I got to my office, or the center of the universe,
a little early this morning. I rode my bike for about
50 miles yesterday and I didn't feel up to a repeat
performance today. I pushed my chair back, and
put my boots up on the desk.
I grabbbed one of the financial papers and set
about doing a little reading. On page 4 or 5 there
was an interesting story about a company I was
very familiar with. I had known, and done business
with the gentleman who owned that business for
almost two decades, until he sold it for a "tidy
little sum," as our British friends would say.
The company, eleven months removed from the
old ownership, was in trouble, and writer attributed
this to a change in the market, and financial belt
tightening.
What a crock!
The original owner started the company with
$10,000 of his own money, and without any
financial help from bankers or investors
had built it into a multimillion dollar operation.
It was an extremely profitable business.
So what happened?
My friend sold the business to a very large
corporation, and they quickly assigned their
talented team to run the operation. My friend
was retained as a consultant, but it was made
very clear to him that the managing team had
their own ideas about how to run things. After
a few weeks, he decided to just stay home and
collect his check, and nobody had any objections.
The new management team soon had everybody
in meetings, and planning sessions. Sales starting
dropping off after three months, so the team had
more meetings and strategy sessions.
Then the team cut the customer service division
by two thirds. This was done to make the company
more efficient. Then the marketing department was
cut in half. Again, the justification was effiency.
It has been about eleven months since my friend
sold the company, and the company is in serious
trouble. The sales have fallen by 75%, and the
management team is still having daylong meetings
and strategy sessions.
I gave my friend a call.
He told me he got a call from the CEO of the
parent company, who, unknown to his ace team,
offered the company back to the original owner.
At the moment they are ironing out the details
of what may be one of the best buys in the business.
Essentialy, the big conglomerate is going to
pay the original owner to buy back his company,
and then some. He figures he can restore the
company in 12-18 months on their money.
He'll do it the same way he built it the first time.
1) Customers are number one.
2) Sales and Marketing drive the business.
3) All other departments rank below Sales and Marketing.
4) Compliance, Acounting, and Management exist to support
Sales and Marketing.
5) His job, as CEO, is to constantly drive the Sales and
Marketing effort.
In other words, "If your company ain't sellin',
it ain't gellin'!.
Every time I hear a salesman tell me how much
time he spends in meetings it gives me a clue as
to how well his company is run.
Every hour spent in a meeting is an hour of
lost selling time.
I have never had a meeting that lasted longer
than forty five minutes. Never. And once a month
is plenty.
Meetings are a waste of time unless something
of earth shattering importance needs to be
communicated. You spend your time selling, you'll
be successful. You spend your time in meetings,
and pretty soon you'll need a psychiatrist.
From the big saddle,
Jim Whelan
The Chairman of the Board
P.S. The Cardinal Rule of any selling operation is:
Attract more customers!
thejamesrwhelanagency.com
206 407 3124
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