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.