How a lucky weekend saved FedEx?
Federal Express, headquartered in Memphis (TN), was founded by Fred Smith in 1971 and came to be known as FedEx in 1994.
Several years into operation, with Federal Express expanding to cities like Buffalo, Denver & Hartford, the company war chest dwindled to $5000. The situation was dire, because every Monday, fuel companies demanded the week’s payment in advance, which was $24000 at that point. As the week ended, Federal Express looked unable to pay its bills. “I really did not know what was going to transpire on my return,” mentioned COO Roger Frock while leaving for home that weekend.
On Monday, however, he discovered the company’s checking account held $32,000. When Frock asked Smith about the source of the money, Smith replied “I knew we needed money for Monday, so I took a plane to Las Vegas and won $27,000.” The leaders of FedEx had been hoping for an additional funding and Smith had gone to meet investors for the same. When they declined to offer money, he flew to Vegas instead of going home.
Sometimes, luck can also turnaround businesses, this time it was for good.
Source- Adapted from “Changing How the World Does Business: FedEx’s Incredible Journey to Success # The Inside Story” by Roger Frock (Former COO at FedEx)
