Frederick Smith – the father of FedEx
We know what kind of shipping you love: faster, more convenient and high-quality. Know who care, so you can take advantage of this delivery service? Smart, then a young man, Frederick Smith. He is now 70 years old, and he’s one of the richest businessmen in the history of our globe.
As always, let’s start with the fact that Fred was born in Memphis in a fairly wealthy family. The reason for this was that his father was the owner of a bus line linking the city of several southern States of America. So we can’t call Fred a bleak childhood.
Though the father could provide for her son financially, he still failed to give him their love and care, as he died just a few years after Fred was born. After the death of the father education of the child come to grips with mother, uncle and other relatives. Of course, no one had time to mess around with a boy, so most of the time he was left to himself.
Most of all as a child, Fred loved to read. A huge impact on the future businessman has had a biography of General Lee. For some time the General even became for Smith a role model. But the love of literature made him a sentimental guy, you would have to see it.
After school, Smith enrolled at the faculty of Economics at Yale University. One of his papers was devoted to logistics in the companies associated with the information business. At that time computers were already available for large companies, they are actively bought and mastered, respectively, any problems with the technique presented for the companies huge losses.
Of course, to keep in stock all spare parts for the computers it was simply impossible. Therefore, Smith has proposed to establish such a system of Express delivery, which would move the parts from door to door in one night, using for this purpose transport aircraft.
The Professor evaluated the student’s work on the weak three. He acknowledged the possibility of implementing such a project is unlikely as I saw no need to change the traditional way of transportation of goods. But Frederick is not confused. He began to think seriously about the incarnation of the idea. This certainty in himself and his project led ultimately to unprecedented success.
Fred believed that it was necessary to create a specialized airline that would handle only freight: all goods were delivered first to a Central warehouse where they must to sort, and then sent to the destination. Shipping operation could be carried out at night when airports are not so loaded.
But, as always, such a genius is stopping suddenly waged war, in this case, such began in Vietnam. Was 1966, when Smith went into military service. Of course, he was in an aviation unit. We seem to have forgotten to mention that Fred is already 15 years old could fly a plane. Making for four and a half years 230 combat missions, Smith was promoted to captain and two medals – Silver and Bronze stars.
When finally the war ended, Smith returned home, he again took up his project. The future of the company, Fred decided to call «Federal Express». Fred built the business plan of the project. Presumably, the annual market volume of night Express freight could exceed $ 1 billion. Inspired by the inventor started looking for investors. Of course, not everyone shared the enthusiasm of Smith, but he could still find a Bank that has not stinted on investment.
Now it was necessary to create a fleet – one of the main elements of the system. Smith purchased 33 small passenger aircraft «Falcon», the design of which is well suited for the task. There has been some modification of the passenger seats were removed, opened cargo hatches, fuselage painted bright purple and orange colors (these colors are still the corporate colours «Federal Express»). After the work done each plane could carry 3 tons of cargo on distance of 3 thousand kilometers.
Of course, not everything immediately went smoothly. Company Fred had to endure the lack of customer base and the energy crisis. Customers multiplied benefits until there was no. About the payback of the project have not yet been considered. Had only hard vpahivat and to attract new customers than Fred did.
The company’s debt grew rapidly, and soon Smith realized that is stalled. Investors are in a panic terminated the phone. Came a real crisis. Losses, «Federal Express» reached $ 27 million and debt by Bank loans of 49 million. Personal debt Smith was 15 million dollars. Native family sued him in court that he improperly disposed of property that was inherited from the father. The wife started talking seriously about divorce. It seemed that the only solution is a loop.
But Fred never was a weak man and not accustomed to give up. He decided that the need to promote their company among business sharks, but also among ordinary consumers. Began active advertising campaign through magazines and television, and (Oh, miracle!) the firm began to gain orders and finally began to bring the net profit.
After a small increase Fred decided to sell some shares to get money for the next stage of development of their business. And he’s once again succeeded. Now, Smith had an indestructible business, which he develops to this day.
As for the personal life of the businessman: he has ten children from two marriages, he plays tennis and really loves this activity, rarely gives interviews before, full of energy and ideas.
How do you like that chap? I think he deserve to have you take his example. Smith did not quit their job, even when he turned away from everything, including the people closest. He, like the fanatic, looking for a way to build a new Empire that had a very good work out.