Risk, Burgers, and Family

Starting a business is risky. In five years only ten percent of businesses survive. Jerry Murrell knew this. He lived it. His previous businesses had busted. Murrell never totally crashed. The businesses just fizzled out.

Let’s try again, he told his wife and kids, but let’s not put a lot of money into it.

He found a location off the beaten path, with a short-term lease. He found used equipment (like Ben & Jerry’s). If Murrell and his kids couldn’t find it cheap they built it themselves.

He sat down again with his wife and kids. We need to talk about college, he said. The four boys weren’t interested. So the college fund got added to the business. The boys became the first employees.

They would sell three things: burgers, fries, and shakes. They’d order their favorite ingredients and do cost-plus pricing. If something cost one dollar they would sell it for three.

It worked. There are now more than 1,7000 Five Guys around the world.

It was a risk, but a small one. Murrell proceeded slowly. He solved problems as they arose. He hired good people. He succeeded.

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