Tuesday, October 23, 2007

Eggstra Large

I was talking to my cousin K this weekend. He works for their family business and he just came back from a convention in Ohio. I was interested in the story of their successful business. He told me about 10 years ago, they had a small construction business, and my uncle felt that the business was not as profitable. So they looked into the egg business.
One reason they chose eggs was because they can easily build the hen houses. They really had no idea how to run an egg business. They kept at it and pretty soon they also got into selling chickens. Then after that they also went into selling pork.
Another thing was they never stopped looking for ways to improve the business. His brothers would come and find out about the new feed formulas for the chickens. They get better equipment to incubate the eggs. They even look at the optimum altitude for the egg farms.
They had the management know-how to grow past the "family business" stage. There are many family businesses that want to keep tight control and never let "outsiders" into the executive level. They have many loyal employees who have climbed the ranks over the years. And they also recognize the need to hire outside the company to get the right person. He says they hired one guy from Australia to manage one of their businesses. Nowadays my cousin is on the board of directors and does not handle the day-to-day operations anymore.
Today they are now the number 2 chicken company in the country X. He says they sell about 130 Million chickens a year. Even though they are very successful, they are still grounded. They do not spend extravagantly, and still very nice people.

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