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Although America’s history is rife with rags-to-riches stories, American Industrialist Andrew Carnegie is probably the best embodiment of the American Dream. Carnegie first worked for pennies a day only to eventually become one of the richest men in history with a net worth of around $309 billion in today’s money. Additionally, other historic figures like Harland Sanders and Biddy Mason experienced similar entrepreneurial success and accumulated wealth beyond their wildest dreams. Their fascinating life stories highlight the potential for economic mobility in America as even people from the poorest backgrounds successfully can achieve huge success.
Cindy Cummings explains.
Harland Sanders
Harland Sanders was the multi-millionaire founder of international fried chicken restaurant, Kentucky Fried Chicken (KFC). Born in 1890 on an Indiana farm, Sanders became accustomed to hard work at a young age as he helped his parents maintain the farm. But, due to conflict at home, Sanders moved out and left school at age 13. He held numerous local jobs, before moving to Alabama to work for the Southern Railway. As an adult, Sanders had a further slew of odd jobs, none of which lasted for long: attorney, insurance seller, lamp manufacturer, tire seller, and gas station owner. In 1930, Sanders, who had a keen interest in food, converted his gas station into a restaurant and began to sell popular ham and steak dinners.
Finally, in 1952, Sanders developed his “Secret Recipe” (aka KFC) and patented his unique method of pressure frying chicken. The first KFC restaurant was then opened by Sanders’ friend and franchisor Pete Harman in Salt Lake City, Utah. During the early 1960s, 600 KFC restaurants were opened across locations including the UK, Mexico, and Canada. Finally, in 1964, Sanders sold the company for $2 million.
Sanders’ hard work, determination, and success continues to inspire entrepreneurs, of which there are some 30 million in the U.S. today (although estimates vary). Those serious about launching their business should ideally start with LLC (limited liability company) formation. An LLC is a legal structure that separates a business owners’ personal and business assets. So, that means all personal assets (money, home, and car) remain untouchable if the business is sued. In fact, 35% of small businesses are LLCs, which makes it the most popular legal structure. But always keep in mind, the best state for your LLC is usually your home state. In most cases, home state LLCs are the simplest and cheapest to set up and maintain.
Biddy Mason
Bridget “Biddy” Mason was born a slave and died free as America’s first female real estate entrepreneur. Born in 1818, Mason spent the first eighteen years of her life enslaved in Georgia, before she was purchased by a Mississippi slave owner. In 1851, Mason’s owner moved with her and her three daughters to California, a state where slavery was outlawed. It is here that Mason petitioned a court for her and her family’s freedom, which they were promptly granted. This marked a turnaround in Mason’s life. Over the next decade, she worked as a nurse and midwife for a local LA doctor, and safely delivered hundreds of babies.
Mason was financially-savvy and saved her money. She soon purchased a small piece of land for $250, and became one of LA’s first black landowners. She later sold this property for a profit. Mason continued to buy up property, build commercial buildings, and open numerous businesses, including, a daycare center and grocery store — despite the fact she couldn’t read or write. Other business owners purchased properties surrounding hers and this area became Downtown LA. By the time of Mason’s death in 1891, she had around $300,000 to her name, which equates to $8.5 million today.
Andrew Carnegie
Andrew Carnegie founded one of the biggest steel businesses in American history. He was born in 1835 into a working class family, who, in an attempt to drag themselves out of extreme poverty, emigrated from Scotland to the U.S. in 1848. Later, Carnegie would become one of the richest men in history. Carnegie got his first job at 13 as a worker in a cotton mill where he was paid $2.50 a week, which he soon left to start at a telegraph company with a better wage ($20 a month). In 1853, he was hired as a telegrapher at Pennsylvania Railroad and used this time to develop professional connections. At age twenty-four, Carnegie was promoted to Western Division superintendent.
After smart financial investments, Carnegie’s total annual income averaged $42,000, and turned his focus to the ironworks trade — a decision which would eventually lead to his huge fortune. In 1892, Carnegie (along with several partners) founded the Carnegie Steel Company. This business became largely responsible for the country’s newfound status as the world’s biggest steel producer. Financier J.P. Morgan purchased Carnegie Steel in 1901 for $480 million, of which Carnegie earned $250 million. This led Carnegie to be worth $309 billion in today’s money.
There’s nothing like a good rags-to-riches story to motivate and inspire. The impact of these historical figures certainly continue to shape the ambitions of entrepreneurially-minded Americans today.