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WHAT HISTORY HAS TAUGHT US

WHAT HISTORY HAS TAUGHT US. Taking advantage of an economic downturn. What History Has Taught Us. More people became millionaires during the Great Depression than any other time in U.S. history. 1 10 Million new millionaires by 2016 2.

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WHAT HISTORY HAS TAUGHT US

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  1. WHAT HISTORY HAS TAUGHT US Taking advantageof an economic downturn

  2. What History Has Taught Us • More people became millionaires during the Great Depression than any other time in U.S. history.1 • 10 Millionnew millionaires by 20162 • The Next Millionaires, Official Website of Economist/Entrepreneur/Professor Paul Zane Pilzer, ZCI, 2005, 20 June 2009 <http://www.paulzanepilzer.com/tnm.htm>. • Great Depression Millionaires,HubPages, 2009, 20 June 2009 <http://hubpages.com/hub/Great-Depression-Millionaires>.

  3. What History Has Taught Us • No better time to start • Costs are lower • Consumers look for alternatives • Consumers look for stability

  4. Start Ups 1935

  5. Start Ups 1939

  6. Start Ups 1930

  7. Start Ups 1932

  8. Start Ups 1930

  9. Start Ups 1930

  10. Innovation “When the going gets tough the tough innovate.” Andrew J. Razeghi

  11. 1930’s Innovators “Nothing stands between a man and his Lazyboy”

  12. 1930’s Innovators Sales up 30% from 1929 - 1933

  13. 1930’s Innovators “A sandwich, just isn't a sandwich…”

  14. 1930’s Innovators Sales down 66% - 5 plants - Checkers

  15. 1930’s Business as usual Crushed with marketing

  16. 1930’s Business as usual • Made customer service a priority • Sought opportunities for long term growth • Continued advertising and marketing • Made sound decision based on market research • Made conservative investment decisions

  17. Today’s Perception • Media and fear drive hunker down mentality • Business • Consumers • Business failure rate is high • Consumers are not buying • Price is most important • People are out of work • Economy is drastically shrinking The Sky is Falling

  18. Today’s Reality • Hunker down mentality creates unmet needs • Successful companies are seeking opportunity • Business Failures • Peak in 1930’s at 1.54% • Peak of Dot Bomb at .75%

  19. Today’s Reality • Consumers are buying! • January retail clothing sales up 2.8% vs 20081 • January electronics and appliance sales up 1.2% vs 20081 • February homes sales in Texas = 13,312 2 • February single family building permits issued in Texas = 4,1383 • Texas home sales peaked in 2006!4 • 1993 = 116,304 • 2006 = 292,805 • 2007 = 275,584 • 2008 = 232,101 • Retail sales show improvement, Cnn.com, 21 Mar. 2009, 20 June 2009 <http://tips.blogs.cnn.com/2009/03/12/retail-sales-show-improvement/>. • “February Existing Home Sales, Prices Decline,” Houston Properties, Paige Martin, 2009, 20 June 2009 <http://www.houstonproperties.com/node/753>. • “How is the Texan economy doing?” Texan Economy, Lorenz Lammens Markings, 20 June 2009 <http://lorenzlammens.com/business-loans/334-texan-economy.html>. • Texas MLS Residential Housing Activity, Real Estate Center at Texas A&M University, 2009, 20 June 2009 <http://recenter.tamu.edu/Data/hs/hs800a.htm>.

  20. Today’s Reality • What is a luxury to one generation is a necessity to the next! • Neiman’s,1 Saks’2 and Nordstrom’s3 February Sales = 900 Million • Coach 1st quarter 2009 year over year = 740 Million / 744 Million4 • Chubb 1st quarter 2009 year over year = 2.83 billion / 2.98 billion • “Neiman Marcus sales drop 20.9 percent in February,” Financial Reporting, National Jeweler, 9 Mar 2009, 20 June 2009 <http://www.nationaljewelernetwork.com/njn/content_display/majors/financial-reporting/e3ia82652ffac56b32ea6ca89b6220b7265>. • “Saks sales down 26 percent in February,” Financial Reporting, National Jeweler, 5 Mar 2009, 20 June 2009 < http://www.nationaljewelernetwork.com/njn/content_display/majors/financial-reporting/e3i8063110914089689d266377eb823f648>. • “Nordstrom February sales plummet,” Portland Business Journal, 5 Mar 2009, 20 June 2009 <http://portland.bizjournals.com/portland/stories/2009/03/02/daily54.html>. • “Quarterly Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 For the Quarterly Period Ended March 28, 2009,” Form 10-Q: Coach Inc. United States Security and Exchange Commission, 27 June 2009 <http://www.sec.gov/Archives/edgar/data/1116132/000114420409024219/v148033_10q.htm>. • “Quarterly Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 For the Quarterly Period Ended March 31, 2009,” Form 10-Q: The Chubb Corporation. United States Security and Exchange Commission, 27 June 2009 <http://www.sec.gov/Archives/edgar/data/20171/000095012309008425/y76960e10vq.htm>.

  21. Today’s Reality • Employment • In February 2009 141,748,000 People Employed in U.S. = 8.1% Unemployed1 • In February 1999 133,144,000 People Employed in U.S. = 4.4% Unemployed2 • Legal Immigrants to the U.S. From 1998 to 2007 = 9,359,4793 • “The Employment Situation: February 2009,” Employment Situation News Release, Bureau of Labor Statistics, United States Department of Labor, 6 Mar 2009, 20 June 2009 <http://www.bls.gov/news.release/archives/empsit_03062009.htm>. • “The Employment Situation: February 1999,” Employment Situation News Release, Bureau of Labor Statistics, United States Department of Labor, 5 Mar 1999, 20 June 2009 <http://www.bls.gov/news.release/history/empsit_030599.txt>. • Yearbook of Immigration Statistics: 2007, U.S. Department of Homeland Security, 4 Sept. 2008, 20 June 2009 <http://www.dhs.gov/ximgtn/statistics/publications/LPR07.shtm>.

  22. Today’s Reality • Gross Domestic Product1 • 1980 = 2.8 Trillion • 1990 = 5.8 Trillion • 2000 = 9.8 Trillion • 2008 = 14.3 Trillion • “Table 1.1.5. Gross Domestic Product,” National Income and Products Accounts Table, National Economic Accounts, Bureau of Economic Analysis, U.S. Department of Commerce, 25 June 2009, 27 June 2009 <http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=5&ViewSeries=NO&Java=no&Request3Place=N&3Place=N&FromView=YES&Freq=Year&FirstYear=1980&LastYear=2008&3Place=N&Update=Update&JavaBox=no#Mid>.

  23. Action Jackson • Don’t focus on the down arrows • Improve your customer experience • Increase your marketing • Create product / solution differentiation • Work Harder • Do what others won’t do • Increase consumer awareness • Must be consistent • Make smart investments in growth • Keep you eyes and ears open for opportunities

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