| Teaching Notes & Study Guide | ||
| Key Ideas.
Key Idea #1: .Follow your dreams. Yvonne grew up in the country and came into the city on the street car. Her family was poor, but she had four aunts who all worked in large department stores in New Orleans. At the age of four she decided to own her own store some day. Her philosophy has always been, "think best and be best." Twenty-five years ago with only $10,000, she decided to open the "best" jeans shop in New Orleans. As she made money, she ventured into every aspect of women's clothing. She is a seamstress, designer, and even knows how to make hats. Yvonne used her talents to follow her heart's dream to create a one-of-a-kind small business. What do you think? Why do so many business owners advise not to worry about the money and to simply focus on your dream or what you love? Answer: First of all, running a business is so consuming and so difficult, that if you don't really love it, you will quit. Paula Quenemoen said your business will test you at every turn. Second, when you love your work, you are energized by it not worn out by it. Marc Katz said, "Corned beef. It's my life, it's my lust." And third, when you follow your dream, you will probably do something for the world that no one else can do as well as you do it. Think of Thomas Keller's cooking and the fact that his reservationist said, "When food passes through Chef Keller's hands, it is transformed." Also, Greg Bombard, owner of Catalina Express loves the ocean and can't imagine working anywhere but on the water. What do you think? How does our vision drive our decision-making? Possible answer: Yvonne said she has always held on to the thought, "think best and be best." This phrase serves as a guiding light and helps her steer clear of obstacles that may take other small business owners away from what brings them the most satisfaction. Big
Idea #2: Reinvest your profits . You think back: Did Yvonne mention anything about having a banker or an investor? Answer: No. She simply said she had to use her profits to grow the business. If you don't have financial help, you can't take cash out of the business for a fancy personal lifestyle until you achieve your business goals. The money you leave in must be invested in new product development, hiring great people, or marketing the business to drive up sales. Most small business owners are conservative or have learned to be the hard way. Bankers only loan money to you if you don't really need it and investors aren't too motivated to put money into a company run by a person who has no fiscal discipline. For more on this subject, go to Neal Patterson, Laurie Snyder and Gary Salomon. What do you think? Why is retained earnings the best type of cash for growing your business and what is the down side to only depending on profits to finance growth? Answer: If you only use your own profits, you have no interest to pay to the banker and you don't have to give up any ownership to an investor. However, if profits are hard to come by, then your growth will be very slow. There's much more here about all types of financing. Go to, We'll Show You The Money, When The Banker Says, "No," and SCOR. Key Idea #3: In retailing, plan to work Saturdays for the rest of your life. This is Yvonne's secret for staying close to the customer. In Tom Peter's book, In Search of Excellence, he noted that the best companies are the ones who listen to their customers' suggestions and then take action. Yvonne knows that if she is to understand her customer thoroughly, she must see them on Saturdays. This is no sacrifice because she loves being in her store and delighting her customers. What do you think?: Would you be willing to work every Saturday if it enabled you to realize your life's dream? How do you want to use your time? What kind of environments stimulate you to be creative and energetic? Answer: The
answers to these questions will help you decide the kind of work you like and
whether you would ever want to own your own business. Keep in mind, however,
that retailing is particularly relentless. If you post your hours of operation,
you or someone must be there. In other kinds of businesses, voice mail can put
you in touch with your customers without actually being in an office. Key Idea #4: Customize on the spot . The key to most every small business is customization. The more unusual your offerings are the better your chance of success. You think back: What was Yvonne doing while she was talking to me and why is it important to her shop? Answer:
She was making a hat. It is important because it truly differentiates her from most dress shops in the entire country. How often do you see all the makings for fabulous hats displayed? How often do you actually see hats being designed and constructed with ribbon, flowers, beads and feathers? I have been in every major city in Amercia and I usually make it to the fine shopping districts. I have never see anything like Yvonne's hat area except in New York City at a milliner's shop. Key Idea #5: Look the part. You are a walking testimony for your company. This seems so obvious, but I think Yvonne does this as perfectly as any business owner I have ever known. You think back: What does it take to "look the part?" Answer: A complete understanding of your customers and yourself. This goes back to doing what you love which means you get to hang around the type of people you love and you develop a lifestyle and workstyle that telegraphs the right image for your business. Look at Ron Altoon as he walks me through the architecture firm he started with his partner, Jim Porter. Then have a look at Jim Morris. Jim sells t-shirts but more than that he sells his mission of environmental awareness. I believe his "look" gives him credibility with his customers. Key Idea #6: Don't wait for customers to come to you Many of us set up shop or do some marketing and expect customers to keep finding us. You think back: Why is making calls on customers so important to a small boutique? Answer: This is an extension of the idea to customize on the spot. Yvonne customizes service just as she customizes products. When someone buys something from you, begin a file on them and keep a record of every transaction with notes about what they were looking for that you did not have. This way you know what they bought from you and what they wanted to buy from you. Also make a preferences list and ask for the name and phone numbers of family members that the customers thinks you could call on to purchase gifts for them. Every sales person in Yvonne's store has a book of customers and it is their job to keep all of these records. When the store is quiet, all the sales people get on the phone to tell their customers what is new based upon that customers preferences. Key Idea #7: Needs-focused selling builds relationships. Ron Willingham says sales people should stop talking and start listening. You think back: How does Ron suggest we approach the person we really want to sell something to? Answer:
You should approach with a series of questions not a series of YOUR solutions. We just purchased a new cook top for the kitchen. We went to a very nice store and chose the most expensive product. The brand was one I had never heard of but the sales person who is also manager of the department really believes in this product, so we bought it. It doesn't work properly and the installers are pointing their finger at the manufacuter while the warranty person for the manufacturer is pointing his finger at the installer. We called the sales person who was not working on Saturday, and were referred to the store manager. He told us we could have anything we want, so we went back to the store and chose a GE which the sales person had never shown us. Now the reason I am frustrated is, I thought back about the fact that she didn't ask us one question about what our kitchen looks like. The GE we selected has trim on it that will match our other appliances. |
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