Secrets to Short & Long Term Success in Business

Some Of The Challenges We Face Are Shared By Many Other Industries:

Computer and printer technology allows potential clients to do it yourself versus relying on us to produce printed products.

A mature market means downward price pressure.

The Internet has accelerated the downward price pressure.

Big box stores have destroyed small print shops.

Part 1 of 3

On April 1, 2022, I will celebrate 30 years as the founder/owner of Graphic Connections Group. We are a printing and direct mail marketing company. I have always been an entrepreneur as far back as 11 years old. I have seen good times and bad over the years, but I consider myself a success overall. Since 1992, my company has generated over $100 million in sales with over 100,000 orders. As part of this growth process, I purchased 18 small printing, graphic design, and apparel companies and started a few other businesses unrelated to printing. Today, I still operate an Amazon business side by side with my print operation.

I believe that is enough experience with real money and real-world clients to qualify me to give some unsolicited advice to anyone with a desire to succeed in business whether to start from scratch or buy an existing company.

And I am not some silent partner who sits on the sidelines and gives orders. I am in the trenches every day with my staff, solving problems and servicing clients. It's only in the last three years that I have stepped out of day-to-day sales, but I am still involved in the background in every aspect of the operation. (I still handle a handful of clients.) Up until I stepped back three years ago, most of our sales were generated by two salesmen – one of which was me.

I say this because I want you to understand that I have tried countless sales and marketing techniques, people and personal time management tools. Unfortunately, because the printing industry is highly competitive and has been a shrinking market the entire life of my company, success is even more elusive than other fast-growing industries.

In simple terms, you need a “prospect/customer generating machine.”

These dynamics make both selling printing and also earning a decent margin very difficult. But despite all this, I am proud to report that my company has shown steady to increasing sales, and steady profits during most of my career.

How?

When I first started, I had nothing to offer but my integrity. I had no money, no experience, and my company had no reputation or particular niche. I had to sell myself before I could ever sell a product. I had to go above and beyond the call of duty to do this. As I grew, I built a company culture around these same principles and added a few more as the size of my operation grew.

Below are THE 52 GUIDING PRINCIPLES AND TIPS that have worked for me.

These are in random order.

General Business MANAGEMENT

#1 Find a business that is already a proven money-maker but is not already in your territory or market, or one where the market is underserved.

Having an original idea is great, but success is very low. It is always a lot safer to find a business that has already proven itself to work. That's why franchises are generally successful because you are buying into an already proven model. It is also important to find something relatively new in your area so you have a chance for quick growth with minimal competition. I learned this the hard way because when I got into printing, it was already a mature and saturated market. When I started my Amazon business, I just missed the window where it could have exploded just because it was new and growing fast. In both cases, I still was able to succeed using the principles below, but it was much harder.

#2 Ride today's hottest trends, so you know the market will grow.

This relates to the previous strategy. Business is always easier when you are in a growth market. There is also a lot less competition. When you are involved with a hot trend, you can grow significantly by just riding the market growth.

#3 Pick a product that gets used up and reordered.

I was smart enough to get this right early on. I learned from witnessing my dad's career. He sold mainframe computers back in the day when computers filled entire rooms, and they were programmed using computer cards. When he made a sale, it was a big sale with a big paycheck. But those checks were few and far between, and his income varied dramatically from one year to the next. People just don't spend big money on capital equipment all that often. Printing was a product that had much smaller orders, but the product got used up and reordered. This is important for two reasons. First, it provides a more steady income, and second, it allows you to build an ongoing relationship with the client that you can build on. Usually, if you are doing a good job, the client keeps coming back and refers you to others.

#4 You must systemize the entire business and keep your overhead low - USE TECHNOLOGY!

One major key to success and profits is low overhead. The more you can systemize the business, the more money you can make with fewer people. Take advantage of technology. In today's world, computers, email, cell phones, and other communication technologies allow you to do the work of many. Use it to its fullest. Don't skimp when it comes to communications technology.

#5 Do not squander your profits - have a plan to re-invest them in the future of your business.

Squandering profits is probably one of the biggest mistakes most businesses make. They take all the profits they make and live "high on the hog," not putting away for a rainy day. No matter how well you are doing today, you have to plan for the future, which usually takes money. Always look into the future and try to anticipate your next move. Always save part of your profits for a "rainy day."

#6 Develop a business plan and make it happen.

Most businesses fail to have a written and evolving business plan. You cannot plan for the future if you do not have a business plan. You need to forecast future sales, profits, expenses, etc. You need to have a strategy that takes you from where you are today to where you will be in the future. The plan should look at the next six months, 12 months, and up to 5 years. Looking past five years is a waste as that is too far out. No matter how rough it gets, do not give up at the first sign of difficulty. Stick to your plan, but also be willing to revise the plan as business conditions change.

#7 Know your numbers - do not wait for your accountant to tell you if you are making money.

You need to have a very good understanding of your costs and profits. If you wait for your accountant to tell you if you are making money, you are in trouble. You need to understand your product backward and forward so you can make changes on the fly as the market changes. Take the time to understand money and finances. With today's technology, there is no reason any business should not be doing their own books using Quickbooks or some sort of accounting software. With this type of software, one click of the mouse will give you profit and loss reports, as well as all sorts of other reports at any given time.

#8 Always be willing to negotiate.

A big mistake a lot of businesses make is being too firm with their policies with both customers and employees. Every situation is unique, and you have to be willing to negotiate when necessary. Just about any problem or opportunity can be solved win-win with negotiation. Remember, some profit is better than no profit.

#9 Pay your bills on time – always.

If cash flow is tight, get a line of credit and use it to make sure your creditors are paid on time. Nothing is worse than having to jump through hoops to serve a client's need and not being able to count on a key supplier because your payment history is poor. When creditors extend credit, they expect to be paid on time. This also applies to personal debts with friends or family. Your integrity is at stake if you violate any agreement.

#10 Treat your employees as your most important asset.

If you ever want to really make it big, you are going to have to do it through others. Spend as much time finding and developing good people as you spend on your product. Your management team is especially important. Good managers can propel an organization and bad ones can destroy it. People make things happen – even in this day of technology. Don't ever forget it!

#11 Look for strengths in employees and employ them where their strengths can be utilized.

Every person has strengths and weaknesses. Look for strengths and place employees where they can use those strengths. Attitude is more important than anything. A positive attitude will beat a more qualified person any day.

#12 Look to acquire other companies in your industry for little or nothing.

Merging or acquiring other companies that are similar to yourself, where you can gain clients and potentially equipment without adding overhead, can be a huge winner. I have purchased 18 companies in the last 20 years – and the most I ever put out was $50,000 upfront. I have never had to get a bank loan for one of these deals. They all had similar characteristics. I got owners to agree to a small down payment, with the rest paid over time. Usually, the subsequent payments were tied to results. There are always companies that are either close to going out of business or retirement, and often those companies are willing to make creative deals.

#13 Be creative and always look for win-win deals.

Whether you are acquiring another company, hiring an employee, or making a deal with a client, search to find win-win deals. Present your deals in a way that shows how both parties win. There is no such thing as a good relationship that is not win-win. Don't be afraid to mention that in your negotiations.

Most people inherently want things to be fair.

#14 Practice open-book management

Many private company owners do not agree with this philosophy. They don't like people knowing what they are doing with their money or how much money the company is making. They are afraid that if the employees know how much the company is making, they might demand more or revolt. I have used open book management my entire career and have not experienced any of those dynamics. On the contrary, my team understands that we are a team, and we are all in this together. As part of the strategy, I give back 20% of all company profits to employees as a bonus every year. We openly talk about profits and costs, and the entire team participates in finding ways to reduce costs and earn more profits so their bonuses will go up.

As a result, I have a very loyal team and rarely lose an employee. My people are compensated fairly for their base pay. When the company does really well, they share in those profits. This strategy has also helped to identify bad apples within the company. When a new hire is a bad apple, I hear about it from other employees almost immediately.

#15 Work for someone else and learn the business first.

There's a learning curve involved in any business. Why not work for someone else and do your learning on their dime? Plus, it is also always better to learn from someone who already has experience. I did this before I started my company. I worked for another small printing company for three years and spent that entire time learning everything I could about sales and production. I was able to prove that I could sell so that when I started my own business, I knew I just had to duplicate what I'd already done successfully. That took a huge amount of stress off my shoulders

#16 Take at least 4 hours per month to look at your business from a macro standpoint.

Look at financials. Know your numbers and key indicators. Use this time to adjust your plans to maximize effectiveness.

To be continued in April's 2022 Frog Blog…