Business (and Highway) 101: Everything I need to know about business, I learned on my motorcycle

So you've got an MBA. The last thing yougo its own way, producing a line of unique
probably want to hear is that instead of studyingmachines that once again have earned it a
for years, preparing all those cases, and payingdevoted fan base.j
six figures to your alma mater, you could have6.) Count Domenico Agusta - Lesson: Follow your
learned all you needed to know cruising thepassion This Italian Count ran MV Agusta during
highway on your Harley. (OK, maybe you'd wantits heyday between the end of WWII and the
to take your Ducati to the odd track day, too;early '70s. During that time, the company was
think of that as the equivalent of an advancedreally a helicopter manufacturer with a small
seminar.)motorcycle subsidiary. The road-going
Here are ten vital business lessons you can learnmotorcycles they made would never warrant
from ten of the most influential entrepreneurs inincluding the Count on this list, but thanks to his
the history of motorcycling.own fierce pride and competitive streak, the
1.) Soichiro Honda - Lesson: Find your own waycompany also funded the greatest Grand Prix
The son of a village blacksmith, Honda wasracing team of all time.
exposed to bicycles when they were brought intoWhen the Japanese factories began to dominate
his father's shop for repair. He had only a primaryin the late '60s, they drove out most of the
school education, but showed a striking aptitudeItalian marques. By lavishing funds from the
for both engineering and business. Before startinghelicopter business on his racing team, Agusta
the Honda Motor Company to make motorizedsingle-handedly preserved Italian racing honor.
bicycles in postwar Japan, he had already built up7.) Malcolm Forbes - Lesson: It's not what you
two successful businesses, one supplying pistonknow, it's who you know Forbes was the son of
rings to Toyota, and another making propellersAmerica's first business magazine publisher. After
for the Japanese air force. Mr. Honda washeroic service in WWII, he came home to work
anything but a typical Japanese businessman. Aat Forbes Magazine, although he nearly became
rugged individualist, he refused to participate in thethe Governor of New Jersey - he won the
"keiretsu" alliances between companies, whichRepublican nomination but lost the election. So
typically gave big banks a strong influence inwhat does running Forbes Magazine have to do
business decisions. When virtually all Japanesewith motorcycles? Nothing.
motorbikes had noisy, smelly two-stroke motorsForbes discovered motorcycling in the 1960s. He
he decided to make a four-stroke. That typified abought a motorcycle dealership in New Jersey,
willingness to plan and invest for long-termwhich became one of the biggest shops in the
success even if it meant ignoring prevailingcountry. Using his high-level business connections,
"wisdom." One of the motorcycles that benefitedhe worked tirelessly to establish motorcycle riding
from that insight was the Super Cubas a respectable pastime. He was an extremely
step-through. It was introduced in 1958 and is stilleffective political lobbyist always ready to defend
produced almost unmodified today. Honda recentlymotorcycling from legal assault. With his
sold the 50 millionth Super Cub, making it the bestmedia-savvy background, he managed to plant
selling vehicle of all time.scores of motorcycle stories in the mainstream
2.) George Hendee - Lesson: You don't need tomedia. The social acceptability of motorcycles
know, you need to know what you need totoday owes much to Malcolm Forbes.
know Hendee was one of the most successful8.) Floyd Clymer - Lesson: If at first you do
bicycle racers in Massachusetts at the turn of thesucceed, try again anyway
century - at one point, he won 302 races out ofClymer was already famous as a young teenager
309! He started a company making his own- at 13 (in 1909) he was the youngest Ford dealer
bicycles, which sold well, thanks to his racingin the country! He went on to become a winning
reputation.motorcycle racer and soon had a dealership for
Many of the very first motorcycles wereHarley-Davidson and Excelsior motorcycles in his
"pacers" used to train bicycle racers. They werehome state of Colorado. He was an innovative
typically unreliable but Hendee noticed that Oscarmarketer and one of the first people to sell
Hedstrom's ran very well. In 1901, Hendeemotorcycles to police departments and delivery
approached Hedstrom and told him that his dreambusinesses. In his early 20s he began publishing his
was to start a company devoted to makingfirst motorcycle magazine.
motorized bicycles. They called their companyHis career was put on hold when he served a
Indian, and in short order it was America's leadingyear in federal prison for mail fraud. He had been
motorcycle manufacturer. In 1912, Indian soldoffered a chance to plead guilty and avoid prison
over 20,000 units.altogether but he always claimed he was innocent
3.) Arthur Davidson - Lesson: Support yourand refused to admit a crime he didn't commit.
product after the sale While his friend Bill HarleyWhen he got out of prison he took over the
and to a lesser extent the other Davidsondistribution of Indian motorcycles on the west
brothers provided the technical know-how, thecoast. Here again, he had marketing savvy,
early business success of Harley-Davidson wasarranging for Indian motorcycles to appear in films
largely due to Arthur Davidson. In 1910 he set outand lending them to Hollywood stars. When Indian
to enroll a national network of dealers. He alsofaltered in the '50s, Clymer desperately tried to
recognized the importance of factory-training forsave the brand but failed. He also was briefly the
dealer service staff, and the importance ofimporter of the eyebrow-raising Munch Mammoth
advertising if H-D was ever to surpass Indian inmotorcycle.
annual sales.Last but not least, he was the publisher of Cycle
4.) Vaughn Beals - Lesson: Quality-control rules ByMagazine from the early '50s to the mid-'60s and
the mid-'70s after years of AMF mismanagement,ran a very successful business publishing
Harley-Davidson had lost almost all customermotorcycle repair manuals.
loyalty and profits were in freefall. When a group9.) George Barber - Lesson: Remember to give
of company executives led by Vaughn Bealsback Barber was a sports car racer who gave up
offered to buy the division for $75 million, AMFthe track to take over the family business,
quickly agreed.Barber Dairies, based in Birmingham Alabama. He
After the 1981 leveraged buyout, Beals led anbuilt it into the largest privately-owned dairy in the
amazing corporate turnaround. He funded newsoutheast and then, late in life, assembled the
product development and implemented world-classworld's most important collection of vintage
quality control. It's impossible to know what wouldmotorcycles.
have happened to the H-D brand if Beals had notWhen the collection outgrew its original home in
risen up to save it, but it's certain that no oneone of the old dairy warehouses, he built Barber
else could have done a better job at rehabilitatingMotorsports Park on the outskirts of Birmingham.
it.The park includes one of the best race-tracks in
5.) John Bloor - Lesson: Never underestimate thethe U.S., and the best motorcycle museum in the
value of your brand, never take it for grantedworld. The track and museum are set in a
Like Harley-Davidson, Triumph was a companymanicured landscape that puts every other U.S.
that had fallen on hard times - more than once. Inrace-track to shame. After spending $60 million of
the 1920s the company made an ill-fated movehis own money on the park, Barber essentially
to produce cars as well and in 1936 angave it to the city of Birmingham and the state
entrepreneur named Jack Sangster drove a hardof Alabama.
bargain, acquiring the motorcycle business at a10.) "Big" Bill France - Lesson: If you build it, they
good price. Sangster's business instincts nearlywill come France is best known as the father of
make him worthy of a place on this list, too. HeNASCAR the builder of Daytona International
hired the brilliant Edward Turner and after turningSpeedway, France was also a motorcycle racer.
a handsome profit on sales, sold the company toThe city of Daytona Beach convinced the AMA
BSA for another big payday in 1951.to hold the 200-mile national championship race
From the mid-'70s through the mid-'80s Triumphthere in 1937. After a few lackluster years, it
died an agonizingly slow death. The brand wouldseemed Daytona would lose the race, until France
have vanished altogether had John Bloor, a realwas convinced to become the promoter. He
estate developer, not bought the old factory incontinued to promote the race until, realizing that
Meriden. Against all advice, Bloor decided to build ait could not continue on the beach, he built the
new factory in nearby Hinckley. He spent millionsspeedway. He opened his track in 1959 and the
designing new motorcycles that were unveiled atAMA saw the light and moved the race there
the Cologne Motorcycle Show in 1990. While thosetwo years later. Under France's control, the race
first "new" Triumphs got mixed reviews, thebecame an international sensation.
company has shown a remarkable willingness to