USA– Of course we know Donald Trump, former US president and now also run for president campaign again. Trump has become synonymous with success, controversy, and boundless ambition. Before achieving fame as a successful entrepreneur and President of the United States, Trump began his career with simpler, more challenging steps. This article will explore the first business venture initiated by Donald Trump, the field he entered early in his career, as well as the challenges and successes he experienced in building his business empire before becoming a renowned entrepreneur and political figure.
Donald Trump’s Early Career
Donald John Trump was born on June 14, 1946, in Queens, New York. He was the fourth of five children in the family of Fred Trump, a successful real estate developer. Fred Trump was a German immigrant who built a real estate empire in Queens and Brooklyn. From a young age, Donald Trump was exposed to the real estate business through his father.
In 1968, after graduating from the Wharton School of Finance and Commerce at the University of Pennsylvania, Donald Trump joined his father’s company, Elizabeth Trump & Son. The company focused on developing and managing middle-class residential properties in New York City. Although the business was already established, Donald Trump had a bigger vision and ambition to expand the family empire.
The First Project: Revitalizing Swifton Village
The first project handled by Donald Trump was the revitalization of the Swifton Village apartment complex in Cincinnati, Ohio. The complex was purchased by the Trump family in 1962 for $5.7 million. At that time, Swifton Village was experiencing a decline with low occupancy rates and many units in need of renovation.
Donald Trump, who had just joined the family business, took over this project and led the revitalization efforts. He implemented an aggressive renovation strategy, including repairing damaged units, improving public facilities, and tightening rental policies to attract better tenants. Within a few years, occupancy rates at Swifton Village increased significantly, and the complex was sold for $6.75 million in 1972, providing substantial profits for the Trump family.
Entering Manhattan: The Beginning of Greatness
After the success of Swifton Village, Donald Trump turned his attention to Manhattan, an area with more prestige and the potential for greater profits. In 1971, he moved the headquarters of Elizabeth Trump & Son to Manhattan and began seeking opportunities for more ambitious projects.
One of Trump’s first major projects in Manhattan was the renovation of the deteriorating Commodore Hotel. Trump saw great potential in this property due to its strategic location next to Grand Central Terminal. In 1976, through clever negotiations with the city government and financiers, Trump secured a deal to renovate the hotel at a cost of around $100 million. The result was the transformation of the hotel into the luxurious Grand Hyatt Hotel, paving the way for Trump to become one of Manhattan’s leading developers.
Trump Tower: Icon of Success
One of the most iconic and widely recognized projects undertaken by Trump was the construction of Trump Tower. The tower was built on the site of the former Bonwit Teller department store on Fifth Avenue. Trump secured approval to build this 58-story luxury skyscraper after intense negotiations with various parties, including the city government and landowners.
Trump Tower, completed in 1983, became a symbol of Trump’s success and luxury. The building not only served as the headquarters for the Trump Organization but also housed various luxury apartments and prestigious retail stores. The success of Trump Tower solidified Trump’s reputation as a successful and visionary real estate developer.
Other Successful Projects
In addition to the Grand Hyatt Hotel and Trump Tower, Donald Trump successfully developed several other major projects that boosted his business reputation. Some of these successful projects include:
- Trump Plaza: An office and luxury apartment building located in Manhattan.
- Trump World Tower: One of the tallest residential buildings in the world, located near the United Nations Headquarters.
- Trump International Hotel and Tower: A multifunctional skyscraper located at Columbus Circle, New York.
- Trump Park Avenue: A luxury apartment building located on Park Avenue, Manhattan.
- Trump Palace: A luxury apartment building on the Upper East Side, Manhattan.
Each of these projects expanded Trump’s portfolio, further establishing his position as one of New York’s most influential real estate developers.
The Toughest Times in Business
However, Trump’s journey in the business world was not always smooth. He faced various challenges and difficult times throughout his career. In the late 1980s and early 1990s, Trump encountered tough times when several major projects such as Trump Taj Mahal and Trump Plaza Hotel faced financial difficulties. The Trump Organization faced bankruptcy threats, and Trump had to restructure large debts to keep his business afloat.
The late 1980s and early 1990s were some of the most challenging times for Donald Trump. Ambitious projects like the Trump Taj Mahal, a luxury casino in Atlantic City, and the Trump Plaza Hotel faced serious financial troubles. Trump Taj Mahal, which opened in 1990 at a cost of over $1 billion, quickly encountered financial difficulties due to ballooning debts and revenues that did not meet expectations.
In 1991, Trump Taj Mahal filed for Chapter 11 bankruptcy protection. Shortly thereafter, Trump Plaza and several other properties faced similar financial problems. At the peak of the crisis, the Trump Organization had more than $3 billion in debt, with most of its key properties used as collateral.
Debt Restructuring and Business Recovery
To save his business, Trump undertook various debt restructuring measures involving negotiations with creditors, asset sales, and cost-cutting. Trump agreed to surrender 50% ownership in several properties to creditors as part of the restructuring agreement. He also sold non-strategic assets and reduced operational costs to maintain positive cash flow.
Additionally, Trump relied on support from his father, Fred Trump, who provided personal loans to help save some troubled projects. Through hard work and smart strategy, Trump managed to keep his business afloat and gradually restore the Trump Organization’s financial health.
Resurgence and Global Expansion
After overcoming difficult times, Donald Trump focused on diversifying his business and expanding into global markets. He expanded his property portfolio by acquiring and developing new projects in major cities around the world, including Chicago, Las Vegas, and Dubai. Trump also expanded into the hospitality sector by building Trump International Hotel & Tower in various strategic locations.
Moreover, Trump entered the entertainment industry by becoming the host and executive producer of the popular reality TV show “The Apprentice,” which premiered in 2004. The show not only significantly increased Trump’s popularity but also provided a lucrative additional revenue source.
Today, the Trump Organization, still under the Trump family’s control, has a vast portfolio that includes commercial properties, luxury residences, golf courses, and various other businesses worldwide. Although Donald Trump himself has ventured into politics and served as the President of the United States from 2017 to 2021, the family business continues to operate and is managed by his children.Despite often being a controversial figure, it cannot be denied that his role in transforming the real estate landscape in New York and other cities has had a significant impact. Donald Trump’s success in building a business reflects a combination of clear vision and risk-taking approach.
