Lessons from The National Biscuit Company

In 1898, during a time of significant economic upheaval and world political turmoil, 114 independent bakeries - mostly mom-n-pop shops - all across the US joined forces and formed “The National Biscuit Company”.  The US had just declared war on Spain (the beginning of the Spanish/American War), and any conflict between these two world superpowers would surely upset trade, supplies, and manpower around the globe.  The US monetary system was facing great uncertainty as politicians debated our “gold standard”, threatening the very value of the dollar itself and economists feared the worst in terms of inflation and wealth erosion.  China was unstable with a new authoritarian leader, a peasant uprising, and violent opposition towards anything “Western”.  And a great Bubonic Plague was rapidly spreading death and fear throughout Asia and beyond, and it would eventually kill over 3 million people worldwide.  (Sound familiar?  US at war, dollar under attack, problems in China, a potential plague - Swine Flu?  Hmm...)

In the midst of this turmoil, these 114 bakeries consolidated, pooled their resources, agreed to cooperate, and determined to face an uncertain future together.  Streamlining distribution channels, combining production capacities, and using vastly increased buying power to negotiate better pricing with suppliers, the new entity was able to significantly reduce costs and increase production.  

Many of my posts here will focus on some specific strategies related to this concept of reducing costs and increasing productivity.  (Oh, in case you don’t recognize the name "National Biscuit Company", they later shortened their name to something you may recognize easier:  Nabisco.)   This post is about the formation of the company itself.  Don’t miss this lesson - it may be the most important one in the whole series!

Just like these individual bakeries, you may be facing an uncertain future.  The key to their survival was to join forces and slash costs, increase production, and work towards a common goal.  Do you have people in your life whom you need to involve in your debt-reducing / wealth-building journey?  Your spouse?  Your kids?  Your support network?  In a famous quote, Benjamin Franklin admonished his fellow Founding Fathers and patriots with “We must all hang together, or assuredly we shall all hang separately.”  Who in your life do you need to “hang together” with?

If you’re ready to make positive changes to your financial situation, start by having a frank money conversation with your significant other(s).  Realistically assess where you are currently at and where you’d like to go.  Understand that there may be sacrifices to make.  Promise to support each other.  Be excited about the future these changes will help you create.  Dare to dream big and pledge to enjoy the journey, come what may.  Together, the burden will be lighter and the rewards will be greater!

Photo by euthman