Stupid People Shouldn't Breed wortechnologies.com Business Articles and Info

I just left one of my businesses I consult. I like this guy a lot but he just doesn't get it. He hired me to help him increase sales but I learned something very important about him today, and even more about me.

He has been in business for over 20 years. About eighteen months ago another consultant approached me about helping this guy . . . we'll call him David. David and I met at his office. Now this is where the story gets so weird you'll think it's not true . . . but it is. When the other consultant approached me about taking this project was because David wanted to reach $10 million in revenue in the wide format printing business. (Think backlit signs at your favorite fast food place or billboards or banners.) I spent 16 years of my 22 years in business in the wide format printing industry. I know the industry inside and out as well as the players, customers, vendors and equipment, as well as the economic ups and downs and how it affects the business. So I decided to meet with David.

I thought nothing of the address when the consultant gave it to me, and I drove across Dallas to meet with David. When I pulled into the driveway it all came back to me. This was the same business I sold to another guy who had sold it to David. This was my $37 million dollar business I had sold 12 years earlier.

It had not changed much over the years. Same nasty part of town. Same nasty bathrooms. Same nasty 56,000 sq. ft. of space. The only thing that had changed is my $37 million dollar business had been reduced to a $2 million dollar operation. I was hurt.

I thought, "How stupid could this guy be?" What turned out to be me thinking he was stupid was me being the one that was stupid.

I was arrogant thinking I could get him to $10 million in less than 18 months. I had done it not once but four times in the same industry. However, I had not done enough due diligence on the new owner nor the current industry and economy. This is where I let my ego and stupidity get in the way.

David and I struck up a contract and I began to work on his business right away. I also began calling the old database of my old customers to find out why they had gone elsewhere to do business.

I was in for a shock. David was not the easiest guy to get along with. He did not have a good reputation in the industry. One, he was seventy years old. Nothing wrong with seventy year olds, but he just didn't have the passion any longer. No Drive. No Excitement. Two, he was an engineer with an MBA. Loose translation: he was overly analytical but no delivery. Lastly, he used to work for a government agency before buying a sign franchise twenty years ago. These are all tell-tale signs of an over analytical person that kicks tires, is horrible at customer service, and even worse at rewarding his people.

Marketing was non-existent. None. I asked David how he was staying in touch with his current clients. He wasn't. No letters, no postcards, no phone calls, no brochure . . . NOTHING. I asked how long it had been since he had called on prospects that were at one time . . . hot. Never. I asked how often his sales reps call on old customers that used to order from him. Rarely. I asked how long it had been since he took a client or employee to a sporting event. Never. He hated sports.

I shared with him my marketing strategy to help increase revenues a minimum of 20 percent in 30 days or less if he would follow it but that it would cost $5,000 in printing and postage to implement.

He said the cost was too much. Hmmm, let's see. A 20 percent or more return. He's a 2 million dollar business. That's an additional $20 thousand in revenue monthly by spending $5 thousand. He said, "You can spend $3 thousand." I put the marketing plan into place and spent much less than that. So with having some money left over I put my candy dish marketing into play. (I can't share all my secrets about what that is but let's say everyone loves candy and it's a great marketing play.)

Within 15 days he had $13 thousand in new business. We were pretty much on track until something happened, and until I found out some interesting things about the way he treats his people.

We had ordered only 4 family size bags of candy at $10 bucks a bag. I had taken one home to let my daughters help fill the candy dishes and then loaded them in my car to take by 20 old customers of his and drop them off. (With his company logo on the candy dish of course). I received a phone call a few days later. He called me and asked me where his candy was. You see, this is where business owners lose focus. When you become more concerned about losing 10 dollars than you are making $20 thousand, you've lost focus. This man has completely lost focus. I returned his candy and the candy dishes with a $10 dollar bill attached . . . at my cost. Hey, it was $10 bucks.

I also found out that one of his sales reps had set the record for most sales in one month in January 2008 . . . in the history of the company. They received applause in a sales meeting. Hooptie Doo. Big fat hairy deal. I asked David if he knew how much trophies cost. He had no clue. For about 200 bucks he could have had a huge crystal trophy made with the sales rep's name on it commemorating the success of the rep and the history-making event for the company. His net profit for this rep's success was $40,000 that month . . . and he did nothing. Not even a $200 trophy. Pathetic.

I say all of this to come to today's message. Reward your people. Praise them. Buy them trips and gifts and things they'll remember. A nice vacation might have cost him two thousand dollars. That's a ten percent bonus on a job well done. She received nothing. Zero. Most people would rather have something to put on their desk to show off to their clients and their co-workers than a big fat cash bonus. Not me, of course, I'll buy my own trophy.

Don't lose focus on who your employees, customers and vendors are in business. These are the people that make you money. Take care of them. Nurture those relationships. They are the lifeblood to your business. If you don't your customers will go where their business is much more appreciated, your employees will be hired by your competitors, and your vendors will cut you off in lean times.

I canceled my contract with this guy. I just can't help him. He's lost focus on what's really important. It's not money, it's relationships. But stupid people just don't get it.

So is this his fault or mine. I say it's mine. I didn't ask enough of the right questions from the beginning to help this guy. I became enamored with this being my old business and my own arrogance in this industry to see the telltale signs of a stupid person. That being me. I not only felt stupid but horrible for taking this project.

I refunded his money and apologized for letting my ego get in the way of helping him. It wasn't fair to say I could help him when my own agenda was in the way. It's not about me.

Good thing I'm finished having children. Because stupid people shouldn't breed.

About the Author
Michael J Gilbert has started 12 businesses in 22 years with over $750 million in sales. Coupled with his uniques consultative selling style and marketing strategies he has catapulted ove 120 start ups to success. Michael Gilbert may be contacted at http://www.streetlevelconsultants.com. Click here to view more articles by Michael Gilbert.