Business (And Highway) 101 - Skip The MBA And Buy A Motorcycle

1.) Soichiro Honda - Lesson: Find your own wayheyday between the end of WWII and the early
The son of a village blacksmith, Honda was'70s. During that time, the company was really a
exposed to bicycles when they were brought intohelicopter manufacturer with a small motorcycle
his father's shop for repair. He had only a primarysubsidiary. The road-going motorcycles they made
school education, but showed a striking aptitudewould never warrant including the Count on this
for both engineering and business. Before startinglist, but thanks to his own fierce pride and
the Honda Motor Company to make motorizedcompetitive streak, the company also funded the
bicycles in postwar Japan, he had already built upgreatest Grand Prix racing team of all time.
two successful businesses, one supplying pistonWhen the Japanese factories began to dominate
rings to Toyota, and another making propellersin the late '60s, they drove out most of the
for the Japanese air force.Italian marques. By lavishing funds from the
Mr. Honda was anything but a typical Japanesehelicopter business on his racing team, Agusta
businessman. A rugged individualist, he refused tosingle-handedly preserved Italian racing honor.
participate in the "keiretsu" alliances between7.) Malcolm Forbes - Lesson: It's not what you
companies, which typically gave big banks aknow, it's who you know
strong influence in business decisions. WhenForbes was the son of America's first business
virtually all Japanese motorbikes had noisy, smellymagazine publisher. After heroic service in WWII,
two-stroke motors he decided to make ahe came home to work at Forbes Magazine,
four-stroke. That typified a willingness to plan andalthough he nearly became the Governor of New
invest for long-term success even if it meantJersey - he won the Republican nomination but
ignoring prevailing "wisdom." One of thelost the election. So what does running Forbes
motorcycles that benefited from that insight wasMagazine have to do with motorcycles? Nothing.
the Super Cub step-through. It was introduced inForbes discovered motorcycling in the 1960s. He
1958 and is still produced almost unmodified today.bought a motorcycle dealership in New Jersey,
Honda recently sold the 50 millionth Super Cub,which became one of the biggest shops in the
making it the best selling vehicle of all time.country. Using his high-level business connections,
2.) George Hendee - Lesson: You don't need tohe worked tirelessly to establish motorcycle riding
know, you need to know what you need toas a respectable pastime. He was an extremely
knoweffective political lobbyist always ready to defend
Hendee was one of the most successful bicyclemotorcycling from legal assault. With his
racers in Massachusetts at the turn of themedia-savvy background, he managed to plant
century - at one point, he won 302 races out ofscores of motorcycle stories in the mainstream
309! He started a company making his ownmedia. The social acceptability of motorcycles
bicycles, which sold well, thanks to his racingtoday owes much to Malcolm Forbes.
reputation.8.) Floyd Clymer - Lesson: If at first you do
Many of the very first motorcycles weresucceed, try again anyway
"pacers" used to train bicycle racers. They wereClymer was already famous as a young teenager
typically unreliable but Hendee noticed that Oscar- at 13 (in 1909) he was the youngest Ford dealer
Hedstrom's ran very well. In 1901, Hendeein the country! He went on to become a winning
approached Hedstrom and told him that his dreammotorcycle racer and soon had a dealership for
was to start a company devoted to makingHarley-Davidson and Excelsior motorcycles in his
motorized bicycles. They called their companyhome state of Colorado. He was an innovative
Indian, and in short order it was America's leadingmarketer and one of the first people to sell
motorcycle manufacturer. In 1912, Indian soldmotorcycles to police departments and delivery
over 20,000 units.businesses. In his early 20s he began publishing his
3.) Arthur Davidson - Lesson: Support yourfirst motorcycle magazine.
product after the saleHis career was put on hold when he served a
While his friend Bill Harley and to a lesser extentyear in federal prison for mail fraud. He had been
the other Davidson brothers provided theoffered a chance to plead guilty and avoid prison
technical know-how, the early business success ofaltogether but he always claimed he was innocent
Harley-Davidson was largely due to Arthurand refused to admit a crime he didn't commit.
Davidson. In 1910 he set out to enroll a nationalWhen he got out of prison he took over the
network of dealers. He also recognized thedistribution of Indian motorcycles on the west
importance of factory-training for dealer servicecoast. Here again, he had marketing savvy,
staff, and the importance of advertising if H-Darranging for Indian motorcycles to appear in films
was ever to surpass Indian in annual sales.and lending them to Hollywood stars. When Indian
4.) Vaughn Beals - Lesson: Quality-control rulesfaltered in the '50s, Clymer desperately tried to
By the mid-'70s after years of AMFsave the brand but failed. He also was briefly the
mismanagement, Harley-Davidson had lost almostimporter of the eyebrow-raising Munch Mammoth
all customer loyalty and profits were in freefall.motorcycle.
When a group of company executives led byLast but not least, he was the publisher of Cycle
Vaughn Beals offered to buy the division for $75Magazine from the early '50s to the mid-'60s and
million, AMF quickly agreed.ran a very successful business publishing
After the 1981 leveraged buyout, Beals led anmotorcycle repair manuals.
amazing corporate turnaround. He funded new9.) George Barber - Lesson: Always remember
product development and implemented world-classwhere you came from
quality control. It's impossible to know what wouldBarber was a sports car racer who gave up the
have happened to the H-D brand if Beals had nottrack to take over the family business, Barber
risen up to save it, but it's certain that no oneDairies, based in Birmingham Alabama. He built it
else could have done a better job at rehabilitatinginto the largest privately-owned dairy in the
it.southeast and then, late in life, assembled the
5.) John Bloor - Lesson: Never underestimate theworld's most important collection of vintage
value of your brand, never take it for grantedmotorcycles.
Like Harley-Davidson, Triumph was a companyWhen the collection outgrew its original home in
that had fallen on hard times - more than once. Inone of the old dairy warehouses, he built Barber
the 1920s the company made an ill-fated moveMotorsports Park on the outskirts of Birmingham.
to produce cars as well and in 1936 anThe park includes one of the best race-tracks in
entrepreneur named Jack Sangster drove a hardthe U.S., and the best motorcycle museum in the
bargain, acquiring the motorcycle business at aworld. The track and museum are set in a
good price. Sangster's business instincts nearlymanicured landscape that puts every other U.S.
make him worthy of a place on this list, too. Herace-track to shame. After spending $60 million of
hired the brilliant Edward Turner and after turninghis own money on the park, Barber essentially
a handsome profit on sales, sold the company togave it to the city of Birmingham and the state
BSA for another big payday in 1951.of Alabama.
From the mid-'70s through the mid-'80s Triumph10.) "Big" Bill France - Lesson: If you build it, they
died an agonizingly slow death. The brand wouldwill come
have vanished altogether had John Bloor, a realFrance is best known as the father of NASCAR
estate developer, not bought the old factory inthe builder of Daytona International Speedway,
Meriden. Against all advice, Bloor decided to build aFrance was also a motorcycle racer. The city of
new factory in nearby Hinckley. He spent millionsDaytona Beach convinced the AMA to hold the
designing new motorcycles that were unveiled at200-mile national championship race there in 1937.
the Cologne Motorcycle Show in 1990. While thoseAfter a few lackluster years, it seemed Daytona
first "new" Triumphs got mixed reviews, thewould lose the race, until France was convinced to
company has shown a remarkable willingness tobecome the promoter. He continued to promote
go its own way, producing a line of uniquethe race until, realizing that it could not continue on
machines that once again have earned it athe beach, he built the speedway. He opened his
devoted fan base.jtrack in 1959 and the AMA saw the light and
6.) Count Domenico Agusta - Lesson: Follow yourmoved the race there two years later. Under
passionFrance's control, the race became an international
This Italian Count ran MV Agusta during itssensation.