This man, who shall go unnamed, keeps a low profile. I happened to run into him and struck up a discussion with him, which lead to another over lunch.
We sat down for lunch at an organic food market, and he proceeded to tell me his story.
He was a writer and senior lead auditor of the ISO 9000.
ISO 9000 is a globally acknowledged quality business management standard that is utilized by large companies with support businesses all over the world. It exists so that stakeholders can have confidence that a manufacturing plant in another nation will create exactly what the contract specifies, without having to travel to that factory to conduct a thorough inspection. They know the plant will perform to standard if it is ISO 9000 or ISO 9001 certified.
The ISO 9000 standard is founded on seven quality management concepts. Companies in the automotive, chemical, and aerospace production industries, such as GM, Chrysler, Boeing, General Electric, Northrop Grumman, Alibaba, and Eastman Chemical Company, are among the adherents.
This individual told me that he applied the quality management ideas he helped establish in the ISO 9000 standard to the ten independent firms he runs now. His companies include a skateboard and BMX shop, a pawnshop network, a consulting practice, a musical instrument store, an Internet sales business, a real estate development and management firm, a firearms store, marine products online store, a standup paddleboards store, and a visual displays store.
Here's what he told me about business and life. Visualize everything in quotes below.
Multiple Revenue Streams
If you only looked at one of the ten businesses I own, it would not be very impressive. It would give a simple, fair life for a small family, but not much more. It's a low-key yet reliable, tiny and focused, lucrative enterprise.
It's simple and unremarkable on its own. You young, startup-obsessed whizzes want something high-profile and instantly viral. My businesses aren't viral, but they benefit a specific sort of person by consistently giving a high-quality answer.
Multiplying a modest, quaint, and prosperous firm by 10 results in a diverse, multi-million dollar portfolio.
Do Not Partner
If at all possible, avoid collaborating with anyone. The more partners you have, the more of the pie you have to split. The more partners you have, the harder it will be to argue for your point of view. The more partners you have, the longer it will take to complete any task. Co-founding is exaggerated.
Learn the skills yourself, bootstrap, and then hire the right people (see below).
Study the Market
We are operating in a tiny market. This isn't San Francisco, Paris, or New York. I've noticed that smaller markets lag behind larger markets by two to three years; whatever sells in the big cities will not sell in ours at the same time. But give it two to three years and it'll be flying off the shelves.
Find out what this is, and be the first to open a shop in your small market.
Be Very, Very Careful With Who You Hire
My staff can move between business lines. Every employee is multi-talented. In between clients checking out, the female behind the counter is performing social media marketing online.
Each company has a manager who possesses a bank card. Each manager is taught the ISO 9000 principles and given complete control of their firm. I ensure that if the firm does well, they do well by implementing a strict incentive plan. If they want to order the hottest, new things to offer in their business, they must first sell enough to fund the purchase of the inventory.
I look for people that are self-sufficient and accountable, and who take entire control of their business. This permits me to travel as often as I do since I know my staff works hard for themselves.
Oh, and we have a LOT of parties. We informally swap ideas about what marketing methods work in one business that might work in another, we have performance awards, and we have fun together.
How to Do Well in Business
Here is the mission statement for all of my companies, it’s very simple:
To be successful in business does not imply that you must change the world. It entails addressing a need (of any magnitude) well and consistently throughout time.
Something should be sold. If it's a product, ensure its quality before selling it at a reasonable price and ensuring that the breakeven threshold is reachable for you as the business owner. If it's a service, make sure there's added value, such as the fact that you're really competent and knowledgeable in your profession, and the service you're providing is unique, at least in your market.
Something should be sold. If it's a product, ensure its quality before selling it at a reasonable price and ensuring that the breakeven threshold is reachable for you as the business owner. If it's a service, make sure there's added value, such as the fact that you're really competent and knowledgeable in your profession, and the service you're providing is unique, at least in your market.
I tried to maintain eye contact while furiously thumbing words into an Evernote note while he spoke to me. We finished our meals and said our good-bys. Fortunately, I saved the note and wanted to share it with you.
Perhaps one day I'll be sailing around the world with my family on one of my ships while running ten enterprises... But, in the meantime, I'll keep writing about those that do.
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