Winning at Business

By Mike Fiorillo

 

Introduction

I don't have an MBA, or any college degrees. I have owned a business in the past, but not currently. Like almost everyone, I have been doing business with people on a regular basis my entire life. I am 60 years old, and have learned a few things. What you are about to read, you probably already know, but maybe need to be reminded of. This is not new information. It is, and has been my personal philosophy and the way I've tried to do business for many years. It has served me well. It is not complicated, but it's not always easy, especially in today's world. I hope it makes sense to you, and is something you can agree with and believe in. If it is, please, use it, teach it, pass it on, and when you come across it, reward it.

The Common Business Goal

If asked, "What is the common goal of all businesses"? I'm sure many, maybe even most people would answer, "profit". Profit is important and necessary for a business to survive and eventually flourish. However, when profit becomes the primary goal and the only measure of success, that's when a business can start heading down the wrong path. As a person in business, your daily, weekly, quarterly and annual goal, first and foremost, should be to do everything in your power to make sure you, and everyone you do business with, wins. Let me repeat that, if you call yourself a business person, then along with winning yourself, everyone you do business with, should also win. If that is not happening, something is terribly wrong.

Your business circle consists of everyone and anyone who trusts you enough to do business with you. If your customers, employees, (or employer), distributors, suppliers, bank... if anyone in your business circle is losing, because of you, your business is in trouble. There is no one you do business with, that can suffer overall loss, and maintain a profitable business relationship with you. It just doesn't work that way. Would you do business with someone if you knew you'd wind up losing? Do you continue doing business with those who cause you to lose? Of course not. Everyone involved in conducting business with you is trying to win. The only losers in your business world, should be your competition, not those in your business circle.

When everyone in your business circle wins... profits, growth and success will come naturally, and honestly.

 

 

 

Honor, Integrity, Loyalty, and Reputation

 

I call this business goal, the business circle of mutual winning. An interesting thing happens when you make it your primary business goal. It tends to automatically make you a decent, honest, fair, and ethical business person. The exact kind of person you and everyone else wants to do business with. When you care about your business circle, it shows in how you conduct your day to day business. It will show in your lack of employee turnover. It will show in your repeat business. It will show in your long term profits and growth. It will show in the respect you'll gain from your business circle, and from the entire business community.

Every well run business wants their customers to win. A casino doesn't want their customers to feel cheated. They go to great lengths to ensure their customers have a profitable experience, (a good time), even if they lose their money, so they'll return. Every well run business wants happy, healthy, productive employees. Every well run business wants their business circle to win because it's in their long term best interest.

There are many so-called businesses out there who care only about profits, and nothing else. Some feel that as long as profits are earned, (or stolen), it justifies any means. As long as I win, it makes no difference who loses. Why do we even call people who think and behave that way, business people, when many are just common liars, cheats, and thieves? Why, as a society, do we continue to not only accept, but reward this type of thinking and behavior? Bernie Madoff might be respected and even admired as one of the best thieves who ever lived, but we don't call him a businessman, (anymore). There are far too many criminals who lie, cheat, and steal for profit, and call it, "doing business", that we not only tolerate, but allow to thrive.

Profits can also be earned by being honest, fair, and treating people right. It might be more difficult, it might take more work, and it might even mean lower short-term profits, but it also earns you much more than just monetary profit. It earns you premiums money can't buy. It earns you honor, integrity, loyalty, and reputation.

 

 

 

 

 

 

 

     Liars Cheats and Thieves

 

Our West Point and Air Force Academy Cadet Honor Code reads simply that:

"A cadet will not lie, cheat, steal, or tolerate those who do."

(The Navy has a related standard known as the honor concept).

The code exists for one simple reason. We demand that our military officers be men and women of honor and integrity. It is simple, straightforward, easy to understand and not easily misinterpreted.

I have some simple questions. Shouldn't we hold those we call business men and women to a similar standard? If you need to lie, cheat, and steal to profitably conduct business, are you really a business person, or just a liar, cheat and thief? Can you call profits made from lying, cheating or stealing, business profits? Shouldn't a so-called business that lies, cheats and steals be shunned and ostracized at the very least? Shouldn't out and out fraud and crime be prosecuted?

Once the business circle of mutual winning, is ignored or forgotten, it is easy to start compromising. It is easy to fudge a little here and cheat a bit there. If you steal enough, it's even easy to buy politicians and get laws passed to make your unethical profits even greater. The examples of businesses not caring about anything except profit are all around us. They seem to be the rule rather than the exception.

Suppose you're in the food business. When you don't really care if your customers win, it's easy to cut a few corners, skip some tests, maybe sell product that should have been tossed... after all, who's going to know? As long as profits are made and the health department is fooled, or paid off, everything is fine. You're just a good old boy, the owner of a peanut butter company selling contaminated products, making national headlines, and maybe doing some jail time.

Or you're in the automobile business. You know that the small trucks you make really should have headrests. You have powerful lobbyists to make sure the law doesn't require them... yet, and the trucks still sell. Who cares if every time one of your trucks is hit in the rear, someone's head goes through the back window? You're in business to make a profit, not to care about customer safety. This is just one example. Multiply these attitudes and practices many times over many years and see what happens. Don't be surprised when your previous customers start buying from your overseas competition, and you're going bankrupt.

 

Or you own a major retail chain and you steal from your employees by forcing them to sometimes, "work off the clock". Then the class action lawsuit costing you millions in cash and an untold amount of bad publicity hits. More and more people will refuse to shop in your stores because of the way you continue to do business, and you will eventually, finally, collapse.

Or you're a Wall Street banker... no, if you're one of those, all of this is way beyond your ability or desire to understand or relate to. Believe me, you do not have to lie, cheat or steal to be a successful business person. I'm not so sure... if your goal is to become a billionaire banker.

 

 

 

It's Not Easy

 

It's not easy. There are times in business when there is no easy solution to a problem and you're faced with a choice between two evils. Do I raise prices or lower quality? Do I manufacture overseas, and lay off workers, or raise prices and lose customers? Do I switch to a new vendor to save money, or stay loyal to my old one, who is a personal friend? I can't answer questions like these, or help you make the tough decisions I know business people are forced to make every day. All I have tried to do is remind you of a truly worthy goal any business can and should strive for. That is, to do your best to make sure that not only you, but everyone you do business with, wins.

 

 

 

 

 

 

 

 

 

How to handle an angry customer

It happens. We make mistakes, something isn't understood, a "lemon" slips through... there are as many reasons customers become upset as there are upset customers. There is a very effective way of handling the situation. It's a four stage process : listening, agreeing, questioning, and negotiating.

Shut up and listen. Let him vent as long as he wants. Do not interrupt. Even if he is wrong, hear him out. Allow him to finish even if takes some time. It sometimes takes a lot of effort to not interrupt, but it's important that you don't. Your job is not to argue, not to be right, but to save a business relationship. While it might be good for your ego, it is never good business to be right, win an argument, and lose a customer.

The second stage is showing that you empathize, care, and understand why he's angry. When he's done venting, agree with him. Even if he's wrong, you can still agree by saying something like, "I can certainly understand how you must feel, and why you're upset". If the problem is your fault, then agree and apologize.

The third stage is simply the question, "What would you like me to do to make this right?" Often, you'll find that it's already been done. Sometimes all an upset customer really needs, is just for someone to listen, and understand. Sometimes that's all we can do. Don't be surprised if you're the one getting thanked, and if the customer got a bit carried away, apologized to.

The final stage is negotiating a fair solution to fix the problem. If the first three stages have been done properly, that can now be a calm, rational, process.

 

Mike Fiorillo

 

 

 

Some truth I've learned about love, and myths I no longer believe

 

There is no such thing as "unconditional love". To believe you can love someone unconditionally is to believe there is absolutely nothing they could ever do that you couldn't forgive. Using a little imagination, I'm sure anyone can come up with a few unforgivable acts that even your kids could, (but probably would never), do.

I believe all love has at least one condition that, because of how I define love, is built in. That condition is choice. I will love someone until I choose not to. Now, we might choose to love for some very dubious reasons, (guilt and fear are a couple), but the bottom line is, it's still our choice. This dispels another myth. That we have no control over who we love. That's nonsense. We might not have any control over who we're attracted to, or lust after, but that's not love.

How do I define love? First off, it's not lust, or attraction, something easily confused with love, especially by the young. Love isn't a feeling, a condition, or a state of mind. It's not even a noun... it's a verb, and an action verb at that. It is not so much about how you feel, but how you act. If you choose to love someone, and you don't show it by your actions, then it doesn't exist. If you've ever had someone say they love you, and didn't do it, you know exactly what I mean. Love is always something we do, or is done to us... by choice.

Everyone you choose to love, for the most part, you'll love the best you can. Everyone who chooses to love you, for the most part, will love you the best they can. Unfortunately, it will never be exactly what is wanted, needed, or expected. In some cases, it will be precisely the opposite. Now it can come close, (real close), but it will never be perfect. Everyone requires different degrees and amounts of honesty, affection, communication, trust, attention, time together, sex... the list is an infinite and unique blend for each individual. Don't hold it against someone if their love just doesn't work for your particular mix of wants, needs, and expectations, or if your love doesn't work for theirs. It's not anyone's fault. Rest assured though, that there is someone out there who it will work for.

Let's clear up another myth about love, and relationships in general. It's been said that it takes a lot of work to develop, maintain and keep a good, healthy relationship. That's a lie. Our best relationships, the really great ones, actually require very little effort. They are healthy and work well because both parties' wants, needs, and expectations are naturally, almost automatically being fulfilled . The work you hear so much about, is required when the match isn't right. We try to change, or we need them to change and with effort, it's possible... but only for a short time, and then, sadly, the cycle is repeated. The work never ends in bad relationships, and never begins in good ones. Relationships are kind of like shoes, they either fit or they don't.