Teaching Notes & Study Guide

with Jim and Naomi Rhode
Smart Practice
Phoenix, Arizona
Key Ideas.

Key Idea #1 . Listen to your customers and they will tell you what they want to buy.
About 20 of Jim and Naomi's employees take inbound calls from customers and about that same number make outbound calls to customers. But, Jim and Naomi take it one step further. Because their customers, dentists, reside in all 50 states, Jim and Naomi go to them in person. By speaking for organizations made up of dentists, and by leading training sessions attended by dentists, Jim and Naomi spend about half of their time in the company of their customers.

And, they don't just talk. They ask questions. They ask dentists and hygienists what they think they need to run a profitable dentist office, then the Rhodes either create the product or go out and find it.

You think back:   Why is public speaking such a powerful marketing tool for the Rhodes?

Answer:  Business is built on relationships. To reach their customers, the Rhodes use catalogs and telemarketing. Were it not for their "personal appearances," they might never meet many of their customers. However, their speeches and seminars not only position them as experts in their field, but it provides the opportunity to develop long-term relationships.

What do you think?  Can anyone use public speaking as a marketing/customer service tool?

Possible answer:  Yes. Every business owner is an expert at what they do. Standing up in front of people to tell what you do is easy when you know the topic in depth. You don't have to be polished, you have to be knowlegable.

The key here is spending face time with customers. Don't think you can look at a sales report on a piece of paper and think that you understand what customers are buying and what they might want in the future. You have to breathe the same air they breathe. You even have to understand and love their customers if you are going to predict how to best serve.


Key Idea #2 . Employees are your most valuable asset.
Jim and Naomi let people be who they are. If a person doesn't fit in at SmartPractice, the Rhodes let them go. Jim has always loved going to work and he tries to create an environment at SmartPractice to help employees enjoy their work. Employee rules are flexible because people lead complicated lives. The Rhodes believe that when you get the right person in the right job and provide regular feedback, performance flourishes.

What do you think?  Why is tracking performance so critical?

Answer:  If a person comes to work day after day and never keeps score of their performance, they lose interest. That's why people enjoy playing sports and games. There is a beginning and an end and they always know how they're doing. All of this creates energy and enthusiasm for the game. Keeping score does the same thing for work.  

What do you think?  Why is it good to allow a person to be who they are?

Answer: People don't change very much. You can teach an employee some job skills, however, there is never enough time to "remold" a person. This is why hiring the right person for the right job is such a critical step in building a great organization. Every business owner who grows a business over time develops techniques for dealing with the people part of the business. Some of my favorites include Pam McNair,Milton Moses and Glen Walser. Also, study the special episode called, "The People Part."


Key Idea #3 . Build your business before you expand your personal lifestyle.
In the initial states of a business, many are tempted to spend their profits. The Rhodes advise against this. Retained earnings are the best foundation on which to build your business. While you don't need to borrow money, you pay no interest. When you keep cash in the business and direct it toward your business goals you'll have plenty of money to buy that big house down the road.

What do you think?  Why don't more business owners heed this advice?

Answer: Actually, most of the successful ones do. Excessive business and personal overhead is the cause of many business failures. Allowing expenses to creep up and not paying attention to sales will close a business down faster than a snowball will melt in the Phoenix summer sun.

Others who subscribe to this stategy include Grace Tsujikawa, Darby McQuade, John Hawkins, Leonor Ferrer, Laurie Snyder and Andy Wilson.

Key Idea #4 . Direct mail is extremely efficient.
When you take time to build a database, mail is the quickest and cheapest way to reach both customers and propects. Adding telemarketing to a direct mail campaign will increase results dramatically.

What do you think?  Why is advertising mail good for small businesses?

Answer: Because everything can be tracked. If something works you keep doing it. If it doesn't work, you change. You can change the list, the message, the offer or the timing of the mail. The cost per sale can be closely calculated which is why this appeals to conservative small business owners. 

You can learn more about direct marketing from John Wargo, Bob Orenstein, Donna Baase, Jim Morris, Sue Callaway and Bill Hagstrom.

Quote: Don't take employees or their work for granted. Puff up their egos when their work warrants it. Blast them when they fall down on the job, but don't just ignore them. -- Ted Frost, The Second Coming of the Woolly Mammoth

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