Business Growth Weblog

Myth Buster: No Such Thing As A Dream Job

2011-12-10T22:08:00.000-06:00

I recently read a Facebook post encouraging people to pursue their dreams. "What's holding you back?" enthusiastically wrote the pal on Facebook.
What a crock of crap!
Let me be the first to say: there is no such thing as a "dream" job, "dream" occupation, "dream" mate, etc. The concept doesn't exist. Why do you think it's called a dream? It's not reality. Stop trying to chase dreams, slap some cold water on your face and join the rest of us in reality.
Now, I'm not saying you can't live a great life, create or find a great job. I believe you can, and it's not as hard as you think.
I'm saying the idea of chasing a dream is ridiculous. Great jobs usually develop out of hard work and dedication, not dreams. Do you think Ray Gallardo was chasing a dream as a dishwasher in the 1970s? Hell no. He was trying to make a living. He ended up moving up to a cook, then manager and then starting his own restaurant chain, Casa Gallardo.
Now, many people have dreams of starting a successful restaurant. The problem isn't following the dream. The problem is finding people who are willing to persevere through washing dishes, taking orders, scraping old food off of plates at 2am on a Sunday morning. That's no dream. That's reality. To find a great job or great career or great mate, what holds many people back isn't dreams, but reality.
--Ron Ameln, SBM

Do You Have A Vision For Your Business?

2011-08-05T15:45:00.003-05:00

In 2004, the Coca-Cola Company was struggling, to say the least. During a seven-year period (1998-2004), the company's total return to shareholders stood at minus 26%, while rival PepsiCo delivered a 46% return. At one point, the company's third quarter earnings fell 24%, one of the worst quarterly drops in its history.
Shareholder return and poor numbers weren't the only issues for the company. Employee morale was down, capabilities were lacking, good employees were jumping ship and the company's vision was unclear.
New CEO and leader Neville Isdell was given the challenge of transforming the once-mighty business back into a powerhouse.
Isdell's solution for turning the company around: "His Vision."
The new CEO wrote his vision for the company, which he referred to as Coke's "Manifesto for Growth." This vision outlined a path for the future, not only where Coke was headed, but how it was going to get there and how people would work together along the way.
He got rank-and-file employees involved in helping him create this "manifesto," which immediately improved employee morale. He created teams to tackle the issues and make sure time lines were met.
Shareholder value jumped from a negative return to a 20% positive return in just two years. By 2007, Coke had 13 billion-dollar brands, 30% more than Pepsi. Staff turnover fell by almost 25%.
How about your company? Do you have a vision? Have you shared it with your employees? Have you asked for their input?
It is amazing where the bus can go when everyone on board knows which direction it is headed.
--Ron Ameln, SBM

Need to Diversify: Don't Sell The Fried Chicken

2011-04-04T20:50:00.004-05:00

Years ago Hardee's Restaurants came up with a great idea, or so the company thought. The idea was to sell Fried Chicken. After all, customers loved their burgers and fries, why not create fried chicken that was just as delicious. The company was searching for a way to pull in even more customers, diversify the company offerings and provide a need in the marketplace.
And did they ever. I'm not sure if you ever sampled it, but the fried chicken was awesome. There was only one small problem. In order to make the chicken so good, it took some time. In fact, Hardee's often ran out of chicken, making customers wait more than 20 minutes for the next batch. Customers, while they liked the chicken, weren't used to spending 20 minutes at a fast-food restaurant. Do you know what happened? Customers stopped coming.
In its efforts to diversify and meet a need in the marketplace, the company actually drove its customers away.
I see this happening all the time in business. Companies want to diversify their businesses, but they completely forget about their own strengths. Many entrepreneurs ask the questions, "What is not being offered today? How can we make money the quickest?" They should be asking: "What is our strength? What are we really good at?"
You don't want to end up selling fried chicken.
Hardee's learned from its mistake. It stopped selling fried chicken and began focusing on its strength: big burgers.
--Ron Ameln, SBM

Everyone Is A Salesperson

2011-03-23T22:14:00.000-05:00

Tony Rubleski, an author and national speaker on sales, recently noticed a trend forming with his audiences. He noticed more ministers, accountants and attorneys were coming to his sales seminars.
Said Rubleski in his book, "Mind Capture": "Many ministers believe that if you build it, and the message is great, people should show up. That's fine to think and believe this, but at the end of the day, whether they believe it or not, their selling their followers on the message and vision they have."
The lesson here is simple: Everyone is involved in sales. The sooner you recognize this in your organization, the more success your business will enjoy.
Everyone in your organization should be trained on sales strategies and how to help improve sales within their own jobs. Accountants, ministers, attorneys, receptionists, service techs...they all have a role in the sales process.
Start providing your employees with some sales training and tools to help them better interact with customers. You may get some pushback (No one wants to be the telemarketer who calls at dinner). However, we're all sales people. More experience in sales will ultimately help all employees. Who do 99% of CEOs say are the most valuable employees: the top sales producers.
-Ron Ameln, SBM

The 5-Year Employment Contract

2011-03-21T12:24:00.003-05:00

I remember when I bought my first car, a beat-up old Ford Mustang I bought for $700 while a senior in high school.
While it might have been laughable to the neighbors, to me it was a Cadillac. I would wash it every Saturday. When I went on errands, I'd park it way far in the back of the parking lot (didn't want to get the dings).
That lasted for about 6 months. A year later I parked in the closest spot in the mall, and I wondered how I could afford to buy a nicer car.
That, my friends, is human nature.
If you own a business you recognize this behavior. When we hire employees they come to us engaged, enthusiastic and fired up. That attitude changes over time. As the years mount, some employees find themselves going through the motions, even bored. The enthusiasm they once had for the job is a distant memory.
Owners are constantly trying to find ways to keep employees engaged, including things like open-book management, cool office environments, etc. to keep employees motivated.
Here's an idea: Why don't we put the responsibility on the employee.
What would happen if most jobs in America became 3-5 year engagements, only. Now, the average tenure for most employees falls into this timeframe anyway, but what if it became mandatory for all.
-Employees would be in a much better position. They wouldn't get bored with the details of their jobs as quickly, they would learn to become better networkers (will need another job soon), they will be forced to learn new skills and meet new people every 3-5 years (thus building their skill sets and marketability), and they will become more engaged at work.
-Employers would be forced to build systems into their companies (thus building the value) and they will be greeted with fully engaged employees.
I realize this is a far-fetched example. Maybe the real solution is force this policy on the employees that aren't bringing value to your operation.
--Ron Ameln, SBM

Your Biggest Competitor? Your Numbers

2011-02-28T10:05:00.003-06:00

When I made the decision to stop playing baseball after my sophomore year in college, my biggest worry was that I would miss the competition. You know, me against my opponent to see who comes out on top.
What I quickly realized was that I didn't miss the competition at all. In fact, my joy for the game really wasn't about the competition. It was about the challenge of improving on my own performance. I missed going out and trying to win games for my team (more games than the year before) and I missed trying to improve on my statistics, each and every year. Hit .360 one year, the challenge would be to hit .380 the next year.
As business owners, it's the same. We're all competing against our own numbers (revenue, expense, profit, productivity, etc.) every year. That should be our focus and that should be what gets us charged up each day to work.
Lately, I've been hearing a lot of owners focus (some even obsess in my view) on their competitors. These owners will say: "My competitors are doing.....I heard they are going to start...."
There is no doubt you need to know your competition and what is working for them, but keep in mind that, as business owners, our biggest competitor is our own numbers. If we move those numbers in a positive direction, it doesn't matter what our competition is doing or not doing.
-Ron Ameln, SBM

Human Capital: Solving A Recurring Business Problem

2011-02-22T22:07:00.001-06:00

When it comes to entrepreneurial firms growing in the next few years, Andrew Sherman, author and business growth guru, sees human capital as one of the biggest challenges entrepreneurs face. “This is a real problem,” he said. “Keeping GOOD people, motivating good people and figuring out how to pay them properly is very important.”
Sherman said the real problem is a lack of “old-fashioned loyalty.” “It is not always the employees fault,” he said. “It is a two-way street. Employers need to show a commitment to people. You get what you give. If you treat employees like a true peer, they will probably stick around for a long time.
“Smaller companies need to understand what it is going to take to hold onto good people as they compete with larger companies with bigger benefits in era of reduced loyalty. Our children are growing up in an era where they are watching their parents switch jobs every three years. Small-business owners need to develop a compensation system, a motivation system and a culture that keeps employees. It’s not just about money. Everyone wants money, but people want other things as well. Small companies are in a great position to deliver big on those other things.”
--Ron Ameln, SBM

Entrepreneurs: Embrace Your Role As Salesperson

2011-02-21T22:40:00.003-06:00

Listen, there are just certain tasks that come with certain jobs. Take, major league baseball player. Yes, you play baseball and get lots of money, cute girls and free dinners, etc., but you also have to answer questions from the geeky, very non-athletic sports reporters everyday (I know this because I used to be one). That's just part of the deal.
When it comes to being an entrepreneur, especially a solo-entrepreneur, sales is part of the deal. You don't have a boss, don't have to clock in or ask for PTO days, but you do need to sell.
As a consultant recently told me, "How come none of these solopreneurs want to sell?" Selling is part of the deal if you want to survive. Yes, old fashioned, selling. That means cold calls, presentations, networking, alliances, referrals, the whole nine yards.
Own it. Live it. Do it now.
Your head trash can tell you all types of things: "No one cold calls anymore," "cold calling doesn't work," "People don't like to be sold anymore," "Social media is all I need anymore," --whatever.
Tell yourself whatever you want. But the fact is when you became a solo business owner, your No. 1 job became salesperson.
The sooner you embrace that, the better off you'll be.
--Ron Ameln, SBM

5 Signs Your Business Partnership May Be In Trouble

2011-01-13T14:59:00.002-06:00

Are business partnerships for dummies? Well, at least my attorney thinks so. In many ways, business partnerships are more challenging than marriages. These partnerships bring all types of moving parts, like employees, debt, hopes and dreams, etc. Just like a marriage, business partnerships are hard to make work.
Because of financial reasons, some entrepreneurs have no choice if they want to start and build a thriving company. So, if you find yourself in one of these partnerships, look for the following 5 signs of trouble and get help early.
1. Sign No. 1: One partner says he/she is unhappy. When this starts happening, the clock is ticking. Do nothing and the partnership will end in a bad way. Jump on the problems early and start getting them resolved.
2. Sign No. 2: Little effort by one of the partners. If one of the partners starts slacking on his/her duties, that's a sign of disinterest.
3. Sign No. 3: One of the partners feels superior. If one of the partners feels he/she is more valuable than the other, that's not a good sign. The feeling of an unfair situation can often lead to partnership issues.
4. Sign No. 4: Little compromise. Just like a marriage, compromise must be present for a healthy relationship.
5. Sign No. 5: Lies. Trust is the key in any valuable relationship. If your partner isn't trustworthy, get out quickly.
--Ron Ameln, SBM

5 Questions For A More Productive 2011

2010-12-20T17:16:00.003-06:00

Did your company perform as expected in 2010? Did you reach your goals?
If you want to build a thriving company in 2011, answer the following questions. Good answers to these questions will lead the way to a productive year.
1. Are you gaining feedback from customers?Entrepreneurs listen to customers and gain feedback. This is how they discover great ideas. Successful entrepreneurs are out in the field finding out what customers really want and need.
2. Are you looking for more opportunities, both inside and outside the organization?
Successful companies are not afraid to dump old products and move on to new ones.
3. Do you have a mentor? Mentors can jump-start an entrepreneur’s knowledge level, link him or her up with new contacts, offer feedback on ideas, plans and strategies and even provide help in raising capital.
4. Have you built an A-team?Savvy entrepreneurs bring people into the organization who are smarter and more skilled than they are. They then create incentives to keep them. The best entrepreneurs are clearly team builders.
5. Are you providing mind-boggling service? When you deliver legendary customer service, customers will rave about your company and become tremendously loyal.
-Ron Ameln, SBM

Do Groupon-Type Offers De-Value Your Services?

2010-12-19T18:07:00.006-06:00

No one can argue with the success of Groupon, the entrepreneurial coupon-based tech firm that started from a Northwestern University dorm room a few years ago. Its success has spawned numerous imitators. From a business startup standpoint, the business model earns an A+.
With all that said, here's a question: For those businesses participating in these types of deals, what are these companies really saying about their products and services? I mean, if you are willing to provide your products and services for 1/2 (sometimes even 2/3) of its price, what are you saying about the value of your products and services? Aren't you turning your product/service into a commodity that can be devalued (sometimes by 1/2 price). And, if your profit margins can afford a 50% decrease, maybe your overcharging customers in the first place.
Six months after the coupons stop running, are your customers going to be excited about paying twice the price for the same meal they paid 50% less for a few months ago? Or, will they just go to the next business down the street that offers another 50% off deal.
The big question is: How will customers see your product/service in the long run? Will it be seen as just another product/service, or will it be seen as something that is unique and has value to it?
Business owners should all be striving to create unique value in their offerings. Once you start slashing prices, your product/service begins to lose that value.
--Ron Ameln, SBM

4 No BS Ways To Sell More In 2011

2010-12-16T12:38:00.003-06:00

2011 is just weeks away. The economy is starting to pick up. Now is the time to start building new sales. Here are four things you can do immediately to gain more business in 2011:
1. Start Measuring. You can't accomplish anything in life (i.e., weight loss, productivity) without charting and measuring your actions. Start by determining your goals (you can't get there if you don't know where you are going). Then, start measuring all of your sales activities and actions. After the first quarter, take a day and go over your activities and actions and see what worked/didn't work.
2. Find Your Niche. The 80/20 rule generally applies to most sales. 80% of your sales comes from 20% of your clients. Narrow your prospects. Take a look at your past sales and find out what industries, types of clients you've had the most success with and just focus on them. You'll build better relationships over time, which will lead to more sales.
3. Get Some Help. Everyone needs a coach. Professional athletes have coaches, professional singers have coaches. You need one as well. The coach doesn't need to be an expensive consultant. It might be a friend who can listen each month and offer encouragement. Sales can be a tough mental grind. All sales reps need someone in their corner to help when times get tough--and they will. Think of this person as your sponsor, similar to the AA model.
4. Don't Listen To The "So-Called" Experts. Find out what has worked for you in the past and focus on that before you try out the latest strategies from the "so-called" experts. For example, it's easy to find a guru to tell you cold calling doesn't work anymore. It still does work for some, and it may work for you. It all depends on you and your industry. Most of these gurus have never sold a thing before in their lives. Don't buy into their BS.
--Ron Ameln, SBM

Look In The Mirror For Real Answers

2010-11-24T14:15:00.003-06:00

"The lesson has been: If you are looking for where to assign blame or find solutions, then don't look outside yourself," says Mark Richman, president of Skeleton Key. "I can't control the economy, but I can control my response to it. We have been deliberate in our actions for the last year, and that has allowed us to achieve our goals despite the economy."

(As seen in the St. Louis Small Business Monthly, http://www.sbmon.com/, October 2010).

--Ron Ameln, SBM

Embrace Failure

2010-11-24T14:13:00.003-06:00

"Don't embrace it as an end, but as a necessary component of success," says Eliot Frick, CEO at bigwidesky. "It is necessary for everyone. You either have a series of small failures that you can hide, or you are going to have one that you can't hide. If you look at the natural world, failure and redundancy is built into our system. We think that failure should never happen, but that is a chauvinism of our understanding."

(As seen in St. Louis Small Business Monthly, www.SBMON.com, May 2010).

--Ron Ameln, SBM

Sluggish Economy Is Great Time To Raise Prices

2010-11-24T14:09:00.004-06:00

"This economy is the ideal time for businesses to get back in touch with who their ideal customers really are," says Dale Furtwengler, president of Furtwengler and Associates and author of "Pricing for Profit: How to Command Higher Prices for Your Products and Services. "
"When they do that, they become more profitable by shrinking the customer base and providing great value rather than salvage market share with people that are only moderately interested."
(As see in St. Louis Small Business Monthly, February 2010)
--Ron Ameln, SBM

A Lesson From Bill Walsh on Blocking And Tackling In Your Business

2010-11-24T10:35:00.005-06:00

In the late 1980s as a young sports reporter, I was in Kansas City covering a Chiefs and San Francisco 49ers game. The 49ers had just defeated the Chiefs on their way to a third Super Bowl Championship in seven years. In those days, the 49ers ruled the league.
I was with a mob of other reporters after the game asking questions of the late 49er head coach, Bill Walsh. One reporter asked him a question about the West Coast offense, an offensive system Walsh helped create and the 49ers utilized at the time. "With this system, you can pretty much plug any player in and win?" Walsh shot back angrily. "Wait a second. We're not winning because of our offensive system. We're winning because we're blocking and tackling better than our opponents. If we block and tackle better, it doesn't matter what system we use."
I think the same can be said for business. In business, blocking and tackling means: 1. Knowing your numbers (inside and out); 2. Hiring A Players; and 3. Serving your customers like no other business could.; and 4. Having a plan for exactly where you are going. That's blocking and tackling.
I thought about all of this a few weeks ago when a social media expert (they seem to be multiplying) told a group of business owners that "if they weren't a part of social media, their businesses would die." Unfortunately, I've seen some businesses spend a lot of money and time with social networking. I don't see that as a problem necessarily (there are a lot of advantages). However, just as the West Coast offense didn't help the 49ers win three Super Bowls, social media won't help your company succeed. A focus on blocking and tackling will help you succeed.
First and foremost, spend time and resources on blocking and tackling. If you don't, social media won't help you at all. This is what the so-called "social media guru" should have told you.
--Ron Ameln, SBM

Are You In The People Business, Or A Commodity

2010-11-19T15:51:00.003-06:00

Customer service is a mindset. It takes thinking of your customers first and really, truly caring about people. It's easy to spot companies that are not in the "people" business.
A few weeks ago I had such an encounter with a car rental company. I don't want to name them (although the name rhymes with Avis), but here is the story:
About a week before my rental I reserved the car for a $100 rate (for two days, picking up the car at 9am). I was actually running early the day I picked up the car and arrived at 8:30am, 30 minutes before my reservation time. I asked to pick up my car.
I was told I could not pick up the car at 8:30am at the $100 rate. If I wanted the car a 1/2 hour early it would cost an additional $90 (for the 1/2 hour). I was a bit taken back. I offered to bring the car in a 1/2 early if that helped. No, I was told. You need to have a seat in the corner and wait 30 minutes. I wasn't alone in the corner. One guy was sitting there for two hours.
So, here is a company that instead of taking care of their customer, tells me to sit in a corner for 30 minutes. Now, I was certainly a 1/2 hour early and I'm sure Avis doesn't want people showing up hours before arrival. However, I am a paying customer and this was an opportunity to become a hero.
Avis took that opportunity and blew it up.
Some rental car companies are in the "serving people" business, while others are in the renting car business. Take, Enterprise, for example. It's slogan says it all, "We'll pick you up." Enterprise employees will take time out of their busy day to pick you up and return you when you return. Is it profitable to be shuttling customers around? No. But they want to take care of their customers. That company is in the "people" business.
When you are not in the "people" business, you've become a commodity. At that point, who cares what business you are in!
--Ron Ameln, SBM

How Thinking Differently Can Lead To Sales

2010-11-17T14:12:00.002-06:00

I've always believed that business, like sports, is a game of inches. What separates one successful entrepreneur from one that fails isn't much. In fact, the entrepreneurs that are willing to go against the grain and embrace new ideas are usually the ones standing at the end of the day.
Today I met with entrepreneur Mike Wilcox, president of Vivid Cleaning, a commercial cleaning company.
Mike just recently began his company and is going through the hard work of building clients. An entrepreneurial friend had an interesting idea for Mike: "Why not contact the biggest competitor in the marketplace and ask for a meeting. Maybe he can help you or you can help him." Mike's first thought was, "that is totally ridiculous. Why would I contact my biggest competitor?"
After some hedging, Mike finally took his friend's advice and called the largest competitor in the market. The owner agreed to meet Mike for breakfast and the two had a very nice conversation. The Big Company owner liked Mike so much he began mentoring him and sending him clients. Yes, sending him clients. You see, there are certain smaller jobs the larger firm just can't make profitable. Instead of saying no, the company now sends the prospects to Mike.
Mike is not only getting some mentoring, he's also gaining some clients. The large company owner is getting the satisfaction of helping a local entrepreneur, and he no longer has to say NO to prospects that have jobs too small to handle. A win-win for everyone.
Business: It's a game of inches.
--Ron Ameln, SBM

What Good Are Social Media Friends, Anyway?

2010-11-13T17:04:00.003-06:00

In the last week of the mid-term elections, I thought it was interesting to see one of the local politicians touting how many Facebook friends he had collected. In fact, he was quick to point out how many more friends he had than his opponent, like that somehow proved his political ability.
What good are social media friends? Apparently when it comes to being elected for public office, not much.
That candidate lost, and he wasn't alone.
Take, for example, Christine O'Donnell (R) from Delaware and her opponent, Chris Coons (D). O'Donnell had almost three times the Facebook friends (25,809 vs. 9,523). She ended up losing the real race by 16%, a huge political landslide.
This wasn't the only case. The races were littered with similar stories, like Brad Ellsworth (D) from Indiana, who had twice as many Facebook Likes than his opponent, Dan Coats (R). Coats won the election by 15%, yet another landslide.
There is a clear lesson here for businesses, many of which are racing (like Titanic guests searching for rescue boats) to build their Likes and Friends. The lesson: these so-called friends mean nothing to your ultimate success or failure.
I'm not saying don't utilize social media, and I'm not saying it is not a valuable tool. What I am saying is that business is about personal relationships. The businesses and politicians that succeed (in the real world, not the social world) build those personal relationships and actually connect with people in a very personal way. Just because you are on my Facebook list doesn't create a personal relationship. It's no different than being on my mailing list or email list. Many businesses these days are focused on getting as many Likes (friends) as possible, whether they are customers in their target market or not. How smart is that strategy?
With many businesses spending resources and lots of time building these networks, I hope they all took a look at the midterm elections. There were more messages sent than just political.
--Ron Ameln, SBM

Can You Turn Your Business Into An Experience

2010-10-19T14:50:00.002-05:00

Author and management guru Harvey Mackey frequently tells a story about a basic cab ride from Manhattan, N.Y., to LaGuardia Airport. Mackey gets into a cab and the driver says, "Hi, my name is Walter. I'm your driver, and I'm going to get you there safely, on time and in a courteous fashion." The driver then holds up a New York Times and a USA Today and asks if Mackey would like them. Then he offers Mackey a fruit basket, complete with snack foods, juices, soft drinks, etc. He then asks, "would you prefer hard rock or classical music?"
This cab driver is turning an average ride into an experience. He's taken the most mundane experience imaginable--a cab ride--and transformed it into a special experience for riders.
Customers love riding in Walter's cab. His cab ride hits their emotions, and emotions are something that no competitor can copy.
This cabby thinks differently. He stopped thinking like every other cab driver in town, and discovered what it would take to turn his boring, mundane occupation into an experience customers would always remember.
You can do that with your company. Not with mirrors, magic or miracles. Just by thinking differently. As yourself, "How can I turn my business into an experience?"
-Ron Ameln, SBM

The Reports Of Our Death...

2010-10-14T21:20:00.000-05:00

"The reports of my death are greatly exaggerated." Mark Twain
The same could be said about our magazine. It is amazing the number of people I meet on a weekly basis that are convinced I'm lying when I tell them things are going well with our publication. They read the web stories about the death of print and they assume print publications can't exist in the new era of web advertising, social media, etc.
That just isn't the case, as many of my colleagues will tell you from around the country, especially for niche publications.
But the environment has certainly changed. The web, especially, has brought about new competition in the marketplace. Publishers need to be flexible, agile and willing to diversify to succeed. We're certainly not alone. The growth of the Internet has changed the playing field in numerous industries. Here are just a few:
-Travel. Remember a day when travel agents booked airline tickets and took a commission to do so. Not anymore. The travel agent our company used to use is now out of business, as is many of its cohorts.
-Insurance. Why use a neighborhood agent when you can use an online agent or company for a discounted price.
-Books. amazon.com--enough said. Have you been to your local, independent book store lately? Didn't think so.
-Couriers. Remember when you actually needed a human being to send a letter across town in 30 minutes. Now, with email, it's about three seconds.
These are just a few that come to mind. Each industry has to adapt and find a way to become successful in this new environment. It's really nothing new. Challenges are part of running a successful business. And really, what fun would it be without some challenges.
--Ron Ameln, SBM

The Dreaded Meeting....Making Them Productive

2010-09-10T21:37:00.005-05:00

The business events I remember most from my brief experience working in corporate America are the endless daily and weekly meetings. Most were not productive. So when I became an entrepreneur, I vowed not to have them. Then I realized that was impossible.
Meetings are crucial, but how can you make them as effective as possible.
Author Patrick Lencioni, in his book, "Death by Meeting," says business owners should inject drama into their meetings to make the events more productive. For example, he believes the key to injecting drama into a meeting is being as direct as possible during the first 10 minutes of a meeting so everyone understands what is at stake.
Try injecting some drama into your next meeting and see if the results change.
--Ron Ameln, SBM

Building Value Into Your Sales

2010-09-10T21:14:00.002-05:00

It's a story most know by now. Wal-Mart discovered that a large percentage of its purchasing agents' time was spent researching and purchasing products, which contributed only a small percentage to profits. The solution: use the Internet exclusively to purchase goods.
It became Wal-Mart's new purchasing protocol and the company was able to reduce the size of its purchasing staff dramatically.
What did this mean for the many salespeople that called on Wal-Mart? Log onto the computer and answer the questions and good luck.
If you sell commodities, or anything these days, and don't offer something of real value, buyers will need you less and less. And that's not a good thing for sales professionals out there.
No matter what your business, you need to differentiate yourself from the competition and provide the real (I can't live without it) value.
--Ron Ameln, SBM

Entrepreneurship And Vacations, Or Lack Thereof

2010-07-08T16:31:00.002-05:00

We recently ran a column in our August edition by Sandy Washington at Commerce Bank dealing with entrepreneurs and vacations. Sandy wrote a great piece about protecting your accounts while you are gone. Great, solid advice.
But one sentence Sandy wrote stuck with me: "If you're a business owner, taking a vacation may seem like a pipe dream."
Sandy is certainly correct. Many owners I know never take vacations. "Can't leave the business," they always say.
Let me say this. If you are saying this, sell your business or shut your doors. Maybe you don't belong in the entrepreneurial club?
Why so mean? Your business must work for you. If you can't get away for a long weekend, it's not working for you. Work for someone else and get vacation time.
Get some help or advice and let someone help you build your systems and business so you can take a vacation. Especially for entrepreneurs, vacations are vital to recharging our batteries and preparing for future challenges.
-Ron Ameln, SBM

Is It Time For A Virtual Office

2010-05-24T15:42:00.002-05:00

Inc. Magazine produced its April issue with employees working from home, coffee shops, restaurants, malls, etc. The publication made the decision to become a virtual operation, shunning its office and cubicles.
Is it time you start considering the virtual office.? Let's face it, small firms have a definite advantage when it comes to the virtual company. We are already lean and nimble and most small firm employees have become extremely flexible and productive over the years, mostly because they've had no choice.
The benefits: Cost savings (no more rent, janitorial, repairs, electricity, etc.) and increased productivity (no more idle time during rush hour and chatting with the guys about last night's game).
The downside: Clients may look down on your operation and a lack of employee interaction.
Like anything else in business, it will come down to your employees. Are they professional, motivated and dedicated enough to make it work?
As far as Inc., senior writer Max Chafkin told Folio magazine: "Nobody really hated it. I was more productive but less happy. You spend a big chunk of your life coming into the office, and it becomes a source of satisfaction."
--Ron Ameln, SBM

Can You Ask "That Question?"

2010-04-29T12:12:00.002-05:00

A friend of mine was recently invited to a suite to watch a Cardinals baseball game. Towards the end of the game he noticed the attendant bring in a full tub of beef brisket. Knowing the food wouldn't be eaten before the end of the game, he asked the attendant, "Where does this food go at the end of the game?"
"The trash," said the attendant.
The next day my friend called up his business contact with the Cardinals and arranged a meeting with a representative from Operation Food Search.
The two talked and found a corporate sponsor to purchase two big refrigerators that now sit in the kitchen at Busch Stadium. Now, the unused food from the corporate suites goes into the refrigerator each night and Operation Food Search picks it up the next morning.
During the Cardinals first home stand, close to 7,000 meals were provided thanks to this food. With 15 home stands this year, that makes 105,000 meals.
One Person. One Question. 105,000 people fed.
This story isn't really about food. It's about being "that Guy" that asks "that Question." There are probably millions of questions out there that need to be asked each day. Asking those questions can probably help thousands and thousands of people.
Are you the person that can ask that question?
--Ron Ameln, SBM

5 Business Catchphrases You Should Never Say

2010-04-23T20:11:00.002-05:00

1. The Customer Is Always Right. No, the customer is not always right. In fact, sometimes he is a blundering idiot that sucks time, energy and resources from your profitable clients. For some customers, it's just best to kick them to the curb.
2. People Are Your Most Important Asset. Wrong, wrong, wrong. The RIGHT people are your most important asset. The wrong people can get your company in trouble faster than Ben Roethlisberger at a night club. The key is to get the right people on the bus and send the others packing.
3. It Takes Money To Make Money. Remember all of those flashy E-commerce entrepreneurs from the mid-90s. They spent a LOT of money. The result: Nothing, nada, thanks and drive home safely. Most went belly up. Why? Maybe because they spent most of their money on exotic private jets. It certainly wasn't a lack of money, thanks to every VC with a pulse and a checkbook. Don't like that example, how about Enron.
It doesn't take money to make money. It takes putting money into quality, calculated risks that makes money.
4. It's All About Hard Work. It's not about 60 or 70 hour work weeks. It's about being productive, no matter how many hours it takes. Enough said.
5. It Is What It Is? By saying this, you've pretty much become a victim. If it is what it is, too bad. Take steps to change it.
--Ron Ameln, SBM

The End Of A Three-Century-Old Firm

2010-04-05T19:38:00.005-05:00

About four years ago before I purchased SBM, I sought out several entrepreneurs and asked advice about running a business. I wasn’t sure if I had the stomach to run a business. One entrepreneur said to me: “When you run a small business, you are always either six months from someone paying you a premium for the business, or six months from being out of business. This is always the case, no matter how well or poorly things are going at any given time.”
I thought of those comments this weekend when I read an article in St. Louis Post-Dispatch about Jaffe Lighting closing its doors. Jaffe was one of several companies SBM profiled in our January 2000 issue that focused on businesses entering their third century.
It’s hard to imagine the business no longer existing. It began as a hardware store back in 1892. The company survived the great Depression, two World Wars and numerous other trials and tribulations. When it opened for business, Benjamin Harrison was president of the United States. The company endured many obstacles over the years, but the recent economic downturn and housing crisis were too much to handle.
Just a few years ago, the company employed 45. Jaffe’s fate should be a lesson to all business owners. No matter how good (or bad) things seem to be going, there is a fine line between ultimate success and failure when it comes to owning a small business.
--Ron Ameln, SBM

Is Your Business Heading In The Right Direction? Answer This Question

2010-03-30T13:53:00.007-05:00

I had an interesting conversation the other day about the words entrepreneur and small-business owner? What do they mean? Are they both different creatures?

I think they are one in the same, but I seem to be in the minority on that point. Even if they are a bit different, there isn't much of a difference. Either way, let's not get caught up in semantics. If you really want to categorize business owners, there's only one question to ask:

If you (the business owner, entrepreneur or whatever you call yourself) are hit by a bus tomorrow and (God forbid) are no longer with us, is your company still going to be open for business Monday morning?

If you answered yes, congratulations. You are building a business. (You actually read the E-Myth and got it.)

If you answered no, you have a job, not a business.

Now, there is nothing wrong with owning a job. In fact, there are many advantages (pay, time, flexibility). And, it is not easy by any stretch of the imagination (sometimes more difficult than being CEO of a larger company). However, you're not building anything for the future. You haven't developed a concept that can stand on its own. You haven't created such raving fans that, even without you, still need what you provide.

Entrepreneur or small-business owner? Tomato or tomato!

Will your business survive without you? That's the real question.

--Ron Ameln, SBM

Are You Playing The Prevent Defense With Your Company

2010-03-30T10:27:00.003-05:00

There is a certain defensive strategy in football and it is called the "Prevent Defense." What is it? Well, if your team is up by a touchdown or more late in the game, your coach might call for the prevent defense. Basically, it is a less aggressive defense that allows the other team to drive down the field but hopefully keeps them from having any big plays. Former coach and television analyst John Madden isn't a big fan. He's always believed using this strategy "prevents your team from winning."
I thought of the prevent defense yesterday when I read a stat that said 80% of small firms are waiting out the economy before hiring or expanding. That sounds a lot like the prevent defense.
My question is, why? In talking over the years to the area's top entrepreneurs, I'm convinced that a company should always be in growth mode, looking for new opportunities and constantly striving for more profits. Wait and these opportunities will pass you by.
Take Tom Schlafly, for example. Schlafly began Schlafly Beer in the back yard of the world's largest brewer. During his path in building the company, he never looked back, never stopped because of the economy, never diverted from his growth plan. He knew his opportunities would come from his own aggressiveness.
Today Schlafly's business is thriving. And guess what, he hasn't stopped striving for more success.
John Madden might be correct, the prevent defense might prevent you from succeeding.
--Ron Ameln, SBM

Patience Is A Virtue When It Comes To Building A Business

2010-03-25T10:24:00.002-05:00

A few years ago when we hosted a speaking event for sales guru Jeffrey Gitomer, one of his most important points came at the end of his presentation: "It takes time," he told the audience. "Sales takes time."
What? Takes Time? Are you kidding? We want it now, yesterday, last week...
David Siteman Garland of Rise To The Top said it best when we interviewed him about one of his challenges growing his enterprise: "Patience," he said. "I lack it."
He's not alone. Most entrepreneurs could say the same. Over the years, however, as I've met and interviewed some of the area's top business owners, patience was one of the most striking characteristics they all shared.
It all goes back to the corridor theory. Imagine, as an entrepreneur, that you are walking down the hall of your grammar school. There are doors every 10 yards or so and each contains opportunities that may help you. You peek your head in one door and check it out. If you like what you see, you stick your whole body in and maybe even stay awhile. If not, you head back down the hall to see what other opportunities are available.
The point is simple: If you are not patient enough to really find out about the opportunities in each room and if they can benefit you, all you are doing is aimlessly walking down the hall.
--Ron Ameln, SBM

Raising Your Prices. Where to Start

2010-03-24T15:29:00.003-05:00

The economy is still stuck in neutral and you've cut every expense you can possibly consider (goodbye two-ply toilet paper). Now, it's time to generate some revenue.
One option many owners never consider is raising prices. I know, I know...the economy, blah, blah, blah.
Dale Furtwengler, author of the book, "Pricing for Profit: How to Command Higher Prices for Your Products and Services," says now is the ideal time to create long-term profits and finally get paid what you are worth.
So, let's say you want to raise your prices tomorrow. Where to start?
"You start by ascertaining which of your product or service offerings generate the highest margins," Furtwengler said. "Then, identify which of your customers in that group are providing the highest margins. Next, you determine why they're willing to pay this premium--is it image, innovation or time-savings? Calculate the value in real numbers that these customers get that make them willing to pay the premium. Set your sales script to communicate that real number value, and then revamp your marketing to attract those customers."
--Ron Ameln, SBM

My Favorite Quote

2010-03-22T15:50:00.001-05:00

"Life (personal, business) is a circus. If you fail to get a kick out of all three rings' worth of entertainment and can't accept the fact that NOTHING ever goes according to plan, you're in trouble. It's not that every cloud has a silver lining (lots don't); it's that every success is built on your taking advantage of the unexpected detours, setbacks and embarrassments that life routinely serves up. If you can reap joy from the mess that surrounds you, you've gone a long way toward stardom and happiness."

(Tom Peters)

--Ron Ameln, SBM

Asking The Best Interview Questions

2010-03-09T17:20:00.002-06:00

Finding "A Players" is one of the most difficult challenges for entrepreneurs. One bad hire can damage company morale and curtail profits. Here's one important interview question and what to look for in a response. A special thanks to Susan Martin of AAIM Employers' Association for offering up the question and response.
The Question:
What did you like best about your last job?
What To Listen For:
Be alert to a "profit" mind-set. As the interviewee describes the attributes of his previous workplace, try to determine whether he appreciates the fact that most companies are in business to make money. How often does the interviewee mention efficiency or revenue-generating measures that helped the company's bottom line?
--Ron Ameln, SBM

Women Succeeding In Male-Dominated Industries

2010-03-07T20:26:00.002-06:00

The last decade has been a great time for women entrepreneurs. Nationally, women-owned firms generated $3 trillion in annual revenues in 2009, and one in five businesses in the U.S. with revenues over $1 million are woman-owned firms.
More and more of these entrepreneurs are succeeding in male-dominated industries. Take, for example, Ann Kastendieck, owner of V.L. Clark Chemical Company. When the former accountant purchased the business in 1991, sales were $20,000. In 2009, V.L. Clark had revenue of $7 million.
This growth is partly driven by Kastendieck's desire to persevere as a woman in the chemical industry.
"There were always those people out there who wouldn't do business with me because I'm a woman," she said. "But those are the people who ended up helping me because they make me even more determined to find suppliers who will work with me and build relationships with my customers."
--Ron Ameln, SBM

A Small Firm's Secret Weapon

2010-03-04T13:06:00.001-06:00

We recently made the decision to revamp the look of our magazine. The updated look and content was much needed and has certainly given a boost to our company and bottom line. A friend asked me last month is the design process took 10-12 months. I laughed.
I think it took about a month from start to finish. One month to transform our product, which makes up 70% of our yearly revenues.
Could that have happened at a large, corporate magazine? No way. It would have taken them a month to plan the first meeting. While we usually can't match our larger competitors with pricey technology and the latest gizmos, we can beat them with our flexibility. And so can every other small firm in business today.
Small firms have always been compared to gazelles, the fastest animal on the planet. Gazelles move at a lightning pace and have the agility to switch directions the instant they spot a new opportunity.
As a small business, this agility is our secret weapon. Look for opportunities and trends where you can use that agility to grow your business and keep competitors at a distance.
--Ron Ameln, SBM

Perseverance: The Key To Entrepreneurial Success

2010-03-02T10:31:00.004-06:00

Do you want to succeed as a business owner? Can you persevere in difficult times?
Hopefully you answered yes because that's what it takes.
Take, for example, Jennifer Raeker. When her father Bob Raeker, also the founder of Bob Raeker Plumbing, died unexpectedly on a Saturday night, Jennifer had to step up to the plate. Despite being just 27, she was now in charge. "I had no idea how to run the business," says Raeker. "I never got into the finances. I had no idea what was in our savings, if $5,000 or $50,000 was a lot to have, or how to pay the bills."
To make matters worse, when suppliers found out what happened, they assumed the business would close and demanded payment in full, putting even more of a burden on the company.
Unlike many things in life, you can't teach perseverance. It's an innate, instinctive trait that is usually passed along from generations. If you have the ability to persevere (find silver linings when others only see gloom and doom), you'll succeed in any business and industry.
Raeker certainly has the ability to overcome challenges. She's built the 54-year-old company into a multimillion dollar firm.
--Ron Ameln, SBM

Little Things Can Equal Big Savings

2010-02-22T15:17:00.002-06:00

Little things can equal big savings in a hurry. The trick is having enough savvy to spot the potential savings. Here in St. Louis, an owner of a day spa discovered that technicians were using three pumps on a shampoo container when washing a client's hair. While only one pump of shampoo was needed, the extra two pumps per client didn't seem like a lot at first.
Until the owner calculated one year's worth. She soon discovered she could save more than $5,000 from just asking technician's to use one pump worth of shampoo.
For businesses of all sizes trying to cut expenses, these savings are all around us. The trick is to really focus on controlling these costs.
--Ron Ameln, SBM

Old Communication Tools Still Work

2010-02-05T16:13:00.002-06:00

When it comes to investing, Warren Buffet has a legendary quote: "Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well."
That's a great quote when it comes to investing, but it also applies to business as well. Keep this quote in mind as you begin your journey with social media. With everyone jumping on the social media bandwagon, don't forget things like letters and the telephone.
Ironically, in this age of social media and texting, one of our strongest sales tool is the hand-written letter. Yes, a scribbled, personal hand-written letter. Not one we ordered through a website, but a letter we actually wrote (with an ink pen and our own hands). Think about it. Who gets hand-written letters these days? It is a great way to stand out.
I'm not saying social media isn't a great way to go, or it doesn't have a future. I'm simply saying, Don't turn your back on the tools that helped you become successful in the first place. They still work. We're great examples of how these tools can work.
--Ron Ameln, SBM

Are Your Activities Helping You Reach Your Goals?

2010-01-21T12:41:00.002-06:00

One of the great things about being a business owner is you call your own shots. Every morning you dictate your activities and energy level. It is certainly a blessing many employees around the country would like to try for just one day. It is a blessing but also a curse.
Many business owners get so unfocused that they end up chasing one opportunity after the other, never really focusing on their long-term goals.
The solution: A plan.
Business owners are the worst when it comes to planning. Most spend more time planning their vacations than the future of their businesses. If you fall into that group, complete the following exercise:
Jot down where you want your business to be in 3 years. Be specific with sales figures, number of clients and employees.
Take a look at your information. Start to break it down. For example, if you want 300 clients in 3 years, you'll need 100 by the end of year 1. After you find out what you need in year 1, start jotting down what it will take to make those numbers.
Presto, you have a plan. Keep it posted above your computer. When you are bogged down in meetings or bouncing from project to project, take a loot at your plan. Ask yourself: "Is this activity helping me reach my goals?" If the answer is no, stop doing it.
--Ron Ameln, SBM

Are You A Rock or Sponge?

2010-01-15T09:42:00.004-06:00

Therapists have a saying and it goes something like this: "When people come to us with a problem, the real problem is never what our patients' think." In other words, alcohol isn't your real problem, it is something that is leading you to drink. A therapists job is to pull back the layers and locate the real problem, and then the patient can work on solving that problem.
I thought of this the other day when talking to a local entrepreneur. This entrepreneur has been in business for about 15 years and she attended a peer group to gain new insights into herself and her business. After attending, she came to the conclusion that "I've seen everything in 15 years and none of these people can help me."
Houston: we've found the real problem.
John Wooden, the great basketball coach, has a famous saying, "It's what you learn after you know everything that really matters."
Entrepreneurs are certainly independent. Many fled the corporate world because they didn't want to answer to THE MAN each day. Those traits are great for running a company, but can also hold these owners back.
Most of the successful business owners I know are sponges, soaking in everything they can. They don't put up a wall and convince themselves they "know it all." They use what they can and are always open to new ideas, no matter who might provide them.
One of the best ideas for Jack Stack, owner of SRC Holdings in Springfield, Mo., came from the janitor. That idea and many others helped Stack turn around the near-bankrupt firm around.
There's not much hope for this entrepreneur, but there is hope for you. The lesson: put your ego to the side for a minute. You don't have to take the janitors advice, but you should at least listen. Your future may depend on it.
--Ron Ameln, SBM

Management By The Numbers

2010-01-04T20:25:00.002-06:00

When I start talking about numbers with my entrepreneurial friends they all start rolling their eyes. "There he goes again, talking about numbers." I can certainly understand their objections. After all, these risk-taking business owners are leading companies because they have a passion for what they do, not because they have a passion for flow charts and spreadsheets.
I used to think that way as well. Until my business coach showed me how to use my numbers to solve the weaknesses in my business. The numbers always tell a story, and if you get to know your numbers, you can solve your deepest business issues.
This concept works in all phases of life and business. Take, for example, the St. Louis Blues hockey team. The underachieving team recently fired its head coach because of the team's poor performance. So, how does the new coach start to solve some of the team's problems? Well, a look at the numbers shows the team's two main weaknesses, a poor power play (one of the league's worst) and a poor home ice record (the worst in the league). If the new coach wants to get the Blues into the top 8 slots for a playoff birth in the next four months, he must improve on these two weaknesses. Really, nothing else matters. If the Blues were just .500 at home this year and average (compared to the rest of the league) on the power play, the team would be in the coveted top 8 already. Solve these problems and the team is in the playoffs.
The numbers tell the new coach where to look to solve the team's problems. The lesson: If you don't chart and measure your performance in a variety of ways, you won't know how to correct your weaknesses.
--Ron Ameln, SBM

Welcome To St. Louis in 2020

2009-12-12T21:54:00.004-06:00

Welcome to the Year 2020. You might not recognize St. Louis much these days, but the region is thriving. Jobs and industries continue to pop up. 10 years ago many of our local leaders rallied together and focused on four primary initiatives. Our leaders and our region focused mainly on these initiatives. Here's how we did it:
1. Focused on Education: Back in 1999, only 24.5% of area high school students graduated from college, compared with 34.7% in Kansas City and 31.4% in Chicago. Our high school graduation rate was also horrendous. Our leaders realized that the region that produced the most educated, innovative workforce would gain the companies and jobs in the future. We were behind in a big way. Our corporate leaders decided to adopt students (just like the Big Brother program). The students received internships and help to attend college. Employees became mentors. They also gained experience and a belief they could actually make a difference. It worked.
2. Our City and County finally became one. When it came to being on the same page and building your region for the future, separate City and County governments just didn't work. Now, we're one and on the same page. Now, governments and municipalities don't work against each other. We all move as one toward a common goal: building our region. Even St. Charles County has agreed to help, paying its fair share for things like the Zoo.
3. Focused on our core: Downtown. The expansion Westward and the suburban sprawl might have been great for the many citizens looking for a change, but it damaged our city's core, downtown. Our leaders realized we couldn't build a serious future without a strong core. Back in 2009, our downtown office vacancy rate was 21.5% (compared to Chicago's 15.5% and Kansas City's 16.7%). Our leaders changed that. The city/county merger and incentives helped bring businesses back to the downtown area. A vibrant downtown area helped bring larger corporations into the region.
4. Global Expertise. Our leaders realized that only 5% of the world's population is from the U.S. Companies that can export open themselves up to huge markets. St. Louis decided to be the leaders in exporting. We set up several different incubators (just to help growing businesses learn the exporting trades). Experts soon moved here to lend a hand and within 5 years St. Louis became the mecca of international trade. If you had any business, from 400 employees to one, you wanted to be in St. Louis to help jump-start your international venture.
Turning this city around wasn't as hard as you'd think. After all, we already had a strong foundation in industries like health care and education. All we needed was a commitment and some hard work.
--Ron Ameln, SBM

-

Say Goodbye To The Economic Decade From Hell

2009-12-10T16:42:00.002-06:00

There is one more good reason to pop the champagne and ring in the New Year--saying goodbye to the Economic Decade From Hell.
This will be a decade to erase from memory. 9-11 and two recessions later, we're finally saying goodbye and hopefully good riddance.
Here are some low lights from the past decade:
-Unemployment in the St. Louis area went from 3% in 1999 to 9.8% today.
-Missouri building permits decreased 82% from peak to trough during the decade.
-St. Louis population growth continued to lag. Between 1990-2008, St. Louis resident population grew 9%, while Kansas City grew 22% and Chicago grew 17% (U.S. population grew 22%).
-Housing prices in St. Louis area have fallen 14% since 2007.
-St. Louis downtown office vacancy rate is now 21.5%, compared to Chicago's 15.5% and Kansas City's 16.7%.
Needless to say, I'll be hoisting my glass and hoping for a better decade ahead.
--Ron Ameln, SBM

Your Company Is What You Do, Not Who You Are

2009-12-05T22:22:00.003-06:00

An entrepreneur friend of mine surprisingly took his life last week, leaving behind a wife and children. My thoughts and prayers go out to him and his family.

While I'm not sure of the exact reasons for his actions, I do know his business and industry were suffering through a major decline. He went from having a soaring business with many employees to just a few. I'm sure this business downfall weighed heavily on him the past few years.

As and entrepreneur, it's easy to forget that our companies and our work "are what we do, they are not who we are."

That's certainly easy to sit back and say. We work long hours and are driven by bottom line results. Our employees become like children. We end up worrying about their progress and futures just like our own kids.

Even though it's tough, we've got to make this distinction. Even during troubling times like the past few years, our lives go on despite what happens with our companies. From my friend, I'm going to remember this lesson.

--Ron Ameln, SBM

Carrying A Man Purse And Running A Business

2009-12-05T22:14:00.004-06:00

I met an entrepreneur friend of mine recently for lunch and he showed up wearing a Man Purse. Yes, that's right. He showed up with a purse, carrying such items as tissues, camera, keys, cell phone.
I gave him the obligatory 30 seconds of ribbing and then let him explain himself. "It's not a man purse," he said. "It's a European Shoulder Bag."
Oh, excuse me...Whatever.
Later, I starting thinking more about his man purse...ahem, European Shoulder Bag. You know, the same characteristics that make him wear his bag in public are the same characteristics that make him a great entrepreneur.
He's innovative, doesn't care what others think and isn't afraid to take a chance. He never waits to see how others feel about his decisions. He makes decisions based on what is best for his company and future (no one else), and he doesn't follow everyone's path--he creates his own.
Do you showcase these characteristics in your business?
Maybe I shouldn't have made fun of him after all.
--Ron Ameln, SBM

A Take No Prisoners Business Book

2009-11-28T20:50:00.000-06:00

So you want to succeed in business, huh! We'll, according to George Cloutier, it's time to put business first.

In Cloutier's latest book, "Profits Aren't Everything, They're the Only Thing," he states that many business owners are not fully committed to the success of their businesses.

"When I do seminars around the country about building profits, it always stuns me when more than half the people in the room admit to not working on weekends, yet these are the same people who complain about failing to make big money," Cloutier writes in the book. "I meet a lot of resistance to this from clients at first. Of course you have every right to a life--if you don't care about making money."

If you are looking for some tough love when it comes to growing your business, this might be the book for you.

Here are some of the advice he offers small- and medium-sized business owners:

-Fire every family member but yourself.

-Weekends are for working, not seeing your children.

-Never pay your vendors on time.

-Wear your control freak badge with pride.

-Quit your denial: if your business fails during the recession, it's still your fault.

--Ron Ameln, SBM

5 Worst Movies, Part 2

2009-11-25T15:46:00.002-06:00

A few months back I shared with everyone the worst movies I had ever seen. I decided to add a few more. This time, however, I went to the expert (I consider any male under 30 an expert because they've seen EVERY movie ever produced). My expert is Eric Joellenbeck. Here's Eric's worst pics:
1. Paul Blart: Mall Cop (2009)
Kevin James (who I'm a big fan of) plays dopey mall security guard, Paul Blart. When the mall he works for is taken over by burglars, it's somehow all up to him to save everyone inside. This movie makes ample use of "fat equals funny," which is not true. It might work once or twice, but you can't fill a whole movie of Kevin James not being able to run far or dance for a long time or eating lots of pie.
2. The Happening (2008)
Something terrible is happening to people of Earth. When the wind blows by them, they kill themselves. Did you hear that? That's the actual plot of this movie. And the way people kill themselves in this movie is completely preposterous, such as people feeding themselves to lions or stabbing their own throats with devices keeping their hair in place. This is M. Night Shyamalan's latest bomb in a recent string of terrible movies. And by the way, I don't think anybody is buying The Funky Bunch's Marky Mark as a science teacher. Not even Marky Mark himself.
3. The Good Shepherd (2006)
I'm surprised here; Robert DeNiro is directing. Matt Damon and Angelina Jolie are starring. And it's a spy movie. Well, it's probably the most boring spy movie I've ever witnessed. Matt Damon gives the worst performance of his career, it can be likened to a robot. And Angelina does a good job of just being a bitch for a solid 167 minutes! That's right. 2 hours and 47 minutes of boredom. So much more could have been done other than Damon brooding around the world and Angelina crying because she's having his baby.
4. The Squid and the Whale (2005)
Noah Baumbach's 2005 movie is about two intellectuals who divorce in the late 80's. Their two kids are deeply affected and change in great ways during the separation. What i hated about this movie was how I felt talked down to. This movie is full people who all think their smarter than everyone and will tell you so. It's never happened to me before this movie where I watched a movie where I literally thought, "Wow, I hate everyone in this movie." If you skip this movie and just have a college level student tell you that you're an idiot and don't read good books, you'll get the gist of this movie.
5. Suspiria (1977)
Considered a horror classic, Dario Argento's Suspiria is a completely idiotic tale of disgust. Yeah, that may be harsh and I know people love this movie. I don't know if the version I saw was, indeed, the original but I know I hated it. The music in it was highly distracting, in a bad way.
--Ron Ameln, SBM

New Businesses Are Important To Recovery

2009-11-21T17:58:00.003-06:00

Entrepreneur David Miller is our future, and it's time we start supporting him.
Miller, along with three other partners, are set to open their own sandwich shop, Sammy Scott's Sandwiches & More, in Creve Coeur this month.
Why is he our future? Because businesses like Miller's will be the ones pulling us out of the recession and employing some of the 10% seeking work. Miller expects $1 million in revenue his first year and then to increase the original store to 5-8 more in the area.
Layoffs and restructurings are continuing at blue-chip companies: Time, Inc., Johnson & Johnson and Microsoft recently announced workforce reductions. We shouldn't expect job growth to come from the Fortune 500.
According to a new study from Kauffman Foundation, companies less than five years old created nearly two thirds of the net new jobs in 2007. Growth will come from entrepreneurs like Miller and his partners.
It's time we, as a society, start embracing these entrepreneurs. Politicians, both state and local, and lenders need to start looking at folks like Miller a little differently. If the area's economy is to recover, it will be because of people like Miller and his partners.
--Ron Ameln, SBM

Four Budget Cuts You Should NEVER Make

2009-11-17T09:18:00.005-06:00

It's that wonderful time of year--budget time. Everyone is knee-deep into their budgets for 2010. (If you are not, shame on you.)

It's been a rough ride for entrepreneurs the last few years, budgets that would normally see a scalpel over the years have gotten the machete treatment lately. It's easy to start cutting, but there are certain line items that should never be cut if you are serious about building a quality business in the future. I speak from experience because I've mistakenly cut these areas and suffered the consequences.

1. Employee Recognition Programs. Maybe it's a birthday lunch, birthday gift, a fruit basket after a job well done....whatever, keep it. Employee recognition is the No. 1 motivator for employees. They are your most important asset.

2. Employee Pay. There is nothing worse than working hard and coming home with less pay than the year before. Sometimes it is essential when business is slow, but it should be a last resort. If you suddenly cut your prices, for example, you send a message to clients that you were either overcharging them or your service doesn't have as much value anymore. Are those messages you want to send to employees?

3. Technology. Technology is a great equalizer for businesses. The right CRM software, for example, can save hours out of your week. Find a new technology every 6 months that will make your more efficient.

4. Fun. Whether it is a happy hour or a bowling outing or a Christmas dinner, work has to remain fun, especially during economic downtimes. Maintain the fun.

--Ron Ameln, SBM

The Meaning Of Life--And Your Business

2009-11-16T15:43:00.002-06:00

What is "The Meaning of Life?" Pretty deep, huh...especially from a former sports reporter. Reading a former sports reporter pondering the meaning of life is like listening to an Enron executive discussing integrity (okay, it's not that bad).
Seriously, what is "The Meaning of Life?"
To me, the meaning of life is affirmation. It is knowing you make a difference in the world. That's what we all want and we all crave. People want to know they matter. If they know what they do makes a difference, they will almost always step up to the plate.
So, where does all this fit into your business. Do your employees know they matter? Make a difference?
I know as a business owner I do a HORRIBLE (yes, capital letters) job of letting people that work for me know how they make a difference. I'm an intense person and I'm usually 100% focused on my daily tasks. I just assume employees know they make a difference. I don't think I'm alone.
In fact, a recent study said 50% of entrepreneurs ranked themselves as poor when it came to employee recognition. Another study stated "Recognition" as the No. 1 motivator, according to employees.
If you want to be a better entrepreneur and have more productive employees, start praising employees.
--Ron Ameln, SBM

Who Has Solution For Older Employees?

2009-11-03T21:02:00.003-06:00

It's not a good time to be an older worker in America. This may be the worst time in the past 60 years to be older and looking for work. Some 6.8% of workers over 55 are currently unemployed. You have to go back to 1949 to find employment stats this bad.

On average, it takes employees over 55 years old seven weeks longer (roughly 33 weeks) to find employment than their younger counterparts.

That's a shame because these individuals carry with them years of expertise and experience. And they are stuck on the sidelines.

"These older workers can't adapt to today's technology and the flexibility in today's workforce?" I hear this all the time. I don't buy it. These folks are as active online as any group these days, and businesses should have systems set up to make it easy for employees to get their jobs done, regardless of age.

Someone (business or industry) is going to come up with a way to hire and employ these individuals and their bottom lines will improve because of the decision. No one wants to hire them so you'll have your pick of the best. We're all living longer today and working longer so if you hire a 55-year-old you may have them for 15 years (the average employee only lasts 4 years with an employee these days). Now, these individuals are often too young for Medicare so benefits will be important to them. However, I think they'd be willing to give up some compensation in exchange for the benefits (they are unemployed after all).

Again, the best kept secret in the job market are older workers. Someone is going to wake up one day and discover them and find a way to tap into this talent pool.

--Ron Ameln, SBM

Surviving Tough Times As An Entrepreneur

2009-11-03T11:24:00.003-06:00

I've always found boxing to be an interesting sport. Boxers work for 6 months to perform for two hours. The best boxers actually only box for four hours a year. The rest of the time is preparation.
One of the most interesting things about boxing is how the handlers treat the boxers. "You can do it Champ!" "No one can beat you Champ." It's interesting because every boxer is called Champ. It doesn't matter if he's just won one fight his whole career. He's Champ. In most cases, everyone knows he's not a champion...the boxer, the handlers, the fans, his banker, etc. Yet, he's referred to as "the Champ."
The handlers know their boxer needs a certain edge, a confidence that he can beat anyone at anytime. He can't go into the ring with doubts. They tell him he's the Champ because if he sees himself as the Champ, he may someday end up as the real Champion.
A business owner is no different. Times have been tough on all business owners, but now is not the time to lack confidence. Focus on your successes in the past and the success you'd like to be in the future.
Go Get'em Champ.
--Ron Ameln, SBM

Sent A Hand Written Letter Recently?

2009-10-26T15:25:00.004-05:00

When is the last time you sat down, got out a pen and wrote someone a letter?

Not an email or a text or going online for a computer generated postcard. No, no. I'm talking about a real-life handwritten letter. Been a while, huh?

Well, you're not alone. Hardly anyone sends handwritten letters anymore, and that's a shame.

A few years ago after sending countless emails and voice mails (no response) I finally sat down and wrote a handwritten letter to a prospect. Nothing elaborate, just some thoughts on a piece of paper. I got the appointment and the business.

No one...Let me say this again...No one...sends handwritten letters anymore. Do you want to get noticed? Do you want to make a point? Do you want to show you cared to take time?

Send a letter.

Email used to be great. Now, I get email from everyone (employees, colleagues, vendors, son's teacher, son's coaches, etc.) . I fly through them as quickly as possible.

Not a letter. I don't get any (I can't remember the last one I got). I'll stop and take a look at a letter.

Warren Buffet once said about investing: "When people panic, that's when you should remain calm. When people are calm, you should panic."

The same holds true with communication. When no one is sending letters, it's time to get the pen out and be heard.

--Ron Ameln, SBM

Does FaceBook Actually Help Your Business?

2009-10-25T20:40:00.007-05:00

Ok, I joined Facebook last week. I now have 131 friends that I can share my family pictures with, and more importantly, share the important facets of my life...like "I'm sitting on a airplane going to Cincinnati," or "I'm freezing at my son's soccer game," etc.

So far, I've caught up with some college friends, a few former high school teammates, some clients and prospects, a high school girlfriend and I now know when everyone leaves town for vacation or gets the flu.

The problem is that I found out most of these things at the office.....when I should have been actually working to make a profit for my business.

As any business owner will attest, employee focus is one of the most difficult challenges in helping employees become successful. Social networking (even though I use and love) is yet another distraction for many workers.

I'm now on Facebook, LinkedIn and Twitter, all great tools, but here is the question: When are these tools helping me serve my customers and pay the company bills (the real reason we all work) and when are they sapping my productivity?

It's a tough question and a question all business owners will soon need to answer. Some businesses are banning Facebook from their company computers. Others are waiting to see how these tools flesh themselves out in future. I'm not sure there is a right or wrong answer, we're all trying to learn and adapt to these social networking sites.

Now, since many have handheld, Blackberry-type devices, even if you ban Facebook from your company computers, employees are still within reach.

Could there be a day when cell phones and Blackberry devices are also banned from the office? It is happening in colleges.

When deciding to allow employees access, I think it comes down to the question I posed earlier: Does the employee's participation during business hours help your company reach its goals? Don't know the answer? You'd better start thinking about it because businesses of all sizes will soon have a big decision to make.

--Ron Ameln, SBM

St. Louis' Slow Economic Recovery And Small Business

2009-10-25T20:18:00.003-05:00

Dave Nicklaus from the Post-Dispatch had an interesting article today (10-25) about the area's history of slow economic recoveries. The expert he interviewed for the story, Jack Strauss of Saint Louis University, believes the St. Louis economy is so sluggish during recoveries because of its dearth of small, fast-growing businesses. This seems to make sense. After all, it's small business that usually creates the new jobs and pulls communities out of economic rough patches.
It's no secret that studies have shown St. Louis has a low rate of business startups and lacks an entrepreneurial culture.
It's too late to turn around for this economic downturn, but there are some things the region can do before the next downturn. Here's three things we can do today:
1. Get Our Leaders Onboard. It starts at the top. Stop with the condescending talk about how important small companies are and start putting your money where your mouth is. This goes for RCGA (quit spending money to lure businesses from other regions) and use it to help our own homegrown firms prosper. There are many successful small firms that can become future Fortune 1,000 firms, but only with support. This goes for civic progress, state and local politicians and communities as well. Do our leaders realize that 95% of area companies have less than 20 employees?
2. Change The Mindset of Area Lenders. There are MANY area lenders that won't even talk to an entrepreneur unless his business has $5 million in revenue. Interesting...didn't Build-A-Bear, Enterprise, World Wide Technology, Pangea Group, Scottrade, etc., all start out with much less in revenues? I'm not asking to take risky loans, I'm saying maybe you should think outside the box when it comes to funding area companies. Maybe more programs like the St. Louis Business Development Fund (pooling many lenders together to lesson the risks) would help. Listen...if we as a region don't nurture some of these smaller firms, where will the bank's find these $5 million companies to lend to 5 years from now? Oh, right, we'll have RCGA steal one from Cleveland!
3. Change The Mindset In St. Louis. This is a tough task for a town that wants to know where everyone went to high school. I know this used to be a corporate town and people here just flat out don't like to take risks. Well, that's part of the problem. This is a risk-reward society. The ones that take the most risk get the greatest rewards. We've got to start embracing new ideas and take a chance every now and then. In some towns, an entrepreneur who failed at a business is seen as experienced. In St. Louis, that entrepreneur is seen as "no good," "washed up," a "failure." If we're going to encourage more entrepreneurship in the region, that mindset has got to change.
--Ron Ameln, SBM

BBJ: The Only Economic Indicator I Need

2009-10-19T15:51:00.003-05:00

Back in the mid-90s I went out to speak to a group of individuals attending a Businesspersons Between Jobs (BBJ) meeting. BBJ has been around for years as a resource for those displaced from their jobs and looking for a new beginning. I spoke about starting a business. At the time our economy was booming and there were about 20 of us in a school gymnasium.
A few months ago I went back to speak on the same topic. There were 22o and another 50 or so standing in the back. There are many gauges for the success of the economy as we start to head out of this recession. Thankfully, most of those numbers are looking good.
The number I'll focus on is the weekly attendee list of BBJ. Until we get that number back down in the 20-50 range, we won't fully recover.
--Ron Ameln, SBM

Business Is Always About The Fundamentals

2009-10-18T14:23:00.002-05:00

I remember the late Bill Walsh, former coach and executive with the San Francisco 49ers talking about the latest offenses in the NFL. He said, people have the "West Coast Offense, the Run-And-Shoot, the Power-I, but at the end of the day, it's the team that blocks and tackles better that always wins. Those fancy offenses are great, but you must block and tackle better than the opposing team to win, regardless of your fancy offense."
I try and keep this in mind as I hear businesses and their plans for social networking. Sometimes, I think they forget about blocking and tackling. Now, I'm not saying don't get on Facebook and Twitter and all of that. I'm involved in them. I'm just saying that your business success will come down to business basics and fundamentals. Facebook isn't going to help you get those.
In the early-to mid-1990s there were local businesses that slashed marketing budgets because with the advent of the Internet, they could pull clients in from all over the world, or so they were told. They were told they didn't need the old ways of branding, marketing and prospecting. One photographer stopped marketing and spent thousands on a website. Well, so did thousands of other photographers. The business never came.
For most businesses, the Internet has been an invaluable resource and efficiency tool. However, if you had problems selling your services before the web, you usually had the same problems after. It wasn't a cure all by any means.
It's blocking and tackling. The hype about social networking is great and it is here to stay. Just don't ignore what it takes to be successful. Sometimes, when times are tough, we search for the quick fix. Maybe we should revisit the fundamentals of business.
-Ron Ameln, SBM

Speeding Up The Economic Recovery

2009-09-20T22:17:00.004-05:00

I just listened to an interview of Fred Smith, Founder of FedEx, concerning the economy. He's optimistic as his company has seen an increase in all business sectors the past few months. Our company has also seen this uptick.

The economic numbers are starting to perk up, and most economists agree that we are now in positive territory and the greatest economic downturn since the Great Depression is over. Now, it's time for a slow recovery. The question is: How can we speed this recovery?

Historically, consumer spending and small businesses have fueled recoveries. Hopefully, consumers will start spending.

As far as small businesses, you can count on their help only if we can get liquidity into the marketplace. Tight lending has caused many businesses to stop growth plans and others from starting businesses at all. Home equity lines were always an entrepreneur's ticket to living the American Dream. Well, tight credit and a depressed housing market have made this one of the most difficult times for small business owners.

If small business is going to play a role in this recovery, more credit is a must.

--Ron Ameln, SBM

Twitter: Sucking Everyone Into The Next Web Bubble

2009-09-19T10:13:00.003-05:00

Remember the days when VC companies would hand millions of dollars to young, hot-shot web gurus. It was a strange time, back then. The VCs were always so proud of themselves: "This company isn't making money, but its burn rate isn't that bad." Wow, what a great investment. My client's not losing that much money.
Most of those companies never made money (were never going to make money) and crashed and along with the tech bubble. You'd think everyone would learn a valuable lesson. Apparently not.
I just finished reading a St. Louis Post-Dispatch article by Tim Barker about a visit by Jack Dorsey, one of the founders of Twitter. Dorsey came to St. Louis as a guest of Webster University. According to the article, he answered questions for an audience of 1,000. Benjamin Akande, dean of Webster's school of business and technology, compared him to Johannes Gutenberg (printing press inventor) and Alexander Graham Bell (telephone creator).
I should seem ironic that a business school would honor Dorsey and a company that has never made a dime in profit. I say "should."
Twitter continues to struggle to find a way to be profitable. "Just wait," say the VCs that just pumped $50 million more into the firm. I'm not as confident. Dorsey and his staff thought they'd be making a profit last year. Didn't happen. They've yet to successful implement their mythical business plan.
Yet, VCs fall all over him and he's honored by 1,000 teary-eyed followers (sort of like the Beattles, without the hit singles).
Don't get me wrong. I like Twitter, use Twitter and would love to see Dorsey and Twitter become a success. But my definition of business success is making a profit. I'd like to see a profit before we start comparing Twitter to the printing press and the telephone.
And, of course, Dorsey discussed a new application that would be out soon. Sounds like the old tech companies that always stayed one step in front of the VCs by promising a new application. (When it looked like money was drying up, there was always a new application.)
It's easy to see why VCs get sucked into these companies. Just like the 1,000 guests that came to hear Dorsey, they get sucked in with the sexiness of the service.
If we can learn anything from the tech bubble, it should be investing in profitable companies.
--Ron Ameln, SBM

When It Comes To Sales, Persistence Is Key

2009-09-14T09:27:00.000-05:00

Have you ever heard the expression, “90% of success is just showing up.” It amazes me as I talk with clients and others in the business community how reluctant salespeople are to actually sell. Here are some statistics I find fascinating. When I look at these numbers, the ones that pop out to me first are: 1.) 2% of sales are made on the first contact with a prospect., and 2.) 80% of sales are made between the fifth and twelfth contact with a prospect.

• 48% of sales people never follow up with their prospects.
• 25% of sales people make a second contact with their prospect and then they stop.
• 12% of sales people make three contacts with their prospect and then they stop.
• Only 10% of sales people make more than three contacts with their prospects.
• 2% of sales are made on the first contact with a prospect.
• 3% of sales are made on the second contact with a prospect.
• 5% of sales are made on the third contact with a prospect.
• 10% of sales are made on the fourth contact with a prospect.
• 80% of sales are made between the fifth and twelfth contact with a prospect.

--Ron Ameln, SBM

In Business, It's All About The Bottom Line: Your Profit

2009-07-29T15:00:00.002-05:00

In baseball, batting averages and ERAs earn players' big contracts and All-Star appearances, but wins get them and their teammates championships.
In business, it's all about the bottom line: Your profits. Profitable companies win the championships at the end of the day.
It's not about the number of employees, what you'll be in the future or even revenues.
Sometimes entrepreneurs forget this as they motor through each day, always looking for the next great conquest. Civic organizations and our political leaders also overlook this small fact. In fact, I notice that many of the smaller (old-fashioned) businesses often get overlooked like they don't exist. I'm talking about the dry cleaners, the restaurants, small retail shops, etc. Although in many cases, those businesses are actually making a profit.
For example, if you had to pick between Frank's Dry Cleaning on the corner and Facebook, which would you think is making a profit? Well, it's not Facebook.
Surprised. Even though the company takes in between $300 and $500 million a year in advertising and has great marketing leverage, it has never made a dime of profit. In the game of business, Facebook is striking out.
YouTube is also losing. The video site owned by Google sells ads but has always run at a loss. ALWAYS.
What about Twitter? That sensation of a website with 40 million members. It must be profitable, right? Think again. It doesn't even try to generate revenue, let along profits.
The ironic thing is that when I meet folks out networking, some will approach me with helpful online ideas for our company. I dig that. However, the conversation usually ends like this, "...and you can turn it into the next Twitter."
Thanks, but no thanks. I would rather run a small operation with a profit.
--Ron Ameln, SBM

Finding The Right Banking Partner

2009-07-22T15:51:00.001-05:00

Why do so many good commercial lending deals fail? Not because of lousy business plans, poor personal credit or over-inflated numbers. In many cases business owners simply go to the wrong bank. Every bank has a different appetite for certain types of lending. Businesses should look at their particular circumstances and find a bank that best fits their needs. The decision of where to find business capital involves more than just comparing interest rates. Here are some questions to ask when evaluating lending sources:
1. Can you meet regularly with your banker? Choosing the right banker is similar to choosing a good doctor. You want someone who is competent, personable and a good listener. The right banker can become an integral part of your management team. Meeting face-to-face and discussing your future plans is an important part of building a successful banking relationship.
2. Are loan decisions fair and balanced? You’ll want a lender who can provide a balanced credit decision that takes into account your total picture, including all of your business assets and potential.
3. Does the bank understand small business?
4. Does the bank understand your industry? When bankers don’t understand how an industry operates, they don’t understand how they’ll be repaid. And when bankers don’t understand how they’ll be repaid, they decline loan requests.
5. Is the bank small enough?
6. Is the bank large enough to meet your needs?
7. Does the bank have the ability to advise?
--Ron Ameln, SBM

Health Care Reform And Small Business

2009-07-18T22:05:00.003-05:00

Years ago I had an interesting conversation with an entrepreneur that owned a local Handyman Hardware store. We were standing outside his shop and watching construction crews build a brand new Home Depot across the street. "I don't have a problem with competition," he said, thinking about his future. "I just think we should all be on the same, level playing field."
You see, Home Depot received tax breaks and property tax breaks to build across the street. Now, I understand that the Home Depot will employ many people and bring lots of sales tax to the area, but the Handyman entrepreneur had been a good citizen (paying full tax rates) for 30 years. Why not offer him the same deal.
"I don't think they really care if you are here or not," I told him.
Well, some things never change. With the country on the edge of health care reform, it was great to see the recent House Bill that expects small businesses to pay for the many uninsured Americans.
Under the House bill, businesses with payrolls of more than $400,000, must either provide health insurance for their employees or pay a penalty of 8% of their payroll. For those of you who don't own a business, most businesses don't even make 8% (of overall revenues) as a profit. Many are in the 2%-4% range, if they are lucky. This plan would destroy many small firms.
That's not all. The second part of the double whammy is a surtax of at least 1% small firms would have to pay when business earnings exceed the threshold of $280,000 a year.
Don't you think small firms would provide health insurance for employees if they could? I mean, small firms are competing with larger companies for talent.
Here's an idea: If health care is that important to this country (which I believe it is), why don't we have everyone (including the 40% of the population that currently pays NO taxes) help pay the cost.
Politicians love to give lip service to the fact that small firms are "the engine of the economy." Yeah, right. Reality: I don't think they really care.
--Ron Ameln, SBM

Social Networking: Making Old Girlfriends Pay

2009-07-12T15:44:00.005-05:00

Julie K had better watch out. You see Julie was my first love back in the eighth grade. Until, that is, she turned me down for the Valentine's Day Dance. Now, after 27 years of dealing with the pain, it's time for a little pain and suffering on her end.
I'm going to use social networking to make her pay.
First, a few facts. Her friend Sarah told me she wanted to go to the dance. Then, I asked her and she broke my heart in two. And I must say, I was a catch back in 1981. I sat in the back of the bus with the other cool kids, I wore a concert shirt to school at least two days a week (sure sign of coolness back then) and I even shaved once every few weeks. Heck, I had hair back then.
But Julie ruined my life. (I'm playing Lionel Richie's "Endless Love" as I write this).
Now, it's her turn to suffer. I'm going to use every social networking site I know (Blogs and more blogs, LinkedIn, MySpace, FaceBook, Twitter, etc.) to basically trash Julie.
I was talking with a PR professional last week and he mentioned that PR firms (who used to promote businesses) will now help disseminate messages (for and against others) through social networking sites. These firms make it look like a real grassroots undertaking. (Don't want the world to know it's really four guys in a South County cubicle.) I'm going to hire that PR firm. Ah, the world against Julie K. I can rally every heartbroken 8th grader against her.
Then, I'm going to hire an IT firm to make sure all of these entries end up high on Google's searches. Julie's dog will soon know how bad she hurt me.
I could walk away, move on with my life and not worry about Julie. Yeah, right. Why would I do that when social networking is here to make people like Julie pay.
I'm looking for much more than an apology. I've had years of pain and suffering. I'm thinking a two-week cruise to the Caribbean might help.
Now, Julie will probably hire her own PR firms and disseminate bad information about me or information to make herself look better. She'll probably also hire an IT firm. She may even tell some stories about me to discredit me.
That's OK, my PR firm will just disseminate some more crap about her.
I just want to thank the designers of social networking. Somehow, when the idea of social engineering began, getting back at Julie K was exactly what the founders had in mind.
--Ron Ameln, SBM

When You Think: Think Big!!!

2009-07-04T20:07:00.003-05:00

Former football announcer John Madden was also a great coach in his day. One of his most dramatic pre-grame pep talks came during a Super Bowl when he simply told his team: "Don't worry if the horse is blind; let's load up the wagon anyway."

It's a philosophy most businesses should embrace, especially now as companies start planning for 2010. Don't worry is your ideas or plans have some holes in them (or maybe seem like they won't work), think them through anyway. Think through ways they CAN work, instead of ways they can fail.

You might be surprised at the outcome.

Years ago, 1947 in fact, a competition was held in St. Louis for an architect that could design a monument on the Riverfront. Architect Aero Saarinen actually won the competition with a unique Arch. Although Saarinen had no idea if the Arch could stand without falling into the River (many engineers told him it would never work), he and the City pushed on with the project. Design began in 1963 (some engineers still thought it would never work). In fact, until the final piece of the Arch was put in place in 1965, some engineers still didn't think it would work.

However, thinking big paid big dividends. Even though it was once thought impossible to construct, engineers figured out a way to make it happen.

The Gateway Arch has been the crown jewel of St. Louis. It is the landmark the City is known for around the globe.

As you make future plans for your business, don't let the naysayers derail your dreams. Think big. There is plenty of time to figure out logistics and whether or not your ideas will work.

--Ron Ameln, SBM

The Budget: An Important Part Of Any Firm's Success

2009-07-03T22:10:00.003-05:00

When we talk about running a business and the numbers, everyone first thinks about the Big Three (Profit-Loss, Cash Flow and Balance Sheet). Unfortunately, no one talks about the budget.

In talking with business owners throughout the month, I'm shocked at how many owners don't have a budget.

If you don't have a budget, start one today. Break everything down from your "Cost of Goods," "Salaries," "Income," and "Expenses." Then, as the year goes on, re-check your budget. Put percentages next to items each month and make sure the company is staying on target. It's the only way you'll know if (and what) things are going wrong. The sooner you realize these things, the sooner you can take action and correct them.

The budget is really your guide to help you through each month, quarter and year. I know our budget has helped us stay on track, and it has helped us understand all of our numbers better.

Planning for 2010 is just starting. If you don't already have a budget, create one today.
--Ron Ameln, SBM

Jon and Kate: What Ever Happened To Hard Work?

2009-06-22T09:34:00.003-05:00

I went to college (MIZZOU) some 20 years ago with Brad Pitt. Now, even though we were both in the Journalism School, I didn't know him (please girls, don't call me I can't help you meet him). Pitt left MIZZOU, with very little money, his senior year and moved to California because he wanted to be a star. In the late 80s, becoming a big-time Hollywood star meant you moved to Los Angeles with very little money, waited tables at night, went to countless auditions every day and went to acting class. It was hard work, and it took a lot of dedication and perseverance. But, for those who persevered, like Pitt, the rewards were endless. It was called working hard to become a star.

This brings me to Jon and Kate, the current reality stars we hear so much about. Today, people don't move to L.A. and work hard and learn a craft to be famous. No, that's too hard. Today, would-be stars act outrageous, try to get on American Idol, Survivor or another reality show, or find a good fertility doctor.

Why work hard when a fertility doctor can get you on screen much more quickly? I guess it's part of the instant gratification we see in society today.

Jon and Kate received massive amounts of money, opportunities for book deals, a tummy tuck for her, hair implants for him, homes, etc. They are bona fide stars.

But did they really earn those things?

--Ron Ameln, SBM

Why Government Motors (GM) Won't Work

2009-06-21T16:38:00.003-05:00

As a parent I've learned that the most difficult, and at times most unpopular, decisions are often the ones that are in my children's best interests in the long term. They don't notice it now, but they probably will 15 years from now.

The same is the case for businesses. Difficult decisions today (layoffs, budget cuts, diversification) may be the best decisions for the future of the company. Even though these decisions might be unpopular today, they may mean the company exists 10 years from now.

That is precisely the reason Government Motors, the new GM, won't work. Politicians don't care about long-term, they care about popular opinion and making voters happy.

This is already happening at Government Motors. Here's a great example.

GM recently announced a decision to close a parts-distribution center in Norton, Mass. The reasoning seemed sound. The company is bleeding money and parts weren't really flowing from the distribution centers. So, consolidating the centers would help save costs.

The problem: The Norton, Mass., distribution center happened to be in Congressman Barney Frank's district. Frank chairs the Financial Services Committee, which is important to GM now that the Government will soon own 60% of the firm.

Frank called GM's CEO and guess what? The parts plant will not be closed after all.

Difficult decisions must be made to save struggling companies. Politicians cannot make those decisions. Can you imagine politicians setting interest rates? Rates would be 0% (and inflation would be through the roof). What politician would have the guts to raise interest rates. They can't even suggest tax increases.

Frank says his decision to intervene in the situation had nothing to do with the parts plant being in his district. (Surprise, surprise). Frank said he intervened because closing the plant meant parts would now be trucked across the country, which means increasing our global warming problems even more. He actually made the decision in order to help save our planet. (I guess this means GM can't close any of the parts plants.)

Now, GM must figure out a way to cut costs and make all the politicians happy so they can be elected next cycle.

Decisions made for a company based on anything but the best long-term interests of the company just won't work.

--Ron Ameln, SBM

Important Question: What Business Are You In?

2009-06-18T21:50:00.003-05:00

I had lunch the other day with one of my mentors and I began telling him about some of the diversification plans for SBM. He stopped me at one point, with a very direct question: "What Business Are You In?"

Can you answer that question in your business? Years ago Hertz Corporation asked this question and realized that the firm was not in the "rental car" business, but rather the "get people out of the airport as fast as possible," business. This discovery changed the way the executives and employees made decisions. It spawned a Hertz Club where members no longer had to wait for vehicles, a huge success for the company at the time.

So, what business are you really in? When you discover the answer, every decision you make should meet this objective.

For SBM, we're not a "publication," or a "newspaper." We're in the business of "Educating and Promoting Small Businesses." After some reflection, I realized some of my diversification ideas didn't really meet this goal.

What Business Are You In?

--Ron Ameln, SBM

Diversification: Riches In Niches

2009-06-18T16:50:00.001-05:00

Every company is looking for ways to diversify and gain some new revenue streams, especially in this economy.

One warning: Take your time and find the right solution. Remember: there are riches in niches. Don't leave your niche behind trying to find the holy grail of income.

Years ago Hardee's decided to diversify and serve fried chicken. The chicken was excellent and soon the stores were packed with patrons buying chicken. The only problem: Hardee's didn't have the capacity to serve large amounts of chicken. Soon, patrons were waiting 30 minutes for chicken. That didn't last long, as you can imagine.

It didn't take long before customers, angry they had to wait 30 minutes for chicken, stopped coming not only for chicken but for the restaurant's niche: burgers.

Wisely, Hardee's abandoned the chicken concept and once again focused on its niche: burgers. The chain learned a valuable lesson about diversification. Today, even as chains strive for healthier menu choices, Hardee's continues to focus on its niche: burgers.

--Ron Ameln, SBM

Phil Jackson: A True Leader Wins Again

2009-06-15T21:45:00.000-05:00

L.A. Lakers basketball coach Phil Jackson just led his current team to an NBA title. It will make the 10th NBA title for Jackson.

It's no wonder he's won 10 titles. You can tell he's a leader just by watching him on the sidelines. Unlike most coaches in the NBA, Jackson doesn't stand all game screaming at his players. He sits quietly, almost like he's at church. (He's a believer that yelling at someone in heat of a game will not improve his or her performance. Instead, he opts to talk about game situations and offer advice during halftime or timeouts when competitive emotions have settled down.)

Even the world's most coddled, self-centered athletes (basketball players) respect him because he treats them like human beings. (He even passes out books to players on road trips. Yes, Dennis Rodman actually read a few of them.) He gives his players responsibility and a say in game stratagies.

As leaders of our businesses, we can take away many lessons from Coach Jackson.

--Ron Ameln, SBM

New GM CEO: Does Car Experience Matter?

2009-06-11T20:12:00.002-05:00

It seems the new head of GM (Government Motors) is making a bit of a splash. Edward Whitacre Jr., the new head honcho is taking heat because he has no (nada, zero) experience in the auto industry. Now that the tax payers own a majority of the auto maker, some seem a bit concerned Whitacre might not be the man to turn the troubled company around.
I think that's a bunch of BS. The new leader SHOULD NOT have any auto experience. GM needs someone with some fresh ideas and new energy, not someone stuck in the past. (By the way, this isn't Whitacre's first rodeo. He led AT&T for more than 43 years.)
Think about your own business. You get so caught up in what used to work, who used to do what, how things have always been done, etc., you get paralyzed. At the end of the day you can't see the forest through the trees and you don't even realize it.
GM needs a new focus and energy. Someone from the outside that can bring a fresh perspective. The ONLY way to get that is to look outside the industry. It's time for a change in the way auto makers do business. That change can only come from outside the industry.
--Ron Ameln, SBM

Social Networking: Will It Really Help Your Business?

2009-06-08T09:18:00.002-05:00

After the Super Bowl in February, ESPN interviewed the Pittsburgh Steeler coach after the team's last-minute victory. The reporter asked the coach about the victory. "It all comes down to blocking and tackling," the coach said. "You can implement all the strategy and systems you want, but at the end of the day, it all comes down to blocking and tackling."
The Steelers were one of the few teams that didn't rush out and implement the trends of the day, the "West Coast" offense, the "Four Receiver" format, the "Wild Cat" offense, etc. They stuck with the basics.
How about your business? Are you sticking to the basics and fundamentals that will guarantee business.
I see a lot of business owners, especially sole proprietors, spending a large amount of time on Twitter, Facebook, LinkedIn, etc. I know all the consultants are telling you to get on board or else, and playing on these social sites is certainly fun. But stop and think for a minute. As a sole proprietor, you only have so many hours of the day. Your focus should be on getting your message out to qualified prospects.
I've got a strange feeling that one of your competitors can do a better job of reaching qualified prospects with a phone book, a phone and a few cold calls. There is only so much time in the day. It boils down to blocking and tackling. Just make sure that's what you are doing.
--Ron Ameln, SBM

Jennifer Pautler Deserves Trophy, Award (Something)

2009-06-04T22:18:00.002-05:00

Jennifer Pautler deserves a trophy, blue ribbon, award, your sympathy, etc. Her name was Jennifer Pautler back in 1991 (she may be married and it may have changed by now). She was my first boss in the news business back in 1991 when the two of us were the editorial department at the Farmington Press-Leader, a two-day a week newspaper in Farmington, Mo.
I thought of Jennifer the other day when one of my employees was down in the dumps over a mistake he made in one of our magazines. He was reading a blog about "the biggest mistakes ever " to make himself feel a bit better. I took the opportunity to explain to him some of my biggest bloopers. It was a long conversation.
My biggest happened in Farmington when I wrote a hard-hitting story about gun control legislation. The legislation was called the Brady Bill, named after James Brady, who was shot during President Ronald Reagan's assassination attempt in 1981. Like most of my news stories back then, it sucked. (At least I was consistent. Some readers of this blog might be thinking some things never change.) Readers expected that, so that wasn't my blooper. For some reason, I referred to the legislation as the Baker Bill (Jim Baker is the former Secretary of State). I didn't just make this mistake once. I called it the Baker bill during the entire article and the headline. Even though only 10 people actually read the paper, all 10 called to yell, laugh and ridicule.
It was brutal. When you work for a paper that publishes just twice a week and you make a front page blunder, the worst part is seeing it over and over and over. Go to the grocery store, there it is. Walk the dog, there it is sitting on lawns (calling your name: "Ron, you idiot.")
That was one of many. I won't even get into the "7 Dwarfs" column, my commentary on the 7-member local school board.
Looking back on my early mistakes, I don't think I would change a thing. You have to make those mistakes to learn and grow. Even though I've made many mistakes since (and more to come), I learn from each mistake. I'm much more supportive of my own employees when they makes mistakes. I'll always remember Farmington.
Now back to Jennifer. She took the heat for many of my mistakes in Farmington. Even though she graduated just six months before me, she gracefully took the heat time and time again.
She once told me I was "not coachable." Who? Me?
The bad part about the Farmington experience is that I was so bad that I think I drove her out of the business. She quit her job, left journalism and headed back to school and pursue a teaching certificate. A few months of supervising me and that was it.
If anyone ever runs into Jennifer, pat her on the back for me and let her know you are sorry she had to deal with me. And if you read this Jennifer, realize that payback is hell. I'm now dealing with my Mini-Me's everyday.
--Ron Ameln, SBM

Is Your Reality Clouded?

2009-06-02T16:34:00.003-05:00

A friend of mine coaches high school soccer. His job is to put the best team on the field as possible, regardless.
When it comes to judging the talent of these high school athletes, can you guess who the worst judge of talent is? Their parents. According to my friend, the parents just can't see that junior can't run as fast or kick the ball as far as his other team members. And who can blame them. They are the parents. They love these kids unconditionally. They see things in their children others don't.
What is so ironic about this is that the parents are clueless. They really think Junior is the best player on the team. Saying anything to the contrary elicits anger. They really think they are looking at this in an unbiased fashion.
Keep this in mind when you are staffing your company and searching for the best team members. Maybe your kids aren't the best team members. Maybe you're not really seeing reality. This also goes for friends, Uncles, Cousins, that guy that saved your life back in the second grade, etc.
Be careful not to put yourself in a position to see a clouded reality. Don't say it won't be me. Yes, it will be you. Maybe there is no hope for soccer Moms and Dads, but if your job is to put the best team on the field for your company, this is something you can avoid. If you don't, you (and the other players on your team) may regret it later.
--Ron Ameln, SBM

Get Off Your Lawn: Gain Some Needed Perspective

2009-05-27T14:54:00.002-05:00

I have relatives in Florida that used to own a lawn-mowing business. They would cut and trim grass for local residences and businesses. A few years ago one of my relatives was telling me a story about how the crew members are perfectionists about the lawn.
"After we're done, we walk across the street, into the adjoining neighbors' yards, etc., to make sure we've done a great job trimming," he said. Then, I said, "why walk across the street? Can't you tell when you're trimming." "No, way," he said. "You can't tell when you're on it. It all looks good from that vantage point. You need a different perspective."
I've thought about this conversation a lot since I've become a business owner. There are things we just don't see as we are forging ahead each day, toiling in our businesses and our lives. We need to step back and try to see how we're doing and where we can improve. We need to get off the lawn. How can we do this? We'll we can gain help from mentors, peer groups, etc., and we can stop working in our business and start working on our businesses.
Sometimes, it just takes some humility. It's ok not to have all the answers and ask for guidance and help. That's how we all grow.
Just realizing you need to "get off the grass" is the first step. Take it today.
--Ron Ameln, SBM

Are You Following Success Patterns?

2009-05-06T10:27:00.005-05:00

When I was in college I lived in the dorm for a few years. After four or five semesters of living in the same building with 300 other guys, I started recognizing certain patterns.
When the freshmen came into the dorm, I could usually tell (within a few days) who was going to flunk out, get the best grades, make the most friends or scuffle and struggle through each day. In most cases, I didn't even need to meet them. I would just watch them for 5 or 10 minutes.
How did I know this? Because there are certain characteristics and patterns that successful people go through each and every day. There is a certain way they go about their business.
That's why, in business, I think it is more important than ever to find successful mentors.
Watch how they live their lives on a daily basis and emulate them. Successful entrepreneurs that I've met over the years are extremely focused, experts at time management and they get more done in a one, 12-hour period than 2 people in the same time frame. The ironic thing is that they are usually no smarter than anyone else.
Where do you fit in? Are you the college freshman that will flunk out in a few semesters, or are you the straight A student?
--Ron Ameln, SBM

Yes, I'm On Twitter

2009-04-28T15:51:00.002-05:00

OK, I did it. I'm now on Twitter. You can follow me at http://twitter.com/RonSBM.
Why did I join the latest social networking craze? Well, two reasons. One, I wanted to upset my 18-year-old nephew, and what better way than for his 40-year-old uncle to set up a Twitter account. He's now feeling very uncoooool. Wait until I show him my FaceBook page.
Lastly, I really wanted to see who the hell would want to follow me. I've been on Twitter now for a week or so and I have four people following me. That's four more than I thought I'd have. Trust me, it's not my wife and family (they could care less about what I'm doing).
I don't even know these people (followers). I don't know if I should send them a sympathy card or call them up, thank them and beg them to keep following me. Who would want to follow me? I mean, buying a new t-shirt is usually the highlight of my month.
Maybe I can start my own cult.
--Ron Ameln, SBM

Handling Customer Complaints

2009-04-13T21:44:00.000-05:00

Here are some valuable tips for dealing with customer complaints:
* Listen to each complaint. Never mind how foolish it may sound, most people will not complain unless they feel they have a legitimate grievance. Often they are upset about something other than what they are complaining about. Try to find out.
* Try to take the customer’s point of view. If you were in the customer’s place, how would you feel?
* If investigation is necessary, do it while the customer is present.
* If investigation shows the customer is right, admit it at once. Apologize and offer to make amends then and there. An open and honest response brings you from conflict to common ground.
* Should the complaint turn out to be baseless, try to let the customer save face. Offer that the feedback has helped you to evaluate and improve your service.
Source: SCORE "Counselors to America's Small Business"

New COBRA Policy And Cash-Strapped Small Firms

2009-04-10T16:02:00.003-05:00

I had a conversation with a client about the new Obama administration and small business owners. I was telling my client about a recent poll by NFIB (National Federation of Independent Business) that showed 60% of business owners feel Obama doesn't understand their needs.
He was shocked and surprised the number was this high.
He wanted some examples. Well, here's one, pointed out in Entrepreneur Magazine by writer Dennis Romero: the recent COBRA policy in The American Reocovery and Reinvestment Act.
The American Recovery and Reinvestment Act reduces the amount laid-off workers have to pay in order to extend optional healthcare coverage under federally mandated COBRA (Consolidated Omnibus Budget Reconciliation Act) rules. Instead of writing monthly checks for 102 percent (the extra 2 percent for administrative costs) of the healthcare premium they enjoyed on-the-job, they now have to front only 35 percent. The caveat: The remaining 65 percent must be paid, up-front, by employers, which can then withhold the amount of the payments from their next federal payroll-tax contributions.
As one expert pointed out in the article, "At a firm with 10 people on COBRA at $1,000 per person, the employer would be laying out $650 each, which would be $6,500 per month. If that firm only has limited revenue, the $6,500 a month could be significant."
Let's hope this doesn't cause more people to lose their jobs. If I remember correctly, this bill was about creating jobs. Now, don't get me wrong, I want to help folks get COBRA coverage more than anyone. However, I don't want to see more people out of work needing COBRA coverage either.
--Ron Ameln, SBM

Do You Have A Strategic Plan?

2009-04-09T15:17:00.001-05:00

No matter how small, businesses need to prepare a strategic plan on a routine basis, according to SCORE, "Counselors to America's Small Businesses."
A business owner needs to look into the future to determine the best way to grow his or her business after determining how competition, the economy, new product introductions, changing prices and changes in internal operations might impact the business. Business owners routinely think about day to day operations on an ongoing basis. It is a good idea, at least once a year, to take time to step back and look at the big picture—including both external and internal variables and how these variables might impact the business.
The annual strategic review can be as simple or as complicated as the business owner might wish to make it. Taking a look at the mission statement of the business, updating a SWOT (Strengths Weaknesses Opportunities Threats) analysis, revisiting Critical Success Factors, goals and objectives can confirm that the business is on track or going in the wrong direction. If the business is moving off course, the business owner can make corrective changes in direction before a disaster happens.
The strategic plan for the business is the “game plan” for positioning the business and for managing its activities. Strategies serve as guidelines for how the business will get where it wants to go. As important as developing the strategic plan is, implementation is everything! A strategic planning exercise can be a great way for the management of a small business to determine where they’re going and how they’re going to get there.
-Ron Ameln, SBM

Top 5 Worst Movies I’ve Ever Seen

2009-04-03T11:49:00.001-05:00

A discussion with a buddy last weekend got me thinking about the worst movies I’ve ever seen. So, after a week of scanning my memory, I thought I’d branch out from all the serious business talk and share the worst movies I’ve ever seen. Please respond with some of your worst movies. Note: these top 5 are movies I’ve seen. Don’t hold it against me that I wasn’t dumb enough to sit through Gigli, Glitter or Freddy Got Fingered. Give me some credit. Although I was dumb enough to see the following.

Here are my 5 worst:

Showgirls (1995). A young drifter, named Nomi, arrives in Las Vegas to become a dancer and soon sets about clawing and pushing her way to become the top of the Vegas showgirls. This movie gained much notoriety before its run at theaters because of its NC-17 rating. Half of the audience was there to see how good former “Saved By The Bell” star Elizabeth Berkley looked naked. The other half (that would be me) attended to see cinematic excellence. Both groups went home unhappy. Berkley was so horrible at playing trailer park trash that even the trailer park trash were insulted.

From Justin To Kelly (2003). American Idol finalists Kelly Clarkson and Justin Guarini starred in this movie musical. It stayed in theaters for only two weeks before being released to stores on DVD six weeks later. I ended up watching this movie on an American Airlines flight (they should be ashamed). I was trapped, and it was hell. Good thing the metal detectors worked that day because there would have been some serious violence. Yes, I did think about jumping. This movie was worse than bad. If I were to be taken hostage this afternoon and given two choices of interregation: watching this movie or waterboarding, I’m taking waterboarding, hands down. Kids Choice Awards named this movie the best of 2003. This has me worried about our future.

BASEketball (1998). If you didn’t see or hear about this movie, you didn’t miss much. This was a comedy by South Park creators Trey Parker and Matt Stone. I’d pass along the plot but after watching it I’m still not sure what the hell the movie was about. Rumor has it that Bob Costas, who is in the movie, contemplated joining the witness protection program after the movie’s release. It was that bad. I’d say this was a Mickey Mouse movie, but I don’t want to insult Mickey.

Dirty Dancing (1987). After Patrick Swayze’s dance partner has a botched abortion and can’t dance at the big talent night party, Jennifer Gray (Baby, to you and me) comes through in the clutch, finds her womanhood and saves the day with a one-of-a-kind dance routine. Oh brother. This movie was so sappy the concession stand served insulin. The best line of the movie, Swayze to Baby’s Dad: “Nobody puts Baby in the corner.” Priceless.

Mannequin (1987). Here’s the plot: Stupid dork falls in love with a store mannequin, and then the mannequin comes to life and they fall in love. No, really. I’m serious. The mannequin’s name was Emmy, which is as close as this movie will ever come to winning any type of award. At some point and time, during some writing meeting, the thought of a mannequin coming to life and falling in love with a stupid dork sounded like a good idea. Why? How?
-Ron Ameln, SBM

Open Letter To St. Louis' Largest Companies: AB, Build A Bear, Express Scrips, Sigma Aldrich, Monsanto, Enterprise, Scottrade, WWT

2009-04-01T09:40:00.005-05:00

Dear Mr. or Mrs. Company President/CEO:
I think I can speak for most area residents when I say how proud we are of your sucess. Having firms such as yours in our community helped make St. Louis a great place to raise a family and live.
With that in mind, that's why I'm turning to you. St. Louis needs your help.
Here's the deal: the community is losing larger businesses like yourselves. We've become a second-tier city. We no longer have auto plants and manufacturing facilities our residents once relied on for employment. We're no longer even a hub city for airlines. When young, enterprising entrepreneurs talk about starting companies, they don't mention St. Louis.
Our opportunity to turn things around relies on nurturing and growing the businesses we currently have in the community. I've met many of these owners and they are committed to growing and on the verge of growing into mid-size and larger businesses. But they need some help.
These are the businesses of the future for St. Louis. These companies will one day grow to become the next Enterprise, Scottrade, Express Scripts, AB--all companies that began on a shoestring in St. Louis.
But they need help.
I'm asking three things from you:
1. You help incubate some of these firms. What is incubate? You offer free space to a group (10 or 15 area small- and mid-sized businesses). Cuts have been deep for larger corporations lately so we know you have the extra space. The free space will help these companies get off the ground running in the early years when cash is tight.
2. You'll help mentor them. You have lots of knowledge in your organization, such as HR managers, PR managers, marketing and legal professionals. One hour a month of free consulting from these individuals will help these young firms make better decisions and help them grow. One hour a month, that's all.
3. You'll get them together. At least once a month, you will provide the venue that helps these 10 or 15 business owners get together to share their ideas, brainstorm for one another and help each other with business leads.
There isn't a lot of time commitment involved, and we're only asking that you provide the space you might have vacant in some of your offices.
Only you can make this happen. Many of the city governments incubate firms and do a great job. But only you have the business know how and expertise to really help these owners learn and grow.
Civic leaders are always talking about stealing companies from other cities. This is your opportunity to say, "Let's work together and build the companies we already have."
The great part about building companies we already have is that the owners are already a part of the community, and they will stay here when their companies grow. Just look at your own businesses.
This isn't about civic duty, it's about building a better future for every child you see playing on area playgrounds and building a better business environment for every kid at the bus stop.
It's up to you. Only you can make this happen.
It's time to give back. You may not get media coverage for helping a small business grow, but that's ok. You're going to do this not because it's the civic thing to do, but because it's the right thing to do.
--Ron Ameln, SBM

Girl Scout Lesson In Business

2009-03-19T20:52:00.002-05:00

Timothy Ferriss would be very proud of 8-year-old girl scout Wild Freeborn. Ferriss is the author of the book, "The 4-Hour Workweek," a book where he describes how to use technology and outsourcing to automate processes and take advantage of your true strengths.
Freeborn, in her first year as a Girl Scout selling cookies, decided to think outside the box (parden the pun) when it came to the cookies. Instead of spending days walking door-to-door hawking the cookies or standing outside in the cold at local grocery stores, she decided to put a video on YouTube.
In the video she talks about selling enough cookies to send her whole troop to camp. Genius. Then, her web savvy father placed an order form online. It didn't take long for her to reel in more than 700 orders.
Awesome.
Unfortunately, the Girl Scouts don't see it that way. The organization asked Freeborn to take down her web video, saying it was not fair to the other girls and that the cookie program is supposed to teach "young girls to be entrepreneurs." HELLO!
I think Freeborn just gave the first lesson in entrepreneurism.
We can all learn something from Freeborn. We all get caught up in "this is how it's always been done," and "We can't do that." Those words have been spoken in every office around the world.
When that happens, we close the door on any future opportunities and growth.
Even though she was ordered to take her site down, she's playing hardball. She hasn't stopped taking orders online.
She's a true entrepreneur: daring, open to new opportunities and hard headed. She's going places in the future.
--Ron Ameln, SBM

Business Lesson From American Idol

2009-03-10T21:30:00.000-05:00

I just finished watching an American Idol episode. Although I've seen maybe 10 minutes of the show over the years, my 5-year-old wanted to watch it tonight so I sat with him and we watched it for an hour before bedtime.
The show is certainly one of the most watched programs (No. 1 in last week's Nielson ratings), but it's not because of the singing. The show is tremendously produced. The producers of the show take you on a journey, where they let you meet and get to know each singer before he or she performs. These well-polished interviews take the viewers into the singers' homes and gives us a better idea of who they really are. For example, one contestant's wife just died a few months ago, making his journey unbelievable. Another had the challenge of raising a small child as a single parent, hoping to provide a great example for her daughter.
The show takes us into the lives of these individuals, gets us hooked into their personal story and then finishes (crescendo like) with the actual performance. Why would the show's producers do this? Why not just let the performers sing, just like any other karaoke contest?
The answer is simple: By telling their stories, it personalizes the entire process. The audience gets to know these individuals and starts rooting for them. You want to follow along with them on this journey.
If you are a small business, learn from this. Get out there and tell your customers and prospects your story. Let them know how you began with $200 and a phone book. Let them know how you've helped charities or how you've helped employees get through some tough times in their lives.
People will take notice and they'll began to root for you and your company. Don't underestimate how this support can help your business. Your fans will follow and support you. Now is not the time to be humble. Let people know your story.
--Ron Ameln, SBM

Succeeding With Older Employees

2009-03-03T12:15:00.003-06:00

There isn't a networking event that I go to where a fellow business owner doesn't come up to me and complain about employees. Either he or she can't hold onto them, can't find them, wants to kill them, etc., etc...
Lately, since the stock market had tanked and health insurance continues to skyrocket, I've been thinking about all of these employees in their mid-50s through mid-60s. These folks probably aren't as eager to retire and sip cocktails by the pool as they may have been 5 years ago.
So, the question is, who is going to hire them?
How come employers don't value the experience and work ethic of a 55 or 60 year old? I mean, if you hire someone at 60 and he or she works until 70, that's 10 solid years. Research shows 20-30 year olds only stay at one company for two years.
These older generation workers are going to be looking for jobs in the coming years. The companies that can figure out a way to get these folks in their companies are going to be adding years of knowledge and experience to their teams.
--Ron Ameln, SBM

Sales Lessons From A Panhandler

2009-02-27T15:56:00.000-06:00

The other day I was talking with my friend about a recent trip he took to New York City. He started telling me this story about walking down the street and getting stopped by a gentleman that asked him a simple question, "Do you know where Carnegie Hall is?"

"No," said my friend, "I'm not from around here."

The man grinned, then asked, "I'm not from here either. I need to go to Carnegie Hall and meet a friend. By the way, can you spare a dollar. I'm down on my luck and really need a good meal."

Ah, engagement. I'm not sure how honest this panhandler was, but he engaged engaged my friend with questions in order to help his cause, getting a dollar. You see, if he just comes up and asked for a dollar, he seems too forward and pushy. If he asks a question, he starts to build some rapport. Asking questions builds a bond. He wanted to make my friend feel he was helping.

It's a great lesson for sales pros. Asking questions helps build rapport. Start asking questions of prospects and keep asking questions. When you feel you've asked too many questions, ask more.

By the way, my friend gave the man a few dollars.

--Ron Ameln, SBM

The Missing Fries And Customer Service

2009-02-09T10:46:00.003-06:00

Sometimes the best business lessons are right in front of you, or maybe what is not in front of you. In my case the lesson came in the form of french fries, or lack thereof.
I ordered french fries a few months back at a restaurant that opened up across the street from our office. "We're all out," said the waitress. Ok, maybe the truck was late, the purchaser messed up, etc.
Then it happened again a few weeks later. Then, I took a client into the restaurant and waited 30 minutes before anyone came to take my order. Then the real funny story: a client of mine went in and ordered french fries at lunch. "We're all out," he was told. "Well," he said, "I'll take a baked potato." "Here's the deal," the waiter said. "We only have so many of them, so we're holding them until dinner."
Well, needless to say, this restaurant closed its doors last week. It's hard to believe because when they opened the service was great and the restaurant was packed.
Years ago I wrote a story on restaurateur Ray Gallardo (founder of Casa Gallardo) and he said, "A burger is a burger, but your customer service will separate you from competitors."
This restaurant learned this lesson the hard way.
Business owners need to fight really hard, especially in these budget conscious times, to maintain their level of customer service. If you don't, running out of french fries will be the least of your worries.
--Ron Ameln, SBM

Finding New Customers In The Downturn

2009-01-28T22:14:00.001-06:00

Times are tough for businesses these days. If your sales have fallen as low as Paris Hilton's IQ, it's time to start finding new customers.

If your customers are struggling, it's time to find new industries for your product and service. The following is a great link to an article on industries that will be buying in 2009. Make sure your product can help them. Click here to read the article.

If you can add any others to the list, let me know.

--Ron Ameln, SBM

Obama's First 100 Days; What About Your Next 100?

2009-01-23T21:51:00.003-06:00

Okay, so President Obama has been sworn in and the watch begins on his first 100 days. I'm not sure where the whole 100-day thing comes from in the first place, but the media watches each new president like a hawk these first 100 days. (Actually, why is it 100 days? Why not 50? 80? 103, maybe?)
I always liked the 100-day watch. It is a great way for a President to kick start his term, set the tone for his administration and it gives him a short time frame to accomplish goals. The 100-day goal makes him accountable.
When I purchased my business three years ago my business coach set up a 100-day plan to get me off and running. There was no time to gently ease into my new position. I had 100 days to make some changes. In my first 100 days I kicked an employee off the bus, added another and changed the way our product was distributed.
I've been thinking lately that this concept doesn't have to apply to just the very start of a situation. I mean, you could start off the year with a 100-day plan (change the way you sell, interact with employees or change your systems). Make yourself a 100-day plan and stick to it. It is a great way to force yourself to be accountable and turn your goals into reality.
--Ron Ameln, SBM

Are Your Salespeople Selling?

2009-01-17T19:16:00.003-06:00

Now, more than ever, it is important to create selling opportunities for your reps.
Some firms, however, are doing just the opposite.
Allen Minster, author, sales coach and president of Integrated Marketing Systems, studied the sales habits of insurance reps and the findings were shocking. His study found that the average sales rep spent only 5 hours a week actually selling and 1 1/2 hours a week prospecting for new business. That comes out to 6 1/2 hours of a 40-hour work week.
As owner of your business, are you contributing to this problem? The trend today, especially with layoffs and corporate downsizing, is to make salespeople a jack-of-all-trades. Some owners expect sales reps to be closers, presenters, collection agents, proposal writers, graphic artists, etc.
According to Minster, salespeople should be focused on only these activities: presentations to decision makers (qualifying and closing), cross marketing to existing clients and resolving client issues that no one else in the company can fix.
If your salespeople are not doing one of these three things, they are simply not selling, and you are losing money on them.
All businesses are trying to watch expenses these days, but make sure you're still helping your sales reps increase their selling opportunities.
--Ron Ameln, SBM

When It Comes to The Economy, Is Denial A Good Thing?

2009-01-13T21:29:00.004-06:00

I had an interesting conversation with a business owner today. The owner, who is in the office furniture business, proudly told me "His company has elected not to participate in the recession?" Because of this attitude, he said, business is "GREAT."
My first thought was, "Wow, can you say denial." I mean, I often elect not to participate looking bald and middle-aged. I elect to look like Brad Pitt--then I look in the mirror. I hope it works better for the office furniture guy than it's turning out for me.
Now, I don't know if his business is great or not, although I find it hard to believe. I mean, most businesses are just hoping to remain flat this year, and with layoffs and with fewer companies starting, I find it hard to believe phones are ringing off the hook with businesses seeking new office furniture. I mean, the last thing they need at Pfizer or AB is office furniture. But, what do I know.
I talk to some business owners and they don't seem to acknowledge any problems with the economy. Is that a good thing? It's one thing to be positive (that's a good thing) but another to be in denial. I mean, if you don't recognize the upcoming storm or the storm you are in, how can you adjust course to stay afloat. How can you prepare your financials, cut costs, discover new revenue streams, if everything is fine and you are not participating in the recession.
Maybe it comes down to your customers. Attention Mr. Business Owner, if your customers are participating in the recession, so are you. You'd better prepare to tackle the challenge.
--Ron Ameln, SBM

2008-12-31T20:23:00.002-06:00

Do you like a challenge? You'd better if you own a business these days. 2009 is going to be a challenging year for all businesses. That's the bad news. The good news is that the downturn will pass, and the actions owners take today will either make their companies stronger in the future or obsolete.
Here are 5 questions to make your business stronger for the future:
1. Are you looking for more opportunities, both inside and outside the organization? Successful companies are not afraid to dump old products and move on to new ones. This downturn will bring many new opportunities. Which ones can you capitalize on.
2. Do you have a mentor? Mentors can jump-start an entrepreneur’s knowledge level, link him or her up with new contacts, offer feedback on ideas, plans and strategies and even provide help in raising capital. Now, more than ever, it is important to gain the knowledge of veteran entrepreneurs. Find owners who have been through a few downturns.
3. Have you built an A-team?Savvy entrepreneurs bring people into the organization who are smarter and more skilled than they are. They then create incentives to keep them. The best entrepreneurs are clearly team builders. Many businesses are letting quality people go because of the downturn. There is a lot of talent looking for work.
4. Are you radiating your passion? Success belongs to people with passion. Zeal sustains entrepreneurs during the ups and downs. It becomes contagious, rubbing off on employees and customers.
5. Are you providing mind-boggling service? When you deliver legendary customer service, customers will rave about your company and become tremendously loyal. Even in a downturn, they will find you.
--Ron Ameln, SBM

Credit Outlook For 2009

2008-12-24T10:06:00.002-06:00

Credit has never been easy for small businesses. Most small firms have always relied on savings, credit cards, family and friends, angel investors and other forms of alternative financing to build their dreams.
Things certainly don't look any different in 2009. In fact, with many businesses bottom lines shrinking and banks in a cautious mood, capital from banks may be more difficult than ever to obtain. Small businesses will have to be more creative searching for financing more flexible when it comes to alternative sources such as factoring and batering.
Click here to read an interesting article on the lending outlook.

A Plan: Maybe You Don't Need One?

2008-11-30T18:48:00.002-06:00

Now is the time of year when business owners start looking at next year and planning for the future. Unfortunately, as one entrepreneur told me last week, "most business owners don't plan at all."
No plan. That means they have no idea where the bus should go.
Well, maybe that's not such a bad thing. As Jim Collins (author of Good to Great) discovered, the executives who ignited the transformation from good to great did not first figure out where to drive the bus and then get people to take it there. No, they first got the right people on the bus and the wrong people off the bus. They would then figure out where to drive it.
"These business leaders said, in essence, 'Look, I don't really know where we should take this bus. But I know this much: If we get the right people on the bus, the right people in the right seats, and the wrong people off the bus, then we'll figure out how to take it someplace great,'" Collins wrote.
As you look ahead to 2009, maybe you should focus more on who is on your bus and less on where you are headed.
--Ron Ameln, SBM

Where's The SBA? Can Anyone Find The SBA?

2008-11-25T16:04:00.002-06:00

I've been watching all these giant businesses grab bailout money for a few months now. At first, I was surprised they received it, then a bit skeptical about the whole thing...Now, I'm starting to get a little angry.
Not that these firms are getting bailed out, but that no one is really helping smaller businesses in America. Remember them...they are what both political candidates this year called "the foundation of our economy."
Check this out: SBA 7a loans were down 30% last year. Through Nov. 15 they were down 50%. SBA 504 Loans were down 17% last year and 38% this year.
At a time when businesses need capital more than ever, SBA loans have dried up. Hello! Anyone home?
Now, the SBA says loan demand is down, many borrowers are not creditworthy, etc. All of this I'm sure is true. The poor economic outlook makes the best business projections questionable. However, we've got to figure out a way to get these deals done. These factors aren't keeping the giants from bailout cash.
Now is the time, if we are bailing out everyone and his brother, to somehow find a way to capitalize our foundation.
--Ron Ameln, SBM

9 Key Networking Tips

2008-11-17T17:01:00.003-06:00

With the economy struggling and sales slowing, now is the time to get out of the office and start cultivating future relationships. Networking is more than just small talk; it's the art of relationship building.
The following are nine networking tips, courtesy of the book, "Great Connections: Small Talk And Networking For Businesspeople," by Anne Baber and Lynne Waymon:
1. Tell your talent, not your title.
2. Give first, give generously.
3. Make your name memorable.
4. Linger longer over the name game.
5. Hear and help. Listen to find out what people need, and help them find it.
6. Build trust by telling stories about yourself.
7. Follow up six to eight times to add someone to your network.
8. Think of networking as learning about others and teaching others about yourself.
9. Remember, your next conversation could change your life.
--Ron Ameln, SBM

Strategic Alliance May Help In Down Economy

2008-11-07T12:13:00.003-06:00

In any battered economy, business owners are always looking for ways to cut costs but still grow and succeed. A strategic alliance may help some firms surviving through this recession.
A strategic alliance is not a merger or an acquisition, and it’s not outsourcing. As opposed to an outright merger or acquisition (where two companies become legally one), a strategic alliance involves two companies that pull together to share resources, funding or even equity on a long-term basis.
Strategic alliances aren’t for everyone. For starters, entrepreneurs must be flexible enough to work with their new partners. To accomplish this, entrepreneurs will have to give up some company control, a tough task for many entrepreneurs who have nurtured "their babies" since birth.
Finding the right partner is also a key to success. Partners should be involved in a similar industry and share similar business philosophies on growth and future goals.
--Ron Ameln, SBM

Is Panic Best Way To Deal With The Downturn

2008-11-04T08:24:00.002-06:00

"We have nothing to fear but fear itself" --Franklin D. Roosevelt
Maybe Roosevelt knew what he was talking about after all. After meeting with a group of business owners last week and discussing the future of the economy, this quote came to mind.
Panic and fear are certainly the words I would use to describe business owners as they prepare for 2009.
Now, this is my first economic downturn as an entrepreneur. That's my disclaimer. I'm certainly a rookie when it comes to managing your company during an economic downturn. However, I'm seeing things from other owners that don't make a lot of sense.
For example, one owner I know just laid off 10% of his workforce. Not because business is bad this year (it was an average year) but because he fears it will be bad in 2009. He doesn't really have any evidence of this (vendors haven't told him, customers haven't told him, etc.). His fear comes from the media and talking to his friends, church members, etc. Since he's expecting the worse, he figures he might has well downsize, hunker down and just wait until the economy recovers.
By taking out 10% of his workforce, I can't imagine his company being as strong in 2009 and beyond.
I just don't get that. Now, if the first quarter starts out poorly, I get it. But is this really the right way to pull your company out of an economic downturn?
The bad thing is that once this starts, every company starts feeling the pressure to do the same and we all start feeling the economic pinch.
At our company we're taking a deep breath and really focusing in on what makes us unique and what will help us generate revenue in the future. Do we have contingency plans if our sales go South the first quarter of the year, you bet. But I'm not going to let someone on CNN spouting off about the economy persuade me to panic in managing my company.
--Ron Ameln, SBM