Small Business School

Offer More Value to More Markets

2011-09-07T08:21:00.001-07:00

A popular definition says that insanity is doing the same thing repeatedly and expecting a different result. Mo's Chowder in Newport, Oregon was a thriving fisherman's hangout, serving hearty fare to the men who cast their nets in the waters surrounding this very active fishing community. As happened to many communities with a single-industry focus, however, things began to change. Fishing became less of a going concern. The founder sold the restaurant to her granddaughter and the new generation was sane enough to realize that if they wanted to keep the business afloat in the community, they had to jump from the sinking ship of a mere fisherman's dive.

Building on their longstanding legacy in Newport, the owners decided to remake the restaurant, and now Mo's caters to families, not just fishermen. What was once a place shrouded in the smoke of hard working, hard-drinking fishermen is now a family-friendly place where families—dads, moms and kids—enjoy a meal that includes all the tasty fare of days past, but in an atmosphere that is as welcoming as it is bustling. The sanity of the owner’s decision speaks for itself. This now kid-friendly place has expanded from one location to three and the popularity of its namesake chowder graces the menus of other restaurants, as well.

If your sales are sluggish, maybe its time to cast your net a little wider or into new waters to attract a bigger pool of customers.

Innovation is Always in Fashion

2008-09-08T15:29:00.000-07:00

It's Fashion Week and for me it is an annual kick in the derriere. I have friends who design and manufacture clothing and in our video library we have the story of the Nicole Miller Fashion House. While I am aware that this event is happening, the fashions they are showcasing have little place in my life--or my closet. Instead, I buy my clothes off the rack, but I do pay attention to how these designers--name brands and newcomers--weave a vision into the looks that define more than what we wear on our backs. Their inspiration is the tapestry of our culture, defining trends, influencing mindsets and fueling an economy driven increasingly by young consumers.

The lesson is that even if you are not a clothes hound or fashionista you can learn something from those who are in that business. They know that they can’t rest on past creations for this or next year's sales, and they teach us that if you want to keep growing your business, an annual effort to reinvent your products and services is essential.

Some owners wait until their business financials are threadbare before they get creative. That describes Bart Mahon who nearly lost everything before he changed his products and his method for reaching customers. Some owners like Bill Sugars do extensive research to find out what is working in other places before they implement something new. And by far the best way to add new products and services is to listen to your customers as they do at Joe T. Garcia.

If the wear and tear of day-to-day operations has worn down your sense of innovation, watch the New York fashion world on line where every seat is runway perfect. The truly unique creations offered up by both big and small designers will wrap you in the inspiration you need to put your business back in fashion with customers.

John Edwards Doesn't Have What It Takes

2008-08-09T08:13:00.000-07:00

The recent downfall of John Edwards reminds us all that what you see is not necessarily what you get. Despite our many differences, he and I grew up singing the same hymns and hearing the same sermons. While Edwards was in a Baptist church in the South, I was hearing my Louisiana-born father preaching in Southern California where he had moved our family to follow God's call for his life.

Of course, we all have feet of clay, but it is an extreme disappointment to see one who banks his entire future on his reputation act so selfishly and then lie as if the rules don't apply to him. Unlike Edwards, small business owners can't lie over and over because we can't afford to take our reputations for granted. We are too close to our employees and customers, and we know that to earn their respect and business requires our daily personal and professional vigilence. Contrast this to a description of Edwards in the New York Observer. Even though Edwards has run in many campaigns, he has won very few votes but he keeps popping up as if he was a winner. This is what I call the fake-it-'til-you-make-it strategy.

As small business owners, we may be able to launch our business with fake-it-'til-you-make-it strategy, but we quickly learn the truth of running a successful business. If we don't start delivering real products and services to customers and collecting real dollars, we won't be able to keep those customers coming back. And, because we know the value of our reputation, we wouldn't think of disappointing the people to whom we owe our success.

Cafe Pilon is owned by the sons of Enrique Souto. In Cuba he built a coffee roasting business that was stolen from him when Castro took over his beloved homeland. Enrique fled to Miami where he started over with young sons who soon were old enough to help him. Today they have the largest Cuban coffee roasting company in the world. With nearly $100 million in annual sales, the sons all told me that the greatest lesson they learned from their father was that their name--their reputation--was their only true asset.

Whether it's politics or business, the universal truth is that reputation matters more than products, services or accomplishments. John Edwards doesn't have what it takes to run a business for many reasons but the biggest one is that he threw away what Mr. Souto would consider his most valuable asset. Without that, what's left isn't really much at all.

The Opposite of Paris Hilton

2008-08-07T06:46:00.000-07:00

Paris Hilton is back thanks to John McCain. It just proves that in the world of marketing, you can get a lift--or a blow--from some pretty unexpected places. When John McCain used a two-second image of her in an ad, that ad received major buzz. Quickly Paris used the free marketing McCain gave her and turned the two seconds into hours and hours of self-promotion.

Most small business owners don't have much in common with Paris Hilton when it comes to promoting themselves. There are 17 million one-person companies in the U.S. and in those businesses, a bit like Paris, the owner is the brand. We've all seen the local celebrity car dealer owners who do their own TV commercials, and are more recognizable than the car brands they sell. However, self-promotion is not the path taken by most strong owners. Why? Because it is can prevent you from growing your business in ways that benefit customers and you.

Most companies that consistently deliver for customers year after year are run by owners who focus on others, not themselves. And consciously or not, they have learned what Paris knows very well: what they're really selling. A great customer service experience? A product that meets a unique customer need? Innovative and creative resources to help others solve their business problems?

One owner we know is just as good looking as Paris. He has a big, quick smile and when he walks in the room people are happy to see him. Lupe Fraga built an office supply business from nothing to more than $50 million in annual revenue by promoting his team's service, not himself. Understanding what it is that customers really want and delivering it consistently is the best promotion you can do for your business.

Snap Out of It

2008-07-30T16:58:00.000-07:00

Snap out of it and stop feeling sorry for yourself. I say this because every day I hear how bad things are going. Right now I am creating a video companion for a Pearson Prentice Hall textbook about entrepreneurship for high school and college students called How To Start and Operate a Small Business. The author, Steve Mariotti, is the founder of NFTE, the National Foundation for Teaching Entrepreneurship. I've already done video companions for over 40 college books but reading Steve's book and thinking about his target market put a smile on my face.

That smile caused me to snap out of it. Like so many people, I've had a strange dull feeling that perhaps my work isn't very important and that maybe I should just give up. The smile came to me because Steve's book reminded me of why I'm in business in the first place. We all must be in business to create and keep customers. Actually that is Peter Drucker's definition of business and I memorized it years ago.

When things get hard and you get discouraged, it is best to go out and talk to customers. When Don MacInnis did this, his customers told him exactly what new product they wanted him to develop. That product is now his number one seller.

Snap out of it and go talk to your customers.

Our Spiritual Mentor Died Yesterday

2008-07-09T13:10:00.000-07:00

Sir John Templeton was our hero. He was an elegant Christian who practiced his faith and he put his money to work on what Bruce would call the fundamentals. John Templeton made his money as an investor and as the Wall Street Journal writes today, he was an optimist who invested enthusiastically when others were too pessimistic to put a dollar in the market. As Christians ourselves we understand the source of Sir Templeton's optimism on capitalism.

In 1972 Sir John Templeton put in place a way to recognize "a living person who has made an exceptional contribution to affirming life's spiritual dimension, whether through insight, discovery, or practical works." His annual Templeton Award is a cash prize and always larger than the Nobel awards because Templeton felt that spiritual matters are more valuable to us than other topics of study.

We are proud that we have in our library two special episodes with Michael Novak, a Templeton Prize winner. We consider Novak an apologist for our work. While today it is very popular to praise the work of small business owners, when we started the series we were told by big shots in New York City that, "Nobody wants to be small." Novak explains why small business is crucial to a civil and prosperous society.

Sir John Templeton's life encouraged me and the scholarly work of Michael Novak helps me understand the value of my own small contribution to the prosperity of others.

To celebrate John Templeton's life, Bruce is working with a small cadre of mathematicians and engineers on, The Big Board for Our Little Universe. This is a teaching tool for math and science teachers and the tag line for it is: It's time to take God out of a box and put science in one. The goal is to show kids the bigness of God and the smallness of science. He wants kids to stop being afraid of science and to start seeing the vastness of God's creation.

Change When Margins Get Too Low

2008-06-25T15:28:00.000-07:00

There's a big disconnect for me when it comes to all the doom and gloom being peddled by the media about the national economy. There's not a parking place to be found when I go to the mall, and just the other day, I heard one grandmother complaining that the newest version of Wii was nowhere to be found in the entire state of Ohio. So, she was on a desperate hunt for the high-tech game (retails for $379) many states away. Yes, for a game. Truly, these are tough times when grandma is the hunter-gatherer for procuring what overindulged grandkids can't seem to live without. It just proves that where there's a will--or at least a willing pocketbook--there's a way.

It's also an underlying principle of our economy. If there is demand for a product at a price the customer is willing to pay, there will be sales. From heads of lettuce to houses, the market will act in its own best interest--distorting regulations notwithstanding. This doesn't mean that as the producer your margins may be smaller since the price of gas is up and this is driving the price of food up, too. If you can't pass increased costs for your current products on to customers, how do you find a way to get some of the cash that people clearly are spending at the mall or on Wii?

When Reid Pigman saw the profits being squeezed in his father's pilot school, he abandoned the school business and moved into the fixed base operation niche and now his company, Texas Jet, provides all the ground-based services required by aircraft owners and operators. If you're feeling the profit squeeze in your business, it may be time to make changes, find a new product, a new service or a new bundle of products and services that your customers will be happy to pay you for, and make your bottom line stronger as a result.

Summer Interns Increase ROI

2008-06-20T12:07:00.000-07:00

English philosopher Francis Bacon once said that "Young people are more fit for new projects than for settled business." It is summer so high school and college students need work, and chances are, your business' technology could use some updating, too.

While you and your older employees have learned to use the Internet to get work done, 16-20 year olds have used the Internet for play. That means they have experimented a lot and have probably discovered some tools and sites that you should know about. Technology is second nature to them and you could gain tremendous advantages simply by tapping into their computing knowledge to have them build databases or do web research for you.

Not only are today's young people technically savvy, they can be a cost-effective solution to help you with short-term projects in the business. Nicole Miller, the New York-based fashion house, and Mir, Fox & Rodriguez, a CPA firm in Houston have put interns to work, teaching them business principles that will serve them well in the future, as well as nurturing the next wave of talent.

Is there a project in your business that could tap into our youth's expertise and increase your return on the dollar you pay out to employees at the same time? Try a few summer interns. You'll be doing both of you a big favor.

We Have Millions of Women Presidents

2008-06-05T15:05:00.000-07:00

Today at Bloomberg.com you can read, "New York Senator Hillary Clinton is planning to concede the race for the Democratic presidential nomination and announce her support for Illinois Senator Barack Obama, her campaign said."

I'm not worried that little girls do not have a role model because even if Mrs. Clinton had become president, she would not have been first. Remember, there are about 10 million women in this country who are the president of their own company.

Much of the excitement surrounding her candidacy was that it was significant from both historical and role model perspectives. Indeed, it is no small thing that for the first time in our history, Americans were placing a woman in a position to become president. But what the public frenzy about Mrs. Clinton misses is that even if she had become president, she would not have been first. Our daughters—and sons—already have women presidential role models in the 10 million women in this country who are the president of their own company.

That’s why I was shocked to read in a USA Today article published in May 2008 that "Only 43 women have climbed the traditional ladder to become CEOs of Fortune 1000 companies in the last 35 years." It’s hard to imagine why so many women have successfully tackled the real issues of leadership in their own business—managing people, making payroll, tracking inventory, and keeping their taxpaying customers happy—yet aren’t seen as capable of successfully running America’s large businesses. This tells me that if you want to shatter glass, you should start by busting through the ceiling you built for yourself as has Vicky Carlson .

So when I read about the ‘tragedy’ of Hillary’s defeat, the last thing I feel is discouraged. The real business of keeping this country and economy strong is happening very nicely every day thanks to the hard work of women business owners and CEOs who know far more about leadership than Mrs. Clinton will ever know. She is irrelevant to the success or failure of our companies.

The Chief Happiness Officer

2008-05-18T07:05:00.000-07:00

The past few weeks have given us all plenty of reasons to be unhappy. None of us is without sadness over the devastating natural disasters in Burma and the earthquake in China. At the same time, so many nations and people are just plain angry about current events. The Arabs are mad because Israel is celebrating its 60th birthday. The U.N. is mad because the U.S. is delivering aid to Burma. Obama and many in the media and Democrat party are angry because Hillary will not give up the race for her party's nomination for president.

Regardless of the reason, being sad or mad is not the way to go to work everyday.

As business owners we set the tone of the workplace and we can make or break the attitude of those around us. And with all of the news making so many people sad or mad, it is harder than ever to stay upbeat and enthusiastic.

Anne Beiler, the founder of Auntie Anne's Pretzels, hired her replacement and promoted herself to the position of Chief Happiness Officer. She doesn't really call herself that but when I asked her how she spends her time now that she is no longer responsible for the day-to-day operations, she said that her job is to make sure everyone is happy.

Another owner of a very large small business told me the same thing. Cathie Jao of Bridgecreek, a property development and management company, told me that her main job is to ensure the happiness of others.

My friends who are psychotherapists would say that Anne and Cathie have set themselves up for failure because none of us can make another person happy. I think the reason these women are multi-millionaires is that they have succeeded at doing the impossible.

Partner Power

2008-05-07T09:40:00.000-07:00

Our study of successful companies has taught us that founders who find the right partner find power. Without exception, partners tell us they never could have done what they have done alone. The thriving partnerships are like marriages. The partners admire and respect each other and defer to each other quickly, especially when someone wants to know about an area where the other partner is the expert.

Thriving partners know that the other guy is better at some things than he is. That's the whole point. You never want to be the partner of a guy who sees you as the sou chef. You want to partner with a person who knows you are better than he is at some things. You also want your partner to know that you know your own weaknesses so well that there is no way you could build a business alone.

In his book, The Illusions of Entrepreneurship, Scott Shane points out that the companies founded by more than one person have a greater chance at success than companies launched by an individual.

One of our favorite partnerships is Dave Young and Jodi Johnson who have built their business, Oberon, into a 500-person company in a few fast years! In past work together, they found out that their management styles and philosophies were almost identical. Marry that with complementary areas of expertise and profound trust and respect for the other, you have the makings of a powerful and extremely successful partnership.

The Internet Can Be Your Best Friend

2008-05-04T19:09:00.000-07:00

Since 1994 we have been talking about the Web and the importance of it to every small business. We have preached the theory that we all need to be on the Web and allow our customers to deal with us the way they want to deal with us. This means you probably have customers who want to email you, some that want to call you and some that want to come see you in person. The trick is to spend enough money for Web functionality but not too much.

I want to suggest to you that there will be a day when you can truly go paperless.

In today's New York Times I read that the publishers of Computerworld, InfoWorld, PC World, Macworld and CIO are gradually moving away from printing on paper. This strategy has already increased their profits.

Many of the owners in our library have leveraged technology to increase profits. While you might guess that it is young men who are making these moves, learn how a woman owner who is over 90 years old today was an early adopter.

Bumps in the Road Don't Stop Us

2008-04-18T15:33:00.000-07:00

Today even William Dunkelberg, the chief economist at the National Federation of Independent Business, is saying that times are getting a bit tough. The price of gas and food are up and with the world market for oil only growing, this trend may continue. So what is a small business owner to do?

For most of us the cost of labor is the biggest expense we face every month so sometimes we solve cash flow problems by not paying ourselves or we ask employees to cut back their hours and sometimes we have to cut our staff.

Running an open-book office is an excellent way to engage employees in the hard decisions so that there are no surprises, even when times get tough. Employees should see numbers for the business and understand how those numbers relate to running the business day-to-day. Moreover, sharing the information is a way to challenge employees to make changes to reduce overhead, improve efficiency and customer service or increase sales. Lorraine Miller is just one of the owners we know who believes in sharing information to celebrate success, improve operations and to prepare for the bumps in the road.

Business is Color Blind

2008-03-25T07:50:00.000-07:00

Barack Obama made a speech and some say it was transcending and instructive. I read it and it brought me to tears although I can't vote for him because I don't agree with his approach to solving this nation's problems. He believes government and a host of expensive government-run and taxpayer-funded programs can solve all the ills of society. That's why I found it interesting in his speech that he acknowledges that the real solution lies in "taking full responsibility for our own lives - by demanding more from our fathers, and spending more time with our children...they must always believe they can write their own destiny."

We've had the privilege of getting to know two very successful business men who have transcended racial barriers and epitomize the meaning of creating their own destiny. Arnold Joseff and George Hill didn't need a lecture from any candidate to tell them how to treat, interact, hire or fire another precious human being that I believe was created by God. These two men have been buddies since childhood. They are the perfect example of how business people think in terms of talent, performance and service. If you are a business owner who has problems with people who are different from you, you are leaving money on the table. All of the rich owners we know are color blind and they enjoy a wealthy life that includes more than just a healthy bank account.

All You Need is Love

2008-03-23T18:47:00.000-07:00

When Bruce and I arrived at church this Easter morning, the band was playing that great Beatles song, "All You Need is Love," and the pastor’s sermon echoed that sentiment. As Christians we consider Easter the most important day of the year and it is always a celebration of love. This made me think about so many of our friends who are business owners and who have "All You Need is Love" as the theme of their lives.

When Gary Walls was told that his kidney disease meant he could no longer teach and coach in a high school, he launched a company called, Trailblazer Foods. We met him as he was being recognized as small business person of the year from the state of Oregon and he changed us all completely. In the midst of battling an insidious disease, this exceptional man decided to start a business because he needed something to do while living through the difficult and terrifying treatment.

Time with Gary revealed that the foundation of his life was love. He loved walking in the fields to watch the berries ripen and loved turning them into delicious jams, jellies and syrups so that others could enjoy his beloved Oregon berries. However, more than anything he loved people and especially his family, customers and employees. He is in a better place now and we are still here to tell you that he built a multi-million dollar company while in great pain but with great love in his heart.

Put a Four-Leaf Clover in Your Pocket

2008-03-17T13:08:00.000-07:00

Today is St. Patrick's Day but I was never allowed to celebrate it as a kid. My father was a strict Southern Baptist minister and he never extended graciousness to anything Catholic. When Michael Flanigan, an Irish Catholic kid who happened to be charming and the president of my high school student body, became my sweetheart, my father lowered the boom. "You can not even think of marrying a Catholic," he bellowed.

Of course I wasn't thinking of marrying Michael, but my anti-Catholic training as a young person also included discounting the concept of luck. I remember having a four-leaf clover and telling my father that I thought it might bring me luck. True to form he said, "There is no such thing as luck." To my father St. Patrick's Day, the Catholics and luck all went together and I was to keep them all at arm’s length. My father meant well but I now disagree with him on all three topics. I love and respect my Catholic friends, I am wearing green right now and I will surely have a beer today to celebrate the life of a great man. Then there's the concept of luck.

After listening to hundreds of business owners describe how they have turned ideas into millions of dollars I am a believer in luck. Over and over the amazing, hard-working, brilliant and delightful self-made millionaires I have met will concede that for all their plotting, planning and market research, their success includes a good measure of sheer luck. They look at others around them who have worked as hard and who are smart or smarter than they are but they just haven't hit as big. They know that even a tiny bit of luck along the way could have made a difference.

All my life I’ve heard that "Luck is preparation meeting opportunity,” but as these successful business owners attest, I am now convinced that luck - grace or mercy - play a part in how our business works or doesn't work. Here's just one of the many owners who told me that he was lucky. He said he was lucky to come from India to this country to study; he was lucky his parents matched him with a beautiful woman who became his wife; and, he was lucky to land the world's largest customer. Meet Shiv Krishnan the founder of Indus. He's one lucky guy.

To succeed in business you need to have the right product, the right people, the right processes and it's always good to put a four-leaf clover in your pocket.

Riches Without Greed

2008-03-10T08:15:00.000-07:00

Today's headlines continue pounding us about conservation. While the New York Times reports on Southern Baptists strengthening its convention position on the subject, The Telegraph reports that the Vatican wants us to recycle or find ourselves on the way to hell. The same article goes on to say that we'll go to hell if we are greedy.

Well, I'm not buying it. I have already written that small business owners are the original, old-fashioned environmentalists. We have been doing all of this so long we used to call ourselves conservationists. My husband writes and prints on both sides of every sheet of paper. We are conservationists because we know deep in our hearts it is good for the earth and good for our pocketbook. Another way to say that is most of us small business owners are cheap. We have to hold the line on waste and costs because as one of the fathers of the great American experiment, Benjamin Franklin said, "a penny saved is a penny earned."

Or, a mug reused is better than a paper cup tossed in the trash. It is so funny to me to hear the 20 somethings advocate shunning plastic and paper as dinnerware because when I was growing up we didn't have plastic and paper. I have never wanted to waste anything just so I wouldn't have to wash it.

I am confident that all small business owners will go to heaven because we try not to waste anything. However, according to the Telegraph, the Monsignor Gianfranco Girotti head of the Apostolic Penitentiar at the Vatican said, "genetic modification, carrying out experiments on humans, polluting the environment, causing social injustice, causing poverty, becoming obscenely wealthy and taking drugs were all mortal sins."

I want to know who gets to define "obscenely wealthy?" I say that if you are creating value for customers and employees and along the way you happen to land in the top income tax bracket, you are not going to hell.

The business owners we know are like the founder of Ziba Design. They are generous not greedy. They are more concerned about the success of their employees than they are themselves. They are striving, trying, risking and pushing to help everyone in their world have a better life tomorrow than they have today. I am Baptist and I have great respect for the Vatican. However, I believe that every honest owner deserves to be obscenely wealthy. Why? Because most of them turn around and give out of their generous hearts to those in need.

Ride the Ups and Downs with Multiple Revenue Streams

2008-03-04T16:27:00.000-08:00

When I started my first business in 1979 a tax attorney told me to never let one customer get more than 10% of my time. Another way to say this is, the more customers you have the better! To protect yourself over the long haul, develop multiple revenue streams.

Donna Baase , founder of Cowgirl Enterprises, had a vision about skincare products that come from botanicals -- herbs, flowers, roots, etc. In the dry air of Colorado, especially in this mile high city, she knows women need and want skin moisturizers that really work.

Though she started her business on her kitchen table, blending twelve oils from plants and roots (Cowgirl Cream), she quickly learned to outsource key parts of her business and to focus on her unique strengths. She was also very smart not to depend upon what she thought would be her best distribution channel. She expanded from natural product stores, to spas to boutiques.

Develop multiple revenue streams to protect yourself from market ups and downs.

Pets Prove to be Solid Gold

2008-03-01T11:16:00.000-08:00

Sissy Harrington McGill, the founder of Solid Gold Health Products for pets, is a character. As she took us through her food processing plant she tasted things along the way. She told us she eats everything she puts into her food products for pets and her own dog is also an official taster. This way she can evaluate the entire process if you get my drift.

It seems as if people are crazy over their pets and will pay most any price for them to be healthy and happy. This is the conclusion Sissy arrived at as she developed some of the very first pet foods made from quality ingredients and with concern for salt, sugar and fat content.

Product development is difficult but all of the success stories we have done here tell us that your efforts must begin with a problem that people want to solve. Sissy's dogs were not living long enough so she set out to invent foods that would lengthen the lives of pets. What problem do your current customers wrestle with today? Should you be the one to solve it?

Democrats, Employees and Customers Choose Nice

2008-02-27T11:06:00.000-08:00

It might be over for Hillary and it's because she is not a nice person. Hillary comes off as a know-it-all who prefers to dominate and control others. She is the type of person no one wants to work for and she provides some lessons for those of us who are trying to build a business. Since I don't know any of her current employees forgive me for jumping to conclusions but I am sure I am right. People may work for her because they believe in her cause or to get paid millions but I don't believe that people are drawn to her.

We have filmed hundreds of interviews with business owners and film doesn't lie. I spend about 100 hours with each owner as I work through the edit process. I can freeze frames and look right into that person's heart and mind. These men and women are wildly successful and I found all of them to have lovely personalities.

The point is, a jerk is not very good at building a business from scratch. The exception is when a jerk gets millions from an investor or already has millions to go out and hire top talent. That top talent can be recruited with stock options or a big check then that top talent puts his nose to the grindstone and helps to build the business.

It takes a nice person to recruit, train and grow talent internally. To grow a business, you must become the person people want to work for. I asked Pamela Rodger and Lupe Fraga if being nice translates to the bottom line and they both said, "Of course."

Treat Suppliers Like Family

2008-02-25T11:33:00.000-08:00

Great meals start with fresh ingredients. Joe T. Garcia knows this well so it coddles suppliers to guarantee that if there is only one tomato in all of Forth Worth, Texas, they will get it.

Though the restaurant is not open for breakfast, this place has a crowded breakfast table. Family members and suppliers commingle readily during the breakfast hour. Friendships are developed, and the family grows.

Is there any way to carry the Joe T.'s model over to your own business? Of course. There are many businesses that we have studied that host breakfasts and lunches for their customers, suppliers and employees on a regular basis. At Opici Wine Group, the founders have eaten dinner with a customer every week for sixty years. Opici hosts parties for suppliers to introduce them to the customers. Business is not cut and dried. It is so much about feelings, especially when you are working to build something that will out live you.

Make Your Unique Selling Proposition Clear

2008-02-22T16:16:00.000-08:00

I watched the democrat debate last night because politics is my hobby. Yeah I know, I should take up golf. Clinton and Obama are two peas in a pod when it comes to their solutions to problems. When Obama explained his position on illiegal immigration, Clinton said, "I agree with Senator Obama." When Clinton explained her ideas for leaving Iraq, Obama said, "I agree with Senator Clinton." Writing for Slate, John Dickerson said, "For the first 45 minutes of the debate, the two were so close on the issues they could have been running mates."

At the end of the debate a focus group of democrats admitted that they like both candidates. Therefore, it is coming down to personality and Obama is the most lovely of the two so he is going to win.

If your customers have to try to figure out if they want to buy from you or from someone else, you are not making your unique selling proposition clear. As small business owners we have to stand out in the crowd so brightly that it is almost as if we have no competition in our category.

David Milly has figured out how to be the go-to guy for hundreds of customers.

Sky High Oil Prices Don't Get This Owner Down

2008-02-21T11:30:00.000-08:00

Reed Pigman, the owner of Texas Jet, says he is a gas station for airplanes. Fortunately, he doesn't use today's gas station as a model for thinking about his business. I am old enough to remember when my mother would pull the car into a gas station and a person would actually come out to ask her what kind of gas she wanted. That person would proceed to check under the hood and would have a look at the tires to see if he thought he should check the pressure. My mom never had to get out of the car. That was then (1960s) and this is now.

The Professional Pilot magazine named Texas Jet one of the top 10 independent, fixed-based operators (FBO) in the United States and we went to see why these customers love Texas Jet. Owner Reed Pigman is proud that his customers don't focus on the price of fuel, they focus on the service they receive from his team at Texas Jet.

We discovered that Texas Jet is a place the pilots enjoy while they waiting for their customers to return. But more importantly, the pilot's customer is given the red-carpet treatment! There is a very-demanding supply chain within these operations. The pilot is the customer of Texas Jet and the passengers are the customer of the pilot. Though a few pilots own their plane, most pilots are the full-time employees of the company who owns the plane, and often the passengers are their key executives, but passengers could also be people who have a fractional ownership in that plane, people who have chartered it, or people who are just paying for an "empty leg." Everyone is a choice customer and all expect top-quality care and attention to detail.

You can learn more about Texas Jet at Small Business School.

Service Can Keep Cash-Tight Customers Happy

2008-02-18T08:54:00.000-08:00

No matter what the economy is doing, the best way to keep sales up is to keep customers happy and coming back. This is what Laurie Snyder has done to build her hat-making company, Flap Happy. Basically Laurie makes it easy for customers to buy from her. The corny-but-beautiful thing about great small companies like Flap Happy is that they are all about serving others. This starts with serving customers and spills over into serving employees.

Laurie says we must accommodate special requests, be easy to reach, and take on some of the customer's work. All strong companies do this and when they do it right they are rewarded with loyalty.

If you want to improve your service, ask yourself these questions: What can you do to stop thinking so much about money and start thinking more about serving? What actions can you take to be a servant to both customers and employees? What would your employees say if we asked them if your organization is profit driven or service driven?

We Can Learn from Political Pollsters

2008-02-14T08:40:00.000-08:00

Since I am a political junkie I have been reading pollster predictions and then after the votes are in I read how they explain why they were wrong in their predictions. Also I am amazed by how finely they slice and dice the electorate. If you're a Christian you could be a Catholic, an Episcopalian or like me, a Baptist, and the pollsters say we are all very different. I know they are right to study voting patterns but it just seems so odd to be thrown into a tiny basket for examination. In an article today at RealClearPolitics.com, Jay Cost explains why he believes quality polling is difficult.

As a business owners we can learn from the pollsters. Think of voters as customers and ask yourself if you know as much about your current customers and prospects as these pollsters know about voters. Of course you don't have millions to spend on research but there are things you can do that take time but not big bucks.

When Paul and Vicki Sharfman, owners of Specialty Cheese, wanted to launch a crispy cheese product for people on the Atkins high-fat diet, they asked what customers thought about the package. It took them time to ask questions but no hard dollars and they ended up with a package that flew off the shelves.

The Naked Cowboy Should Fight for His Brand

2008-02-13T15:28:00.000-08:00

In a recent visit to New York City a girlfriend of mine took my picture with the Naked Cowboy and I gave him five bucks. Even though I grew up in San Diego and live in California now, I spent twenty years in Texas and I saw a lot of cowboys with some great hats. Robert Burck, the real name of the Naked Cowboy, not only has a great hat, he has developed a unique package that makes him stand out in the busy crowd always found in Times Square.

Today the New York Post reports that Burck is suing the Mars Candy Company because it dressed up an animated M&M to look much like the Naked Cowboy. Burck said in the New York Post, "'All I've got is my underwear. It's the most brilliant thing that's ever been created from a marketing perspective. You can't stop it,' said Burck, 37, who said he filed suit on the advice of lawyers and trademark experts."

The Naked Cowboy is one of 17 million one-person companies in the US and often these very small business owners don't think about protecting their ideas. And, in the digital world this gets even tougher for us little guys. You can learn more about protecting your intellectual property and your brand in this special episode of our show.

Finally Video is Everywhere

2008-02-11T10:54:00.000-08:00

No more waiting to find Small Business School in a 30-minute slot on your PBS station. We bring it all here, right now for you to learn and enjoy at a time and place that meets your needs. And, in addition to streaming hundreds of hours of our television show on our own site, many trade associations and business publications now have our Daily Insight and Inspiration on their websites. You can find us at The Business Report, The Arizona Small Business Association, The New York Times, The National Association of Female Executives, The Bloomington Chamber of Commerce, Arkansas Business, The Council of Supply Chain Management, Babson - The #1 school for entrepreneurship, The Los Angeles Business Journal, New Jersey Business, Central Pennsylvania Business Journal, The San Diego Business Journal, The Business Record and more.

Email us if you would like to have our video on your website! Hattie@SmallBusinessSchool.org

Microsoft Wants Yahoo

2008-02-01T11:38:00.000-08:00

The Associated Press is saying that Microsoft wants to buy Yahoo and the story reveals that this is not the first time that the big guns have tried to nab the web portal and search engine.

Buying a competitor is a great way to grow your business and increase profits. If the deal goes through, Microsoft believes it can meld the strengths of both companies to create a more powerful Microsoft.

Small companies can learn from this big business strategy. We owners tend to think that we have to start everything from scratch and we're even proud when we succeed to say that we did it all by our little selves. This is silly and small which can be one reason that most small companies stay small.

We have studied more than one company here at Small Business School that grew through the acquisition strategy and we're happy to introduce you to one of those companies, Rowland Roasters in Miami.

Politicians Boosted by Celebrity Endorsements

2008-01-31T12:42:00.000-08:00

USA Today is reporting online as I write this, "Calif. Gov. Arnold Schwarzenegger officially endorsed Republican presidential candidate Sen. John McCain." Obama was boosted by both Caroline and Ted Kennedy a few days ago and as business owners we can learn from this.

Celebrity endorsements or the use of a famous person to market our companies can be very powerful although there can always be a downside. Remember when OJ Simpson was the face of Hertz?

Learn how Robert Redford's name and face is used carefully by Sundance Catalog.

It's a Market Correction Not a Recession

2008-01-29T04:30:00.000-08:00

My mother-in-law is visiting from Maine and she is proof that physical labor keeps a person young. At 85 she insists on living alone, putting in her garden, mowing several acres and taking care of the needs of many of her neighbors. I certainly hope to be as strong and happy as she is now when I am 85. However, I do have a bone to pick with her. Even though she has had a computer with Internet access for at least 10 years, she still gets her news from her local daily paper and Brian Williams.

When she arrived here in Palm Desert for a welcomed thaw, she started saying that she thinks we must be in a recession. So for two weeks I have been trying to figure out what she is talking about. My research lead back to her news sources. I read her favorite newspaper and watched Brian Williams with her; and even I got depressed.

Thanks to Steven Rattner's article in the Wall Street Journal today, I now have the expert who will back up my sense of the economy. Mr. Rattner says, "...the probability remains that what our economy faces is less a plunge into the dark ages than a cyclical purging of excesses." Thank you. Just like in 2001 when the dot com boom busted, we have had recent splurges and now the market has to push us back to a sustainable reality.

I don't hear business owners complaining because that is not what we do when things change. What we do is adapt. As his business grew, John Hawkins was squeezed hard by the California labor laws. To save his company, Cloud 9 Shuttle, he offered van drivers the chance to be owners. By turning employees into owners the cost of doing business dropped while the drivers' income went up.

Can you use this market cycle to make some changes that will make you stronger and employees happier?

It's Time To Buy Your Dream Home

2008-01-28T10:22:00.000-08:00

The New York Times reported on January 24 that housing prices fell for the first time in decades. This is good news for anyone who doesn't already own their dream home. Finding a home or building a home today can be very exciting because of the new building materials and all of the technology that can make your life more comfortable and fascinating.

Boutique builders, all small business owners of course, are the ones to look for when you want to create the home of your dreams. Eric Rose, founder of EM Rose Builders located in Branford, Connecticut, has spent years building his reputation as a world-class builder. He specializes in building smart homes. At our web site you can learn about Eric and why his customers-- architects -- keep coming back.

The Politicians Say They Can Make Change

2008-01-10T07:00:00.000-08:00

Listening to all of the politicians is dizzying. But, they are on to the right topic. When something doesn't work, we have to change what we're doing. The big problem is that the establishment doesn't want their perfect little lives messed with. I am talking about every person who gets a check from the Federal Government. With the exception of those who wear our military uniforms, the government barely works.

We owners are lucky that we can think of a new idea and make it happen fairly quickly. That's the fun part about having a small business. We can gather everyone together in one room, describe our new idea, receive input from everyone who will be affected by the change then design a plan to make it happen.

Steve Hoffman changed his product offer when it dawned on him that he had systems for his very small business that would support a much larger operation. He went from double digit millions to triple digit millions. Nice change, Steve.

Find New Customers in the New Year

2008-01-08T10:09:00.000-08:00

Ping is famous for its putters and has always sold its golf clubs through professional golfers who run pro shops at country clubs and golf courses. When Ping felt they had maximized this way of acquiring new customers, they decided to co-brand with NASCAR.

This turned out to be brilliant because a large percentage of NASCAR fans play golf, have money to buy high-end clubs and they trust the NASCAR brand to recommend products.

Don't get stuck in a rut as you search for new customers. Use this new year to find new ways to find new customers. See for yourself how they did this at Karsten Manufacturing, the makers of Ping Golf Clubs.

What Is Your Real Growth Potential?

2008-01-07T10:06:00.000-08:00

When you started your business you may have never wanted to grow past a few million in annual revenue. Or, you may have already surpassed your most optimistic dreams! This happened to Scott Mooney and then he got hooked on growth. As a high school kid he opened a retail store and was able to run it as he convinced the school authorities to let him go to night school with the juvenile delinquents. I'm not kidding.

Soon he had put his competitor out of business then he realized that he had no more growth potential if he stuck with the same business model. Scott decided to move from running a big retail store in the tiny town of Ottumwa, Iowa to building a database which allowed him to sell to any customer who had a mailing address. When he reached $18 million in sales, he sold to go after some new challenges.

Is This New Year the Time for New Products?

2008-01-06T10:50:00.000-08:00

Maybe this is the year to launch a new product that will thrill your current customers. That's what we're hoping to do here at Small Business School. We have been making television shows for PBS stations since 1994 and we have had plenty of fun. Viewers tell us we are their favorite show on TV and they try never to miss an episode.

However, we are now ready to leap past conventional syndication and offer our fans an experience that television simply can't deliver. You can see for yourself at Small Business School that you can now search our library by topic and by industry and get the answer to your question. This will make learning so much more flexible and personal.

Strong companies stay strong by offering new products and services after studying customer needs and wants. One of my favorite companies that does this well is Medallion Financial. It's a new year. Is it time to offer something new?

Give A Job

2007-12-24T09:04:00.001-08:00

The unemployment rate is as low in this country as it has ever been and this is partly because us small business owners love to create jobs. We are the first to hire young people and train them, we are the first to hire folks who come off welfare and we find joy in watching our children develop into leaders who can help us grow our businesses.

Giving people an opportunity to learn and grow and earn a living is the driving force for many of us. This is because just making money gets boring while understanding how to help people be the best they can be provides a difficult and ever-changing challenge.

As you look to the new year, maybe you will hire a person who could turn out to be the one who takes your place. You can learn from Shiv Krishnan how to create jobs and then help employees learn and grow.

Give Your Heart

2007-12-23T10:13:00.000-08:00

We went to the Crystal Cathedral's Glory of Christmas a few days ago. It is a magnificent and stirring telling of the Christmas story. A little boy shepherd sang a song that I remember singing myself years ago. The lyrics tell us that as he watches the Wise Men bring their extravagant gifts to the baby Jesus he realizes that he is so poor there is nothing he can give to the baby that would measure up next to the gold, frankincense and myrrh. The song ends with the little boy deciding that he could only give what he had so he offered his heart.

Small business owners run their businesses with their heads and their hearts. When we can't give the highest wages in town we find ways to give our hearts to employees. At Gadabout SalonSpas, employees teared up when they told me what it means to them to work for Pam McNair. More than one employee said, "Pam changed my life."

Pam obviously gives her heart.

Giving Really is Better Than Receiving

2007-12-22T09:10:00.000-08:00

Frank Jao reminded me that what my Mom used to say is true, it just takes years for Mom's advice to sink in. When my Mom would tell us that giving is better than receiving I know that as a little kid I had no idea what she was talking about because I like to get presents.

When we taped Frank's story for our show I met a man who is very wealthy today. He is rich with property, cash, a beautiful wife who is his valued partner in business, darling daughters, happy customers, loyal employees and too many friends to count.

How did he become so rich? He would tell you that his goal was set in childhood. He grew up very poor in Saigon. Once a year an uncle who seemed rich to Frank would visit and would bring food and gifts to Frank's hungry family. Frank decided around the age of eight that he wanted to become like his uncle, the giver, rather than like his father who had to be on the receiving end.

So set a goal to be the giver and the work that you do towards that goal will enrich everyone around you, including yourself.

Turn Customers Into Givers

2007-12-21T13:31:00.000-08:00

Cindy McIntee has always given time and cash to help build the business district of her hometown, Newport, Oregon. When Mo's Chowder, the restaurant she bought from her grandmother, turned 50 years old, she decided to thank the community in a big way.

Customers who came to eat on the restaurant's birthday were turned into givers. Fifty percent of the total on every ticket written in all six locations of Mo's was given to charity. Customers were given the opportunity to tell Mo's where to send the donation from their table. What a great idea.
Cindy promoted the event and the donations added up to $18,000. You can turn your customers into givers, teach your staff the art of giving and help worthy causes all at the same time. Learn more about Cindy and other generous business owners at Small Business School.

Give Now and Later

2007-12-17T15:49:00.000-08:00

It's the season when all of us are rushing around looking for just the right gift for the people we love. Believe it or not, the small business owners we know spend a lot of their time all year round looking for the right gifts for the customers and causes they love.

Sure it's great to give Christmas and Hanukkah presents but having a philosophy of giving as part of the way you run your business is even better.

We learned from Wing Lam, who owns Wahoo's Fish Taco with his brothers, that giving food away has become an important part of Wahoo's marketing strategy. He told us that they never give a discount because that will tarnish the brand but they are happy to give food to local causes.

Saying Merry Christmas Works

2007-12-16T08:30:00.000-08:00

Veteran business reporter Neil Cavuto said on his television show yesterday that he has research that quantifies the use of the expression, "Merry Christmas" versus the catch-all greeting, "Happy Holidays." He said that stores who use "Merry Christmas" make more profits than ones who have been using, "Happy Holidays." Since I didn't stop to listen to the entire story I can't tell you the source of the research. However, I know that if you are a small business owner who celebrates Christmas yourself, you should feel comfortable saying, "Merry Christmas" to your customers.

I have Jewish friends who love Christmas and when I say, "Merry Christmas" to them they say it back to me! So don't be shy. We now have research that proves the best strategy is honesty and authenticity. Your customers will respect you and keep buying from you. No need to take the politically correct path because that path is made plastic that has cracked up under the pious pressure of a very small group of aging activists.

Merry Christmas everyone.

Giving Pays

2007-12-15T07:10:00.000-08:00

It's Christmas and I can tell you that without exception, strong business owners give even if their CPA tells them not to. You may know some greedy people but we try to avoid them. Over and over we meet men and women who do for others before they do for themselves.

This is a business strategy. This is a decision made by owners who are either naturally nice or by owners who know they need to be nice.

Catch some Christmas spirit from the owner of Zubi Advertising. She gives her employees a bonus even when her CPA tells her not to. Her decades of success in business prove her strategy works.

Job Growth Trending Up

2007-12-07T09:12:00.000-08:00

What bad economy? I am sorry for people who got over their heads with a mortgage they can't afford but in general, the economy is cooking along. Unemployment is holding at 4.7% which is amazing and there are jobs being created in health care, professional and technical services and food service.

The founders of Biosite who recently sold, were some of the best job creators I know. Their company makes a device that gives health care professionals test results in 15 minutes. Learn how they started with an idea and grew the company to over 2,000 employees.

The U.N. is Corrupt so Ignore Bali

2007-12-03T11:36:00.000-08:00

Most American newspapers have an article on the front page today about the United Nations kicking off a two-week conference set in Bali which will focus on global warming. Two weeks? Does that mean that the U.N. PR machine will be pumping out news releases for the next 14 days designed to make us hard-working-fossil-fuel-driven prosperous Americans feel guilty? Yes. The good part is that as a small business owner you can ignore this blab-fest.

Don't feel guilty, feel happy! Feel happy because we've just entered the Christmas season and as I have already written about in this blog, you can use the global warming hysteria as a business management tool.

For example, tell your customers you are working to save energy and invite them to sign up to pay your invoices electronically. Right now I am laughing out loud because all of the people who actually have been brainwashed to believe that this will make a difference in the temperature at the North Pole, will take your offer quicker than they would have a year ago.

And, just think. You have turned the global warming scare into a cash management solution for your business. For more on running your business by the numbers, watch and listen to my favorite number cruncher, Jim Schell.

CNN Blows Its Cover

2007-11-29T13:02:00.000-08:00

As a small business owner you could never get away with what CNN did last night. While all the promotion for last night's debate touted that Republican presidential candidates would be asked questions submitted by regular people, that is not what CNN delivered.

John Podhoretz wrote for Commentary today, "The scandalous aspect last night is that three Democratic operatives were allowed to pose as 'unaffiliated voters' asking questions specifically designed to embarrass the entire Republican party, not just the candidates on stage."

Here's why you can't act like CNN: your business is only as good as your word. The minute you don't keep your promise, your business will take a dive. Here's just one of the owners I love who's word is as good as gold.

Make Peace with Old Enemies

2007-11-28T07:18:00.001-08:00

Yesterday President Bush said at the Annapolis Conference, “We meet to lay the foundation for the establishment of a new nation: a democratic Palestinian state that will live side by side with Israel in peace and security." This made me think about advice we got from the owners of Cafe Pilon. This company roasts coffee and sells it to retailers and restaurants.

The business started in Cuba and was called Rowland Roasters there. Castro stole the company away from the founder, Enrique Souto, so like most Cuban entrepreneurs, Mr. Souto tearfully left his fatherland to make a new life in the US.

Enrique's biggest "enemy" or competitor was a company called Cafe Pilon. Because he always treated his competitor like a friend, when the owner felt he needed to sell, Rowland Roasters was the first in line to buy the coveted brand. Learn more from the Souto family about what happens when you are at peace with your enemies.

Peace, friendship and warm relations will always lead to prosperity.

Be Happy That We are Great at Job Creation

2007-11-27T13:44:00.000-08:00

I happen to be a news junkie because politics for me is like a sport which makes news my sports channel. Sadly so many journalists are sad so they seem to consistently write about the demise of America as we have known it in my lifetime.

David Brooks, the token conservative at the New York Times, writes encouraging words today. He points out that, "The U.S. standard of living first surpassed the rest of the world’s in about 1740, and despite dozens of cycles of declinist foreboding, the country has resolutely refused to decay." David does not provide his source when he said that we lose about 7 million jobs a quarter and create slightly more than 7 million in the same time frame. I will assume that he is correct and we all know that this job creation is what keeps us ahead. It keeps us growing and makes prosperity possible for anyone who has some basic education and who is willing to work hard.

At Small Business School our business is to study and champion the job creators and one of my favorites is Steve Hoffman at Modern Postcard.

Be Thankful for Lots of Family

2007-11-24T14:49:00.000-08:00

This Thanksgiving we were with close friends and some of their extended biological family. It was fun and comfortable because we have been through so many life events together. While no one person around the table thinks every other person is perfect, we accept that fact and enjoy counting our blessings for our fabulous country and all of the prosperity we see spread out before us.

Those of us who own a business think of our customers and employees as family. This is the secret to our success. While there are always family squabbles, when you are family you work it out and your bonds strengthen.

Take five minutes to meet the founders of Maine Gold and learn how to build a family of customers.

Greed has Hurt Subprime Borrowers

2007-11-19T13:42:00.000-08:00

Bloomberg reports today that as many as 450,000 subprime borrowers may lose their homes over the next three months.

I say that the people who sold these people their mortgages were probably greedy and being greedy is never the right way to approach building a sustainable business. If your goal is to make as much money as fast as you can then you are probably not thinking of relationships you are probably only thinking of yourself.

Pamela Rodgers, owner of Rodgers Chevrolet, works hard to only sell people what they can afford. The head of her finance department told me that she is more a counselor than a sales person because she helps the customers evaluate, even in a worst case scenario, what they can manage to pay monthly to meet the loan obligation.

Selling is never about you -- it is always about your customer. You can learn plenty about ethics, respect, fairness and putting the other person first from our favorite car dealer.

Owners Take the Lead in Going Global

2007-11-15T10:11:00.000-08:00

In today's Denver Post you can read, "Japan America Society of Colorado recently recognized Bob and Joanna Sakata, owners of Sakata Farms in Brighton, with its inaugural Pioneer Award for their significant contributions to the development of good relations between Colorado and Japan." We are not surprised that Bob and Joanna Sakata are doing good things to build relations with Japan because the strong business owners in this country take the lead on everything.

As small business owners, we are the best at product development, the best employers, the best at giving our time and money to local causes and now with the world getting smaller and smaller, we have become the best at doing business and promoting business on a global scale.

To learn more about Bob, visit Small Business School.

A Salute to our Veterans

2007-11-12T12:54:00.000-08:00

I grew up in San Diego surrounded by the Navy and the Marines. My parents taught me that this is a good and noble nation and the public schools back when I was a kid reinforced this. Bruce is from Boston and he grew up on the streets that were home to many of our founding fathers. Even with our high-on-America belief system we weren't prepared to cry when we met Don Dzekciorius at the Statue of Liberty.

Don is a first generation American who told us about how his mother kept him and his brothers safe by following in the path of American soldiers as they liberated Europe from Hitler's grim grip. Don's family traveled at night and for nearly three years they lived in constant fear. Their goal was to get to America and they finally did.

Americans died so that Don could live and he tries to say thank you everyday. As an immigrant to this country, he believes in and epitomizes the American dream in this great land of opportunity. This one free and happy man has created hundreds of jobs and generated millions in sales over the 25 years he's been in business in Albany, New York.

We offer up a salute to our veterans today and to the troops who are saving and protecting the good people of the world.

You Can Grow With a Tasty Idea

2007-11-11T12:12:00.000-08:00

Yesterday we were traveling from Orlando to Palm Springs and had to change planes in Dallas. I love that airport because I know Anne Beiler and I can buy her tasty pretzels at one of two Auntie Anne's locations. I like the original but I can't resist the cinnamon and sugar.

Is your product so tasty that customers crave it? Is your service so satisfying that customers would never consider buying from your competitor?

Customers who can't live without your product will grow your business. You can learn how Anne made her pretzels tasty and irresistible at Small Business School.

Join Your Local Chamber

2007-11-10T05:09:00.000-08:00

We are in Melbourne, Florida today because I spoke at its business summit yesterday and we attended a wonderful gala last night. The chamber of commerce here is very powerful in the community because hundreds of businesses make it so. The party last night was packed with hard-working people who were laughing and having a great time. They obviously enjoy each other and some of them were being recognized for their contributions to this great place to live and work. As I write this, I can hear the Atlantic ocean crashing on the beach and see the bright blue sky and water.

Cape Canaveral, now called Kennedy Space Center, is just up the road from our hotel. As we leave to go back to California, we will visit this site that has been famous to me since it was the scene of a satellite launch in 1962. Now you can guess how old I must be!

If you are not a member of your chamber of commerce, you should be. It is the perfect place to find mentors, customers and friends who all want to make your community better. It is also the perfect place to volunteer. You might think you don't have time to be involved but I bet if you give it a try, you'll find that the time you spend will come back in both intangible and tangible rewards to you personally and to your business.

Albert Black joined the Dallas Chamber of Commerce at the same time he opened for business in 1982. Today his business is generating $75 million in annual sales and he gives much credit to his participation in his chamber. At Small Business School you can learn more about how Albert's volunteer efforts caused doors to fly open for him.

Most every link from this blog goes to the related, streaming-video clip from the television show.

The Chinese Brand is Suffering

2007-11-08T09:15:00.000-08:00

Products made in China, from pool ladders to air pumps to toys, are being recalled. These blunders will set it back on the road from poverty to prosperity.

The world really doesn't understand that the US economy is built on transparency and honesty. Even some Americans don't realize that wealth is created when a customer is served, not poisoned, killed or maimed after their money is extracted from them.

It is possible that some of the Chinese mistakes were truly mistakes but some of the problems are caused by cutting corners to bulk up the bottom line. This never works over the long haul and the time-tested small businesses that we study prove this point over and over again.

The Chinese would be smart to study the writings of theologian and writer, Michael Novak, as he explains how this country has become the super economic power that it is.

You can learn from Mr. Novak at Small Business School (link goes to his key idea - streaming video).

Legal is Better than Illegal

2007-11-06T19:27:00.000-08:00

Today's Washington Times reports that a brand new poll it conducted with Fox 5 and Rasmussen revealed that, "77 percent of the adults surveyed opposed making driver's licenses available to illegal aliens."

Small business owners are being beat up by the mainstream media because it assumes that we are guilty, guilty, guilty of hiring illegals to earn obscene profits. I am sure that this happens but it is not standard operating procedure for those of us who are striving to deliver quality over the long haul.

The owners who play by the rules always win in the end. Laurie Snyder partners with specific sewing shops in Los Angeles because she can trust that everyone is working in the US legally. Learn more about Laurie at Small Business School.

Union Turns Writers Into Wimps

2007-11-05T10:58:00.000-08:00

What a bunch of crybabies. I heard one Hollywood writer on the radio this morning and he made me laugh. He was whining like a four-year old who thinks she has a right to dessert every night. Any person who turns their life over to the Writers Guild of America, or any union, ought to know that their life is no more their own. They exchange their freedom for a paycheck. These are the wimps of the country and sadly the wimps are gaining on those of us who create the real prosperity.

These pitiful wimps don't understand how money works. This particular set of wimps ought to look at how our governor got rich. Early on in his acting career Schwarzenegger stopped thinking of himself as an actor and started thinking of himself as a partner in movie deals. His job on the deal was partly to act but the partnership meant he got no paycheck for the work; he only shared in the profits when and if they materialized.

Pay-for-performance, not pay-for-hanging around, is the way most small business owners run their business and certainly it is the only way we pay ourselves. If our idea works we get rich. If our idea fails, we go back and work on the idea and try again. If you're tired of being a wimp, you can change. Take inspiration from the owners of Renegade Animation. They used to get a paycheck but now they write them.

Being Green Goes Deeper than Cause Marketing

2007-11-05T07:17:00.000-08:00

I grew up in San Diego, which we all know is a desert, and my parents had moved there from Louisiana which is a very watery place. My father was the original environmentalist as he was always knocking on the bathroom door telling us to save water for our children. I think he was panicked that there wouldn't be enough water in San Diego to last his own lifetime.

We small business owners should tap into the trend to use green efforts as a marketing ploy but those of us who have succeeded over the years at business are like my dad. We know that being conservative with every resource is at the core of earning profits.

I don't like being told by out-of-work old and young hippies and people who get a paycheck from my tax dollars (that includes every public school teacher from first grade through graduate school who are busy trying to convert our children to the empty religion of environmentalism) that there should be some law to tell me how to conserve resources in the process of running my business. Our customers and our common sense will guide us as we work to make our world a better place when we leave it than when we arrived.

One of my favorite green business owners is Lupe Fraga. He has an office supply company in Houston and years ago he stopped delivering in cardboard boxes and switched to sturdy bins he can use over and over again. You can learn more about him at Small Business School.

The Hillary Brand is Not Selling

2007-11-04T05:50:00.000-08:00

My first sales teacher was Emory Rose. I was 29 years old and he was at least 70. He taught me that people will buy from you only when they like you, trust you, believe you and understand you.

Maureen Dowd wrote today that the while Hillary's staff called her tough after this week's debate, "she can break, just like a little girl, when male chauvinists are rude enough to catch her red-handed being slippery and opportunistic." What is she then, tough like a man or soft like a woman? I wouldn't buy a hot dog from someone called slippery and opportunistic. Hillary breaks all of the Emory Rose rules of selling. On top of that, her brand is tired, worn, tattered and torn.

Look back at the advice of Emory Rose in reverse order. He said that people will buy from you only if they like, trust, believe and understand you. If you are a small business or a new business or if you are selling a brand new product, start by making sure people understand you by crafting your message clearly. If people can understand you then they might try your product so they now believe you and they get real results so now they trust you and over time they come to like you.

One of the best brands in America is Cindy McIntee's little chain of restaurants called Mo's Chowder. You can see for yourself why people like her, trust her, believe her and understand her. Here she is at Small Business School.

Choose the Right Name

2007-11-03T08:46:00.000-07:00

We just spent a couple of days with one of our favorite business owners, Cindy White. In 2002 she bought a company called, Estelle. It makes handcrafted woven ribbon jackets. The founder's name was Estelle and Cindy didn't think the name was a problem until she started talking to her customers who quickly told her that the name was old-fashioned and certainly out of sync with the direction Cindy has taken the jacket design.

With brainstorming she came up with her new name that is being applauded by everyone around her including a group of business owners who serve as her board of advisers. To attach herself to fashion and some of her suppliers who are French and Italian, she chose the name, Cici Bianca. Cici is term of endearment for her first name and Bianca is one of the ways the Italians spell the word white. Cici Bianca, now that's hot and sassy.

Choosing a name for your business is important.

You can read how others do it at Small Business School.

Charlie Rangel's Tax Plan Is Bad For Us

2007-11-02T10:34:00.000-07:00

This week House Ways and Means Committee Chairman Charles Rangel, D-N.Y., made it clear that he wants to raise our taxes and not in a small way. We small business owners in general have ideas that are bigger than our pocketbook. We are trying to improve our quality, hire another person or invest in new product development which means we struggle with cash flow. It's not that we are poor money managers, its just that we don't like to stand still and rake in cash, we tend to learn forward to raise the bar which consumes cash.

Every penny that we have to give to the government moves us away from our dreams not toward them.

As a way to stay close to public policy, Bruce and I are members of the US Chamber of Commerce Small Business Advisory Council. You can meet some of our fellow council members at Small Business School.

Fires and Floods Were Too Close for Comfort

2007-11-02T10:14:00.000-07:00

San Diego is my hometown and we were living downtown when the 2003 wildfires rushed through thousands of acres destroying everything in their paths. This year we are over the mountain in Palm Desert for the Winter and we received calls and emails from friends who were either preparing to evacuate or had already done so.

My sister has been living in New Orleans since she married a native New Orleanian in 1968. Their family business sustained damage while dozens of their friends and customers lost everything in the floods that followed Katrina's attack.

While economists calculate the losses that piled up, I suspect they did not have a clue how to measure the price small business owners had to pay due to lost data. I believe that data is more important than cash to a business owner. So, think hard about protecting your priceless data in the event fires and floods come your way.

You can learn how some owners do this at Small Business School.

Learn from other people's experience.

2007-10-31T09:15:00.000-07:00

It has been said that success builds confidence and failure teaches. This means that the best way to learn is to fail. That is the attitude I find when talking with business owners. They are not afraid to fail because they know if they examine their failure they will gain insight. So the question I have today is, can we really learn from another person's failure?

See for yourself at Small Business School