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I am glad to welcome you, dear readers of the blog! Today I want to tell you about a famous, successful and influential person who, thanks to his perseverance and work, was able to earn billions of dollars, namely, who Ingvar Theodore Kamprad is and the nuances of his life, which are very difficult and eventful at times.
History of life and success
Detstvo
Briefly information about him, I have already published in this article. And I realized that this person is worthy of close attention, as he is able to inspire any person to accomplish. So, are you ready?
Ingvar was born on March 30, 1926 in Elmhult, in southern Sweden. I had to learn the basics of entrepreneurship from childhood, learning from my grandfather, who owns the company, and then from my grandmother, who replaced him after her husband could not cope with his worries about the upcoming bankruptcy, as things were going badly. And, without making any attempts to save his business, he committed suicide, shifting responsibility on the fragile women’s and children’s shoulders for his decisions, which led to the collapse.
Grandmother managed to get the company out of the «pit», having taught a very important lesson to Ingvar:
Never give up, no matter how terrifying and difficult the difficulty may seem.
This story left a considerable imprint on the mind of the boy, so he has been earning money on his own since his school years. At first, he brought matches and pencils from Stockholm, buying them at a wholesale price and selling them to classmates and friends, increasing the price several times. He often rode around the city, offering his change to random passers-by.
Surprisingly, my grandmother then actively supported his start-up business. When she died, her relatives discovered a large amount of all sorts of things bought from an enterprising grandson. Theodore made his first money at the age of five, managing to sell matches bought with his aunt’s money. And according to his recollections, it was precisely when he felt that joy from the first salary that he realized that entrepreneurship would be his life’s work.
The formation of the furniture business
First experience
Theodore did not spend the money he earned at all, did not go on dates, did not play football. The teenager devoted all his free time to thinking about how to create a successful business and increase sales. And at the age of 17, he matured to open a company, at least, this was required by his supplier of pens, stockings and every little thing. But he did not have enough personal capital for this business, and, having come up with an excuse that it was necessary to pay for tuition, he borrowed money from his father.
But his help did not end there either, because the teenager was only 17 years old. At such a young age, he did not have the right to draw up documents for himself, so IKEA was registered with his father. So in 1943, IKEA appeared, the first and very small company.
The first two characters indicate the initials of the entrepreneur himself, but the remaining two have different versions. The first version says that E is Elmakhult, the name of the city in which he was born, and A is the name of the village where he spent his childhood (Agynnaryd).
In another version, the remaining two letters indicate the name of the company that the grandmother saved and the church parish, of which he was an active member.
At first, IKEA was engaged in all sorts of things, French fountain pens, purchased with finances taken on a loan from a bank, were in special demand. It was the only experience, he never took out more loans. To increase profits, the teenager came up with and released a catalog of his products.
And it worked, because when he took the order by mail, he sent it with the help of a milk carrier, with whom he agreed on a so-called “partnership”.
Creativity
An interesting and creative approach to business manifested itself when he opened his store. Thinking about how to lure buyers, the owner of the future corporation comes up with a trick: he promises each visitor a cup of coffee with a roll. And it worked, jeopardizing the future of the company, because more than a thousand people came to the opening. And each of them received the promised treat.
The young entrepreneur realized that if you seduce the buyer with pleasure and free promotions, this will certainly attract him. This concept formed the basis of the philosophy of his company. Subsequently, a fast food restaurant was opened in every Ikea store.
Visitors had the opportunity to relax and take a breath before further purchases, and not the desire to quickly find what they needed and go home to refresh themselves.
furniture business idea
The idea to deal specifically with furniture arose on the basis of rivalry. One day, in a newspaper subscribed by his father, he saw that his main competitor was advertising furniture. Theodore wanted, by all means, to bypass it. And the excitement that arose, interest and desire for superiority determined his fate at that moment. And also the fact that in Sweden only very rich people could afford even a simple chair.
The novice entrepreneur wanted to make available any interior items, regardless of position in society and accumulated capital. He even formulated his idea in this slogan: «I’d rather sell 600 chairs at a low price than 60 at a high price». Soon the first large products appeared in ikea — an armchair and a coffee table.
An interesting fact that brought zest to his business and became his hallmark — each piece of furniture had its own name, not a numerical article. Kamprad personally came up with these names due to a disease that causes disturbances in the process of reading or writing, namely dyslexia. It is said to be the «disease of geniuses». And on the example of Kamprad, I can not argue with that.
Ideas for company growth
He publishes a catalog, which he called «Ikea News», the main audience of which was people with low incomes who do not have the opportunity to afford luxurious interior items. At first, he made orders from local factory owners, but in the 50s he decided and bought a small, dilapidated factory, and began to produce even more affordable goods on his own. This caused a commotion not only in his city, but in the country as a whole.
Of course, this move endangered the existence of other companies, so the National Swedish Furniture Sellers Association ensured that all lumberjacks in the country stopped doing business with Ingvar. But if his biography was not full of complexities and difficulties, Ikea would hardly have had such a success today. Therefore, taught by his grandmother to fight to the last, he finds a creative solution: to buy the necessary materials for assembly from the Poles. What made his products even more accessible.
The founder of a world-famous corporation today was already perceived as a dangerous and cunning competitor, despite his young age. He grabbed any idea, refining it and applying it in his business. For example, having visited America, he noticed that in large stores people serve themselves, and then they take the goods to the cars on their own, using carts. And it also turned out that they are happy to assemble cabinets, racks and other things, like Lego constructors.
Company growth
Using these observations, he began to produce special collapsible furniture. It was easy to deliver it to anywhere in the country and the world, due to the fact that it fits compactly in boxes. The assembly process was simplified by compiling detailed and simple instructions so that even a woman could handle it without any problems. In 1963, he opened a huge store in the suburbs of Stockholm. This made it possible to save on paying for land, where it turned out to be cheaper than in the city.
There was plenty of space to organize parking, as people were supposed to come by car to spend the day walking and choosing the necessary materials for the design. The color scheme of the facade was originally in red and white, but over time, all its shopping centers acquired the national colors of the country — yellow and blue.
Going international
The fortune of the young entrepreneur increased rapidly, and already in 1969 he opened another store, already in Denmark, as well as a distribution center on the outskirts of Älmhult. A large number of buyers were provided due to the fact that Ikea offered cheap car trunks, and in those years there was just a car boom, people were ready to overcome an incredible number of kilometers to find cheap and high-quality goods. This decision turned out to be very profitable, the company’s income increased several times in just a year.
He called the store in Denmark Kungens Kurva, and had only one drawback — the products ended too quickly, because more than thirty thousand Swedes rushed to buy, everyone wanted nominal cheap products. The way out of this situation turned out to be a completely innovative move — to send all customers to the warehouse. This turned out to be such a brilliant idea that many modern companies are repeating this strategy.
Plus, he arranged entire rooms, considering which a person could be inspired and understand exactly how he wants to decorate his house. Now visitors seemed to be in the exhibition center, having the opportunity to purchase the goods they liked. The slogan of the company is: «I have an idea, I have IKEA».
Having won the attention and won the competition in your country, it is time to enter the international market. I decided to start from Switzerland, then from Germany, Austria… Today this brand is found in every country in the world, except for Africa and parts of Asia.
Family
The family is the most valuable thing for him, and Theodore began to understand this as a child, noticing the help, not only of his mother and father, but also of other relatives who contributed to his development. At home, they helped him pack parcels when orders for his small products arrived. Received phone calls and resolved issues when complaints arose. Therefore, he has a special attitude towards his employees, precisely as family members, because the beginning of his career was among close and loving people who take care. And they called him none other than «Papa Ingvar.»
His biography includes several marriages, and, with his first wife, he spent only three years, she could not stand the fact that he devoted all his strength to work. After the divorce, they had an adopted child, with whom the ex-wife did not allow the businessman to communicate, but a few years later she died, and he was again able to participate in the life of his daughter. He spent a little more than 10 years as a bachelor, and already in 1963 he married a teacher from Italy, Margareta Stennert.
A year later, the first-born Peter appeared, then Jonas and Matthias. Now they all work for their father’s corporation. Moreover, each of them knows how to value money and live economically. For example, while still a student, Matthias uprooted trees in his parental estate on a par with the workers, but received less of them. And when he got married, he saved himself with free meals in the dining room of one of his father’s mega-malls, since the salary for a young family was not enough at all.
Thrifty billionaire
Kamprad Sr. is famous for his stinginess like no other billionaire. Despite his condition, he has been using the same car for 15 years, preferring public transport abroad. Stays at mid-level hotels, trying to eat to satiety, if breakfast is included there, so that he does not have to spend money on food until the evening. Almost all the furniture in his house is from his own corporation, some of it has completely lost your presentation. Personally, I take an example from him and do not consider this stinginess.
For example, there is a chair that he has been using for 32 years, dirty and dusty, but Theodore claims that it has retained its convenience and practicality, so he categorically refuses to get rid of it. Maybe his success story would not have been so intense and fast-paced if he had a different attitude towards money and comfort. But, as Kamprad himself claims, if he scattered money and lived in luxury, he would not be able to look into the eyes of his employees, whom he encourages to save and protect their finances.
Conclusion
Finally, let me remind you that Theodore does not have a higher education, which did not prevent him from becoming a very influential person in the world. He believed that without enthusiasm it was impossible to achieve the realization of his plans and desires, and I completely agree with this. So strength and perseverance to you in setting and achieving goals! For me personally, the stories of people like Ingvar Kamprad motivate me to continue working and not give up even in the most difficult moments of my life. That’s all for today, dear friends. What is your opinion about the founder of IKEA? I look forward to your comments.