There is always a lot of shouting when you tell it like it REALLY is
Posted by George Cloutier on 02/12/10 | (8) Comments
There have been more than a few negative comments directed toward me following my recent interview in the New York Times and Entrepreneur.com column. These knee-jerk reactions don’t seem all that well thought out or based on actual experiences.
First, my book was written for business owners, or those dreaming of a small business and fantasizing how much fun it will be. It was not written for their employees. The book reflects my 30-year experience with over 6000 companies in more than 400 industries. These are hard core, real life experiences.
Sure, some business owners have been successful doing it another way. But for every one that was successful I can name three that failed for the reasons outlined in the book and in the articles linked above.
My company does not get paid to chit chat; we get paid to make money for business owners who choose to seek profit improvement or a financial turnaround. When I go to work in the morning I’m not going for a social experience. If you are, as a business owner, you are risking a lower level of profitability or even losses.
Previous Comments
From .(JavaScript must be enabled to view this email address) on February 12, 2010
George,
I guess the flaming that myself and others have been directing at you on blog comments and twitter really isn’t based on your methods. I, and I think many others would agree with you that your small business advice and practices are probably very effective.
The issue that I have is with your professed ethics. People that are self proclaimed anti-family managers are not the kind of people we want to do business with. It’s like your own a company notorious for pollution. Even if it’s legal we don’t like the way it affects business culture.
Granted, everyone is entitled to their own opinion, and at the end of the day you can run your business any way you want. But to have someone encourage business owners to be anti-family is outrageous.
George, be prepared to be labeled as an un-American antichrist. I’m just telling it like it is.
From Mark on February 12, 2010
George - your article was both incorrect and dangerous. I would disagree with it on an empirical level as well as on a moral level.
First, over the past few years I have dealt with hundreds of very successful people. Many of them are family first, loving husbands/wives/mothers/fathers and recognize that business, while important, is never as important as people. Strangely enough, these people are great business people. They show respect in their dealings, have a humanity about them that is easy to relate to, and work to create win-win relationships.
I’ve also dealt with the type of people that you claim can only reach success (those who would rather buy their wife jewelry than spend time with her in the interest of keeping her placated). These people tend to be insufferable in business dealings.
The fact is, George, that people who don’t value the human relationships that are the closest to them typically don’t value human relationships in business. Why would I ever want to work with someone who is so selfish that he would try to buy his kids affection with presents rather than actually invest in their lives?
This is why I say your advice is both wrong and dangerous. You are encouraging people to throw away the thing that makes business sing - mutual trust, win-win deals, and real relationships that produce benefits for years to come.
From .(JavaScript must be enabled to view this email address) on February 12, 2010
George,
I found your article honest and refreshing. In fact it inspired me to do more research into your company. You seem to be what more small, struggling business owners like myself need right now!
George,
I found most of what you said pretty self-evident, although it’s nice to hear you say it.
The flack you’re getting is the contrast between “private enterprise” and what you can say and explain in the “public” realm.
Small businesses are run according to different psychological dynamics than what people are accustomed to. Those who develop their own businesses are people who separate from the public domain. It is not ordinary to start one’s own business.
So it’s not as if you can go back into the public domain (that operates according to it’s own dynamic) and explain the way things really are. Public life operates according to certain myths. That’s the way it is.
Regards,
Richard Koenigsberg
From .(JavaScript must be enabled to view this email address) on February 14, 2010
George,
Most successful small businesses adhere to the transactional advice you espouse i.e. manage to increasing profit, love your cash etc. However, taking advice about loving one’s business more than one’s family from a thrice married guy with no kids is a little like taking anger management advice from a wife-beater. Having said that, loving your business is critical to making it work. The love gets you through the tough times and makes the successes even more enjoyable… kinda like raising kids.
Keep up the tough talk but ditch the family comparison.
Lee
From John on February 15, 2010
It’s not that you are wrong. You probably know exactly how to make money. But this profit or bust attitude is what many of us are trying to get away from.
From Jose I. on February 20, 2010
I’ve come to the realization that the sole principal of George’s book might be enough to change a business around without even having to get through the 2nd profit rule. It’s more than evident by reading the above comments that those suffering from financial hardship in their own business want to do absolutely nothing about it. Why? They just simply haven’t the guts to change their future.
Take all the rotten tomatoes being thrown because of the reference made to family life and business. Let’s be real. People don’t want to hear it because it’s uncomfortable. They don’t want to hear it because they have to make sacrifices. It’s unpleasant and difficult to change and the real reason they went into business in the first place is to be able to take little Johnny to rehearsal and then to soccer practice at 3:30 without having to answer to anyone. Meanwhile, a minimum wage paid employee or a lax family member is answering the phones and “handling” business.
My grandfather, Luis, may he rest in peace, who started a CPA firm in Venezuela from his home onto a 300 employee firm which serviced some of the biggest banks and companies in the country wouldn’t have been able to do so without making sacrifices throughout his life. As matter of fact, now that the first year anniversary of his death comes about, my grandmother who had been married to him for 50 years finally starts bringing herself to share stories that none of us ever knew. The story that struck out the must happened to be about the fourth and last time that she gave birth. Not surprisingly, my grandfather was working and ended up missing the birth of his first son.
Now, I run a business my grandfather started in his third age here in the United States. I personally spent all 3 days in the hospital next to my wife after she gave birth and frankly that might just be the principal behind my business not doing as well as I would like it to. Because the truth is that I haven’t had the guts my grandfather had to commit himself entirely to his business. And just like George mentioned in his book, his sons really did appreciate all his hard work later on in life. He gave them all a car, educations paid for and their own apartment coming out of college. He gave them security. Something every father should give his family.
If you are not willing to sacrifice many, many things in life for your business, close shop and work a 9-5. Sooner or later you will end up doing so in the long run; just with a considerably larger mortgage on your home.
From .(JavaScript must be enabled to view this email address) on April 23, 2010
Jose I. I admire your Grandfather’s work ethic and success. Clearly he had all the right stuff to make his business successful. I have certainly sacrificed considerable family time to make my business successful. My problem with highlighting the linkage of family sacrifice to success is in the formula derived from that causation. Sacrifice your family = Success in business. The formula is way more complicated. Have a great business model + Out hustle your competition + Be willing to change your model every time change is needed + Watch your cash + Don’t over leverage your firm + Get some lucky breaks + Embrace disruptive technology + Hire great people and leverage their effort + Be willing to sacrifice your family time = Success in business most of the time. I’ve missed plenty of family time, but know when its time to turn the phone off.