My name is Evan Carmichael and I believe that the fastest and most effective way to build a business is to model the strategies of people who have already done what you’re trying to do. I call it Modeling the Masters. My last post with over 30 comments was: How to Focus, Wage War, and Just Do It Like Philip Knight (Nike Founder)

Today we're going to look at how a young man from The Bronx took a part time high school job selling ties and turned it into a multibillion dollar empire. This is the story of Ralph Lauren and the top 3 lessons that you can learn from his success.

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"The best thing you can do is go away from this saying, ‘I can do this too,’ because it’s all possible and I’m living proof." - Ralph Lauren

Ralph Lauren (born Ralph Lifshitz on October 14, 1939 in The Bronx, New York) is an American fashion designer and business executive; best-known for his Polo Ralph Lauren clothing brand. His father, a house painter, changed the family name to Lauren when Ralph was a teenager. While in high school, Lauren worked at a tie store as a stock boy after school. He often sold ties to his classmates to earn a commission. He sold ties for $12 to $15 when even luxury ties didn't sell for more than $5.

After high school Lauren enlisted in the U.S. Army and then joined the Brooks Brothers clothing company as a tie salesman. He had a vision for creating a new line of ties but Brooks Brothers wasn't interested so Lauren found a tie maker in Cincinnati and started his own business.

Today his Polo Ralph Lauren company has almost $5 billion in revenues and employs close to 20,000 people. As of 2011, Forbes estimates his wealth at $5.8 billion dollars which would make Ralph Lauren the 173rd richest person in the world.

Action Item #1: Stick to Your Vision

Almost every single successful entrepreneur that I've profiled had a vision for their company when they first started out. They wanted to change how something was done in their industry. They looked at the world in a slightly different way and wanted others to join them. That vision can be fuel to help get you through the lean startup days. Don't stray from it to do something that might make you some short term money but isn't fulfilling and does not align with the vision you have for yourself.

When Lauren was getting started he approached Bloomingdales to sell his ties. It was a flagship brand that would rocket his company forward. They met with Lauren and told him they would carry his ties if he made them narrower and replaced his label on the back with a Bloomingdale label. Lauren refused and lost his big account. He went on to sell to other companies and had the last laugh when Bloomindales came back to ask for a second chance once they saw how well his ties were selling with their competitors.

According to Lauren: “Your vision is very important. You should know whom you’re selling to, what your marketing and advertising says about you, and whom it’s speaking to. Me personally, I don’t try to please everyone. I understand who I am selling to and I work towards that vision all the time.”

Action Item #2: Evolve Your Brand, Don't Reinvent It

Your business never turns out exactly as you thought it would. It's important to have a clear vision and let the tactics you use be flexible as you grow so you don't constrict yourself. A great way to expand your business is to evolve your brand and offer new products or services that you can sell to the same customer. The easiest way to grow a business is to sell more to current customers. The hardest way to grow is to try and find new customers. Always look to your customer base to see what problems they have and if you can offer anything else that might help solve them.

Lauren started out in the necktie business but quickly expanded into a lifestyle brand that people connected with. He wanted to continue to expand his business into new product lines but had to make sure that those products were consistent with the image and brand that he wanted to portray. Today you can wear Lauren clothing, buy Lauren paint, dry yourself off with Lauren towels, sit down in Lauren furniture, and the list goes on.

According to Lauren: “What I do is about living. It’s about living the best life you can and enjoying the fullness of the life around you - from what you wear, to the way you live, to the way you love. When you think of the blur of all the brands that are out there, the ones you believe in and the ones you remember, like Chanel and Armani, are the ones that stand for something. Fashion is about establishing an image that consumers can adapt to their own individuality. And it's an image that can change, that can evolve. It doesn't reinvent itself every two years.”

Action Item #3: Trust Your Instincts

You very rarely have enough information to make most of the big decisions you're going to have to make with your business. By the time you get all the information it's likely too late to act. So you're going to have to trust your instincts. Listen to the voice inside you and trust that you're doing the right thing. If you have a true passion for what you're doing then your instincts will rarely lead you down the wrong path.

Lauren never went to fashion school and only took a few business courses at a city college. On paper it looked like he was never going to make it. But he had the ability to trust his instincts and follow what the trends were in his market. He listened to his customers and gave them exactly what they wanted. As a result his business exploded. He continues to listen even now as his company brings in billions of dollars. At company meetings, for example, he offers his interns the opportunity to speak out. He wants to hear the opinions and tastes of the up and coming generation; they are the ones who will be deciding his fate down the road.

According to Lauren: "It’s about broadening your scope through history and living your life. Tune in and pay attention.”

True Story

In 1968, with the help of a $50,000 loan, Lauren founded Polo Fashions. He chose the name not because he liked the sport - he had never played polo before in his life. But to Lauren, the name symbolized power and style - an image he wanted his clothes to project.

According to Lauren: “I’ve always loved sports but it didn’t make much sense to call my brand ‘Basketball’ or ‘Baseball’ so I decided on ‘Polo.’ Of course I didn’t play polo but I liked that it represented a feeling of being international, European and yet very healthy American. It was the sport of kings. It was glamorous, sexy, and international.”

More Quotes

"The best thing you can do is go away from this saying, ‘I can do this too,’ because it’s all possible and I’m living proof."

"I’m totally involved with all of my products. Everything I make is my message and for years my goal has been to make the things I love."

"Back then when I mentioned Polo most people would look at me funny and say ‘You mean like Marco Polo?’"

What Do You Think?

Do you stick to your vision? Have you always trusted your instincts? What part of Ralph Lauren's message impacted you the most? As always, I’d love to hear your thoughts if you leave a comment below!

Evan Carmichael

To learn more check out my list of Ralph Lauren articles or my website, EvanCarmichael.com.