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Business and Organizational Development and Management

Ed Zinke
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Ed Zinke

Adventist theologian and businessman

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  • August 5, 2011
    10:45 AM
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I am answering the ground my history on backgrounds and varied I started out in the ministry then went to Andrews University for a number of degree of individual conference for I worked fourteen years and biblical research I was also working on a page to your capital University at the same time and have four years of graduate work there MNR wise time to change my when an full-time in the business but we've started when we got to the Washington area we probably world of naïve as we were moving that direction we figured we could buy a house for twenty thousand boxes all of our friends were doing that domicile and without will maybe we'll have to have a little bit when we get to the Washington area both with the realtor trying to help us out most realtors wouldn't even talk to us one realtor tried to help us out in the vision was on for thirty thousand and we were afraid to go in the home so if the referenced in the home didn't want to live in that house them so of we realize that am would need to do some work of fairness in Washington DC area I would always plan the van would stay home by the way amateur stamp there is an and salsa that's so started on our gypsum deck we were hoping to make a couple thousand dollars a year so that the signal Salem but did work for years she was at home with the kids all and then we moved out into business locations but the Lord bless the we continued growth right up until the point of sale on so our motivation was defeated at home we never thought in terms of a major business or anything like that but we wanted to accommodate the family we tried several businesses and failed and I think a lot of business people found that learning is important for you to know that the car losses early when we failed we didn't lose a lot of money on but the fact most of them went broke even but often an entrepreneur will go through several attempts before they're finally successful with with the right woman that happened to us basically it started like this after we tried several things unsuccessfully my dad who is a physician had bought an almond ranch it off my retirement time and he was visiting us one day and we were discussing our circumstances there in Washington DC area reasonable why don't you try nuts levels the business plan look to us for the next almost thirty five years we dried nuts with JC of course knew how desperate we were and so when we checked to see a band themselves in knots during the noon hour outside the front door they graciously said yes and she sold about eight hundred dollars worth the first day and when she got home or she doesn't should lobby and family lady or anything like that she didn't want anything to do with sales when we got home of calls started coming in coming aboard to get more can we get more and the so finally I'm Cedeno to third overcome the many I can do in order to November the third of the company is doing so for eight years we have the business in our home lesser rhetorical or furniture offers or moved it to the second floor envelope willy-nilly in our bedroom and the entire first floor of entire basement the entire garage was occupied with knots on his old zoomer 's story on down the point where government worked well off one day right in the fall which was our busiest season and got a knock on the door and of course a lot of people recovered warehouse to pick up nuts so she answered the door and there was a government agent County agent and said samadhi you're running a business ear of course is no way to did not have everything was jampacked with nuts and dried fruit and services while your house are planning on the sizzling falseness of replanting on on terminating and made because something of refrigeration abdomen than my and him are planning on going in the warehouse for the fall and he said while failure what says I don't have a choice I have to report what I found here but you know when I come back and reported I don't have to put it on the top of my pile soiling on the bottom of my file and eventually it will make its way to the top and when it makes its way to the top and I have to write a letter to answer you receive a letter from me and I'm sure you have a pile to sort goes on the bottom of your file and eventually it will wait work its way to the top and then you write a letter explaining what you're doing to me I goes on the bottom of my file in any way be graciously work without some slowly through methods wipeout our inventory to sell our inventory and maker moves the warehouse he turned back several times in the government location very proud of themselves and show them for making it possible for us to run the business I'm sure he can put us out of business he wished to do so our customers were individuals and then we went to the school and have a table with nuts and dried fruit on it when my other citrus program and it would come in and buy nothing dried fruit among co-ops that are more popular family found out about this reserve the source selling to cross when we made our move we were relying very heavily on on retail business right out of showroom and it would be lined up at the door in the morning when we opened the Friday evening it was an obviously recalls before sundown but it was always always attest to get that door closed because so many people were coming Sunday morning there'd be a long line in front of our showroom people wanting to buy nuts and dried fruit we did almost no advertising my guesses during our entire existence with minus ten or twenty thousand dollars on advertising it was word-of-mouth thought it was quality there was service the made things work horse will tell you a little bit about myself and you'll understand us and we come to the end of the presentation I was one of those kids that professors didn't know what to do with Christ I flunked the first grade not that I was a difficult but I flunked the first grade when we went to Mexico for four years and nobody really knew what great I was in down there because there wasn't an English school except the last year came back they put me on the fourth they thought was probably my grade level and I struggled and said matter-of-factly Mexico the president of the University down there said he will be lucky event makes it through the eighth grade and I'm how I got into high school but forgot but out of some jams of going through high school but he underwent up in college and got fairly decent grades there are enough on my end of MAM and finish the program I got almost a four four oh two A- is when one D+ or something like that so what I want to come back to the office while the questions is no this somebody might like myself and no man can do it anybody can do it besides I was extremely bashful it was very hard for me to talk to somebody on the phone or said hello to somebody face-to-face and so that only made of the bigger challenge to run a business some of the things preparation for entrepreneurial activities shortly after we started our business in a wide eyed boy did I do have an accounting course in accounting but that's the limit of my business training I did read one article in the Washington Post and over twenty five things on how to be an entrepreneur someday I'm sure opined that my file someplace but there's one thing that I remember all those twenty five things about his work sixteen hours a day and of course listed seven days a week for us I was six days but indeed for most people being an entrepreneur is an extremely intensive and if you're thinking of doing that that's one thing you need to think of them am I willing to put that kind of effort into a business to make it successful and if not you know it do there other things if you have some very super special thing you know if you're Bill Gates or something like that could even make it work is something that nobody else in the world house but we were starting a mature business you know so not so been sold in this country great offender gears and sold worldwide for thousands of years and so it's not like we had some special magic and we were bringing to the marketplace we were entering a market that already was mature already out of players already had shelf space on on the decks and so on and so forth and so it was definitely it took all the wicked government in order to make it possible for that business to grow I think about this is kind one of the themes the Lord leads us through experiences prepares us for the future and there is one thing when we got to the Washington area we realized we couldn't afford a home and so we decided to build one I never have had a hammer in my hand before so that was a little bit of a challenge for them I decided somebody else and that we can go to and so undated we leave such subcontractor that we that a lot of the work ourselves and managed to get into a nice home as a result of the home and finally became the home for an thousand knots as we were building up we have a lot of troubles building at home we contracted a company to put up the show and it was imitate nine days but the shell will nine months later it still was not for me that was absolute catastrophe because remember I was especially good and getting on the phone and trying to work this thing out with them was at an absolute character who just tore my stomach up every time I had to do that and I think that was one that I think the Lord either that training experience how do you go through a crisis like this how do you solve it you how to get people on the phone honey worked things out well so that I would be prepared for the business that was coming later which of course we knew nothing about the time device hazard to start a business or the start of ministry I think many of these principles work both ways and so those of you that your mouse room grateful at your here because I think there is a lot we can learn back and forth between each other but one has know your business you know know know what it is that makes your business up and as we go through the presentation I think you'll see that but we gained that knowledge but if you don't know anything about you find somebody that does work for somebody who does in some way get into the business so that you understand how it operates another thing then this may not apply if your great-grandfather left you two hundred million dollars or something like that but for someone like us it didn't even have one sent start small and build your knowledge of build your staff build your procedures build your brand your reputation and this is another thing that I didn't really totally understand until afterwards sold her business by the site as I heard this of a business friend was telling me why he was successful he says it's who you know and who your mentors are that make you who you are and the first that kind of sounds elitist but but when I go through why that's important as I reflected back that was why we were successful and I'll give you an illustration of what we started out I did the purchasing and that worked in well with my job truths you know I can call during the noon hour for people in New York cannot go over after work for people on the West Coast and so worked out nicely but I didn't just simply find one supplier know I knew forty Walnut suppliers I knew that the almond suppliers before we started importing I knew three or four five six cashews of ours and we started importing we knew a hundred and fifty or two hundred or something like that now how did that help well helped in several ways one is I had first-hand sources of information fall twenty thirty people about Wallace before I made a purchase and I got a real sense as to where the market was if I only had one person to contact I would not have had that source besides it would've known that they were taken advantage of me so one day I was working on Walmarts and the done my contacts I realize there were very few on woman sitting in California and so I went to the largest supplier of wallets and bought for us than was just a huge quantity bottom of sixty six cents the next day they were off the market and when they came back on the room dollar forty out how to the small company like myself by from the largest company in the world but a price of sixty six cents one hundred would be off the market the next day so they can talk to thirty people they can call their competitors site they know what's going on whereas I was able to do so I had information that they didn't have even though I was a small guy I was able to act on that permission in addition to that and would purchase a global later but since I'm an illustration when you call that many people you just might find somebody in the cash flow situation that really needs the cash worse than they need the almonds or whatever does so while the mark of the month might be at two dollars you might buy a dollar eighty five per dollar Monday assuming your promise quick and so on so forth so who you know is extremely important and also you will discover that some of those are in the business is much for friendship as they are for sales and I don't mind mentoring you at all and so find those people and allow them to mentor you in all allow them to be a backstop for nuclear to help you understand the business better we actually started our business with zero financing room at unfortunately a kind gentleman was willing to give us accounts payable accounts receivable from a prison camp payable from RM result in us we paid them off and gave us a more item off your events more of a then as we got larger this was during a time when interest rates were seventeen nineteen nineteen percent and of by then we had some small sized customers grocery stores and so on and so forth and our terms were ten days and so anonymous I'm telling you this is not only because this is how we finance the business to begin with but I think it will give you some of the creativity that you need to run a business what we did we got our orders on Monday replace our orders with New York because of the time we weren't importing ourselves to place orders with New York on Tuesday we pick them up on Wednesday we got back Wednesday night Thursday we produce the Friday we distributed up and Friday we build and weight were receiving thirty-day terms and window template terms so the money came in before we had the bailout then we found a West Coast company where we could wire the money getting eighteen percent of Brown and we found an East Coast bank that was the slowest one of the US for clearing checks so we were making money on our cash flow in addition to making money on our knots so that gave us a start of course eventually rebuilt up in knots M as we got more customers we are more and more inventory and finally we had to go to the bank and that is what city would go to the bank over later on the talk they talk about purchasing of we considered the supplier is important to us as a customer most people beat up their suppliers and you know make it difficult for the newswire to collect the money and so on and so forth when an suppliers in the low man on the totem pole but we figured they were just as important to us as a new customer without we couldn't sell lots for the have-nots and the result is that I've been mainly gave them a lot of money we're also one of the best shoppers out there so they move their aerosols and had to be at a good price also it's not like we were a rollover but but we traded them right now for example we paid our bills on time and I knew they were to get their payment on time what let's do the prices they gave us but if they knew they didn't have a rest so they can sell is cheaper than they would sell our competitors because it is not there to get their money out of their competitors and so not only is that the Christian thing to do is the smart loving the new review it rate it ten days by a long ten days to agree to thirty days I am thirty days of no make sure that when you receive your payables are up to date and I discovered will be discussing settlement more through the lecture but I discover that something as we got bigger I had to stay on top of that because my people we only came from other companies that were good payables and they thought it was their job to work with the supplier side sit down with the memory now you know when we don't does is allow the supplier is the weather to be handled when they call and ask about the check don't put them off you know tell them what's happening occasionally were to have cash flow problems that just happens in business if they had a cash flow problem we are going be able to pay them on time what are we going to do a regular way for them to call us know Morgan I called out and work in and tell them because of this sort a cash flow crisis were expected to last another three or five days or whatever whatever it is and this is when we plan to pay you and then pay them on time if for some reason you can't get them on the phone again and we found that people are willing to work with you so long as there in the loop and so the relationship with the customer with the supplier is an extremely important relationship especially for a company like ours obviously I'm describing the commodities business consents will reword commodities business but I think that kind of thing would apply to almost any business and then it's important to know your suppliers know a lot of our competitors they didn't know the people that were supplying them I reminded her name and phone number but they didn't know them when we got out there and we visited them nowhere in their plan least once a year maybe twice a year him and him and ended up I remember there was there was an occasion over there were there were five hundred people worldwide that were dealing with casters and there were two American companies are an thousand knots and planters or the rest of our competitors you know so we have the advantage of getting into fifty hundred plans whether the advantage of that meeting the owners are pictures got put on the walls of most plant so when people came to work the new relay were working for not that they were working for us it had the quality of and so we created relationships with a lot of them and we also knew the ones we didn't want to do business with us we had been in their plans so make sure you know who your supplier is understand the players and their company their their culture their operation and plan their capacity that's extremely important supposed to give up a big order from a major customer and you think they can supply you an example when you have to go back to the customer and say sorry I didn't do my homework with my suppliers at us the last thing you want to do because a large company they don't want to have to think only one have to do is give you an order as I have so much to do they don't have to beta-1 I have to work through it they want to get in order Seo one of ships on this date I want to arrive on Monday and I don't want to have to think about it again to Ghana make sure you have all of your backup plans week we imported from thirty nine countries so all of this product had to get to our plan just in time so that we would have it to manufacture of so that we could shut the just in time so make sure your suppliers know your experts they expect expectations and hairs on was this statement several times during this lecture that good agreements make for good relationships on the site out again that's important good agreements make for good relationships and so make sure that your together with your supplier on quality on price when they're in a ship what the financial terms were going to be and anything else was involved in that purchase might even be how their commission only much of it by rail or the governorship of my truck will in some cases rails too hard on a product of shipment by rail even though it does not have cheaper or whatever ship ship a lot of charts of everything make sure that everything is spelled out that there isn't you know you come back and say hey you said this and you said this is also for the overhaul on paper and relationships relationships are based upon good agreements another thing the NATO missile probably become clear when I talk about how our customers developed us to build and develop your supplier that we know with the largest almond company in the world and they are a better company because we don't our people were in their company we saw what they were doing we looked at their procedures we checked their quality control systems and equipment when we left they had a better map on how to run their business limited the day before we arrived there and so develop your suppliers because they can take care of you better and besides I'll appreciate in a while were a better company does themselves necessary that they will appreciate that so so develop your suppliers so that they can produce for you just exactly what it is that you need for your company know your product and its quality the what webcasters there is probably different fifty different grades and sizes maybe more than now so make sure you know exactly what qualities make sure you know how to recognize it when it comes under your plan so you can reject it if it is not clear specifications make sure that your supplier knows and who got rejected it is not the specifications that you agreed on but again you have to agree on the house otherwise you're just going around the circle and playing games with your supplier know the market bars and for some of you this probably doesn't apply at all but ours was a commodity market and if you don't know if you're trying to play commodities and you don't know the market you are in trouble when we had swings in and pecans for example from two dollars to four dollars and fifty cents three three-month period if you aren't prepared with your if you haven't bought it two dollars billion to be losing money trying to sell the guns at three fifty for your base price so so and one of the ways to know the market is just like I said you are in contact with a lot of people so you know a lot of opinions of some of those people will try to deceive you that's okay you figure that out so when somebody says Haiti really need to find caches now and I deceived you for the last three times you know it's time to sell and also you still getting information out of them whether that's going to the truth or not so Bristol and an important point of supply of information signal the market when you buy the product know some people will go out and say I'm buying five ten hundred truckloads of cash is where they look to for some men's alumni take the lowest bed and limited by the know I know some people disagree with me on this but our philosophy was that the customer knows that if the supplier knows they have the business if they can meet our price then we've taken the variables out of their decision-making as I know I have the sale so they can go back and look at their processes inside Dell console is for two cents less for whatever and they will sell it whereas if there just simply in the bidding process they don't know whether they're getting of the business are not they have to hedge for were the market might be they have to hedge for one size approximately when did they have to hedge for all kinds of things so take the guessing game out of your supplier and I can give you a better price and we found the same with our customers that you know someone just go out for bed and we had to allow version of cashews are going up and trucking is going up this and that the other thing on besides the order so large that is not sitting in the United States would have to pronounce it so we have generous and also we price it based on those ten rest of the come back to us and say you know we want to buy from you but it has to be at this price we can go back and say how many risks and we take off the table and we can make a decision then whether we can sell at a lower price and often we cut because they had taken the risk out of the forest and so we were able to offer the margin that we had put into that risk to them instead of putting it into the risk and so just kind of summary your success depends upon the number of movers and shakers in the business that you know and speak with her you network with men who your mentors are so mature and develop those mentors often I'd be on the phone and somebody would come into my office and said why are you talking to someone so said on the two days later I found out wireless talking to them I needed that information else I stayed unstoppable was happening even when I didn't need the information right at that moment so that when I would need a Alyssa was prepared to act on just briefly here to start a business removed business just a few of the things to think about in terms of location of what is the cost of business doing business in that particular location is a huge variation across the United States so determine what that is determine if there is a workforce that has the skills to do what you need them to do if you end up in an area where they don't have the skill of China you've thought about Phil now unfortunately we know so make sure that the talent is there make sure that your support systems there know there's been trucking is that since the docs you need to import that there is never the right lawyers of course nowadays you can work with lawyer someplace else still it's nice to be able to sit down every now and then you the right people to do the art for the right people to do this listlessness and that's where you need for your business make sure that is available to you in the area where you're placing your business also and this is one thing we didn't do a very good job on the market we left a lot of money on the table there are many regions that will give you funds to move to the region especially with some medium or larger business and technical manager that and probably only the specialist if you have a special is always suddenly look at you differently have a specialist help you find the right location and negotiate the deal now they're going to pick up on that account will be way less than what you gave up by not knowing the ropes going into the kind of an area marketing develop your image or you are what you want to convey to the public in our case Langston and she was she was really the company image person you know shoes created the company image which is not an easy thing to do but you want for us is that were the important things it may not but maybe different for you but you need to decide what they are high-quality low price innovation service orientated one-stop shopping is safe our competitors once all the almonds and one sold almonds and another sold cashews another sold saucers and another sold dried apricots and so on so when the customer came to us we can give them all shelf bonanza estimates on what beautiful compared to four five or six different vendors on the same shelf so that gave us an advantage that our competitors would not have normally of course is one of the challenges business goes out of them but to start out with we were the only one-stop shopping in town and say hello we were small company we were able to compete with the biggies because we can do something that they could live down that they would have to spend some time developing their skills in order to keep up with us and so what's I'm sorry this script on her called her back to where I'm supposed to be so for a high-quality low low price the innovation service was another key ingredient of the new the one they gave us an order that they would go but wasn't always easy to know my times of the plan at two o'clock in the morning can be counted to her many times like that of the customer got the product and therefore I got the next order of a lot of our competitors ran their business based upon what's most cost-effective for the plant and so if they would have to run overtime labor tell the customers come through more days you know of some Millsap and here if they would have to put product on a fast track to get it to them they would say the other products are to be there for a week when they could have it there in three days the spec of one hundred dollars mark whatever it was for us we even sometimes flu stuff them it was there was the customer that mattered not our bottom line obviously there are limits to that but in general unless it was some way out then as a customer the matter of Mason figured that out and they like that is again that takes something off their shoulder part your job is to do as much of your customers work as you can possibly do so that they don't have to do it as they already have more than they can do anyway so if you're in a do their work for them they can go on to other things your competitors not doing the work for them for the coming of the best sister you might even dedicate a center to more which our business was a lot because you're providing a service for them but when they really need and your competitor is willing to supply the service resembles one of our customers we monitor their inventory and we placed the orders for the allowance have the right to override an order was placed but they didn't even have to think they didn't have think go fill out the strut going to construct from year-to-year do you know are just lots of things that they didn't have to think about it we took care of but helped us to because it we were able to smooth our flow if we were dependent upon them in other wires working on something else for two weeks most of this is forgot my ordered Ancel 's amounts and so it comes in three times larger than you expect and so all of a sudden you have to work day and night enough the rest of them and everything else of course you do it you want the customer but it would schmooze out of this without our operation and made it way easier for the buyer another thing that we did them I'm just giving you these things because than for your business you can try to think of analogous things when we started our business nobody was selling us and Redford in the produce department now tell me where to most customers what department for most customers doesn't when they go to the grocery store visit the flower department to produce right almost every customer has to go through from fact most stores are designed so that you have to go through produce before you get to the other aisles and so we sold our product in the produce department other were some disadvantages late but a higher markup on the would of been on the shelf so our product was more costly in the story would've been otherwise about we have managed to proto- improved noticeably spam I think now it's probably different but but then laid they didn't ask for money up front presently but in the aisle you know if we were selling him a thousand dollars worth of product we probably asked for a thousand bucks to put them on the shelf we demand that the bruise so anyway that was one way we had an advantage over our competitors and none of them to do it because none of them have one-stop shopping so we had we had a monopoly on that market private-label back them young was estranged back then nobody else was really doing private-label or if they were it was very inferior grade some of our customers said Mandelson said we want private-label and we want the top grade we want our brand RNs storebrand to be the best brands out there now that already gone the planners and planners said oh we don't do private-label rapidly sold to you under our brand the problem but were not result to you under your brand while I was just fine with us as we know how to put it under their ground and so by finding a niche that the larger companies and want to fill we were able to fill that niche speed to market strangely important religious couples rations of Monday I got a call from one of our customers will we visited this customer we thought we had the business I wasn't come our way I was puzzled sort by Lee Byron Eisenhardt said in a week under the river to get together there will deserted be due to help the obvious another was it says you brought me a one pound bag but I don't want one pound of all this I want ten ounces of walnuts now imagine telling that planners and I'm from Minnesota to go through before they finally figured out how to do that while I said to me ten months I got out my pencil and paper bombs before the computer age figured out what was in the cost man like it shook for and gave them a call back and just like that in order so being able to move fast was extremely to our advantage another time been trying to get in the store for years just were not having any success and my sales manager was there on I think November second something like the family the presentation and we're presenting our product hoping they would accept themselves in knots and after the presentation Best Buy sales manager to step out usually this doesn't happen usually once or go home call your best and the step out for a few months and then they called them back down and I said well would like to go with you couple conditions one is asunder our label and this was by the lives can be on a rack too we supplied number two would be on the rack number three that they are stores before the end of November when through but no artwork the rack hasn't been built you know we have to get the product in so on so forth we must abide out one or two days and they were absolutely delighted nobody else to the Dunlap it might've taken through four months for the bus company out there to do that while we have another call from a major customer that was shortly before resold we were really proud of this one they said they came to us they said we want this this this this this thirty six items and even then nobody has thirty six I don't know store one thirty six items in it one of them packaged in a certain way and but they wanted by such and such a day why did it have to be by the update because I was the date they were resetting the stores I got there a day later there's no place to put the product in stores already been reset so there was no negotiation on the day and ended the deadline was virtually impossible well we partnered with them let's part of being elevated company partner with your customers we partnered with them we became almost one team their people and our people to work together that night they worked hard to not just us and we got we got all pulled together and we got there about a week before they needed after that a major company the largest company on world talk company like that has enough intelligence to know what's happening that's not their own product Windows they're buying from somebody else even for just a shelf well this company didn't know this was happening until it's on the shelf a memorable but upset over this large competitive this business to a small company like us besides they were the ones doing all these great things for this the company and anyway the bar just looked him straight in the eye and said and sales of knots is the only company the government 's pencil prisoner from there we had that opportunity indeed we didn't do it we met their expectations now where they can ago welcome back right and then as a matter fact afterwards overcommitted and come back with some more things several times so speed to market gives you the compound what about this was very hard for a large company to match the records you consider your packaging present presentation replacement in the store don't get it stuck in the storm were worse not to sell in order to give them the fee up front to get it into their store and I might put some placements are not so make sure that's all part of your agreement if possible test before going back now that wasn't always possible for us sometimes our suppliers is under so much pressure but possible customers several times when we didn't have the luxury of a test when we got into serious trouble similar product that we thought would be the best stuff out there just in cell and that's another thing you need to learn release on our business the product is sold in Phillips concern but he wanted and paid for already the dozen get consumed the third store comes back to you so say we have X number of packages we need a check for XML and say I want to keep on doing business with you on the bailout or this is the last time or doing business phenomena but you Mister Joyce so wherever possible to get herself out of the kind of the circumstance and test before you go to market in a big way of innovation like assessment within talking about here innovation is another thing the small companies can have large companies large companies have so much bureaucracy about to get something through all the hoops takes time small company can maybe even make the decision in a day or an hour whatever you get the work done almost immediately so we a person lived on our car it was a small one Manny Shaw excellent a designer and we were talking is lost because he was getting a lot of business from us so somebody would come to say we need so and so we would get him a call he would be over to our office by early afternoon by the morning he would have something that we can look at it wasn't the final thing that we can look at it we could get it to our customer customer knew that we were on top of that because you know what that something and and our team inside and again was responsible for nutrition smaller kind of stuff and for the art so we pulled back together and then we satisfied customer high quality standards other very important for both quality let me make this statement we chose to sell the very top holiday as you can make money selling junk to and I'm not saying that that's wrong some of our competitors sold jump cashews and I made a lot of money probably more than we did our problem was we didn't know anything about junk cashews and so we didn't sell junk caches as we didn't want to get stuck with something that was worse than junk and have all the product come back to us besides we wanted our image to be the top of each if we had a good run the business longer I think I would've developed on the label for junk caches but the important thing about quality as it is always the same the customer when the customer buys that they know what they're getting when they don't get top-quality one day poor quality the next if they buy top quality the parties this mouse will be top quality when they bind together expecting top-quality so make sure your quality is consistent another thing that Selzer Company sells your product is as your are procedures how do you run your business your procedures is really an operating manual for how your business runs on given the little bit more later but having excellent process procedures having a clean plan one day the buyer from major company called us a white nine in the morning and she says I have some guess I want to come over and say to rush she was fifteen hundred miles away from us we didn't know she was either and she came in and walked discussed her our plan as she was leaving she said all I knew it was safe for me to come here the last second sometimes you'll get them at the last second without any notification and without I guess they just simply want to see you're running your business 's always been I talked about service educate your customers this is something we can all learn the hard way we were selling nuts and dried fruit nuts and dried fruit are not crackers for you ground up we and you made it until the cracker and thanks for them to repackage and sell the manager grinding the week and you have a foreign object in there what happens to the foreign object disappears right while there is no way to buy a moment that for sure as no for product is just impossible even with the best equipment what wireless laser sorting equipment account do not wish of we should've educated our customer on right up front we didn't realize that they didn't know that and so when they found a piece of foreign material we only had reports of like one half billion pieces but when they found a piece of foreign material without worshiping on the interior stuff that we educated them of course we did come in and educate them we brought them all the quality requirements and so on and so forth from the FDA they finally accepted that but it would've saved ourselves and embarrassing situation with our customer if we had done that advance know your customer is the next item I have here love the smell their name known to your customers every single customer we had different answer I mean just like there are many different people in this room page customers different also so make sure you know by customer their personnel structure of their company limits of the purchasing agent who are the movers and shakers in the company company culture and expectations that they had a view so that you make sure that fulfilled what opportunities you have with the company and the first this may not be obvious but let me give you an illustration for one of our one of our customers put on a lot of sales and those sales would just move huge quantities of product or their stores well one day that the sale lined up with somebody in the last three months and at the last moment that person can ship within thoughts we produce a product and ship it to them were the chemical murder from gossip so there we come we discovered an opportunity with our customers when we know that opportunity we also said it would serve you well we deserve some sales when they are not the last place I decided to know you're doing a good job chorus and so we got the business in addition about so what are their expectations expectations what are the opportunities partner with your use customers I suggested we did with the with the new product new art allow your customer took to develop your company just like I was talking about we developed while the almond plans allow them to come in and do the same dear plan and indeed several do that enter our company was a way better company because of what they did on him and we were matching their expectations and they didn't have to worry about it they had confidence in what we were doing and we didn't have to worry that there would all of a sudden be some kind of accident I'm sort of already talked about how to think about giving an offer to supplier your customer they do the same thing to you don't just simply say no study it because that may give you the opportunity to the place all the risk out of the noted that you have the business of the meet the price so it allows you to go back and check the pendulum back here while we were there is a problem of a certified ISO for the food industry was ill and that ended up being one of our advantages we we had a problem the one point the customer didn't understand and so they told us were to take five percent of your business away organ against the section of our business and somebody else and a year later we went back and said we don't know what happened were still shipping the location is said the other supplier could not meet our standards and so you kept the business so indeed a higher standard you have the greater advantage gives you in the marketplace and sometimes is not a question of costs it's a question of what kind of a plan is this coming out of celeb was a good question one day I was sitting in a room full but larger than this one what CEOs of other food companies and the president of the company we were selling to was giving us a presentation the first thing he said was we do not want to do business with any good companies that we sat there with our mouths open were good company and I don't want to do business with us is that we will only do business great companies and so you see where they are heading up Hassan not only are they can run their company great bargain of vibrant people who are running their companies right well how do you you have a great company obviously there are many things going to go through standard operating procedures and I think this is one place where for the nonprofit organizations and prop for-profit organizations are really in the same camp the operating procedures of manual for how to run your business or order your nonprofit organization having that manual means that your consistent all the time because the employees know what's expected of them and how they are to handle a particular situation it also believe it or not if you have a good manual you can hire people that don't have the same level of skill why because they don't have to think Bridges have to follow the manual OCR reinventing the wheel every time a problem comes up there with those this problem before we figured out how to handle it they go to the manual tells them how to handle it then so I don't have to think of to run the company doesn't have to waste its efforts thinking through these issues every time so you know for example and then standard operating procedures you know can be whatever you make of them but how do you order your product is to get his examples of what you can have a procedure for what great a product you order one of the qualifications for the companies you order from one of the procedures for accepting or rejecting a product how did a sanitation how do you change a missing over by the way that can cut your labor costs almost in half of the pilotage of machine over on timely basis how do you perform her any video maintenance how do you handle a new customer how do you take there how do you handle a new order to handle Accounts Payable and receivable with already talked some about the how to return phone calls when we had a call from one of our major customers and the person wasn't there almost in every case they got a call back within one or two months it was either from himself from another top executive for we would call the cell phone of the sales manager and then he would get back to them so returning phone calls especially with some of your top customers streamline important in their again you're taking something off their back they don't have to call you three times while they don't have to keep on worrying about what it is they wanted to tell you to get softer mind you want problems off their mind and so getting back to them immediately those that even had a brief people in the law had recommended her operation in other they feel at home part of it feel like they are welcome when they arrive and then an iPod etc. etc. is obviously less just the beginning of the procedures you can have our quality operating manuals about like this when we went to sell our company vessel we are the salt say that again we would sell our company that's what we do so we had a company that was set up to run and people knew how to run and so they they were really buying operating what we had put in place when they bought the company and I knew the if we do make money off of a code to half all of the above that we've been talking about crazy barriers to entry and that's an important thing what's what's my competitor doing well this year and with your quality control with your purchasing was with your service was no everything else we talked about your competitors and I have to come up to that level her dramatically reduce their price or go out of business lately won't be able to compete with you on apart are because you've raise the boat the bar so high that they can't get over it and that's you know when this customer so they were getting five percent of our business is on somebody else that's what happened our bio are Bart was high versus low they didn't get the business by the way when you lose five percent of your business that is a danger sign in its own small but without other person clears the bar limit of ten percent negative twenty percent and fifty percent and seventy percent matter of fact that's how we grew no oftentimes somebody would start out something new and I got three suppliers both in six months than one supplier because we we heard we cross the hurdle is how much time we have left here click about ten minutes to write okay so important most important role when you become an entrepreneur to be the same in the nonprofit American in charge of something like that you're no longer a specialist in us for some people get themselves in trouble now they are absolutely excellent at building not certain whether trading a compound whatever had to go in the business and they bring their expert reduce but I don't know how to build a business or manage a business when you're going to business your no longer a specialist you are the generalists I made a list of things I had to keep track of them I suspect this is maybe thirty forty percent if I had time to thinkable but longer but we just give you some exotic some examples of things that I had to be on top of and that you will need to be on top of your business question all assumptions access your major role in the company seriously than all the rules does your employees are going to do that and they are going to be hung up because you can't do this we can't do this he can do this because of this to your job is to say hey this doesn't exist you can do this business Muslims but that's less probably her most important role in running a company ask a lot of questions do a lot of listening keep communication open between your employees that was frustrating in Ohio somebody sitting in this office and somebody sitting in this office and this person would complain that this person wasn't doing this right this person will call and complain that this wasn't per person wasn't doing this right and they were sitting thirty feet from each other and that once I you know what right now about a receipt walk thirty feet go over and sit down in front of this person and work it out I think the work that out for you guys you can do that and so keep your people communicating with each other is an extremely important thing don't make decisions based on fear rather on vision and analysis of what can go right at the same time that we where not have time to elaborate this have one person in your company that is scared to death that your knowledge of the now listen to them but don't let them control the company resulted in a lot of control and have a lot of problems but if you let them control what company will close your company down so understand what your risks are the figure out how to move it then in spite of that take risks if you're not a risk taker do not join the business but if it were easy everybody would be doing it's not easy everybody's not doing it make sure your wrists are measured rests for example what's the size of the risk undertaken what is the potential reward what are the number of risks that you're already taking it may be a small one but you already have fifteen risks which are taking and you want to add another rest but at least you analyze it you're just simply running away from don't put all your eggs in one basket know your limitations hire people that fill in your weaknesses hire people smarter than you those Ford said and get out at the right time if you grow rapidly over rapidly growing business at some point your business is going to exceed you if you ways of handling apart cross and possibly three maybe you can get the training was hard to do that run the business of the same time you hire somebody to do that for you or you can sell your business but it do not strategically know don't wait till you that a crisis when you have to make a decision have have a plan are doing that can continually reinvent yourself and the company we were never the same the company today as we were yesterday we were always on the move section on strategic planning are lots of books out there oh I got to the stay on top of everything and go through that I was responsible for management for purchasing for finance or accounting for just over pricing for sales a brow particular product is sold customer knowledge understanding the final customer marketing customer knowledge transportation trucking rail shipping port entry and export in the terms of law good handling importing employees integration trademark patent insurance liability real estate warehousing and inventory control and sanitation equipment maintenance industry knowledge computer hardware software and software development insurance real estate plant maintenance quality service quality and service quality that I sent quality and service attack investment banking how to solve merger companies also provide a way I started planning that ten years in advance that give goddess a company of any size your solo tomorrow that's the six-month interior process is very detailed process of the are prepared for your Internet taken by somebody so make those plans events which is and that's one thing that is a very difficult thing to sell a company lawyer running a company it's a ministry full-time jobs retain an excellent lawyer in our case we have a lawyer for all those things I was up there as we had many different lawyers talk about have an exit plan no murdering of another company bringing in a management team the family succession plan honesty that's extremely important to your business with an kind of discussing that this would have been going along to remember the good agreements create what good relationships okay very good and so honestly with your suppliers with your customers and their employees make honestly a core ingredient ingredient in your company but in a small company succeed where the company can as we've said there are niches the big companies don't want to be Arthur Emily to be very competitive concerts are clumsy so find the match but is not being covered by a large company so that you can go in and take the notes and what you may become a large company take a more similar other business as well small family can turn on a dime creativity is their culture they don't have a stack of bureaucracy that you have to go through so there are many things of small companies can do the big companies that I first realized this I kept asking myself become more successful when you know I could name ten companies we were competing against one day I got my answer got a call from Microsoft and supplier and he said and a lot of the sauces is just been rejected on the East Coast this was a West Coast company says that you buy from us in July was rejected so it was rejected because they found some wormholes and options okay now you think of it the saucer was inside a shell Sasha grows out in the field will be on the field that works and how do you see a wormhole if it's down underneath the shell there is so far there's no way to test for that so they were in and I knew this was the best Sasha company out there that if they sent a load of the saucers it was the best in the world so long as he said now that I need to tell you you said a bunch of boxes and open for their quality control so I'm not expecting you to take the leadership was back so I got a good price I made a cup of supplier happy they just made a supplier mad got this thousands there were beautiful nothing wrong then the boxes were opened about twenty five percent of the product was gone in five percent of bosses were open a result quality control frankly produce incredible overkill so here it is a big company have this big cumbersome quality control situation that made them reject this load of the saucers that was the best in the world that made their customer supplier Matt we made supplier happy and we got a good price besides also by that clicked with me you know the president of that company doesn't go down look up its sauces it doesn't remotely be rejected I go out I looked at the post office my mother just fine and so small company is indeed have some advantages over large and companies were set up time to talk about government regulation that taxes Social Security Medicare of just tell you don't plan on any of them except for regulation and taxes and they may put you out of business is always a possibility almost happened was several times face her personality you know some people want to comfort the get a check every week I know exactly what to do it's been spelled out for them they can leave at five p.m. some people enjoy the politics of large institutions and so you have to decide who you are before you you take on something like this others another thing if your mindset as it is evil to make money from going to business sounds this sounds obvious but that happens you know if you cannot get out of the box you're not likely to succeed on the other hand others enjoy the exhilaration of the in the case almost more than the touch a chance to escape the politics of the company and institution they can make decisions decisions that were made of the General conference of the committee of twenty in a year I had to make an sometimes two minutes than me my decision was better than theirs or that there is better than mine is just that I have a fast organization that could move and we can make decisions and we can go onto the next thing instead of having to you things over and over and over again just a creature own world and express your own creativity reasons for going into business and Byron Boston opportunity for wealth and by the way I've been reading some books you read that one article on how to be an entrepreneur to run and sells nuts but now I had to talk to you guys I figured to read some books and I discover them the most people again well in the United States Dubai running a business is not the money they make from the business as the money they make from selling the business and so people letter that are serial entrepreneurs to build business facility build business results on some form are the ones that are most likely to be successful as an opportunity to trade and integration of family culture between generations are an opportunity to support philanthropic causes an opportunity to learn and share your talent with the church answer just real quickly here in wartime is up why could a bashful young kids like me make it several times Ellen White fired I don't think I could've done without her Ellen White says that when you read the Bible it strengthens your mind community none of the God guns leaving those we mention there are several ways in which God want us that we couldn't thought of ourselves like to be more illustrations the following rep wherever God leads and God has given us the opportunity amid God 's given us our minds is given us in our abilities is given us the opportunity of developing those abilities he wants us to do it in harmony with his wit well with his word not opposed to them but in harmony with the and he has given us so much in this church has given us so much and when I travel the world and see what's happening to people worldwide because of this church is amazing in our taking people that some of the lowest rungs of society and within one or two generations of doctors nurses and teachers and so on and so forth it's absolutely wonderful what God is doing through the church and the people get to the top and whether they do they look like and do you know when one of its God in this church that is made that possible so we need to recognize not only permits a responsibility but is also enjoy to be able to to get back and in this plan I just not just money you have developed talent with this church needs you learn things that you would learn any other way that will wrote of hard knocks is the best teacher for sure and so not only give of your funds given your cow and allow the church to benefit from the years of experience that you had in order that we might finish the work of God I say I am going back in there there is something to fill out if any of you if any of you have some questions aren't always leave time for Qwest so I'm happy to answer her questions answered try to answer any questions that you have a question about there's a hundred ways to run a business so I simply given you how we ran ours and our situation happen I don't know who you are not alone in this media is my audience Chris Morley and maintenance services and industry to learn more and I find that he and he and I is a worry this is a free online service please visit www. maneuver is not

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