Jim Blasingame

Business futurist, award-winning author, speaker and columnist

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Management Fundamentals

The Golden Triplets of small business success

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For most of the 20th century, Americans enjoyed what I call The Golden Age of Customer Service. Sadly, based on recent research, it appears we’re in the Plastic Age.

In a national customer satisfaction index, the average customer rating was less than 60%. Going six for 10 is pretty good – if you’re playing baseball. But any small business with that batting average is headed for the shower.

So how has such a level of unservice become a 21st-century norm? Because customers have become sensitized to what I call the Plastic Triplets: High volume/low price, impersonal e-business, and almost as impersonal face-to-face service.

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Mastering the sales discipline to shut up

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Contrary to what you’ve heard, selling is the oldest profession, because “In the beginning” the serpent sold the apple to Eve. You might say she bought wholesale and then sold the apple retail to Adam. And as we now know, that was one expensive transaction.

A key characteristic that clearly separates humans from the other animals identified in Genesis is ego. And while ego can be a beneficial motivator in selling professionally, in order to do that successfully, we must do something that’s in direct conflict with our ego – we have to let someone else talk more than us.

So, when you’re on a sales call – face-to-face with a prospect – what do you do? Do you unload the dump truck of stuff about products, pricing, etc. that your company installed in your head? If that’s your answer, your professional selling career is doomed.

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Success will come from relationships you build with people

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Dave was the fifth of twelve children raised during the Great Depression. His father worked at a sawmill and was a part-time basket weaver.

Dave had some problems:  He was a stutterer, he had epilepsy, plus a learning disorder, all of which prevented him from graduating high school until he was 21. How do you like Dave’s chances in life so far?

But Dave was a good employee: first, a Fuller Brush salesman and next, a route man for two bakeries. Then, with all of his personal challenges, he purchased and successfully ran a restaurant and a grocery store.

Remember Dave’s father’s part-time basket weaving? Well, he started selling baskets: first from his father’s hands, and later from Dave’s factory. Oh, that’s right. You didn’t know Dave had a basket factory. Well, it was the basket factory Dave sold his two very successful businesses to buy. Turns out Dave had serious entrepreneurial sap rising in his bark.

Dave’s friends, family, and bankers were incredulous. Why leave a successful and sure thing to make baskets? By the way, they knew Dave didn’t know anything about how to make baskets himself. Would you have invested in Dave?

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It is possible to succeed yourself right out of business

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This is another offering in my ongoing series on understanding the fundamentals of business as we become better business managers. Remember, fundamentals are like natural laws: they don’t change; they’re the same for everyone, and you can’t succeed without understanding and respecting them. The fundamentals today are all about funding growth.

Consider the following scenario that plays out on Main Street every day:

“Finally, my business is growing,” a small business owner confides to his friend, “but why is it creating so much negative cash?” And then, with that deer-in-the-headlights look, he completes his report, “I thought by now, with increased sales, cash would be the least of my worries. I used to be afraid I couldn’t grow my business; now I’m worried it will collapse from growth.”

This entrepreneur’s lament is one of the great ironies of the marketplace: a small business in danger of succeeding itself right out of business.

Beware Blasingame’s 2nd Law of Small Business: It’s redundant to say, “undercapitalized small business.” This maxim is especially true for fast-growing companies because revenue growth depletes cash in two dramatic but predictable ways.

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“Customers from Hell” and the #1 business fundamental

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“This is for one of those customers from hell.”

That’s what a small business owner said to me during one of my road trips across the country to check on how things are going out on Main Street.

“Ann” was responding to my query about her business. Her full answer was closer to, “Business has been good. But now I’ve got to spend most of the day dealing with this customer from hell.”

Turns out, what caused this customer’s alleged domicile to be mentioned was because they required a lot of extra attention – they wanted things the way they wanted them. Like Ann, you might be surprised at my response, which is our next “Business Fundamental.”

“You should never have a customer from hell.”

Before you start yelling that you want to introduce me to some of your customers who surely are kin to Ann’s, let me tell you a story.

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Even Og and Gog knew fundamentals are fun

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As you know, I’ve written a few columns recently in my “Fun with Fundamentals” series. As you know, something is fundamental when no matter who you are, how long you’ve been in business, or what you sell, they apply to essentially everyone, every day.

These fundamentals I’m revealing here are no less than operating natural laws, and they’ve served businesses since proto-market was born 10,000 years ago when Og dropped his club and suggested to Gog that they do business instead of killing each other for what they wanted. That’s what’s so great about fundamentals, they’re as handy as they are immutable.

Become devoted to incorporating these non-negotiables into your daily/weekly/monthly management practices and you’ll have more fun because success will come and play in your backyard. If you don’t, well – you know.

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