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McDonald’s and Multiple Sources of Income

McDonald’s and Multiple Sources of Income

Are you making ENOUGH money? Small business expert and entrepreneur extraordinaire Marley Majcher shares insight into the secret to McDonald's success!

How To Stand Out In Today's Marketplace!

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The question of the day is not “are you making any money” but rather “are you making enough money?” If you can look at your finances and identify only one legitimate source of revenue, the answer to this question may be ‘no.’ Sure anyone can make a decent living off of a single recurring paycheck, but those that can secure multiple forms of income are the ones that truly stand out in today’s mile a minute marketplace.

Capital creates capital. And no company has used their astonishing income base as a tool for developing new business ventures than the McDonald’s Corporation. McDonald’s offers a consistent product from an efficient assembly line whose invention did for the food industry what Henry Ford did for the auto industry. But burgers, McFlurries, and French fries aside, the majority of the profit McDonalds generates, is not through food sales, but through Real Estate.

When Ray Croc began expanding the company in the 1950s, despite a nationwide chain of franchises, McDonald’s was barely covering expenses. In order to drive profit, Croc organized the Franchise Realty Corporation, buying plots of land for new franchisees to open stores. Because McDonald’s owns the land beneath each of its stores, it makes money on rent as well as the cost of producing food. By acting as a supplier and a landlord, McDonald’s more than doubles its profits without changing their product at all.

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This practice continues today, and with an expanse of stores in prominent locations across the globe, the McDonald’s Corporation now owns more land than the Catholic Church. It was this practice that pushed this restaurant over the tipping point and turned Croc’s company into the gluttonous multi-national super-giant it has become today.

McDonald’s expansion into Real Estate was a creative use of pre-existing capital to create an entirely different revenue stream. In your own ventures, you can only work with what you have, and developing another source of income boils down to how creatively you can utilize what’s in front of you. For Ray Croc, the capital to multiply his income was right beneath his feet. For you, the answer may be equally close at hand. But it all begins with that one humbling question, ‘am I making enough money?’

If you want more business tips, get my book, But Are You Making Any Money? or contact me to really take your business to the next level!

xoxo M

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P.S.S. Of course that's not all we've got! Searching for more tips about running a business?

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Disclosure: The Profit Goddess! is a participant in the Amazon Services LLC Associates Program. This post contains affiliate links, which means I may receive a small commission, at no cost to you, if you make a purchase through an amazon.com link. However, these are all products I highly recommend and support!