Corrections or additions?
This article was were prepared for the June 27, 2001 edition of
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Great Ideas for Small Business
Syndicated business columnist Jane Applegate, above,
one of the panelists at Merrill Lynch’s June 28 small business
conference,
has just published a book of advice for entrepreneurs. Called 201
Great Ideas for Small Business (Bloomberg Press, $14.95) is full
of practical suggestions. Here are some excerpts:
Always deal with decision makers. Even when our companywas based in the den of my suburban Los Angeles home, and later ina converted garage, we always resolved to deal directly with the verytop people. Sure, it raised eyebrows because most of our consultingclients were Fortune 100 companies, but they wanted to work with usbecause they were anxious to sell into the fastest-growingentrepreneurialmarket.I am convinced we have been so successful because we’ve insisted ondealing with the top level decision makers or managers with high-levelaccess. No matter who you are, you can practice this approach. Youcan write directly to the president or chairman. Briefly outline yourproduct and what you can do for his or her company. In many cases,the top person, or an assistant, will make a note on a letter anddirect it back down through the ranks. The notation carries weight.Solicit a quick `yes’ or `no.’ Through the years, I’velearned that a quick and honest `no’ is as important as a `yes’ inmany, many business situations. While we all love to sign on a newclient or make a huge sale, too much time is wasted in discussionand negotiation because folks are afraid to just say `no.’If someone isn’t interested in buying what you are have to sell, it’spainful but more efficient to know the truth and move on.The challenge is this: Most people don’t like to say no, so theywaffle,stall, mumble, and don’t return your phone calls, faxes, or E-mails.This adds to your frustration and wastes your time.One strategy I’ve found to be extremely efficient for getting a timelyanswer is setting a clear deadline. You may think this takes a lotof nerve, but it works very well in most situations. We set responsedeadlines on proposals submitted to even the biggest Fortune 500companies.Never work with anyone who gives you a headache or a stomachache. If I had a motto, this would be it. Life is too short towork with people who make you miserable. This isn’t emotional hogwash.You can’t do your best work when you hate the person managing youor your project.I know. I’ve tried. Without naming names, I’ll share a quick story.A very big company interested in selling its services to entrepreneursasked me to come up with some good ideas to get them started.I came up with a concept the company believed was a winner. My formerpartner and I wrote a formal proposal for funding. After months of`yes, it’s happening,’ then, `no, it isn’t,’ we were awarded asix-figurecontract.But it wasn’t time for champagne. During the rocky negotiations, Irealized that while my idea was embraced by the top brass, his secondin command hated it. Why? Because it was `not invented here.’ Theguy felt obligated to manage my project because his boss told himto, but he hated it from day one and set out to sabotage it.He hired another consultant to manage my consulting contract. He addedlayers of bureaucracy and B.S. He second and third guessed everythingwe did. In short, he made it nearly impossible for us to function.I had a headache and a stomach ache nearly every day for two years!When it was finally over, I felt as if I had been run over by a truck.No amount of money is worth the pain. Success will evade you if youare working in a poisoned atmosphere.Rent a financial genius. Ward Wieman, founder of ManagementOverload in Santa Monica, California, helps small, fast-growingcompaniesmanage rapid growth. To manage his own cash flow, he says, `I renta financial genius once a month.’Relying on this kind of outside expertise helps him keep track ofhis big financial picture.`These temps have proven to be exceptional,’ says Wiesman, who paysabout $250 to $300 an hour for savvy financial advice. `For manybusinessowners, these finance managers do a good job at managing the resourcesthe company already has. Sometimes they will tackle or identify apotential problem, like when a business owner doesn’t know whetherhe’s making or losing money.’Many businesses can’t afford, or don’t need, a full-time chieffinancialofficer. If that’s the case, you can rent a very competent one.Buy disability insurance. A busy entrepreneur risks losingeverything if he or she is temporarily unable to work and is notproperlyinsured. Yet insurance executives estimate only 30 to 40 percent ofthe nation’s small business owners have disability insurance. Thisis a chilling statistic, especially when you consider that at age37 — the prime age for an entrepreneur — the probability ofbecoming disabled is three and a half times higher than theprobabilityof death.Buy used office furniture. When I was an investigativereporter, my beat was white collar crime. I chased after the slickest,sleaziest business criminals in the country as they defraudedinvestorsout of millions with precious metals scams, stock frauds, andreal-estateschemes.The one thing they all had in common — other than a passion forstealing money — was a passion for glitzy, opulent offices. Toimpress prospective victims of their schemes, they always rentedexpensivespace on the top floor of the nicest buildings, with a spectacularcity or ocean view . . . To this day, I still equate fancy officeswith criminal behavior. And that’s one of the reasons I urge smartbusiness owners to outfit their offices with as much used equipmentand furniture as possible.Create an active database. If you look at the piles ofbusiness cards on your desk and just see a mess — look again.What you’re really looking at is potential income.No matter how small your business may be, you should be creating andupdating a database. With simple software, a current database allowsyou to easily mail newsletters and sales information to customers.You can also target prospective customers by renting mailing lists.Add telephone numbers, and your database becomes the basis for atelemarketinginitiative.Collecting detailed information about people and their companies iseasier than you think. Business cards, sales invoices, catalogs,directories,and magazine and newspaper articles all contain valuable informationand contacts.The easiest way to create and maintain a database is with a simplesoftware program. There are many affordable programs on the marketthat keep track of information and allow you to cross-reference andaccess it in several ways.Work hard, and play harder. The most successfulentrepreneursI know work hard and play even harder. This work hard/play hardstrategyfits the entrepreneurial lifestyle perfectly. In the start-up years,as most entrepreneurs know, you rarely get a day or weekend off —and a vacation is totally unthinkable. There are so many personalsacrifices involved in running a small business. So, when thingsfinallydo take off, it’s time for you to take off.Previous StoryNext StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
