Notes on Business Success 2009
1. Do what you do
a. effectively
b. efficiently
c. develop sufficient capacity
2. Make sure your product or service:
a. meets needs
b. meets wants
c. meets budgets
3. Make a compelling argument / marketing
Brushed VS Brushless??????????
What's the big difference? The main differences are that a brushless motor is close to 30% more efficient than a brushed motor. This means 30% more range/distance. The main reasons that brushless motors are more efficient is that they are microprocessor controlled in the same way that the magnetic levitated trains are, the microprocessor reads where the motor is and tells the next electro magnet to push it along. Also brushed motors lose much of their power due to heat loss at the brushes that rub on the shaft.
Now with us in a gas crunch and to be honest I'm not a tree hugger or anything but I see pollution in many many forms all day long and I am really tired of it. The hub kits added on to your bike will drive you about 1,000 miles for the same price as a gallon of gas and not produce the gasses your car or truck puts off.
I am 38 a little out of shape and about two years ago I went to the bike shop and bought a good mountain bike to ride around on and get more exercise, I got it home and ride it for a week or two, then rode it again a month later then 6 months later it was in the garage, tires flat and dusty.
I realized that the ups and downs of hills, wind and stuff that didn't bother me as a kid DO now. But I dearly missed riding down the street on my bike , going on long rides, smelling the different trees, seeing different type of terrain that you cant see from your car. So I set out to find a solution.
I tried many different types of electric bike kits and to be honest they were all very similar but the price from one to the next was insane!
All of the designer brand name brushless hub motors are all basically the same with the exception of the windings and bearings. The windings inside the motor simply determine torque or speed, much in the same way gears do and the only other thing was the bearings, but the kits vary in price from $400 all the way up to $1300.
 | jackddeal Part of the "executive package" is that the Chamber of Commerce executive director must raise money to pay herself. |  |
| | jackddeal Hence, the ubiquitous job postings for Chamber Executive Directors. | |
| | jackddeal As their cash flow has diminished, the Chambers' ability to hire and retain good staff had diminished as well. | |
| | jackddeal So in effect the Chamber Mixer became a big "let's sell to ourselves" exercise, as rarely do non-Chamber members attend the mixers. | |
| | jackddeal New Chamber members were told to bring their "pitches" and stack of business cards and hand them out at the mixers; a true sales fest! | |
| | jackddeal The badly maligned "Chamber Mixers" would help serve this referrals networking function. | |
| | jackddeal In the 'old days' most of the better local businesses were members of the Chamber of Commerce but today that is no longer the case. | |
| | jackddeal Actually this Chamber referral source idea died in the 1970's and 1980's and was in reality not a member benefit by 2000. | |
| | jackddeal local consumers were looking for businesses and a good way to find reliable businesses was through the local Chamber's member list... | |
| | jackddeal The "Buy Local" programs have simply become obsolete as the concept of local has lost its meaning. |
The Search Marketing Expo SMX East agenda -- featuring more than 50 sessions -- is now posted. We've organized the program to make planning your conference experience easy.
See all of the tracks and sessions on the SMX East Agenda-At-A-Glance, then dive into the details by clicking to the descriptions on daily agendas.
For beginners, the conference starts off with the SMX Boot Camp, which
is comprised of five search engine marketing fundamentals sessions. Boot Camp is designed for beginners who need to understand all of the key areas of SEM including keyword research, copyrighting for search, paid search fundamentals, link building and search friendly design. SMX East conference chair and Search Engine Land Editor-In-Chief Danny Sullivan moderates the Boot Camp. Check out all of the details here.
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Once you're finished, you'll be ready to attend the nearly 2 full days of other SMX sessions on the agenda. The Boot Camp takes place on October 6&7 and is open to All Access pass holders.
Do you work as a search marketer for your company? In House Day on October 8 focuses on the challenges unique to marketers in companies. You'll learn how in-house SEMs are succeeding in their organizations by communicating across departments and demonstrating results even the CFO can follow. In House Day is being programmed by Jessica Bowman, who's started in house SEO programs at Enterprise Rent-A-Car, Business.com and Yahoo! Inc.
Check out all of the details on In-House Day here . This program is open to all All Access pass holders and October 8 All Access day-pass holders.
Register now for SMX East and you'll pay just $1195 for all three days of sessions, keynotes and networking activities -- that's $400 off the on-site rate.
Come for SMX East and Stay for Bruce Clay, Inc.'s SEO Training!
SMX attendees will have the opportunity to attend one of the most respected SEO training programs in the world for a special discounted price. On October 9-10, industry leader Bruce Clay, Inc. will host a two-day training seminar for businesses, tapping into the company's decade-worth of experience in successful Web site optimization.
Attendance is capped at just 70 seats, so sign up early to guarantee yourself a spot.
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Register for SMX now and you'll get 3 free months of SEOmoz.org Premium Membership* - a $147 value - with your one year subscription. SEOmoz Premium Membership features tools and techniques to improve your search rankings. Join thousands of other search professionals who rely on SEOmoz Premium Membership for exclusive access to invaluable SEO tools, tips and instructional guides.
* Already an SEOmoz Premium subscriber? We can't add to your current membership, but look for special discounts for future SMX shows at SEOmoz coming soon!
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The nasty word 'spying' conjures up images of hidden cameras, microphones and James Bond. "Hey, watcha doin', spying on me"? For some reason one is supposed to feel very much intimidated by being spied upon. A big social issue in the United States is how much surveillance should be "allowed" by government and business?
Certainly in business big thefts do occur. Employees sell trade secrets, foreign spies dig through dumpsters and hackers break into computer networks. But for most businesses, all that is Hollywood, James Bond and Technobabble.
What isn't Hollywood is that all businesses need to know certain information and data such as their current market position. To obtain this information one has to have data about the competition, something many competitors will not give out freely or willingly.
But no need to bother Mr. Bond at the roulette table as most of the information you need can be had by simply looking.
Seek and ye shall find or, if it sounds more intriguing, you can call it spying. Most of the information you need is available but you just need a way to access it.
First you have to know clearly what information you need. If the information is not relevant, it isn't of value. Once you know what is needed you can develop a plan.
Go first for the easiest and quickest which is the Internet. What you need to know may be posted on a website or blog. Easy, fast and efficient. Google and Yahoo the business and personal names of your competitors. Try some other search engines or meta search sites but start with the big two.
Make a digital file folder where you can put the information and keep it handy and available. A spy's worst nightmare is to have important information but not know where it came from.
After going online, pick up your phone. The phone is a great way to find specific information quickly. When you need a specific bit of information, try phoning.
It's also a good way to help you 'fill in the dots' when trying to determine a competitor's strategy. Always make sure you look at pricing and staffing; simply looking at pricing and strategy often reveals strategy.
Surprisingly, many employees will freely tell you whatever you want to know. Learn from this and make sure your people don't dish out confidential information. Make sure you know what your people are saying and they know what not to say.
If you are looking at a competitor's strategy, put the pieces you can get and see if you can fill in the blanks and connect the dots to form the strategic plan. Look at each competitor as a project and build your intelligence over time. You will be amazed at what you can learn in several months.
You will also be amazed at how quickly information can become obsolete. The rule is everything changes and the relevancy of your information dates from your last update so keep working on it whenever you can. Online it is called a 'refresh'.
Oh, and by the way, while you just happen to have your five senses directly focused why not see if you can learn something too. Maybe it's a marketing trick or sales approach or different way of packaging your product and service.
If you find a better way of doing things, do it. He who hesitates here is lost in mediocrity...or someplace like that.
Now that we have opened up Pandora's Box you might as well jump in. Jumping is the key to successful entrepreneurship. Call it curiosity or call it spying or call it whatever you like but knowledge is power and knowledge can give you an edge.
And if you really think about it, what's not to like about having an edge?
If you sell a product or service you will get complaints.
Resolution is the word used when we describe the process of successfully handling those complaints. The complaint process you set up determines how successfully your company resolves complaints.
The first step is to develop an attitude that complaints are problems that often are a symptom of some type of flaw or defect. Because it can be very subjective, complaint resolution is not always a matter of right or wrong.
Some complaints are groundless but others can reveal internal problems that may be costing your company.
Time is a key in dealing with any complaint. In general, complaints that are dealt with rapidly tend to get resolved rapidly. A rapidly resolved complaint is a cheaper complaint.
Quick responses can often avoid confrontation and confrontations are seldom good for business.
First, listen to the complainer's side of the story. Put special emphasis on how they feel. This can provide another perspective on your business. Even though it may be difficult, try to show empathy even if you do not admit guilt.
Ask them what you can do to make them happy. Often their solution is the cheapest and it might give you insight on how to fix a business defect. Also they really can't complain if you follow their suggestion.
Who can complain when you give them what they want?
Determine how the problem happened and how it can be prevented. Don't jump to conclusions before you have all the facts.
Don't assume the customer is crazy or wrong just because they complain; keep an open mind to the remote possibility that by golly it just might be your fault.
Don't take it personally...look at the issues objectively and control your emotions. This can be difficult if someone is questioning your integrity and calling your mother nasty names.
The fact is customers can be jerks. Some appear to get their jollies by complaining and giving you a hard time. Whatever you do or say is not enough. They hold their noses as if they can't stand the smell, even though they are smelling their own feet.
You know the kind; they want to get into an argument with you about why the manufacturer doesn't make just what they want.
It's not as if these jerks have anything else in their depraved, petty lives they could be doing other than pestering you.
Why in the world is this nitwit arguing with you about the engineering of a product and all you do is carry it? Get a life, pea brain.
You can't control the fact that some people are jerks. All you can do is control how you react to jerks. If you get upset and angry then you lose. The jerk has won.
Words might also be hurtful but the reaction to them can be controlled. Take it with a grain of salt and for your sanity maybe deflect it with some humor.
"Why sir, let me see if I can get their engineering department on the phone right now to address your concerns though I think they are all asleep in China right now." Nitwits.
Laugh it off and don't get jaded. Don't let the jerk determine how you will react to the next customer. That is what we see in today's marketplace; too many distressed and depressed employees.
But most people are OK; they just want to be treated fairly whereas the jerk wants to be treated special. How about a 75% surcharge on all parts and labor for the 'jerk factor.'
We all get behind these jerks in the check out line. They want to argue with the poor clerk over something the clerk has no control. But fortunately most of us aren't that way because if we were no one would ever make it out of the store.
There also comes a point in every business' development when they have to simply say "we chose to not do business with you because we always lose money whenever we deal with you. Besides, you are a big jerk and a pain in the posterior. Have a nice day."
Is there a law against it?
This one simple tactic can do more to reduce headaches and improve the bottom line than any complaint resolution process. Maybe it's time you just stood up and fired all jerk customers.
Handling that complaint professionally can make your business run more smoothly and keep your hard earned customers...if you get really skilled at dealing with complaints you might even bring in some new business.
Just make sure to stay close to the chase and take the pulse of your customers regularly. After all, most customers don't complain, they just go somewhere else.
The new entrepreneur is not content with just buying a job; her business and personal goal is not to work hard and make a living in the 'traditional' sense. She understand that it's better to become an employee of someone else than to run a mediocre, stressful and problematic business. Besides, mediocre business is no fun.
Mediocre is just not interesting and not acceptable; much pain, little gain. With little or no potential, why even bother? Thus the appeal and potential of the new hybrid business models which are based on results and not just working harder.
These new business models can be called hybrids because they evolve and combine more than just one business idea or concept. The success of companies in the future will depend on their ability to utilize and adapt multiple ideas and concepts at once to create value.
The bad news is the hybrids are more complex and the strategies more tedious to implement; the good news is a world of new marketing opportunities opens up.
In terms of the model infrastructure, technology is the key driver. The capability to creatively combine technologies for new applications in the marketplace is creating a new series of 'hybrid' business tools for the entrepreneur. This open way of thinking helps owners and managers apply new methods to old processes and gain competitive advantage, even on a local level. Public Relations is being replaced by internal marketing.
The clearest advantage of a hybrid model is low cost expansion of the targeted market. No longer relegated to just local sales and marketing, the new hybrid models look to a mix of local, regional and world markets. Success is now defined as the matrix of the right mix and match across markets for profitability and growth. The new hybrid models all look to new and expanding revenue streams; it's all about strategy and process.
These hybrid models are not only proactive but also results driven. If a marketing campaign is not working, the new model says either fix or replace it.
Since traditional media are bringing in a reduced return on investment (ROI), more internal, guerrilla and Internet based marketing is used. The new entrepreneurs do not contract out all marketing because they create most of the marketing themselves.
These hybrid business models are designed to grow and expand. By leveraging technology the new entrepreneurs make sure they get the data and information they need when they need it.
And since they just are not content with 10% gross margins, these hybrid models have built in feedback and ongoing research looking for ways to expand and grow with minimal capital and debt. Many of these companies can plan expansion with little capital outlay. The quest is constantly one of tapping into opportunities and for new and expanding revenue streams.
This growth may also require diversifying into new products/services or expanding into new locations but not necessarily major franchising, maybe three or four locations. Slow and steady is the course and these new models are a bit averse to rapid and unwarranted risk.
Since working capital is often used, expansion is OK if it is a sure thing or as sure a thing as one can anticipate in business. Each small expansion is a calculated winner.
Almost all these of these new models have mix and match products and services to fit specific customer/client's needs, a customization the customer cannot get elsewhere. As this creativity drives customer value an increasingly clear distinction is made from the competition.
If the perception is relayed successfully to the target market and the price versus cost analysis is positive, then the conditions are conducive for a successful sale and transaction.
But the new hybrids also bring new challenges.
Not all employees are appropriate for these new models so the new entrepreneurs look for employees that 'fit'; they understand a good employee is a productive employee and not just a time and space physical presence.
The key is to provide opportunity and the chance to learn and develop especially by developing those skills needed in the new hybrid business models; for example, working with computers and dealing professionally with prospects and customers at the same time.
The bad news is the new hybrid models are multidimensional and are also driven by a time factor meaning they can be unwieldy and at times very frustrating. The good news is a good hybrid business model can offer a powerful series of strategic advantages enabling today's entrepreneur to develop new products, services and combinations to deliver increasing value across an expanding marketplace.
What's not to like about that?
Like many Silicon Valley entrepreneurs Joe had a dream. Joe's dream had been incubating for a decade and he was finally ready to move. He had his infrastructure set, his marketing plan complete and he had done his homework. Joe's dream was a plan ready to be executed.
Like many others, Joe's dream involved selling his products by e-commerce on the Internet. As we mapped out Joe's strategy we also did some preliminary budgeting, especially for the e-commerce site. I knew a good site could run $5,000 up if designed from the ground up. Many e-commerce services, such as those offered by Yahoo, run from about $30 a month up. Not bad but not much flash. Since Joe was in the design industry, flash was important.
We had even whiteboarded out how he could sell online and each transaction would be automated into QuickBooks and his profit and loss reports. As his profits rose exponentially his biggest concern was how to keep track of his profits. I cautioned Joe about reality but did not want to dampen his dream. It was his passion.
Joe's current business would support him through this transition but his available working capital was limited since he rented a rather large office and production floor. His high overhead was one reason he wanted to sell online. But with limited capital he had to make every dollar he spent work.
When I last spoke with Joe we had pretty much nailed it all down for his new online e-commerce venture and except for some of the marketing collateral, he had a viable plan. I left for another project, Joe to his good fortune and did not hear back from him for several months.
When he called he apologized for not having been up and running. I laughed and said it's his business, not mine so no need to apologize. He said he had the bright idea of going offshore to India to get a cheaper deal on an e-commerce website design. He did contract with an Indian firm for a little less than half what a Silicon Valley e-commerce designer would charge.
Joe paid the full amount by credit card before the work had begun. Mistake number one but for Joe it was 'cheap'; it wasn't even for him a matter of price vs. cost. For almost two months they strung him along but in the end produced nothing and refused to return his money.
What could Joe do? He could file a fraud complaint with his credit card company and they could pursue it through the credit card system. But if in fact the web design company was simply a front, then they will scam all they can and when the law gets too close just shut their scam down and reopen under another name and another merchant account. For Joe to pursue his case in India would probably cost him more than the fraudulent web design fees he paid.
Eventually Joe may get his credit card company to shut down the fraudulent merchant account but these scams are set up to shut down and restart. How do you go after a non-existent company in another country with lax laws? Unfortunately it's a bit late after the fraudulent transaction has occurred.
Joe will recover. He will work extra hard to replace his working capital but the whole scam will prove a costly one. It will set his project back two or three months and in e-commerce time is money.
Joe clearly made several mistakes in trying to save money. Had he only made just an initial payment his loss would not have been so much. Joe was impressed with a fancy website and fancy fake demos. Had he done a bit more research on his scam outsourcer he would have seen the light quicker.
But Joe was a bit greedy and felt he could leverage his investment and get more Return on Investment (ROI). He learned the hard way. There are probably several hundred companies within 20 miles of Joe's factory that could have done the job for him. True, at two or three times the price but the actual cost would be less. Joe's mistake was not taking a little more time and examining a good development plan with a reputable company. This process is commonly known as 'due diligence'.
Joe learned that a great scam is not only too good to be true but a 100% loss.
Ceramic Artist: Like most professional artists I hope to break even. That includes the small studio I rent and sleep in and my half workshop here in this industrial park. To make your living as an artist stinks and I would not want to wish it on my worst enemy. It is the price I pay for not doing the corporate thing. I know. I would still make the same decision.
Computer Repair and Networking: We have a hard time recruiting good people. Good people for us have a wide array of computer expertise; what we mostly get are applicants that have deep experience in one area. We have fewer and fewer single user residential customers. We do mostly commercial systems and with those you can't sit down and spend hours trying to figure out what's wrong. You have to have a sense of where to look quickly or the customer gets upset.
Antiques Dealer: We are trying to get out of the business. We are selling off our inventory little by little. In the last five years the industry has gone way down. Maybe it's everybody trying to do it...maybe it's the TV show Antiques Roadshow. We did it for 15 years and did OK but not great...at least by selling off our inventory little by little we can make more. It just takes time and it may take us several years.
Coffee and Hot Dog Shop: With the college students back things should pick up. I broke even the first year and consider that a success. Wouldn't you say so? But my secret is my dear wife is supporting us while I pursue my dream here in the coffee shop. I'm a biologist by trade but never got used to sitting behind a desk.
Custom Guitar Maker: Business is good I'm booked way up. I sell upper end and there seems to be an unlimited demand for the very best. When I go, my skill will go with it. I haven't found anyone serious enough to apprentice. I've gotten very high tech and very old artisan and that's my niche. Seems to work for me.
Custom T-Shirt Manufacturer: Business is steady though it slows some in the winter. I intend to expand my lines and sell more on the Internet. I think the Internet is the way things are going more and more. I can get more of that retail share for each unit I sell direct. My secret is ecological and children. That's it. No more. Stay tuned and watch us grow.
Custom Car Restorer: There's still good money if you build the reputation. I'll often sub out to a custom outfit and do work for them. They pay top dollar and don't pressure me so I can pace myself. I'll usually do most of the work in several weeks. Then it's just touching up. You have to love the work though. It's not for everybody and even if you're good you most likely won't get rich.
Truck Rental Company: We try to go up against the big guys and it's not easy. They've got all that name recognition going for them and all the corporate cost breaks. As an independent I pay top price for anything I need. We need the same things but they can buy them cheaper. I have to charge less as well. So my margin is thinner and they are happy if I don't grow and compete.
Used and New Goods Reseller: The locker auction business tanked because so many wise guys were buying lockers and getting rich on E-Bay. Right. So the price is high and the goods mostly junk. I end up hauling a bunch of junk if I buy it. I've got plenty of stuff now...so does everybody I know. So we stopped buying from each other. With my better pieces I'll hit some of the local antique shows. It's hard to get top dollar for anything anymore so I'll get what I can.
Web-site Designer (Mid-Level). We started out doing mom and pop sites but in the past few years we have gotten into corporate designs and e-commerce sites. We bring the design and function to the table and the client brings their business marketing ideas. Together we come up with an optimal design; we usually give them several good choices. Almost always the client loves our designs but we get a few that insist on an 'ugly' alternative.
[2.29999 Million More Reasons Next Issue
Since we cannot accurately define business culture many owners and managers think it is all hot air. Think again. Just because we cannot define something precisely does not mean it does not exist. (Think of the word 'justice'.)
Yet business culture is becoming more recognized as a real business concept. Think businesses that you know. Do these businesses have a 'feel' about them? Is this feel positive, negative or something else?
Even though we cannot accurately define business culture, we can make some helpful general observations:
Just because it is not easy defining business culture does not mean it does not exist. We humans are social animals and do not live in a vacuum. Most humans have a intuitive sense that feeds their perception. Perception becomes reality.
Are you satisfied that your business' perception is also reality?
Most businesses start with an idea that involves doing something for a profit. When one does something for a profit, technically one is in business.
Someone figures how to do something better, quicker, cheaper, faster. The basics or underlying dynamics of how this business idea works is called the business model. A more explicit and detailed description of the model is called a business plan.
The first step is the model and it is the most crucial. If the business model cannot generate profitability, it won't work. If the assumptions of the model are wrong, it won't work. If the model is incomplete, it won't work. If the model needs financing and has no way to get it, it won't work. And so on.
So getting this first step right is imperative. Get it wrong and the business goes in the wrong direction and probably all is for naught.
On the other hand, if all goes well and business plan looks viable, the new venture is off. Most businesses start small with the owners working and maybe adding an employee when needed. As a problem is encountered, it is solved and the quest continues.
Layer upon layer of solutions and process are thrown together and at some point it becomes obvious it is a mish mash and there has to be a better way without reinventing the wheel. And there is.
It's called best practices and it means the best way of doing something. It's what successful businesses know and do making them more efficient and effective in delivering value. Those businesses that do things less efficiently and effectively deliver less value, are less competitive and eventually go out of business. They don't get to play the game.
Best practices is sometimes also known as infrastructure and it simply is all the support systems and processes needed to carry out the company mission and business plan. These can include communications, technology, software, accounting, human resources, sales and marketing, strategy, etc.
Businesses that do their homework well and join together their business model with good infrastructure and best practices create the potential to grow. It's as if getting the business model and the infrastructure right is a ticket to play in the big game. Whether you agree or not, those are the facts.
But also note that nothing is guaranteed. Nor implied. Simply being in a position to grow does not mean growth and success. But at least at this point one gets a ticket to play the game.
Conversely, if a business does not get the model and infrastructure right it cannot grow and generate significant assets. If profitable, it will only be marginally so.
This company does not get to play the game. If your company is stuck in the business model or infrastructure black hole and can't get out it's probably best to consider downsizing and reducing costs. Stay with quality and there will be some margin. Not much growth potential, but hopefully some margin. Or look for a job.
But if you and your model are savvy enough to get to this point you will then want to develop your growth strategy.
The emphasis on growth almost always focuses on marketing and human resources.
In the marketing strategy there has to be a feedback loop to let management know what customers and clients are thinking. This feedback loop creates the basis for innovation and delivering more value.
In human resources the issue is productivity and how to reward it.
Relax. All of this is really not so complicated.
What is deceptive is how much perseverance it requires to execute a business plan. The sheer volume of problems and obstacles makes it more of an endurance test than an obstacle test.
But not to worry. Breaking each problem down into components and working on each component is a very quick way to get results. Piece by piece.
It is especially important to manage your cash flow in this growth mode. Watch the receivables. Many is the company whose growth was out of sight but poor cash flow did them in. If you are on a path to fast growth, be sure your projections include end of month cash balances.
It is also helpful to run through some scenario plans. What is the best case and worst case scenario for your strategy? Usually the end result is somewhere in the middle. Usually. Often by looking at scenarios you gain insight so it is well worth the effort.
Managing this growth you have created is the next stage. It can be fun, exciting, profitable, frustrating, impossible and fruitless; and sometimes all at once. Managing growth is a series of juggling acts that attempt to keep many balls up in the air at once.
As unappealing as it sometimes seems growth is where it's at in business. Growth is good. Growth is fun.
How long until your company can reach the growth stage?
Some newer tech and Internet companies can mature to a growth stage in several years. Older, traditional service businesses may take a decade or more in the trenches before hitting a solid growth stage.
But even with growth in the end there is always the end. The owner that anticipates how she would like to step out of the business is the one that is not surprised in the end at what happens. By not focusing on your outcome from the beginning you simply take your chances. There is no middle ground.
As the competition thins, strategy is where the real competitors duke it out. Those companies that align their model, infrastructure and strategy in place hit the market sweet spot. Their growth can be exponential. It is not only possible but probable since they have done the basics well. They have the foundation. If their business model is solid they are off to the races. It becomes a matter of executing the business plan.
At any rate, there you have it. It doesn't always work this way but it usually does. Each business is unique and circumstances may vary. This is the way the percentages break out. Like or not, those are the odds.
First find out where you are. Then what do you want, and then how do you get from here to there?
Few words bring such strong negative reactions as 'business meeting'. As companies analyze their meeting times against results they often throw up their hands in disgust and conclude that meetings are a waste of time and of no use.
Not so fast. While it is true that not having a meeting may be better than having a bad meeting, it does not follow that the business meeting itself is to blame.
No matter how good the idea, if those that execute the plan fail then the project itself fails.
'It's a bother, it's a pain, so little gets done, same old stuff, nothing ever happens, it's always a bore, it lasts too long, and all we do is sit and listen to one or two people drone on about the company's woes.' Whine, whine, whine. Case closed.
And that's the most difficult part; overcoming apathy and boredom from employees and managers that are jaded after continued exposure to bad meetings. It makes starting a meeting difficult and gaining momentum from that meeting even more difficult.
The best place to start is to determine what results you would like to have from the meeting. This will guide you in determining the agenda.
The agenda should be written with a time allotted to each item. Meetings should rarely go over an hour especially if they start on time. Start exactly on time and you will ensure promptness at the next meeting.
After each agenda item put the person responsible for reporting or moderating that agenda item so that someone 'owns' that agenda item. If you are first starting business meetings make it a goal to spread the agenda items out to different meeting participants.
The first agenda item should be something light and not nuts and bolts financial. I like to bring up items such as image and attitude here. The last agenda item should be the next meeting's time and place.
Don't overload the agenda with too many items or too many heavy stress items if that is avoidable. If the business meeting becomes too negative it can dampen whatever enthusiasm it generates.
Some agenda items can be 'rolled' over into the next agenda. Try to vary your agenda items for each meeting to keep the agenda fresh. That also means you should be discussing relevant and current topics.
Plan your agenda to end on an upbeat note. You really want the last impression of the meeting to be a positive one. If the meeting ends on a sour note it will leave a sour taste.
If participation is important try to get each person present in the meeting to say something. This may be difficult at large meetings but in smaller groups it creates the impression of being a part of the meeting. Meeting participation can be a goal itself.
Some people tend to speak more than others so don’t let one or two people do all the talking. Especially you.
It is best to have a moderator or leader. This person is responsible for opening and closing the meeting as well as making certain the agenda moves along in a timely manner.
It is possible to rotate moderators from meeting to meeting. This depends on the meeting participants, their capabilities and their willingness to participate.
Do not expect too much change too fast. It has been my experience that it might take several months of weekly meetings to reach desired results. And it is best not to create unrealistic expectations up front as they may sabotage your efforts.
It's OK to disagree and disagreements often make for excellent meetings. As the moderator, it is your job to maintain calm and control. If everyone is yawning a good disagreement might even wake them up.
After each meeting do a self-evaluation on how the meeting went. What could have done better? What went right? What did not go as expected?
And stay persistent. It is very hard to change either individual or group behavior and that's what meetings are mostly about. Some call it behavior modification but perhaps changing the range of behaviors is more appropriate. Some call it training or education. And sometimes it's art and sometimes it's science but seldom is it predictable.
Often it doesn't always work as planned. If you have a bad meeting shrug it off and see how you can improve the next one. Also try to stay in the right frame of mind and perspective so you don't get frustrated too quickly.
There is no right or wrong way to have a meeting; just ways that make meetings more effective. The best strategy to make your meeting effective is to open it up, do what it takes to get participation and work through a relevant and prioritized agenda.
Go with your gut and don't be afraid of taking small risks to keep momentum. Even if you flop folks will see you are sincere and good things will happen.
The results just might surprise you.
Business is serious stuff. Costs must not exceed revenues. Employees must be hired, fired, reviewed, evaluated, compensated and motivated. Managers must walk the tightrope of viewing employees both as resources and costs.
Why is it that when we call or walk into a business we often find stressed, grumpy, resentful employees? Why do employees often say their jobs are not fun?
Part of the answer may be in the true seriousness of the workplace. Economic stability, careers and retirement are on the line. Maybe the atmosphere has gotten a little too serious: 'if we don't get this contract we all should start to look for another job,' ' If we don't find a way to compete with that big chain we are toast', and 'All our best customers are going to our cheaper competitors'. These are serious issues...everyday serious issues.
What is the normal reaction when a manager tells an employee 'unless we get more sales, we won't make payroll next week.' More often than not the reaction is one of simple worry.
What is clear is that a business' bottom line and balance sheet correlate closely with their attitude or company culture. When employees hang their heads it is usually a good indicator of the company's performance. The impression depressed employees give is one of trouble or internal problems.
Yet the hard facts of cash flow and competition cannot be ignored. There are no quick fixes to this business seriousness syndrome. The following are a few suggestions on how to make that happen:
Humor is one of the highest and most complex of all behaviors. Humor not only makes good business sense but is one of the great spices of life.
Ask yourself, is your work fun?
Jack D. Deal
Spying. The word conjures up images of hidden cameras, microphones and James Bond. In business this sort of thing does happen. Employees sell trade secrets, spies dig through dumpster and hackers break into computer networks. But for most businesses, all that is Hollywood.
What isn't Hollywood is all businesses should know their market position. To know this one has to have information about the competition, something many competitors will not give out freely. But no need to call Mr. Bond just yet.
Most of the information you need is available but you just need a way to access it. You also have to know clearly what information is of interest. Once you know what is needed you can develop a plan.
Search the Internet first and look at what is public knowledge. You may find all or part of what you need online.
Next, if you are on speaking terms with your competitors, you might just ask them what you need to know. Take them to lunch. If you are a nice and pleasant person you may instill confidence and make staff relaxed.
You might try the telephone. The phone is a great way to find specific information quickly. Additionally, many employees will freely tell you whatever you want to know. Learn from this and make sure your people don't dish out confidential information. Make sure you know what your people are saying.
Build your intelligence over time. You will be amazed at what you can learn in several months. You will also be amazed at how quickly information can become obsolete.
If you are looking at a competitor's strategy, it is relatively easy to take the pieces and come up with a strategic plan. Keys to service are pricing and service quality.
Keep anything that is printed for future reference.
Look for process; how they answer the phone, how do their people approach a prospect, what kind of computer technologies do they have in place.
And finally, practice, practice and practice. Business intelligence does not have to be a cloak and dagger affair. Most information is readily available for the taking.
What you don't know can potentially beat you. Forewarned is forearmed.
Jack D. Deal
The start-up phase is arguably the most critical; if new ventures flounder they normally don't make it. Usually this is a result of poor strategy and execution and this is why so many new businesses fail.
Once the business is established and supporting itself there is often a period of steady growth. This is due to newness, pricing, energy level, etc. If the strategy is correct this growth is natural and surprisingly easy. Many owners and managers get lulled into the impression they are so good it will always be easy...
A critical point is reached when this natural growth stalls. Many companies literally suddenly growing and continue business with their current markets. At this point ownership and management become very articulate at explaining why things cannot be improved. A comfort level is reached and a slow downward decline begins...
At some point this decline begins to be felt in ways such as cash flow problems and employee discontent. The dynamics that have brought the company to this point have changed. Owners that let their businesses decline are in essence buying back their own equity. The status quo simply erodes equity. At this point ownership has two options: sell or exit the company or redesign it to become competitive.
Sometimes hard decisions must be made. One of those is what to do with employees that have been loyal but no longer are appropriate. Management must take decisive action to reach a tipping point...
A reorganization or 'retooling' may bring growth and competitiveness back to the company. This will continue until another crisis point is reached. The ultimate measure of success is how the company deals with these opportunities and threats...
If you are the owner, it's your equity...
Jack D. Deal
Every business must deal with quality. Every business strategy determines just where the quality line goes -- high, low or in-between. Where this line is placed often determines the difference between success and failure. Customers may leave a business for poor quality but they can also go to another for a better price. But just how does the entrepreneur know what to do?
In one sense this is the easiest quality question to answer: just ask your customers. Just ask what do your customers want and what do they need. Wants and needs change constantly so you must keep asking the question...even put it in part of your business plan. Sometimes wants and needs are the same...but often they are not. As part of your ongoing dialogue it is important to know just how much your customer is willing to pay for quality. If your customer wants it but cannot affort it, you must figure this into your strategy.
The next step is to determine just where your current quality line is. Regardless whether you have a concious plan or 'unconcious' plan, you do have a quality line. Those businesses that have a clear idea of where that line should be can then try to bridge the gap. Simply by taking a hard look at where you are and where you should be creates awareness and focus.
One good excercise here is to determine just where your competitor's put their quality line. What results are they getting and how is their quality line perceived? Are they providing you with an opportunity to take some of their market share?
By looking into your industry's quality issues you can see that improved quality involves increaased costs. Before adding costs make sure the increase in perceived benefit will be apparent. Since all costs go to your bottom line, make sure you are getting a good return on investment.
One cost controller is simply looking for all the ways to reduce costs. Another is to look at doing things that enhance quality at little or no cost. Employee input is important to monitor; especially with those employees that have direct customer contact. Do you have ways to reward employees who contribute to quality improvement?
The astute owner or employee is always on the 'prowl' for new quality improvement ideas. This includes looking for ways to apply quality concepts from different industries. But what may be working today most likely won't work very well tomorrow.
The competitive nature of business changes so rapidly there is no rest for the weary. By constantly working the balance between quality and costs the modern manager can improve the bottom line and become more competitive.
Jack D. Deal
Once a year you should do a thorough analysis or review of your company to make sure you are staying on track. As a general outline you can follow these 10 categories:
1)Management and Administration: your strategy, supervision, delegation, accountability, accounting, human resources, payroll and benefits, risk, legal, cost controls, decision making, growth, data and records, responsibilities
2) Operations/Production: your processes, standards, labor, tools, equipment, parts, facilities, materials, vendors, independent contractors
3) Sales and Marketing: how to find prospects that become your customers; sales presentation and marketing materials
4) Technology and Applications: how can technology be utilized to optimize your key company functions; hardware, software, industry specific applications
5) Company Culture: how your company is perceived by your employees, customers, vendors and the local and cyber communities; what is management willing and capable of doing. How are training, learning and education perceived? How is your image and morale?
6) Priorities and Budgets: what is most important, when is it needed and how much does it cost; cash flow management
7) Short and Long Term Goals: short term is within a year; long term is next 1-10 years. Where do you plan to be?
8) Execution: what do you need, how will you carry out your plan and how you will monitor your progress toward your goals
9) Ongoing Development: what reviews and new developments are necessary to maintain growth and improve?
10) Overview and Summary: the big picture or how your business model matches your goals; what are your short and long term strengths, weaknesses and opportunities.
The list above does not include everything but it does cover the basics. Remember that every business is unique so the challenge is to find out what applies to your business.
Here are a few more pointers before you begin:
A) Most businesses find it impossible to be objective about themselves so they look for an outsider. The analyst is neither an employee, friend nor relative. This prevents one's self interest from influencing the final report.
B) Request that your outside analyst tell you what you need to know and not what you would prefer to know. Don't waste your time and money if you don't really want to know. Also ask why bother if you won't change anything once you do know.
C) Make sure your analyst interviews your key people and submits a written, detailed report. If they don't interview your people, how will they know? If you hide things from the analyst you will get back a skewed perspective which will be reflected in the final report.
D) When reviewing the report, ask questions until you clearly understand each point. If you do not understand something then the report will be of less value for you and your company. A good analyst will answer your questions and not ridicule you. A really good analyst will chastise you for not doing what you really should be doing.
What is the net result? Unfortunately some businesses actually go through the process of a business analysis and then ignore the observations and suggestions. This of course makes no sense.
What does make sense is to take the results of your business analysis and modify your current business plan to make it more effective. This is what a business analysis is all about; this is what is in it for your company.
From the analysis you can focus on those activities which will have the biggest impact and results such as increasing sales or reducing costs. Also look for improvements that are free, cost little and can be done quickly.
The biggest obstacle to improvement and growth is overcoming that initial inertia; if you remember your physics, "an object at rest tends to stay at rest." The business analysis provides the ideal platform from which you can get going if you stay consistent with your plan and focus, focus, focus.
And that can also make things a lot more fun, too!
The fact that we are undergoing a full-blown business revolution is obvious. Only those lost on a desert island could have missed this simple fact. A good example is an industry most of us use as consumers - insurance. Even if you find no appeal at all in insurance -- it still might prove very useful to see how fundamental changes in the business world are affecting one of our largest industries. Although insurance is one of the most profitable industries with net profits running up to 30% and beyond, not everyone is making that kind of margin. The transformation of the industry means that a strategy ten, five or even one year old may be obsolete. Obsolete strategies often mean poor margins.
In the old days your local agent pushed auto insurance as the main product in their portfolio. That is no longer the case. Even in states like California where auto insurance is mandatory -- brutal competition, regulations, and continuing changes have made auto insurance less profitable for companies. Those agents that used to make a good living selling auto insurance now find themselves with slimmer margins and increased operating costs.
Simply providing a quote for auto insurance has become a cost factor. If you call an agent they will often require a series of documents and information before giving a quote. Since many prospects are shopping for price, many agents will no longer give out 'public' quotes -- you have to have a current policy with them before they will give a quote. Or they may do a phone interview to 'screen' out prospects that waste their time. Since they don't make much selling auto insurance, they don't push it. Others have taken the approach of using auto insurance as a 'loss leader' to get to more lucrative types of policies such as homeowners, life or commercial insurance.
Some agents have found it is best to use a number of different carriers allowing them to offer the best plan for their customers. By providing the best value and service agents are beginning to build their businesses around what is best for their customers -- not the individual insurance company. So, if you call an agent and ask what type of auto insurance they sell, they may not tell you or they may tell you 'we carry a number of different lines to best fit your needs'. This is causing some concern as better agents tell companies they are not going to exclusively carry their insurance. This is putting pressure on the companies to rethink their old policies - maybe exclusivity is not the best plan for the future. At least for some companies.
Infrastructure and support costs are also hitting agents very hard - just as in the legal and medical professions. Don't be surprised to go into a 'big office' and find no one there. Some agents, like many professionals, have decided the costs are too high and have reduced their staffs and offices in an attempt to reduce costs. So you may call an agent and get a recording. If you speak to an agent you may find you cannot 'drop by' because they are 'closed' and do not have walk-in traffic.
So how do agents conduct their 'new' business? 'Differently' will often be the response. Many agents resisted the on-line technology until it became a 'problem'. The 'problem' is many companies now can give quotes on-line to prospects all over the world. Also many companies now conduct their actual business on-line so the customer does not have to go to an office. An on-line presence used to be a 'frill' but now it is a necessity and not optional. Agents that don't have e-mail are finding their potential increasingly restricted.
Since smaller agencies have found operating costs to be excessive, many are forming alliances. Others are simply buying each other out. This is called consolidation and may mean the ultimate demise of the smaller agent. This economy of scale may mean that a small agent can no longer deliver upper end service in a cost-effective manner.
These bigger agencies are now looking at offering more options for their customers. Since auto insurance is not that profitable, they are looking for ways of diversifying their products and getting into areas such as risk management - areas that just a few years back would have seemed ludicrous.
And it's not just the agents. The insurance companies themselves are facing great changes. In an attempt to reduce their own costs, companies are devising what are called 'Direct Repair Programs (DRP)' for their auto policyholders. These DRPs mean that if you are in an accident, you are directed to an autobody shop that is on their authorized direct repair program. The shop will do an inspection, write an estimate, take a digital picture and upload that information to the insurance company. On-site adjusters will become a rarity. Not only does the insurance company save on adjusters; the autobody shop also agrees to do a great deal of the paperwork. This allows the insurance companies to reorganize their regional offices to reduce costs. It is not easy maintaining a 30% net!
Insurance people are uneasy. The degree of change in the past few years has been astounding. Most agree the next few years will be at least as turbulent and surprising. If banks and other organizations are allowed to sell insurance then the industry will undergo further transformation. If grocery stores can become branch banks. why shouldn't banks sell insurance?
'Ha', you might think, 'glad I'm not in the insurance industry.' Maybe so. The lesson -- and the question to ask is -' what transformations are happening in my industry'?
The next logical question to ask might be - 'when will insurance agents be selling my products and services?'
So often it is a thin perceptual line between success and failure. One has to wonder if all those businesses that go under had simply made a few perceptual adjustments, their outcomes would have been different.
Jack D. Deal
Gracias, I replied, we will go and I did get a little sunburned but did not have to go to the clinic.
Good, he replied, and later on this afternoon I will introduce you to my cousin Felipe. He is a good guy and here for only a few more days…I call him the modern day gypsy.
We have had numerous meals with Angel in this cocina economica three blocks off the city plaza. A cocina economica is where the locals usually eat and is about half what a regular restaurant costs. The trick is finding a good one as sometimes the food though adequate, is not very tasty. They usually have only four or five dishes so if you want something else you have to go elsewhere. And when they run out, they run out. The economics are simple; buy and sell in volume. Add quality and there is a viable business model.
We order huevos a la mexicana and fried ham steak. Just as we finish, Jesus pulls up in a government vehicle. We pile in and are off.
We go past the Nestle plant and onto the Libre Highway outside of town. We make a left at the entrance and head down the mountain. At the entrance I pull out my wallet to pay the 10 peso entrance fee but Jesus refuses. His boss, Sr. Darinel, has given him instructions to be our tour guide and give us the royal treatment.
The cave is located up on the side of the mountain and has a good sized stream running out of it. In the rainy season it is a real torrent. Jesus says that to the best of his knowledge, no one has died here. So much for Angel’s exaggeration! Ha. He did say some tourists went in without permission during the rainy season and got trapped when the water rose, but they were rescued unharmed though a little frightened. I can imagine. We climb the steps and enter the mouth of the cave and marvel at its beauty. Jesus says you can take a tour from an entrance near the crest of the Sierra but it takes about a week and one has to be well prepared to do it. I told him I would pass on that one and leave it for another trip…The cave water is clear and cold and used as a water source for a local ejido.
We come back into daylight and I take pictures. The water cascades down rock slides and forms a series of pools, reminding of me of Xilitla. We walk back to the truck, chatting about the Proteccion Civil or Civil Defense office. They not only are responsible for permits and clean ups into the Sumidero Canyon, but also helping the local police and populace during emergencies. I was impressed. We drove back to the office and I thanked the staff and director Darinel profusely. In the past my experiences with local officials was different but my Mexico has changed, and in many respects for the better.
Choapa is a place we could easily spend more time…we did not get to see all the sights nor sample all the foods. Back in town, I answer my e-mail while Angelica packs. By noon we are off.
Choapa and Tuxtla Gutierrez are now essentially one town and I am surprised at how large Tuxtla has become. And as the state capital, Tuxtla is another of Mexico’s boom areas.
We go west out of town and the countryside changes dramatically becoming drier and chaparral. The jungle is gone and even the chaparral gives way to a more western desert landscape. The road is curvy and we pass several small towns and just past Cintalpa we pull over at a roadside restaurant. We order barbacoa and mondongo or menudo. The tortillas are handmade and the meal also includes beans and rice. We are hungry and the food is delicious. Several truckers and salesmen also come in and we know our choice was a good one.
It’s windy and hot and feels like the desert southwest of the U.S. during late spring. The Sierra Madre de Chiapas are very pretty and we pass through several resort type areas – remote but with a rugged beauty. We cross into Oaxaca and at Zanatepec we pull over for ice and soft drinks…the cool of the mountains is long gone. At Ostuta we buy a watermelon and stop for a dip in the river. The river is cold and clear and the women are washing their clothes. Several men are washing their trucks and a number of locals are taking a bath…what a bathtub!
Since we left Tuxtla we have been discussing my Knowledge Model and all its various components…it’s a theory of mine I drag out now and to try to explain how we learn and why some of us become smarter and wiser and others don’t. Solidly unscientific and based entirely on my anecdotal experiences. We would soon meet up with my our old friends Felipe and Manuela in Puerto Angel and I wanted to dust my Knowledge Model off. Fortunately we have slept well the past few days because when Felipe and I get together, we stay up late.
We pass by Juchitan and it is dark. I don’t like driving at night but the Oaxaca roads are very good at least in this region. We enter Tehuantepec and drive to the Centro and park and get out for a walk. We are looking for a hotel but really don’t see any; Tehuantepec is not a tourist town. I always like the market – plaza areas and Tehuantepec has one of the most interesting…of course by now I have come to realize that every place is most interesting…ha! We have a seat in the park and watch the people. Everyone is busy.
The Tehuanas or women here are famous throughout Mexico for being hard workers and we see many of them at work…the men too. The Spanish is much better here than in the Chiapan highlands but there is also a discernible accent and I have to listen carefully to pick up the meaning. Once again I marvel at how the regional accents and vernacular have remained intact in spite of the influence of modern media. What a nightmare for translators, ha!
One of my favorite vehicles in the whole world is the motocarro from Tehuantepec. It is as its name implies…a cross between a motorcycle and a car. It has a bed like a wagon where passengers can stand up as they are taken to their destinations. They have special access at the downtown market as they are perfect for transporting passengers, boxes and market purchases. We see dozens and dozens and some are customized and look as the Californians would say, very ‘trick’. The engineering is interesting as they are driven off a motorcycle engine with a belt that turns a differential mounted on the rear axle. The concept is very ingenuous, economical and except for when it rains, very functional. I want to go for a ride in one tomorrow and shoot some pictures…
We stop at a torta stand and order some tortas. I start with a jamon y queso and then order a choriqueso or cheese and chorizo combo. The tortas come with avocado, onions, tomatoes, mustard, mayo, pickled carrots and chiles and a dash of oil. They come on toasted French rolls that are flattened on a grill. Delicious and my favorite sandwiches in the whole world….
We finally find a hotel and it is cheap but funky, to say the least. Angelica calls it camping out in a hotel…for that reason we have brought our pillows and sheets. There is not one single electric outlet and it goes down from there; a noisy fan, karaoke club out the back window, leaky faucets and toilet and worn though clean floors. Since there are few hotels it fills quickly and we can hear the other guests coming and going.
But like Angelica says, this kind of hotel is just for sleeping. We take a walk back outside and sit in the park. It is after 10:00 and the park is full. I listen to the accent and Indian word mix and am surprised at how many folks are out. It is cooler now and I am just taking it all in.
I wonder how many of these folks are staying out because they live in a place that they feel is best only for sleeping…
Jack D. Deal
Aren’t you too hard on the unions, asks Miguel, a 20 year old electrical engineering student, every time Mexico lets in foreigners, they suck us dry.
How about when Telmex was privatized? I ask.
That was corruption, not the people, answers Marta, a 22 year old computer technology major.
I don’t see the difference in foreign or internal corruption, I reply, it has the same effect, no?
Of course not, answers Miguel, if it’s internal at least we get to keep the money and it doesn’t go into the hands of multinational capitalists.
I relay to him the poem by the Chicano activist Louis the Foot. Miguel is not convinced.
Not so, he replies, with the electrical union the fees are going to help develop rural areas and marginal communities.
At the expense of small business? I ask.
The poor can’t pay for electricity, replies; we are a poor country and have no subsidies for the poor like in your country. Half our country is poor and we can’t ask the International Monetary Fund or Gringo banks for a loan. How else can we do it?
The first world tries to do it through taxes…
And by exploiting the third world, adds Marta, look at what your country is doing in Iraq and Afghanistan.
I would think that as a woman, you would be interested in your sisters getting beaten by sticks in the streets of Afghanistan, I reply, and being tortured and raped in government sanctioned houses in Iraq. Should we do like Don Benito Juarez and stay out, no matter what?
I felt better that I nailed her on that one – students are always so sure of themselves…
Women are oppressed in every country – including Mexico, she answers, your country went to war for oil on the pretext of finding some non-existent weapons.
So why does your country want to build the wall – to keep the poor people out? asks Miguel.
I don’t like the wall, I answer, it is a poor solution to a complex problem. A great many of my countrymen think that Mexico can’t solve its own problems – do you think that is the case?
Marta shakes her head.
It’s global trade and the big corporations that are doing it, she adds, look at what Office Depot and Wal-Mart are doing to the small business owners here – they are driving them out of business, you have to agree on that…
To a certain extent, I add, but should the poor and middle class have to support those businesses that are run inefficiently? And hasn’t Wal-Mart helped keep the prices down for the poor in Mexico?
For the middle class with credit cards, answers Miguel, the poor don’t shop there.
The poor don’t shop there because they don’t have the money and don’t consume like the middle class, I reply, they only buy what they can and that is mostly food staples, no?
Right, because the buying power of the lower classes has been going down, adds Marta, thanks to NAFTA and the corporations.
Aren’t we just looking at the same vicious circle from different entry points? I ask.
Not at all, answers Marta, you are looking at it from the capitalism and greed angle; we need a more abrupt change here in Mexico.
I look questioningly at Marta and she shakes her head.
I’m not voting at all, says Marta, I think we need to break down the system. Marcos in Chiapas is right, capitalism is the problem…think of Zapata and Che.
Maybe Che, I answer, but I’m not sure Zapata was. He was for the campesinos owning their land but I’m not sure it was communal possession….
Marta looks puzzled. It was clear she hadn’t thought that one through yet…
So you think that Mexico is the land of progress? asks Miguel.
I didn’t say that, I answer; most people I have talked to this trip say something to the effect that the economy is going sideways…
It’s not going sideways, says Miguel, it’s heading for a crash, no?
I certainly hope not, I reply, but I can’t say that won’t happen. I don’t know what will happen…I don’t have a crystal ball. I can only say what others tell me and try to form an opinion. I’m not doing a formal economic analysis, if that’s what you mean. But I do see worrisome cracks that could widen. And I do think that if a variety of factors come together at once, it could cause severe economic problems. But that could also happen in the U.S. as well, no?
The U.S. brings on its own problems, says Marta, look at what you are doing with that wall – it’s just going to increase tensions between our countries. And the terrorists are acting up because the U.S. invaded Iraq, no?
I’m enjoying the conversation but can see we are going in circles…no one will be convinced. Such are students and intellectuals and such is the march of progress. Marta and Miguel are young, bright and full of energy and passion. I see some of the old me in them…and I’m glad they are here to make Mexico grow.
I would not be surprised to see Miguel become a politician nor Marta join a multinational company. Not everyone can grab a gun, wear a mask and set up camp in the jungle. Nor sail off to an island on a boat and create a revolution.
Jack D. Deal
A lot of these small towns on the highway are lined with small stands selling food and other local products. In areas with little economic base, many people survive on what the truckers and travelers stop and buy.
I’m hungry and at Acayucan stop for something to eat. Acayucan, like many other larger towns and smaller cities, on the surface seems to be prosperous. Without doing a formal analysis, there appears to be a great deal of construction, transportation, distribution and general commerce. There are a number of nicer places to eat just off the highway and this is an indication that many of the locals can afford to eat there; there is not enough truck and travel traffic to support a great number of restaurants. The restaurant we pick is busy and filled with locals…again, a sign that at least part of the population is prosperous.
It’s late in the day and we need to push on so I take the toll road to Coatzacoalcos. The road is somewhat new and in great shape and costs about a peso or ten cents dollar per kilometer; a steep toll price for both travelers and Mexicans alike. But often the toll roads are two or three times faster and when time is important, worth it…
We pass by Minatitlan and head to the coastal city of Coatzacoalcos…known for its oil and heavy industry on the southern part of town. We will be staying with Genaro and Sylvia at their house; somewhat distant relatives but relatives nonetheless. Genaro is Chelia’s son; Chelia a second aunt of sorts that was divorced from the actual Tio Miguel, who I only met once almost 30 years ago. That makes Angelica something like a primo politico -- or in-law cousin. I’m not sure what that makes me, but it’s something even more remote…ha! But Chelia always liked Angelica and her family -- a whole lot more than Tio Miguel who left her, and six kids, for another woman. Chelia lives in a small room in back of Genaro’s house and greets us and starts to cry…all relatives, no matter how distant, are long lost relatives when not seen for many years. Chelia even cries as she hugs me and I’ve never met her…she calls me sobrino or nephew. I immediately feel welcome and at home.
We chat about old times and kids and grandkids and Genaro and Sylvia come home from work around 8:00 PM. Genaro has a software and peripherals distribution company and Sylvia works as an accountant for a hotel chain. They have two kids, a large house and three SUV’s. Life is good for them, says Genaro.
Genaro and I become hard and fast friends very quickly and speak with each other in ‘tu’. Sylvia addresses me as usted at first and then starts to use tu when addressing me directly and back to usted when we are seated in a group. Licho’s wife did the same thing and I have to admit it’s a bit disconcerting at first but understand that many Mexican women are proper and are very careful how they address men, even men that are distant relatives, ha. To use an old fashioned phrase, they are proper ladies…ha! Sylvia and Angelica go inside to make pizzas and Genaro invites me to sit with him on the terrace; I feel like I’m in Aptos or Mountain View…
Genaro admits he is very worried about his kids learning English.
Being in technology I know how important it is, he says, and they study it in school but I know it’s not enough. They learn grammar and the rules but like me, can’t understand when we hear English spoken. I know a lot of the technical terms through my work –words like programming and password and hard drive. But I can’t understand it…for my kids it’s more important. He thinks the pronunciation is most important. I tell him how I get embarrassed when speaking English with someone that says they are fluent but I can’t understand them…
We go inside and have pizza and it’s delicious…life is great! For dessert Sylvia brings out some nanches, a type of fruit, marinated in aquardiente or cane liquor. What a delicious treat! After coffee, Genaro motions me outside and we continue our conversation.
He explains that he was born in Coatza, as the locals, call it. Even the long Indian names get to be too much for the locals! He explains that Sylvia is a Teco or Zapoteco from Oaxaca. Oaxaquenos are also referred locally as ‘paisanos’; a term that has both qualities of endearment and disparagement. He explains that a number of years back, one of the union leaders of Pemex was from Oaxaca and he brought hundreds of Tecos to work in the oil fields, offshore platforms and refineries. Like in Monterrey, Nuevo Leon, there was a large internal Mexican migration, analogous to California in the dust bowl days.
We have it pretty well, he laughs, and never once has it occurred to me to immigrate to the U.S. I guess I’ve never had the need nor really the desire…I’m a skilled technician and my employees are too…we can troubleshoot systems and build large networks. I have all the business I can handle within a thirty kilometer radius…
Professionals and skilled techs like me certainly get lower fees than our counterparts in the U.S. do, but our costs are lower too, he continues. My business is to keep my volume high with good clients, hire good techs and come out with a good gross margin at the end of the month. If I just did the work myself, it would be much harder and I wouldn’t be able to live like this, he laughs. It was clear he works hard but enjoys life and the fruits of his labors…
I think you have a misconception about all the illegals that cross the border into the U.S., he says; let me give you my opinion. A lot of those that cross are those that did not go to school or decided to quit. You have to understand that here in Mexico there are few jobs and those jobs have many qualified applicants. So education and training are even more important here than in the U.S.
Those that don’t get the education have less opportunity and are usually limited to commercial activities, such as opening a store or restaurant – what you would call resellers or service suppliers. But to be successful in these areas requires many years of very long hours and hard work and dedication. Remember, there is not much access to capital here…or certainly less access than you have in the U.S.
That is one profile of the immigrant, he continues, and here is another. I have known many skilled, technical and professional people that have left good jobs, good businesses and relative comfort and security to go to the U.S. They want something different, are looking for some type of expanded opportunity, and of course are looking at making a lot of dollars. This is what you would call the brain drain or what I would call the entrepreneurial drain…these folks are not campesinos, he laughs.
Sometimes they bring their earnings and wealth back, but many times not, he continues, these are the most driven of all Mexicans and not as lazy as me, he laughs, I only work 50 or 60 hours a week. I have a family and want to enjoy watching my children grow up…these folks in this category are more like you, empresarios or entrepreneurs. They are obsessed and will expend incredible amounts of effort to realize their dreams.
Speaking of dreams, I reply, it’s time for me to get some. I’m not 25 anymore and the travel and late nights begin to take a toll. Genaro laughs.
This is your house, he laughs, please do as you please. I’ll take you to see some sights tomorrow and we can talk more…
Jack D. Deal
This is the Small Business Owner’s Retirement Plan. They literally sit outside their stores until they can no longer sit up. At 90-100 hours a week it easily adds up to a lifetime of street side chat…
These owners are always friendly and speak to virtually everyone that passes by except when it’s really raining or a norte is blowing in. It certainly builds confidence and trust for the consumer if she personally knows the owner and it also builds that awareness so that when she needs a particular item, she knows just where to go. It also means that Josefina does most of the work but she doesn’t complain. Of course this all changes when Costco and Sam’s Club comes to town, but until that time it makes for a great business model. And very long hours.
They sleep upstairs in a small room above the store; we are sleeping on mats in the concrete floor in the storeroom in the back. But it’s too hot and humid to sleep and Freddy suggests we go for a walk on the Plaza.
The Plaza is packed and it reminds me of Spain late at night…everyone goes out for a stroll. Young and old alike meet, greet, flirt, gossip and in general make it a social occasion. All mix and mingle except for the most wealthy, who don’t want to mingle much with those below their perceived status. The arrogant class hides behind their walls and wrought iron fences and become lonely and isolated in their affluence…but that’s another story. There aren’t that many super rich in Tecolutla so almost everyone is out, especially because it is so warm.
Everyone greets Freddy and Josephina and I remark to Freddy that he should get into politics. He laughs and says it would hurt the store’s business, especially if he lost. He’s a practical man and perceives his world in margins and contacts. He knows the local politicians well and was instrumental in helping elect the first PAN Presidente Municipal. He and other small business owners were enough to tip the scales away from the PRI, which had been in local power longer than Freddy has been alive…
I’m hungry so we go for tortas or sandwiches and tacos at a street stall. The streets are full and there must be 30 or 35 street stands open for business. Since Freddy knows the best places to eat, that is where we go. Since he is such good friends, they give him an extra taco on each order or an extra pickled jalapeno. The meat is skirt steak fried on a gas grill – sort of an inverted Chinese wok. Onions and a cream sauce are added and the tacos are delicious. The sandwiches are from freshly baked bolillos or rolls, French style, and are delicious as well. The jalapenos and salsas are hot and we wash it all down with cold soft drinks.
This local social network is not family and not based on religion…it’s more community based. The merchants know each other, their families and clientele. They know those that come from the ranchos and even those that come from Poza Rica on the weekends.
The teenagers flirt, become novios or girlfriend/boyfriend and some eventually marry and raise their own families which will become part of this community network. There are smiles, greetings, handshakes and hugs. These community networks are common especially in the smaller towns throughout Mexico. Combined with the very close family ties, it presents a social safety net that is strong and wide. Of course if one builds a big house with a tall fence and stays at home most of the time, that community network becomes weakened. The poor and the working classes have more friends and contacts than the upper classes…a heavy price for moving up the socioeconomic ladder.
All this of course changes with modernization and urbanization as a society moves into rancho estates and suburban shopping malls.
This sense of community and family is, in my opinion, why Mexicans are the happiest people on the planet. It’s not because of genes or racial traits; it’s because of a sense of belonging. It’s a sense of feeling one is a part of the community and is a member of something. It’s also why many Mexicans would prefer not to go to the U.S. if there were local employment alternatives…once one leaves the area or region that sense of community and belonging is gone. That is even further complicated by living in a strange land with a strange language.
This is why when I talk with a farmworker or other illegal alien in the U.S. the thing they often wish the most is to go home. They miss the family and friends and community of back home. They think Americans are cold, unfriendly and isolated; which to a great extent we are. Perhaps that is why at various points in my life I have had more friends in Mexico than in the U.S. How many of your friends will give you the keys to their house or build you a small addition when you go for a visit? Ha!
It was striking on my first trip to Mexico and it is striking now just how friendly the Mexicans can be. Especially in the rural regions and small towns. That is why I prefer country and small town life to the hardened city, urban life – it’s just not the same.
We stop at another stand and Freddy buys us cooked Castillan bananas with a cream sauce and cheese. Delicious. I pull out my pesos but Freddy says next time. And the next time he will try to pay as well. One has to be aggressive in paying or otherwise one’s friends will always pay…and be glad to do it. It’s a matter of pride when friends come long distances for a visit…and to Freddy; California is on the other side of the world.
It’s good to see this sense of community and belonging is alive and well. It is something that I have seen and admired for many years.
Freddy and Josefina insist we take their bed but we absolutely refuse…there are limits. As I lay awake on the hard mats and concrete floors I think of all those friends I have had over the years in Mexico. Even after decades of not seeing each other, we still remain good friends. They cry when they see me and cry when I leave.
When will you come and stay for good, amigo? they ask.
It won’t be too much longer, I reply. And of course they know and I know at least for now my life is in Silicon Valley…a world away.
And deep down inside I hope it won’t be too long either before my next visit…I don’t get back home to see my good friends like Freddy often enough.
Jack D. Deal
