The need of the moment is rarely comparable to the total need. When a company is drowned already there is only one need, how one will save it from ending up. We are talking about an overnight delivery organization named FedEx or Federal Express. This company proved itself the first in the category which delivers products to the customers overnight across any place in the globe. Three years later to its foundation, the company experienced bankruptcy which almost ended it. The founder Fred Smith flown to Las Vegas and made a call.
If we try to know about the bankruptcy we can easily find the story behind it. Let’s talk about it here. The company was first constructed theoretically in 1962. Smith made a theory how to set up a company like this and submitted it to the Yale University.
At that time idea like this were not introduced before and no one also came up with any fail-safe strategy. As we came to know Smith was the first who took the action, he also needed a huge fund to place it on the market. Delivering products to all the places over the world as asked was a very extraordinary task to do and there was a huge risk too behind it. He had about $4 million which he raised up to around 100 million USD. This made the project take the first leap.
A structure like this needs an all-around support and a pre-settled base funding strategy to prevent any failure. The day was 17th April 1973 when the first action took place. Around 14 small airplanes and with a team of 389 employees this company started delivering products. Unfortunately, within the first three years of the startup, this company started losing 1 million USD per year.
Finally, the company had to face the ultimate bankruptcy, the total value left around $5000.
Mr. Smith felt the left stuff aren’t going to help the company stand there. The cost of the fuel was not even going to be covered if they fly one aircraft for delivery. This brought him the sense lets bet the last amount. Dramatically, he took all the leftovers and flew to Vegas as we all know the city is a craze for gamblers and other tourists. What a desperate move it was! What was left to do? Nothing. If he would keep it to that, no miracle would occur next and as expectedly the company would be gone forever.
What he did was awesome! Have you heard the game Blackjack? If you have then you probably know the popularity of this game in the classic casinos. He bet all the money he had and reached to 27000 USD which was enough to run the business for the week. What do you think, would this money be really enough to drag that business? No. But Smith had a different view, he thought he could give it a try, amazingly he won another 11 million USD. Wow! The scene changed totally from that note.
This is not the single company which got saved by a miracle casino win. The founder of the company PIMCO also has an experience like this. But a business which was already very difficult yet was saved by the Mighty Founder. It teaches us a very interesting lesson, which is we should never lose hope. If we are on the right track, some opportunity will rise and give us a chance to prove it again.