How did Michael Dell make his first million?
Michael Dell made his first million by building his computer company, Dell Inc., while still in college.
In the 1980s, while attending the University of Texas, Michael Dell started assembling and selling personal computers from his dorm room. He believed that by selling custom-built computers directly to consumers, he could offer more competitive prices and better service than established companies.
In 1984, at the age of 19, he officially founded his company, PCs Limited (later became Dell Inc.), with just $1,000 in startup capital. Unlike other PC manufacturers, Dell used to buy parts when the order had been received. With no overheard, the company had a lower overhead compared to its competitors.
Within a year, Dell’s company generated $6 million in annual sales. By 1987, when Michael Dell was just 22, he made his first million as the company grew rapidly. His direct-to-consumer model was innovative and successful, quickly making him a millionaire.
Michael Dell’s first million came from his entrepreneurial vision of selling custom computers directly to consumers, which helped his company grow rapidly in the early days.
Image Attribution: Joi, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, via Wikimedia Commons
