6 Road Trips Reveal Critical Lessons For Business Success

If you’re like me, you love road trips. And, if you’re like most everyone, you appreciate hearing a good story.

Just imagine how intriguing it would be to hear stories about six road trips. Six road trips across the U.S. that produced dozens of stories about what local small businesses on Main Street’s across America do that can inspire big businesses on Wall Street – or Madison Avenue megabrands, or enterprise of any size -- in today’s economy.

Well, that’s exactly what you get when you read the new book, Roadside MBA: Back Road Lessons for Entrepreneurs,Executives and Small Business Owners.

You’ll read those dozens of stories captured by three information-hungry economist/b-school professor buddies who traveled Memphis, TN to Omaha, NE; Charlotte, NC to Atlanta, GA; Chicago, IL to Cincinnati, OH, and so on.

Applying economic reasoning to the strategic questions that challenge any business, the authors reveal what real American small businesses can teach us beyond the bounds of most MBA programs or curriculum.

The stories are grouped by lesson topics:

Scaling a Business
Establishing Barriers to Entry
Product Differentiation
Setting Prices
Managing Your Brand
Negotiating Effectively
Hiring
Delegation
Battling the Big Boys
Strategy is a Continuous Process

Mike Mazzeo

This week, coauthor, Mike Mazzeo shared more insights about his book, and the journeys he shared with coauthors Paul Oyer and Scott Schaefer:

1. What surprises about small business did you learn during your road trips?

Mazzeo: We were continually surprised by the creative strategies that small businesses had developed to compete better in their markets. While most of the owners did not have formal business education, they had internalized many of the key frameworks that we teach to MBA students and made them work for their companies.

A great example was Panhandle Converter Recycling, a company that we met with in Dothan, AL. The business extracts the precious metals from junked catalytic converters -- going into our interview we expected a straightforward story about buying, processing and reselling. Instead, we learned that catalytic converters come in all shapes and sizes and it is impossible to know -- without cracking it open -- how valuable the precious metals inside might be. Panhandle developed its strategy around dealing with this uncertainty. They kept detailed information on the contents of converters they had processed in the past and turned this data into a system to ensure they never paid junk dealers more than the value of the metals that they could extract. We never expected that data analysis would be the key to success for such a company.

2. What are the two or three most common themes you heard during your road trips?

Mazzeo: One recurring theme was about growth and scaling. For the small businesses we met with, growth was a nearly universal aspiration. But growth was easier for some businesses and more difficult for others. In large part, prospects for growth were rooted in the fundamental economics of the business. We met with a company in North Carolina -- Steele Rubber Products, Inc. -- that produces replacement rubber parts used by collectors when they are restoring classic automobiles. These rubber pieces are produced from a mold, so once the company has fashioned the mold (which can be quite expensive) the costs for making each part for sale is quite low. This is the kind of business that is set up well for growth, because you don't have to keep making investments and incurring expenses to sell more.

Another theme for small business was how to think about strategy when competing against larger companies -- we called it "Battling the Big Boys." These larger companies have built in advantages like scale and marketing efficiencies; it is crucial for a small business to build its strategy around things the "Big Boys" aren't able to do well. In Spartanburg, SC we met with Sims Bouwmeester who started a small PR/marketing company whose competitors were large advertising agencies. These agencies typically worked on big, multi-year retainers and weren't flexible enough to do smaller jobs. Taking advantage of this weakness, Sims built her business around being "project-based" and was willing to take on even the smallest of contracts. In her first year in business, she had served over 100 different clients -- many of which wound up giving her more work later.

3. Do you think you missed some valuable stories by having not traveled to Texas and all but one place in California?

Mazzeo: There were great stories to be found all over the country, so we certainly missed some in the parts of the U.S. we haven't made it to yet. But, we aren't done taking road trips -- in May of this year, we visited businesses in California and Arizona. Texas is definitely on the list for future trips, as well as North Dakota.

4. What lessons did you learn about people during your road trips?

Mazzeo: One interesting thing that we learned was the successful small business owners are invariably great story tellers. This isn't surprising, when you think about it -- to be successful, you need to tell the story of your business to customers, to bankers, to employees, just to name a few. We loved listening to the stories about how these businesses got started and how their owners met the challenges that they faced.

5. What lessons did you believe were more prevalent during your trips that would have not existed or been less existent prior to the economy's downturn in 2008/2009?

Mazzeo: As we traveled around the country, we saw that different businesses were touched by the downturn very differently. The downturn certainly made the business owners more careful but it didn't dampen their optimism. And, you need that kind of optimism to run a small business successfully because it is an uncertain endeavor even in the best of economic times.

Thanks to the authors for sending me an advance copy of the book.

Comments

Five Essential Principles For Sustaining Growth Through Innovation

Even though many companies strive for innovation, most struggle to achieve meaningful change. The largest reason for this disconnect? Playing it safe. Leaders and organizations want to implement new ideas, but too often they are held back by the fear of failure, even though setbacks are intrinsic to the innovation process. In the new book, No Fear, No Failure , by Lorraine H. Marchand (with John Hanc), readers will learn how to overcome the status quo that stifles creative thinking and how to create a culture that encourages innovation. Marchand provides a framework for sustained growth built on the “ 5 Cs ”: Customer First Culture Collaboration Change Chance She draws on more than 120 interviews with leaders across industries, real-world case studies, and her firsthand experience and shares step-by-step, field-tested strategies, tactics, and tools that practitioners can use to embed creativity within organizational cultures. Marchand is a former Big Tech and Big Pharma ex...

10 Quotes From The 5 Levels Of Leadership -- John C. Maxwell

Soon I'll post my full review of John C. Maxwell's latest book, The 5 Levels of Leadership . In the meantime, here are some of my favorites quotes from the book that I believe should become a must-read book by any workplace/organizational leader: Good leadership isn't about advancing yourself. It's about advancing your team. Leaders become great, not because of their power, but because of their ability to empower others. Leadership is action, not position. When people feel liked, cared for, included, valued, and trusted, they begin to work together with their leader and each other. If you have integrity with people, you develop trust. The more trust you develop, the stronger the relationship becomes. In times of difficulty, relationships are a shelter. In times of opportunity, they are a launching pad. Good leaders must embrace both care and candor. People buy into the leader, then the vision. Bringing out the best in a person is often a catal...

Teach An Employee Something New Today

Take the opportunity today to teach an employee something new. Nearly everyone likes to learn and is capable of tackling a new challenge. Teach your employee something that expands their current job description. Teach something that will help them to get promoted within your organization at a later date. Teach them a skill that uses new technology. Or teach them something that will allow them to be a more skilled leader and manager in the future. You can even teach something that you no longer need to be doing in your position, but that will be a rewarding challenge/task for your employee. The benefit to your employee is obvious. The benefit to you is you'll have a more skilled team member who is capable of handling more work that can help you to grow your business and/or make it run more efficiently. Be a leader who teaches.

How To Be A More Human Leader

“To be most effective in today’s environment, leaders must be human leaders. Human leaders must be able to lead not only with their heads but also with their hearts and souls,” says veteran executive coach Hortense le Gentil , author of the book, The Unlocked Leader: Dare to Free Your Own Voice, Lead with Empathy, and Shine Your Light in the World . She adds, “In addition to being respected, seen, and valued, employees also seek leaders who feel human, not distant and perfect beings with whom they can’t connect.” Additionally, leaders need to put the collective interest before their own and work hard to make other people’s good ideas happen. “And although the book focuses on leadership at work, each of us is a complete individual, not a sum of separate, isolated parts. As such, the process presented in the book applies to all areas of your life,” shares the author. She further explains that becoming a human leader is a journey, not a desti...

Leadership Lessons From Kent Taylor, Founder Of Texas Roadhouse

From cover-to-cover of Made From Scratch you’ll learn the leadership lessons of the late Kent Taylor , founder of the restaurant chain Texas Roadhouse. In the new book, Taylor recounts how he built the restaurant chain from the ground up after being rejected more than 80 times as he pitched the idea for the business. His approach to business was often out-of-the-box, however, his business lessons and leadership lessons from the course of his life and career are invaluable. Here are some of my favorite leadership lessons from Kent and his book: The best leaders stay down-to-earth and approachable. In a bottom-up company, the leader learns from frontline people. As soon as you make a profit, find a way to give back. Be willing to laugh at yourself. Become a student of your craft. Positive reinforcement inspires much greater performance than fear ever can. Want to get the respect of your people? Then roll up y...

29 People Who Taught Us Life Lessons In Courage, Integrity And Leadership

The 29 profiles you will read in Robert L. Dilenschneider’s new book, Character , are about people who are exceptional exemplars of character. They’re inspirational because they used their abilities at their highest levels to work for causes they believed in. Because of character, they influenced the world for good. The dictionary defines “character” as the mental and moral qualities distinctive to an individual, the distinctive nature of something, the quality of being individual in an interesting or unusual way, strength and originality in a person’s nature, and a person’s good reputation. “But beyond these definitions, we know that character is manifested in leadership, innovation, resilience, change, courage, loyalty, breaking barriers, and more,” explains Robert (Bob), “Character drives the best traits in our society, such as honesty, integrity, leadership, and transparency, and it drives others to exhibit those qualities.” Profiled in the book ar...

Five Essential Principles For Being The Leader You Want To Be

“By focusing in specific ways on five key leadership elements— Purpose, Process, People, Presence, and Peace —you can increase your time, capacity, energy, and ultimately your leadership impact,” explains Amy Jen Su , author of the book (released today, October 22), The Leader You Want To Be: Five Essential Principles for Bringing Out Your Best Self—Every Day . Su shares both Western management thinking and Eastern philosophy to provide a holistic yet hands-on approach to becoming a more effective leader with less stress and more equanimity. She draws on rich and instructive stories of clients, leaders, artists, and athletes. And, she focuses on three foundational tenets: s elf-care, self-awareness, and personal agency . Most important, Su explores in depth, chapter-by-chapter the Five Ps : Purpose – Staying grounded in your passions and contributions, doing your highest and best work that has meaning and is making a difference. Process – Relying on daily practices and ...

How To Play Bigger And Be A Category King In Business

"The most exciting companies create. They give us new ways of living, thinking, or doing business, many times solving a problem we didn't know we had -- or a problem we didn't pay attention to because we never thought there was another way," explain the four authors of the dynamic new book, Play Bigger . They add that, "the most exciting companies sell us different. They introduce the world to a new category of product or service." And, they become category kings . Examples of category kings are Amazon, Salesforce, Uber and IKEA. Play Bigger is all about the strategy that builds category kings. And, to be a category king you need to be good at category design : Category design is the discipline of creating and developing a new market category, and conditioning the market so it will demand your solution and crown your company as its king. Category design is the opposite of "build it and they will come." Key traits of category design...

How To Harness Employee Experience Design To Attract And Retain The Best Talent

Employee Experience Design (EXD) is designing with people and not for them. It’s a proven method for engaging and collaborating with your employees to help solve your most difficult workplace challenges. You’ll learn all about EXD in the new book, Employee Experience Desing: How To Co-Create Work Where People And Organizations Thrive , by Dean E. Carter , Samantha Gadd, and Mark Levy . “Many organizations are drowning in policies and initiatives. EXD is a way to reduce that burden while delivering better results both for employees and for the bottom line,” explain the authors. The book includes inspiring stories from brands like Airbnb and Patagonia, among many others, including those in retail, healthcare, hospitality, apparel, and biotech. It describes the power that’s unleashed when organizations design with and not for their employees. The first part of the book covers The Why of why EXD is so important and addresses legitimate – and tough –...

6 Ways To Seek Feedback To Improve Your Performance In The Workplace

Getting feedback is an important way to improve performance at work. But sometimes, it can be hard to seek out, and even harder to hear. “Feedback is all around you. Your job is to find it, both through asking directly and observing it,” says David L. Van Rooy, author of the new book, Trajectory: 7 Career Strategies to Take You From Where You Are to Where You Want to Be . As today's guest post, Van Rooy offers these six tips for how to get the feedback you need to improve performance at work . Guest Post By David L. Van Rooy 1. Don’t forget to as k : One of the biggest mistakes people make is assuming things are going perfectly (until they make a catastrophic mistake). By not asking, you’re missing out on opportunities for deep feedback: the difficult, critical feedback that gives you constructive ways to improve. 2. Make sure you listen : Remember, getting fee...

Eric Jacobson On Management And Leadership

Search This Blog