I understood how a small amount of money could change a person’s life forever. That’s when I decided that I would eventually help spread the gospel of microenterprise so that others could benefit from the movement, and perhaps contribute to it, too.
Third World countries were quick to copy Dr. Yunus’s somewhat controversial program, but several years passed before a Yunus-inspired organization arrived in the United States. (Other microenterprise groups already existed in the United States, however.) Critics, particularly in the U.S., have said the Grameen Bank doesn’t work, in spite of the fact that at least 95 percent of its loans are repaid on time!...in spite of the fact that its borrowers have saved more than $100 million, all of it on deposit at the Grameen Bank!...in spite of the fact that in nearly twenty-five years of development, the Grameen Bank has helped two and a half million people and spawned profit centers, including fisheries, and a cellular phone business...in spite of the fact that the Grameen Bank has demonstrated its ability to help people nourish their self-esteem, and provide for themselves and their families! “Poor people aren’t smart enough to start businesses,” say the critics. “If anything, they should be trained for employment. You need big businesses to really help people. Small businesses don’t amount to much.” Perhaps a few of the stories in this book would change their minds.
Fortunately, the critics have not discouraged Dr. Yunus, or his legion of admirers and supporters, who continue to help people start their own businesses. In recent years, the Grameen Bank, and organizations similar to it, have won favorable attention from major media, including the Wall Street Journal, the Washington Post, Forbes, U.S. News & World Report, and The Economist. Support for these various organizations has come from numerous groups and corporations, including Citicorp, Arthur Andersen, AT&T, NationsBank, Microsoft, Discover Card, the Ford Foundation, the Charles Stewart Mott Foundation, J. P. Morgan & Co., BP America, Rotary Clubs, and Kiwanis Clubs.
More support is needed, of course, if the microenterprise movement is to flourish in North America. Much of the support will have to come from individuals who are committed to the success of small enterprises. I committed the time to develop this book because I want to be counted among those individuals. I am proud to be donating 100% of the proceeds from this e- book to the Grammen Foundation so they can continue their great work.
Today, approximately 100 organizations in the United States loan small amounts of money—rarely more than $5,000—to people who are ready to join the world of the microentrepreneur. Many, but not all of these organizations require their borrowers to be low-income. Once you know how to access these organizations, some of them may be willing to assist you, not only with money, but with business training, too. Also, many of these organizations rely on volunteers to help them work with their borrowers, representing yet another opportunity to get involved with microenterprise.
Before I tell you the story of how I started Subway Restaurants, and then share with you the Fifteen Key Lessons, I also want to tell you what you won’t learn in Start Small, Finish Big. This isn’t a book about writing business plans or about how to get your idea funded by investment bankers. This isn’t a book about business strategies or cutting-edge research. It’s not about breakthrough developments or technical prowess. It’s not about styles of management. It’s not about franchising your business, although it includes information about franchising. It’s not about my “clever strategic plan” to build Subway—because such a plan never existed—or my “incredible business skills”—because they were minimal when I started my business.
Start Small, Finish Big isn’t about building a multinational company, or even a big company. The size of the business doesn’t matter. The BIG in the book’s title may mean a part-time venture, a home-based business, or a kiosk at the mall. It could also mean a chain of stores, or an international corporation. BIG is however big or small you define it to be. It may simply describe the incredible feelings of accomplishment and pride that you derive from your own business, no matter how big it gets.
Some people may find it hard to believe that you can start a meaningful business with a little bit of money. I don’t blame them. Roll-ups, international buyouts, industry consolidations, and dot-com companies are the meat and potatoes of the business press these days. There doesn’t seem to be much opportunity for the small enterprise. And yet, it exists. Small businesses abound. The small business is the backbone of the American economy and it will continue to be the future of this country and many others. Small businesses create more jobs every year in the United States than do big businesses. As many as 40 million Americans now work from their homes, and the majority of them are small business owners. In the age of the megadeal, there’s still room for the small businessperson. All you’ve got to do is look for it, then reach out and grab it.
When I started Subway in 1965, no one told me that I couldn’t succeed with just a little bit of money. Of course, at the time, I was just a teenager, recently graduated from high school. I really didn’t know much about running a business. I knew nothing about making sandwiches, nor the food industry. I knew nothing about franchising. One day, when a family friend encouraged me to start a business, I became one of those millions of people who think about starting a business at any given time. But I also became one of the few who took the first bold step. Fortunately for me, and for an ever-increasing number of people worldwide who are part of the Subway family today, I didn’t know that you couldn’t start small and finish big.
Now that I have, let me help you get started!
chapter two
The Fifteen Key Lessons
How I discovered them and implemented them, and how they helped me start small and finish big with Subway!
Before I tell you my story, and the stories of the other microentrepreneurs in this book, and then get into the substance of the Fifteen Key Lessons, it’s important to explain how I discovered each lesson and how the lessons contributed to Subway’s growth, and to my current way of thinking about building any business. I wasn’t looking for these lessons when they became evident to me. Chances are you’ve already learned some of these lessons on your own, but you haven’t recognized them as lessons. Several of the lessons escaped me until I was well into the development of Subway Restaurants. But eventually they all appeared—some from my childhood, some from my business associates, and others from trial and error. Each lesson proved to be invaluable to me, and I believe they’ll be important to you, too.
Lesson One: Start Small. I learned this lesson while owning two newspaper routes. In my estimation, a newspaper route is one of the greatest training grounds for business. It’s a really small business, and yet it provides a vast array of experiences with all the fundamentals of business represented. You have to buy a product, deliver the product, provide a good service to customers, and of course you have to collect your money. It goes almost without saying that you’ll have to work hard to make a profit. Through rain, snow, hail, and on sunny days when you’d rather be doing something else, you’ve got to deliver your papers! A paper route is a great way to be introduced to the world of business, but actually, any small start serves the same purpose.
Some people have the idea that a small business doesn’t amount to much unless it delivers a sizable income, or it expands into an international enterprise. But I don’t agree. Just because it’s small doesn’t mean the business can’t grow. And while it is small you will have the time to learn the lessons that are essential to your future success. If you want to finish big, starting small is the best way to begin.
Lesson Two: Earn a Few Pennies. I learned this lesson at age seven when it was important to have pocket change. Collecting discarded soda pop bottles and redeeming them for pennies was an important lesson. Buried in the process of collecting bottles and redeeming them for a couple of cents was a lesson that said: It’s not how much you earn at first,
