Massive Companies That Started in Garages

By Adam Garcia | Published

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The garage has become almost legendary in business history. Some of the biggest names in the world began with nothing more than an idea, a cramped workspace, and people willing to take a chance.

These companies didn’t have fancy offices or big budgets when they started. They had determination, creativity, and just enough room to tinker with their dreams between the lawn mower and the old paint cans.

Let’s look at the humble garage beginnings of companies that now shape daily life.

Apple

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Steve Jobs and Steve Wozniak built the first Apple computers in Jobs’ parents’ garage in Los Altos, California in 1976. The setup was pretty basic – Wozniak soldered circuit boards while Jobs figured out how to sell them.

They needed 50 computers for their first order, which meant Jobs had to sell his VW van and Wozniak sold his calculator just to buy parts. The garage smelled like solder and was cluttered with wires and tools.

Now Apple is worth over $3 trillion, and people camp outside stores when new iPhones come out.

Amazon

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Jeff Bezos started Amazon in his garage in Bellevue, Washington in 1994, originally just selling books. He warned early employees that there was a 70% chance the whole thing would fail.

Bezos and his small team packed orders on their hands and knees because they couldn’t afford packing tables. His wife drove packages to the post office every evening.

The company that began in a suburban garage now delivers millions of packages daily and runs a huge chunk of the internet.

Google

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Larry Page and Sergey Brin rented a garage in Menlo Park from Susan Wojcicki in 1998 for $1,700 a month. They set up servers and desks in the space while Wojcicki lived in the main house.

The landlord would later become one of their most important executives. Page and Brin were convinced their search engine was better than anything else out there, even though plenty of people thought the search engine market was already full.

Turns out they were onto something pretty big.

Microsoft

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Bill Gates and Paul Allen started Microsoft in Albuquerque in 1975, though they did plenty of work in Gates’ parents’ garage back in Seattle. Gates was only 19 when he dropped out of Harvard to focus on the company.

They wrote software for early personal computers that most people thought were just expensive toys. Allen had to convince Gates to take the leap, and Gates had to convince his parents he wasn’t throwing his life away.

The gamble paid off in ways nobody could have predicted.

Disney

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Walt Disney and his brother Roy started their animation studio in their uncle’s garage in Los Angeles in 1923. Walt was just 21 years old and had already failed with one animation company.

The brothers scraped together whatever money they could and bought used camera equipment. Walt drew and animated while Roy handled the business side, which wasn’t his favorite thing but somebody had to do it.

That cramped garage workspace eventually led to theme parks that cover thousands of acres.

Hewlett-Packard

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Bill Hewlett and Dave Packard started HP in a Palo Alto garage in 1938 with $538 between them. They flipped a coin to decide whose name would go first in the company name.

Their first big break came when Walt Disney bought eight of their audio oscillators to use in making Fantasia. The garage where they worked is now a California Historical Landmark with a plaque out front.

HP went on to become one of the most recognizable tech companies before computers were even common in homes.

Harley-Davidson

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William Harley and Arthur Davidson built their first motorcycle in a tiny wooden shed in Milwaukee in 1903. The shed was so small they had to write ‘Harley-Davidson Motor Company’ on the door just to make it feel official.

They completed exactly three motorcycles that first year. The bikes were loud, leaked oil, and needed constant repairs, but they ran.

Over a century later, the company still makes motorcycles in Milwaukee, and the distinctive sound is instantly recognizable.

Mattel

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Ruth and Elliot Handler started making picture frames in their garage in Southern California in 1945. They noticed the dollhouse furniture they made from leftover scraps sold way better than the actual frames.

Ruth’s biggest idea came later when she watched her daughter play with paper dolls and wished for more grown-up versions. That observation led to Barbie, which became one of the most successful toys ever made.

The Handlers turned garage leftovers into a toy empire.

Maglite

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Anthony Maglica came to America from Croatia with almost nothing and started machining parts in his Los Angeles garage in 1955. He was a perfectionist who insisted on precision even when making simple components.

When he finally designed the Maglite flashlight in 1979, he built it to last practically forever. Police officers started using them not just for light but as defensive tools because they were so sturdy.

Maglica kept his company independent and his manufacturing in America when everyone said he should outsource.

Yankee Candle Company

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Michael Kittredge made his first scented candle in his parents’ garage in Massachusetts in 1969 as a Christmas gift for his mom. He melted down some crayons and used a milk carton as a mold because that’s what he had available.

A neighbor saw the candle and offered to buy it, so Kittredge made another one. Then another neighbor wanted one. 3

Pretty soon the 16-year-old was running a business out of the garage, and his mom probably wondered what happened to her workspace.

Lotus Cars

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Colin Chapman built racing cars in a garage behind his parents’ pub in London starting in 1948. He was obsessed with making cars lighter and faster, stripping away anything that didn’t help performance.

Chapman worked a day job as an engineer and built cars at night and on weekends. His designs were so innovative that Lotus became a major force in Formula One racing.

The company proved that a guy working alone in a garage could out-engineer major manufacturers.

Under Armour

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Kevin Plank got tired of his soaking wet cotton t-shirts during football practice at the University of Maryland. After graduating in 1996, he started making moisture-wicking shirts in his grandmother’s basement in Washington, D.C.

Plank loaded up his car and drove to colleges up and down the East Coast, trying to sell shirts to equipment managers. He slept in his car to save money on hotels.

Georgia Tech gave him his first big order, and things started rolling from there.

Dell Computers

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Michael Dell started building custom computers in his dorm room at the University of Texas in 1984. He realized he could build better computers for less money by cutting out stores and salespeople.

Dell would buy components, assemble computers based on what customers actually wanted, and ship them directly. His parents wanted him to be a doctor and weren’t thrilled when he dropped out to focus on computers.

Dell’s made-to-order approach changed the entire industry and made him a billionaire before he turned 30.

Lotus Software

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Mitch Kapor created Lotus 1-2-3 while working from his Cambridge, Massachusetts apartment and garage in the early 1980s. The spreadsheet program was easier to use than anything else available and could do more.

Businesses bought personal computers specifically to run Lotus 1-2-3, which is about the highest compliment software can get. The program dominated for years until Microsoft Excel came along.

Kapor went from a garage programmer to running one of the hottest software companies in the world almost overnight.

GitHub

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Three programmers started GitHub as a weekend side project in San Francisco in 2007. Tom Preston-Werner, Chris Wanstrath, and PJ Hyett were frustrated with existing tools for sharing code.

They wanted something simpler that actually made collaboration easy instead of painful. The site caught on fast with developers who appreciated not having to fight with their tools.

Microsoft bought the company for $7.5 billion eleven years later, proving that solving annoying problems can be extremely valuable.

Spanx

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Sara Blakely cut the feet off her pantyhose in 1998 and realized she’d invented something useful. She spent $5,000 of her savings and two years developing the product in her Atlanta apartment, using her garage for storage.

Blakely had no background in fashion or business, so she learned everything from scratch. She wrote her own patent and drove to North Carolina to meet with hosiery mills that didn’t take her seriously.

When Oprah called Spanx a favorite product, everything changed. Blakely became a billionaire by solving a problem millions of women dealt with every day.

Yankee Publishing

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Robb Sagendorph bought The Old Farmer’s Almanac in 1939 when it was nearly dead and revived it from his garage in Dublin, New Hampshire. The almanac had been around since 1792 but was barely selling any copies.

Sagendorph filled it with weather predictions, planting advice, and quirky stories that people actually enjoyed reading. He ran the whole operation from that garage for years, doing everything from editing to shipping.

The almanac still comes out every year, and plenty of people won’t plan their garden without checking it first.

The Real Story Behind The Myth

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These garage startups didn’t happen because garages have some kind of special power. They happened because determined people needed cheap workspace and used what they had available.

Most of these founders worked other jobs while building their companies, ate cheap food, and went without sleep. The garage was just the place where they could afford to fail repeatedly until they figured things out.

Today’s big success stories still start in spare bedrooms, basements, and yes, garages, because the important ingredient was never the location.

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