I was reading an interview with an individual who reminds me of Bill Veeck and the character Ari Gold from Entourage (Google both names if you’re unfamiliar). The interview was with George Cloutier, an author and consultant; founder and chief executive of American Management Services, specializing in advising small and midsize businesses. While reading his interview in the New York Times, I thought about paraphrasing some key points for you to reinforce many concepts that we discuss and strategize with our clients:
- Lots of people blame the recession for putting them out of business, his response: Normally because you haven’t built a strong enough sales organization. – and we totally agree! Many are not aware of our sales consulting and services – read in our Services section
- Small businesses fail to focus on the basics — doing your P.& L.’s [profit and loss statements] and pay attention to cash flow. – we might focus on marketing and business strategy at Magnus, but we absolutely pay attention to your finances when strategizing for your business. How well tracked are your finances?
- I have to spend a great deal more time on my sales and marketing, and I have to stop whining and get to work. we rest our case.
- You have to work on stretching your [account] payables (using 45 days on accounts payable, not 30) because every dollar you get in extended payables is an interest-free loan. You have to spend time, go see them and negotiate. Honor your word. But don’t think 30 days is a good deal. It’s not.
- How to treat employees? …we also need to get things done as asked. The abandonment of that principle is a large factor in the failure of small businesses to achieve real profitability.
- But if you don’t love your business as much as your family, your probability of success is very much lower. Sometimes you just have to put the business ahead of family considerations.
- A member of the family, if they’re not carefully policed or indoctrinated by the principle of the business, tends to feel entitled. That entitlement is terrible for morale and is terrible for the business.
- No owner should be satisfied with his business!!! We love this line as we preach that there is always another sale and another dollar to be made. Companies who settle and become content will ALWAYS travel a rocky road and will never have consistent growth and success.
To read the full interview, click here and leave a comment below with any other advice you might have. Let’s make 2013 an all-round success for your business!
