees that not only is the restaurant a hit, with crowds of people queuing up, but it’s also an extremely efficient operation. People are getting their food just one minute after they place the order.
After negotiating with the owners, Maurice and Richard McDonald, Ray Kroc gets the franchise rights to McDonald’s. He agrees to pay the brothers half a percent of gross revenue of every McDonald’s franchise, and he sets up the first one in Chicago.
WHAT THE TYPICAL BUSINESS OWNER DOES
Ray Kroc’s approach was different to the typical business owner.
The typical business owner is good at some skill. It might be gardening, or making jewelry. They decide to start a business around it, and they’re the one doing the gardening or making the jewelry.
They feel happy knowing they are their own boss, but they’re still working a job. They’re working longer hours than they would have for someone else, and maybe even making less money. They don’t get paid to take holidays, and if they do take a holiday, the business grinds to a halt.
Ray Kroc took a different approach. He knew nothing about making hamburgers. Instead, he found a system that ordinary people could operate with the right instructions. He obtained a license to the system, got other people to do the work and collected the profits.
A real business is not a job that requires you to work longer hours and endure more stress for the same money. It’s a system that operates independently of you.
The MOBE Titanium Mastermind goes into more depth on this topic. Members learn how to set up systems and scale their businesses through successive revenue ceilings. To learn more about the Titanium Mastermind, click HERE.