A Sam Walton LessonI had an "I didn't know that" moment earlier this week while I was watching a television report on how Sam Walton grew his discount chain.
The story mentioned how he kept bankruptcy at bay by continuing to open stores. That thought sounds contrary to conventional thinking but the story said he was on the verge of bankruptcy earlier in his Wal-Mart history but by expanding he was able to generate more cash flow to keep afloat. I don't know if I could do that but perhaps that's why he became a Billionaire and I am still not in that particular club.
His business model remained very simple. Buy low and sell lower than your competitors. That's not a bad model to have. He figured that a small profit of a big pile of sales was better than a big profit off a small pile of sales. Works for me.
So, you have the largest employer in the United States and largest grocery retailer as well in Wal-Mart. I believe there is a lot to learn by studying their business model because you don't become that successful by accident.
What does Wal-Mart have to do with your particular business? Well, consider how they market their business and how you market yours. Think about how you price your product or service compared to your competitors. Get it?
I am a CPA in San Antonio and serve individuals and small business in San Antonio and surrounding areas. We provide bookkeeping, payroll, tax and more and still offer a free initial visit.
Richard J. Garcia | 06/18/2010