Most emigrants, going to America, firmly believe that this is a country of great opportunities. But, only a few of those who annually set foot on the "land of freedom" dare to use these opportunities to the fullest - most emigrants remain on the sidelines, serving as service personnel for those who really could make the notorious American dream come true. When the 16-year-old son of a Pakistani construction worker flew to America to study engineering, he had $500 in his pocket, which seemed like a fortune to anyone in his home country, and common sense. Skillfully using these two components, Khan managed to conquer America and become a millionaire.
First discoveries
The biggest shocks for the young Pakistani were the prices, which seemed sky-high to him, and the freedom of action that his fellow citizens could only dream of. In the first week spent in America, he realized that it is possible and, most importantly, you need to work here - this is the only way to achieve success. During his studies, Khan worked part-time as a dishwasher, cleaner, courier - the main thing, it seemed to him, was not to be idle. But at the same time, the young emigrant knew how to set clear goals and achieve them, so he graduated with honors, which allowed him to immediately get into a car parts company as a technical director.
From that moment on, only common sense leads Shahid Khan to success. Having been shocked by the fact that bumpers were manufactured at the factory using a completely unprofitable technology that unnecessarily dragged out the production process (as many as 15 parts had to be welded to obtain 1 product), he began developing a more advanced technology, with which he was ready to go directly to leading automakers.
Way to success
Taking a small loan, he founded his own company, the process of manufacturing bumpers in which was built solely on the drawings developed by Khan. Now, a single piece of steel was enough to create a product, and complex “patterns” were forever a thing of the past. Thanks to innovative technology, the weight of the bumper was significantly reduced, which indescribably pleased the two giants of the American automobile industry - Chrysler and General Motors became Khan's clients.
Reducing the weight of the car, firstly, significantly reduced fuel consumption, and secondly, allowed the free import of cars from Japan that previously did not meet weight restrictions. Within two years, he achieved such significant success that he was able to buy his first employer, which allowed him to significantly expand his production base.
The conquest of the whole world
Until a certain time, the company, opened by a Pakistani immigrant, developed successfully, supplying relatively small batches of bumpers to major American car manufacturers. But at the same time, the volume of production space continued to be insignificant, which forced Khan to refuse a huge order offered to him by General Motors. Realizing that it was necessary to move to a new level of development, but clearly understanding at the same time that huge concerns would not wait for the moment when he could open new production facilities, Shahid Khan realized that he needed to look for a customer who would allow his company to develop together with him, for some time without increasing the volume of orders.
The ideal option for this seemed to be the Japanese, who began the gradual conquest of the American car market, but, firstly, Khan did not have access to them, and secondly, he did not speak Japanese at all in order to negotiate. But such “insignificant” details did not stop the businessman, and he asked the management of the General Motors concern for the contacts of the head of the department of the Japanese corporation that supplied cars to the United States. Then, after hiring some students from Japan, he started negotiations, and he was so successful that he received the first contract for the production of a batch of bumpers.
Khan's idea that his company would have a chance to develop and grow along with the increase in the supply of Japanese cars to America turned out to be correct, and by gradually increasing production rates, he managed to bring the production of bumpers to the world level. By the mid-90s, Khan was the sole supplier of bumpers for the late
rna Toyota, which allowed him to reach an annual turnover of 1 billion dollars.
Today, Shahid Khan's bumpers can be seen anywhere in the world, and the company, created from a small, unprofitable factory, has become the largest manufacturers of car parts.
The story of Shahid Khan is an amazing example of how you can make money through your own resourcefulness and the ability to introduce innovative ideas even in the most conservative business. He successfully proved by his example that any business can be started almost from scratch, the main thing is to strive for success and not be afraid to take risks.
Shahid Khan could become a prototype for a Hollywood film about the cherished American dream. The example of Shahid shows everyone that if a person has a goal, a motive and a desire, then he is able to achieve a lot. After coming to the US to study engineering, Shahid Khan stayed in the country and set up one of the largest auto parts companies out of the ruins of a parts factory in Illinois. To celebrate, he also bought the worst team in the NFL and wants to just as dramatically turn it into a successful direction.
moving
Shahid Khan was born July 18, 1952 in Lahore (Pakistan) in a middle class family. Although he did not need anything at home, at the age of sixteen he was drawn to the United States, "a country of unlimited possibilities." Shahid applied for admission to several educational institutions and got a place at the University of Illinois at Urbana-Champaign, where he was to study industrial engineering. America met the young man with a blizzard; the planes did not fly, and the newly minted student had several days to get to the target by ground transport. He only had $500 saved by his father, who owns a small construction company in Pakistan. The dormitory was still closed when 16-year-old Khan arrived, so he spent his first night at a Christian Youth Organization hostel. Dinner and room cost him $3, an astronomical price by Pakistani standards.
But the next morning, Khan encountered the American miracle for the first time: he realized that he could make up for yesterday's expenses in a few hours by washing dishes. “I was just blown away! Khan says. — I was paid $1.2 per hour, which is more than the earnings of 99% of the population of Pakistan. For the first time, I felt truly free.” During his studies, Khan worked part-time as a dishwasher, cleaner, courier - the main thing, it seemed to him, was not to be idle. But at the same time, the young expatriate knew how to set clear goals and achieve them, so a month before his 21st birthday, he graduated from university with a bachelor's degree and became a technical director at the Flex-N-Gate parts company. At that time, she made bumpers for cars in a very unproductive way: by welding no less than 15 parts. “When I think about it, I ask myself, what the hell were they doing!?” Khan says. Over the next seven years, Khan closely followed production, trying to use his engineering expertise to streamline the assembly process. But there was a problem: nobody was really interested in his ideas, because the company produced spare parts for the secondary market.
Bumper Works
Shahid Khan did not give up and began to develop a more advanced technology, with which he was ready to go directly to the leading automakers. He set to work and achieved amazing results. In 1978, Khan decided to take out a small loan, with which he founded his own enterprise, which he called Bumper Works. The process of manufacturing bumpers was based solely on the drawings developed by Khan. Now, a single piece of steel was enough to create a product, and complex “patterns” were forever a thing of the past. Thanks to innovative technology, the weight of the bumper has been significantly reduced, which made the two giants of the American automobile industry incredibly happy - Chrysler and General Motors became Khan's clients. General Motors imported Japanese Isuzu pickups, but they didn't meet weight requirements, and Chrysler had a similar problem with a Dodge D50. Both pickup trucks benefited from Khan's bumper diet, firstly by significantly reducing fuel consumption, and secondly, by allowing cars to be freely imported from Japan that previously did not meet weight restrictions.
Within two years, Shahid Khan achieved such significant success that he was able to buy his first employer, Flex-N-Gate, which allowed him to significantly expand his production base.
The conquest of the whole world
Until a certain time, the company, opened by a Pakistani immigrant, developed successfully, supplying relatively small batches of bumpers to major American car manufacturers. However, the production space remained small, which forced Khan to refuse a huge order offered to him by General Motors, who liked the new bumper design and were going to use it for a number of models. Khan was simply not up to it, and GM was going to transfer the development to larger manufacturers. “They did everything right. We didn't have the business to increase the number of parts produced from 200 to 40,000 per day,” says Khan.
Realizing that it was necessary to move to a new level of development, but clearly understanding at the same time that huge concerns would not wait for the moment when he could open new production facilities, Shahid Khan realized that he needed to look for a customer who would allow his company to develop together with him, for some time without increasing the volume of orders.
The ideal option for this seemed to be the Japanese, who began the gradual conquest of the American car market, but, firstly, Khan did not have access to them, and secondly, he did not speak Japanese at all in order to negotiate. But such “insignificant” details did not stop the businessman, and he asked the management of the General Motors concern, who had close relations with Isuzu, the contacts of the head of the department of the Japanese corporation that supplied cars to the United States. Then, after hiring some students from Japan as translators, he started negotiations, and he was so successful that he received the first contract for the production of a batch of bumpers. He picked the right moment: Japanese manufacturers were targeting the US and they needed suppliers there. Khan's idea that his company would have a chance to develop and grow along with the increase in the supply of Japanese cars to America turned out to be correct, and by gradually increasing production rates, he managed to bring the production of bumpers to the world level.
Soon Flex-N-Gate began working with Mazda, and then Khan managed to get the holy of holies - Toyota. By the mid-1990s, Khan was the sole supplier of bumpers for Toyota, which allowed him to reach an annual turnover of $ 1 billion. By 2012, the company's 52 factories in five countries employed more than thirteen thousand people, and revenues exceeded three billion dollars a year. The owner himself, whose fortune in September 2013 was estimated at $ 3.8 billion, came out on the 122nd place in the Forbes 400 list of the richest Americans (Shahid received a green card in 1991).
Charity
As any respectable wealthy citizen of the United States should be, Khan does charity work, donating funds to the disadvantaged and disabled.
At the same time, Shahid could not pass by the most promoted sport in the country, American football. In 2010, Khan tried to buy the St. Louis Rams, but the franchise went to Stan Kroenke (the current owner of Arsenal). Shahid didn't give up and in November 2011 reached an agreement to buy one of the NFL's newest teams, the 20-year-old Jacksonville Jaguars. Almost like in a movie, the contract with then-owner Wayne Weaver was scribbled on a napkin during lunch at one of the local restaurants. This napkin now hangs on Khan's wall in a frame.
Everyone was sure that if someone buys Jacksonville Jaguars, it will be only to transport them to Los Angeles. This is the second largest city in America, but it does not have its own NFL team. Khan, who knows how to see opportunities even in the most hopeless situation, has other thoughts on this matter: of course, it was easiest to start by moving to Los Angeles, but he prefers to stay in place.
Khan believes that the change in ownership is a great chance for the team to change their perception of themselves as a failed project. He hired a new head coach, offensive guru Mike Mularki. And the club's new strategy is aimed at transforming the team from a local into a regional brand. To increase the number of fans in the stadium, Khan allowed them to bring their own food and made admission free for children. But Khan's boldest plan is international expansion. According to Khan, foreign matches will attract tourists and businessmen: “I was recently in Germany, talking with the managers of an auto parts manufacturer. And you know what I did? Gave them all T-shirts with the Jaguars emblem and their names. They were just delighted, as they recently watched the Super Bowl. They had only one question: where is Jacksonville, anyway?”
Andrew Brent, NFL financial analyst, said the Jaguars crisis is far from over. Khan himself understands that everything is not so simple - after all, his life has never been simple. But he remains positive. The story of Shahid Khan is an amazing example of how you can make money through your own resourcefulness and the ability to introduce innovative ideas even in the most conservative business. He successfully proved by his example that any business can be started almost from scratch, the main thing is to strive for success and not be afraid to take risks.
Pakistani Shahid Khan came to the US to study. He was going to be an engineer, but he became one of the most successful American businessmen. He raised a bankrupt auto parts business and built a huge factory out of it, with a turnover of more than $3 billion.
Arriving in the United States to study engineering, Shahid Khan stayed in the country and created one of the largest companies in the production of automotive components.
It was only through hard work and a shrewd mind that Shahid Khan of Pakistan was able to build a $3.4 billion industrial giant from a failing auto parts business.
He recently bought one of the worst teams in the American National Football League (NFL), hoping to turn it into something big. Khan and I drive down a dusty back road to Danville, Illinois, as he tells me about the decline of American industry. “There was an Allith-Prouty factory here, it closed, 1,400 people lost their jobs,” Khan says, pointing to a boarded-up building to our left.
Three hundred people used to work at a nearby welding plant. "And it's closed too," Shahid shrugs. Another 7,000 people lost their jobs when the Hyster loader factory closed. We drive on, around some shabby warehouses, where the ghosts of former hopes, demolished by bulldozers, are stacked in piles. There were lost 800 jobs, and here - 1200, we are like tourists walking among the ruins of the "golden age" of industry. Khan smiles sadly and shakes his head: "There are thirty thousand lost jobs around us."
The appearance of the 62-year-old Khan is very bright: blue-black hair and a famously twisted mustache. His shiny white Grand Cherokee is a stark contrast to the devastation that surrounds us. In the past 40 years, while Danville and the rest of the cities of the Industrial Belt were rapidly going bankrupt, Khan was no less rapidly getting richer.
Flex-n-Gate is one of the largest auto parts companies in North America. Khan, its sole owner and CEO, built it virtually from scratch. Flex-n-Gate now has 13,000 employees and 52 factories around the world. In 2011, her sales reached $3.4 billion, and Forbes estimated Khan's fortune at $2.5 billion (179th on the list of the richest Americans).
In any case, this is a huge achievement, and for a native of a Pakistani family, it’s a miracle at all. The fate of Khan is a typical example of the embodiment of the very " american dream", which has been inspiring people from all over the world for the past 150 years. It is also an example of the fact that capable, motivated immigrants not only do not take jobs from locals, but rather create jobs.
Khan came to America to study engineering at the University of Illinois. He only had $500 saved by his father, who owns a small construction company in Pakistan. The dormitory was still closed when 16-year-old Khan arrived, so he spent his first night at a Christian Youth Organization hostel. Dinner and room cost him $3, an astronomical price by Pakistani standards.
But the next morning, wandering around the kitchen, Khan encountered the American miracle for the first time: he realized that he could make up for yesterday's expenses in a few hours by washing the dishes. “I was blown away!” says Khan. “I was paid $1.2 an hour, more than 99% of Pakistanis earn. For the first time, I felt truly free.”
Khan immersed himself in his studies. A month before his 21st birthday, he graduated from university with a bachelor's degree and became a technical director at Flex-N-Gate, a parts company. At that time, she made bumpers for cars in a very unproductive way: by welding no less than 15 parts.
"When I think about it, I ask myself, what the hell were they doing!?" Khan says. Over the next seven years, Khan closely followed production, trying to use his engineering expertise to streamline the assembly process. But there was a problem: nobody was really interested in his ideas, because the company produced spare parts for the secondary market. To really make a difference, Khan had to work directly for automakers. He set to work and achieved amazing results.
The bumpers he designed were made from one piece of steel (rather than 15), thanks to which the rear of the pickups was very “thinner” - this had a positive effect on fuel consumption. In 1978, Khan, with only a small loan, set up his own business, which he named Bumper Works. And he immediately got clients. General Motors imported Japanese Isuzu pickups, but they didn't meet weight requirements, and Chrysler had a similar problem with a Dodge D50. Both pickups benefited from Khan's bumper diet.
True, happiness did not last long. A week after Khan left Flex-N-Gate, the company sued him for stealing trade secrets. Due to lack of funds, Khan hired the cheapest lawyer, and at night he himself sat in the library of his native university and built a line of defense.
Khan won case after case, and in 1980, after the Illinois Supreme Court rejected a second appeal from Flex-N-Gate, he bought his former employer. Flex-N-Gate was losing $50,000 a month, so Khan bought the company for book value.
And then General Motors became interested in Khan's business. The good news was that they liked the new bumper design and were going to use it for a range of models. The bad news was that Flex-N-Gate was simply not up to the task of producing on such a scale, and GM was about to outsource the development to larger manufacturers. “They did the right thing. We didn't have the business to go from 200 to 40,000 parts a day,” says Khan.
But even from this case, he tried to extract additional benefits. Khan knew that General Motors had a close relationship with Isuzu, which was about to start exporting cars to the US on a small scale. He asked General Motors to help him, to which he was told: "Here's the name and number of that guy in Japan. Go for it!"
Khan hired Japanese students as translators and gradually began to win the trust of the Isuzu bosses. He picked the right moment: Japanese manufacturers were targeting the US and they needed suppliers there. And Khan's company got the opportunity to develop with them. Soon Flex-N-Gate began working with Mazda, and then Khan managed to get the holy of holies - Toyota. By 1989, his company became the sole supplier of bumpers for Toyota. By 2001, Flex-N-Gate sales exceeded $1 billion.
Of course, there were some mistakes: for example, Khan used "tax havens", subsequently banned by the tax service. As a result, he had to pay about $ 85 million in arrears, and last April also a 40% fine for some of them.
Now Khan continues to sue financial advisers, claiming that they confused him. But these problems did not stop the growth of his company. Last year, 2/3 of the 12.8 million cars and pickup trucks sold in the US had Flex-N-Gate parts.
As Khan's fortunes began to rise, he began to scrutinize Forbes' NFL team rankings, contemplating buying one: Khan has been a football fan since his college days. In 2010, he won the auction for the sale of 60% of the St. Louis Rams. True, the minority stake, along with the right to buy other shares of the club, remained with billionaire Stan Kroenke. In the end, he exercised his right, and for Khan, two years of negotiations were wasted.
But fate gave him a second chance. Jacksonville Jaguars owner Wayne Weaver told Khan that he wanted to sell the team. Weaver, one of the founders of the Nine West shoe chain, is a talented businessman, but even he is tired of dealing with Jacksonville's problems. It is the fourth-largest market for NFL clubs, with only 1.4 million people in the county. The Jacksonville Jaguars have not played in the playoffs since 2007, have not won a division since 1999, and have never been in the Super Bowl. According to an ESPN poll, only 0.4% of NFL fans named the Jaguars their favorite team, placing them in last place, 32nd.
But taught by bitter experience with the Rams, Khan did not hesitate. In October 2011, he met Weaver at a bar and offered the final price, writing it on a napkin. Khan paid $620 million in cash for the Jacksonville Jaguars, borrowing $300 million from Flex-N-Gate, and committed to servicing the club's $150 million debt. Khan became the first ethnic minority to own a team in the NFL.
Everyone was sure that if someone buys Jacksonville Jaguars, it will be only to transport them to Los Angeles. This is the second largest city in America, but it does not have its own NFL team. Khan, who knows how to see opportunities even in the most hopeless situation, has other thoughts on this matter: of course, it was easiest to start by moving to Los Angeles, but he prefers to stay in place.
Khan believes that the change in ownership is a great chance for the team to change their perception of themselves as a failed project. He hired a new head coach, offensive guru Mike Mularki. And the club's new strategy is aimed at transforming the team from a local into a regional brand. To increase the number of fans in the stadium, Khan allowed them to bring their own food and made admission free for children.
But Khan's boldest plan is international expansion. He has already agreed to hold a “home” match in London: once a season, the contract is valid for the next four years. "If you move a couple of team games from a large market like Philadelphia, it will cost the owner dearly. But in the case of the Jaguars, games in London are a great opportunity," explains Eric Grubman, NFL executive vice president.
According to Khan, foreign matches will attract tourists and businessmen: "I was recently in Germany, talking with the managers of an auto parts manufacturer. And you know what I did? I gave them all T-shirts with the Jaguars emblem and their names. They were just delighted, so how they watched the Super Bowl recently. They had only one question: where is Jacksonville, anyway?"
Andrew Brent, NFL financial analyst, said the Jaguars crisis is far from over. Khan himself understands that everything is not so simple - after all, his life has never been simple. But he is still positive: "A person can achieve anything. You just need to work hard, create your own destiny, well, and a little luck."
Work strategies are means and ways for every person who strives for greater success. But what about those who have already achieved a lot in life? Those who came from poverty to wealth? Are there such people? Or are the rich just born lucky?
Of course, productivity techniques from some of the greatest authors of all time are one of the keys to success. But there are other strategies that can be learned from those who have made it to the top by starting almost from scratch.
Howard Schultz: Stay Curious
Howard Schultz, chairman and CEO of Starbucks, began his journey to success as a humble salesman for the Xerox Corporation. Impressed by the small coffee shop, out of curiosity, he took a job at Starbucks as marketing director. While traveling in Italy, Schultz learned about the social aspects of coffee. He brought home this idea, as well as the idea of introducing espresso in a small company. Starbucks has grown from 60 stores to over 16,000 locations worldwide.
Schultz grew up in a block of state-subsidized low-income homes in New York City. According to Schultz, he always felt that he lived "on the other side of the path." He knew that the people on the other side had more resources more money and their families were happier. And for some reason, without knowing why or how, he wanted to overcome this obstacle and achieve something that was considered impossible. And despite the fact that now he has a suit and tie, he remembers his difficult path and knows what it's like.
Oprah Winfrey: believe in yourself
Oprah Winfrey grew up in poverty in Mississippi, later in Michigan and then in Tennessee. At the age of 16, she began working in the radio business, at 19 she became a co-host on the local evening news. Now she owns her own movie studio, radio network, magazine, commercial resource, personalized cable TV channel and is the first black woman in history with a billion-dollar fortune. Oprah was awarded the Presidential Medal of Freedom and received an honorary doctorate from Harvard University. Oprah Winfrey says, “You become what you believe in. Where you are now in your life is based on what you have believed.” And he adds: "I don't believe in coincidences." Oprah has always remained true to her goal - to succeed at all costs, steadily moving forward.
Kenneth Langone: live your success
Kenneth Langone is the most famous of the founders of Home Depot. However, he, too, began his journey through life by being born into poverty. He worked as a digger, a butcher's mate and a caddy (golfer's helper). Studied at the New York Stern School of Business in the evening while working full time. The evening program at this school is now called NYU's "Langone Program". After a successful venture business with Ross, Pero Langone went on to explore the home improvement business. He is also well known for his charitable causes which include helping children, universities and more.
Shahid Khan: step out of your comfort zone
Shahid Khan moved from his Pakistani home to the United States at the age of 16. He became a dishwasher for only $1.2 an hour. Khan now owns Flex-N-Gate, a manufacturing company headquartered in Urbana, Illinois. Khan became an American citizen in 1991. He is also the owner of the Jacksonville Jaguars and the English football club Fulham. Khan has received appreciation from various charities for his generosity.
Kirk Kerkorian: keep fighting for your dream
Kirk Kerkorian left school in the eighth grade to help his Armenian immigrant family financially. He dreamed of becoming a boxer and won the Pacific Amateur Welterweight Championship. During World War II he was a pilot in the British Air Force. Toward the end of the war, he flew over Las Vegas and his dreams took a different direction. Together with Martin Stern Jr., he built Las Vegas the way it is today. Kirk Kerkorian died on June 16, 2015. His fortune was estimated at more than $4.2 billion.
Kenny Trutt: where there is a will, there is a way
Kenny Trutt was born into poverty. His father was a bartender. In order to pay for his studies at the university, Trutt worked as an insurance agent. He studied at the University of Illinois and was awarded an honorary degree Bachelor in Science and Arts. He is the founder of Excel Communications. Became a billionaire in 1998 after selling the company for $3.5 billion.
Beth Comstock: know the value of teamwork
Beth Comstock learned the value of teamwork while working at the Rubbermaid Factory. After graduating from the College of William and Mary, she took a job with a local television company in Virginia. Beth Comstock is currently Senior Vice President and Chief Marketing Officer of General Electric. She also helped found the popular Hulu network. Comstock invests hard labour in managing his highly successful career.
Warren Buffett: earn, keep and return
The billionaire made his first profit of 5 cents at the age of 6 by buying a package of Coca-Cola and selling it at retail. Since then, he has accomplished a lot, primarily because of his skill in investing. As one of the richest people in the world, Buffett is widely known for his philanthropic work.
John Paul DeJoria: Don't Stop Trying to Succeed
John Paul DeJoria grew up in a foster family. He had to live even in his car. Together with barber Paul Mitchell, he created John Paul Mitchell Systems with a loan of just $700. He is also the founder of Patron Tequila. Widely known for his philanthropy. In particular, DeJoria joined with Nelson Mandela in the Food4Africa (Food for Africa) movement, which is making efforts to provide nutrition to orphans.
Ralph Lauren: focus on your dream
Ralph Lauren was born into a Jewish immigrant family. Together with his family, he lived in a one-room apartment in a poor New York neighborhood of the Bronx. He began his career as a clerk at Brooks Brothers. It was there that he began to dream of more variety and color scheme of men's ties. In 1967, he opened his first store selling ties and sold them for $700,000. Today Ralph Lauren is one of the the richest people USA and the world. His net worth is over $7 billion.
