The American dream of working hard and attaining riches seems like a fable to most. Immigrant John Jacob Astor envisioned it as his reality and achieved it, creating a fortune, generational wealth, and an American business dynasty. He was not born into success, but with incredible business acumen, friends in the fledgling US government, and a little luck, Astor would become a recognized name in his time and in history. How did he manufacture his success, and what was his impact on the young United States?Son of a ButcherSarah Astor. Source: Wikimedia CommonsJohann Jakob Astor, born July 17, 1763, did not come from wealth. His father was a butcher in Walldorf, located in southeastern Germany. He spent his younger days working for his father, but at the age of 16, he left Germany and headed to London to join his older brother, George, who was working for an uncle who made musical instruments. Four years later, with the conclusion of the American Revolutionary War, he traveled to the newly-minted United States, with about 25 dollars and some flutes to sell. He anglicized his name to John Jacob, and with his brother, he bought and sold musical instruments in New York City. He married Sarah Todd in 1785. Together, the pair had eight children. Three were stillborn or died as infants, and his eldest son, John Jacob Astor Jr., was labeled as feeble minded. He required around-the-clock care.Fascination With FurBeaver fur became Astors ticket to greatness. Source: Napa via Wikimedia CommonsOn the trip over from Europe, Astor met a fur trader who had piqued his interest in the growing fur trade in America. He saw opportunity in the business, and began studying the ins and outs of the trade. He memorized trade routes, learned how the market worked, and considered how he might use the fur economy to benefit his personal wealth. He took the plunge and opened his own fur shop in 1786. His business was boosted by the signing of Jays Treaty in 1794. The treaty settled several disputes between America and Great Britain that had been left unresolved by the Revolutionary War. It created regular trade between the two countries, opening a new market for Astors furs. By 1800, he had amassed a fortune that equaled over six million dollars today.Though Astor was seeing success, this triumph was at risk. The traditional American fur trapping areas of New York and the Atlantic seaboard were becoming depleted of furs. Astor began looking west to the Michigan Territory, which would become the heart of his American Fur Company, founded in 1808. As he became more comfortable in the business world, Astor wasnt afraid to take risks that would potentially benefit his business. American Fur Company products were sold all over the world, and Astor didnt hesitate to move to a different market if he wasnt satisfied with his profits. He knew that beaver hats and other fur attire were popular in Europe, but thought about other business opportunities as he moved his business endeavors west.Opium became an added source of income for Astor. Source: KGM007 via Wikimedia CommonsThough the Chinese werent utilizing fur fashion, they could use the pelts for warmth in uninsulated homes. As a bonus, on the return trips, he could bring back tea from China, which was in demand in America. Astor later found that there was another, even more popular product he could bring to Chinaopium. Astor smuggled the illicit substance, and he sent ships to Turkey and the Persian Gulf, becoming a dominant player in the opium trade of the period.The Great Lakes region became a boon to Astors fur trade, and he established agents throughout the Northwest. His headquarters were located in New York, where he spent most of his time, but he also traveled frequently to his companys outposts in the wilderness. Mackinac Island, located in Lake Huron between Michigans upper and lower peninsulas, became the hub for most of the American Fur Companys physical operations. Here, the companys furs were taken in, packed, and sent eastward.A Different Way of Doing BusinessAstor opened new markets. Source: G&C Franke Collection via Wikimedia CommonsAstor organized his company as a representation of one of Americas earliest corporations. He utilized vertical integration and divided labor effectively, taking advantage of specialization. One of these specialist roles was perhaps the most important-the fur traders themselves. Astors traders didnt wait for Native American tribes, who supplied many of the industrys furs, to come to them, instead, they established relationships, often living within the tribes themselves. This way of doing business was in stark contrast to other companies, including the US government that was attempting to capitalize on furs. This built an understanding of trust between the tribes and the company, creating consistency.Astor further bolstered these transactions by trading quality supplies at a respectable rate. He used his foreign trade relationships to buy goods wholesale and cheaper than in the American market, saving the company money without compromising on the quality of the goods it was offering in trade.Employees were rewarded based on merit. Managers earned a percentage of profits on top of their salaries, and well-compensated employees improved the companys operations. By 1808, Astors company became the leading fur exporter in the United States and gathered a larger share of the trade as time went on. He employed over 750 men, not accounting for the Native American suppliers, by the 1820s. The American Fur Company became the largest US fur provider and one of the largest and most profitable businesses in the country.Real Estate MogulAn image of Astor from Centennial History of Oregon. Source: Centennial History of Oregon via Wikimedia CommonsAstor didnt hesitate to diversify. He began investing in real estate, first in New York, where he bought and sold numerous parcels, including what is now Times Square. Once Lewis and Clark finished their expedition, he continued to invest in his westward vision, purchasing land in Oregon, where a settlement named Astoria and a fort were established.By 1830, Astor held a monopoly on the fur trade, but competition was swiftly rising, and available furs declined. Astor sold his fur business and focused solely on real estate, including residential tenements, which his second son, William Backhouse Astor, supervised. At one point, the family owned 3 percent of all of the land in New York City, a city of 50,000 at the time. The neighborhood of Astoria, in Queens, is named for Astor. He not only purchased property but invested in businesses, including the Park Theatre, the Astor House Hotel, and the Mohawk & Hudson Railroad. Without Astor and with a declining market, the American Fur Company went bankrupt and dissolved in 1842.The Richest Man in AmericaJohn Jacob Astor by John Wesley Jarvis. Source: National Portrait Gallery via Wikimedia CommonsBy the time Astor died in 1848, aged 84, he was considered to hold the greatest wealth in America. He left an endowment to build the Astor Library in New York City, which later became a component of the New York Public Library. Otherwise, the bulk of his wealth was left to his son, William. Despite his wealth, Astor had personal struggles. He faced depression and spent time isolated from his family. Sarah, who had been by his side as he built his success, died in 1834.John Jacob Astors LegacyJohn Jacob Astor IV. Source: Library of Congress via Wikimedia CommonsAstors descendants continued to follow in his footsteps. William invested in real estate like his father had, contributing to the establishment of over 700 buildings in New York City alone. He was also involved in philanthropy. Two of Williams sons, John Jacob III and William Jr., were also developers and philanthropists, and his grandsons, John Jacob IV and William Waldorf, were involved in the building of the famed Waldorf-Astoria hotel. William Waldorf Astor eventually moved to England, spreading the familys influence across the pond, where a branch of the family still thrives today.John Jacob IV, also an inventor and writer, gained unfortunate fame when he perished in the Titanic disaster, his body being identified by his watch and initials embroidered onto his clothing. His pregnant wife survived the catastrophe and later gave birth to John Jacob V. His son from a previous marriage, William Vincent, known as Jack, was 18 when his father died. Thus, he inherited approximately 168 million dollars. Though the Astors had always engaged in at least a small amount of philanthropy, Jack took it to the next level, donating to the arts, hospitals, higher education, and public attractions.The original Waldorf-Astoria in its original New York location. Source: Wikimedia CommonsJohn Jacob Astor may have come from nothing, but his legacy is quite the opposite. Leaving his name on places and history, Astor cultivated success that persisted into future generations of Astors. The legacy of his business genius is admired and serves as an example of good business sense. He and his bloodline impacted not just the early American economy but altered it on a global level.