One of my favorite authors is Stephen R. Covey. In a book he writes with A. Roger Merrill, First Things First, he teaches that all humans are born with an innate drive to fulfill four basic needs:

• To live
• To love
• To learn
• To leave a legacy

You must understand and address those needs as part of building your business. Each one will contribute to the culture you develop, as well as to the way your company accepts your leadership. For those of us who have peeled the layers back, it is evident that “leaving a legacy”—mattering—should be the primary focus. Make a difference. Do something that impacts more than just self. Establish worthy aspirations. Establish a culture that allows people to matter.

Not many years ago, I attended Ray Noorda’s funeral. Ray was the man who took Novell, a failing startup with 17 employees, and transformed it into to a computer giant. Novell eventually employed more than twelve thousand people and transformed an entire valley in Utah into a veritable techno-hub. Ray is known in the technology industry as the “father of network computing.” This is a fair assessment, but he was much more than this. He generated thousands of high-paying technology jobs, spawned numerous small businesses, and—of most consequence to me— set a leadership model that enabled young leaders to emerge. As one of those, I have tried, in many ways, to emulate his leadership style.

Ray was a multimillionaire who drove a pickup truck, lived in the same modest home until he died, and was often seen wandering into someone else’s meetings to sample the snacks. As heads turned to see who was moseying in late, Ray would pleasantly say, “Hi, folks. Got anything good to eat here?” He was down-to-earth and his values were real. “Make a real contribution” was not just a mantra for Ray. He mattered, and established
a culture that allowed others to matter as well.

Ray created stories. He did not establish the culture at Novell by lecturing or mandating but rather by making a point to drop by offices after hours and on Saturdays to visit with whoever was in. He would park himself on our desks to see how we were doing, talk shop, and inspire us. Stories that originated with him started in one cubicle would circulate like wildfire. He gave us all the impression that we could add to the Novell culture, and that it belonged to all of us. He took time to educate and inspire us personally through both his interactions and his stories. We learned from him how to behave, what we stood for, and what was expected of us.

Ray’s legacy ranges from larger-than-life examples of business fervor to amusing situational anecdotes. I was present for one of my favorite stories, which took place between Ray and my mentor, Dr. Peter Horne. Dr. Horne had flown in from London for a meeting with Ray and others, and things got started with some small talk. Ray casually mentioned his love for skiing, adding the aside, “But only on Tuesdays.” Dr. Horne, with his proper English accent, asked “Why only on Tuesdays?” Ray responded, “Because Tuesdays are Senior Citizen Day, and I ski for half price.”

Without fanfare or self-aggrandizement, Ray set the tone of the meeting, establishing the fiscally conservative nature of Novell and laying the foundation for a strong and productive relationship between Novell and Dr. Horne for years to come. This was Ray’s way: understated but clear, light but appropriate. I love and appreciate everything that I learned from him.

At Ray’s funeral, the speakers gave outstanding eulogies, attempting to sum up several of his key beliefs. Ray wove these into the very fabric of Novell and, of course, his own life. Following are the characteristics I made note of during the service:

• Believe and trust in people.
• We all have a responsibility in life. Be faithful to it.
• Customers first, employees second, shareholders third.
• Be unassuming.
• Listen, especially with your heart.
• Practice integrity.
• Be loyal.
• Be true to your own core beliefs, but recognize the need to compromise within parameters that don’t violate those beliefs.
• Respect the individual, not the title.
• Marriage is ordained of God, and is your first priority in life.
• Practice fiscal responsibility.
• Take care of your health.
• Willingly forgive others’ mistakes and shortcomings.
• Retain your dignity, no matter the circumstances.
• Give something back.

Ray never put together a PowerPoint on these principles. He didn’t make posters or require us to attend “Company Culture” development workshops. He simply lived and shared what mattered most to him and expected us to internalize similar principles. Ray knew the culture he wanted, and he owned his responsibility to create it.

In owning your company culture, remember that your culture has to work for you. Each company is different, and what might be appropriate for a marketing company could be outrageously unsuitable for an accounting firm. Your culture is about the way your office is laid out, the perks and fun things you do together, and the values you embrace.

Whatever your culture, communicate it. You must be the one to start your own legacy and stand up for what you want to see happen. As an entrepreneur, you have the freedom to pick and choose and develop whatever you want your culture to be. Don’t succumb to laziness or insecurity and simply live and let live. Your culture is your Holy Grail, and you have the power to pursue it and make it your own.

Porter’s Points – You Own the Culture

• People don’t learn company culture from lectures and meetings. You create your culture by what you do. Map out how you want your company to act, and start acting that way yourself.
• Everybody wants, somehow, to matter. Show your team that they matter to you and to the company’s objectives. You must balance your administrative duties with your need to lead.
• How do you want to be remembered? You determine that memory by your every action.

As explained in chapter 16 of Bootstrap Business, the culture of your business is as important as the legendary Holy Grail, and it’s up to you – the business owner – to create it!

Countless crusaders spent their lives in search of the Holy Grail, a mythical object of deeply spiritual significance. What came of their quest? Did they ever find the Grail? Well, no, but their lives changed, and they left a legacy—some good, some bad. Long after deals are done, contracts are completed, and companies are closed, you and your team will be bound together by the experiences you shared. For good or ill, you will remember what you learned and how it felt.

Your company culture is your Holy Grail. Establish it right from the start. Rich alluded to the function of your culture in the last chapter, but understanding why and how you are to establish your culture warrants its own space. You build your culture because it is your responsibility. You must, for the long-term success of your endeavor, establish a durable, viable culture. As you commemorate the great actions of the past, you help create a vibrant legacy that wins loyalty to your company and enhances the effectiveness of your work.

As it goes in life, so it goes in business: the most infectious method of teaching and passing on your culture is by example. You must create the culture within your company because if you do not, someone else will. That someone else could be anyone, right down to the depressing engineer whose daily complaints bring everyone down.

Influential leaders have not been influential by accident. Leaders leave legacies built on their actions and the stories that grow out of those actions. Gandhi walked across India, millions followed, and their boycott of salt brought the British government to its knees. Winston Churchill ordered that theaters remain open despite Nazi bombing. George Washington galloped into a firestorm of lead, emerging with his cape riddled with bullet holes and his person unharmed. Mother Teresa labored in Calcutta and other poverty stricken areas to minimize suffering with love and care until her own death. Great acts of leadership do not happen by accident.

While your culture is your responsibility, you have additional resources at your disposal. If your company has been around for a while, you have already created part of your legacy. Past successes fuel future achievements. If, on the other hand, you are just starting out, there are plenty of names and faces to look to. Decide on values, rules, and attitudes. Make sure you enter the business world with a boom and hire employees who match. That’s the way the masters do it, and that’s the way that Rich does it. He doesn’t just do it, though—he has fun with it!

I once worked for a large company that was engaged in some serious internal warfare. Someone had decided to house the sales team next to the engineering team. The engineers, listening in on sales calls with customers, insisted that the sales team was nothing but a bunch of liars. The software wouldn’t do what sales said it would. The engineers knew it because they had written the software. But the sales team retorted that the engineers were out of touch and needed to write the software that the customer wanted instead of their regular “useless junk.”

The contention between the two teams caused a rift that hindered the entire company’s ability to ride the wave we were on. The company eventually failed. There were multiple reasons, but one key reason would have been incredibly easy to fix: office layout. The engineering team never should have been sitting next to the sales team in the first place. Maybe the sales reps were lying, or maybe they were just stretching the truth; either way, the engineers would have been better equipped to deal with back-end troubleshooting than with up-front sales tactics.

One system that has succeeded for me is to structure the office layout in terms of the flow of the business. In the example above, a better solution would have been to place the product management team between sales and engineering, playing the buffer role and helping maintain the balance between customer demands and engineering realities. The technical support team should sit as a branch of the engineering team, yet be accessible to sales. The engineers work best when kept away from all distractions. In our office, we find it helps to place engineers in the back of the building, close to food and drink. We make life comfortable for them; as a result, they are more productive. Your admin, of course, should be your first line of defense between the world and your company. Anyone wanting to talk to you or anyone else should go through the admin to get there.

Maybe it’s trivial, but I have one last note concerning the layout and structure of your office. Make certain your teams have the most up-to-date and comfortable gear possible. If this is out of the realm of the probable, then give them the best of what you’ve got. This small act instills respect and helps them value the company.

One of the best immediate supervisors I ever worked with was a dynamic man named Rob Allred. Rob managed a team of about twenty-five employees, all housed in an open office environment consisting of one large, cement room. Most of the team was using tattered, uncomfortable rolling chairs. One afternoon, a shipment of brand new chairs arrived. Everyone clamored noisily to claim their prize. Even Rob joined the crowd to make sure he got one. Every man for himself!

I watched as everyone set up their chairs and tried them out. I noticed Rob sit down on his chair, settle in, and give it a bit of a test drive. All of a sudden, he got this concerned look on his face. He got up and proceeded to go to each of his employees and check out their new chair. He went around the room, finally discovering a team member, Robyn, who had not shared in the spoils. Without hesitation, Rob grabbed his catch and wheeled it over to Robyn, exchanging it for her old clunker. Because of these types of acts, Rob was deeply trusted and appreciated. No matter the situation, his team knew he had their best interests at heart.

Porter’s Points – The Lay of the Land

• The physical location of each employee matters. Eavesdropping happens; don’t let it stop your company’s progress. Separate engineering from sales and use other teams as buffers. Even encourage your admin to float around a little to keep the peace.
• Admins do not belong in the back offices. Put your admin up front for an effective first impression. Engineers, however, do. Put them in the back and let them work.
• As far as possible, ensure your team has comfortable, up-to-date equipment. Whether chairs or computers, make a big deal out of it. Little things make office work exciting; executive attention to little things builds unity and trust.

Once you’ve built your team using the right questions, an exacting interview process, the testing phase, and immersion in company culture, get out of their way and let them do their work. Micromanaging does not equate to leadership. If you are going to oversee every detail, save yourself the time and energy it takes to hire employees and just do the job yourself. You go for that eighty-hour work-week. One of the greatest values you will get out of building the right team is the added strength they bring in having what you don’t have. They will find solutions you may have missed. They will help you succeed. And, from time to time, they will save your bacon!

While at Mitsubishi Electric, I managed a highly effective team that was working on winning a significant deal. We had labored long hours for several weeks (including several sleepless nights). The CEO of our target company was a guy by the name of Peter V., a tough, hard-nosed businessman. I flew to the target company’s headquarters and won the contract—a great payoff for my team and their hard, smart work. On the return flight home, I composed an email to send to my team and the executive management of Mitsubishi.

The email outlined our cost structure in detail, delineated how things would work going forward, and showed a great margin—in short, it opened wide the deal’s kimono. It just so happened that many of the Mitsubishi executive team members were named Peter. So I began adding the Peters from my address book one after the other. Upon landing and getting a connection, I let the email fly. At 5:00 a.m. the next morning, my well-deserved snooze was disturbed by Peter M., a member of the Mitsubishi executive team who had received the email.

“Rich, congratulations on getting the deal! By the way, who is Peter V.?”

I mumbled through sleepy eyes and hazy thoughts, “He’s the CEO of the company who awarded us the deal. Why?”

Peter M., “Do you realize that you copied him on the email outlining our exact margins, costs, how well we came out, and how you just gave him a good, all-around spanking?”

All of a sudden, my kimono was hanging wide open. In a panic, I bypassed the shower, breakfast, and family, and broke land speed records to get to the office. I waited dejectedly, slumped in my chair, anticipating my team’s arrival.

As they filtered in, they were intrigued by my disheveled appearance and began asking questions. After giving them an update on our precarious situation, my admin called an emergency meeting. Here’s how it looked that fateful morning.

We had a room called the “War Room,” so designated because it was the place my team met to do all the heavy lifting. I stood in front of my colleagues and explained what had happened. It felt like there was no recovery possible. I couldn’t muster a single idea. The team began brain-storming. Shawn, an incredible executive admin, put a call in to Peter V.’s executive admin to test the waters.

“Hello, Sarah, this is Shawn. How are you today? Rich was hoping to have a conversation with Peter. What is his status?”

Sarah responded: “He is on a flight right now to Las Vegas.” Good sign!

Shawn continued: “How is he at checking his email?”

“He’s religious. The second he touches down he’ll go to the hotel and check his email before anything else.”

“What time will he land?”

“I think he lands about twelve-thirty our time, so it should be at about one o’clock that he’ll get his emails.”

Shawn got off the phone and reported: four hours until Peter V. was able to check his email. One of the members of the team, Dave, said, “I’m really good friends with Jim, the IT guy at Peter V.’s company. I could call him and tell him that there is an inappropriate email that has gone through, and see if he’ll erase it. It’s risky, but better than doing nothing.”

The team sat musing, and tried to expand on the new idea. “Well, what emotions are involved in this? What needs to happen to get the response we want?”

Everyone started naming emotions: fear, frustration, greed. Someone suggested confusion—if we could simply create enough confusion.

Finally, someone suggested that I send 100 emails with the same title but nothing in it so it looked like spam.

“Whoa, that might work—and while we’re at it, let’s add a little fear!” I chirped.

We finally decided that everyone in the office would send 200 emails to all of their contacts in the target company with meaningless titles and bits of information. We ended up dumping something like 5,000 emails to the target company in a matter of one minute. It wasn’t two minutes before Jim called Dave and asked: “We just got 5,000 emails, what’s going on?” Dave responded, “Whatever you do, delete every email you got from us in the last 24 hours. If you don’t, a virus will mail itself to every address in your company’s database.” Jim did just that!

Nightmare solved. Bacon saved. Lesson learned.

Surround yourself with people you trust and let them use their skills.

Porter’s Points – The Power of Team

• Trust and empower your team to make decisions and take actions for the good of your company. Give them problems and let them come to you with solutions, always looking to make them stretch a little more than last time.
• Do not punish mistakes that are made in an attempt to contribute. Take ten minutes to cool down if something blows up, then go back and make it a learning experience and not a tirade.
• In times of crisis, let your team save you. If you haven’t empowered them before, though, they may have trouble treading water themselves. The power of team comes as you regularly involve the players, so give them practice.

‘They’re the best and the brightest.  The hip and the happenin’.  The bold and the brave.’

Rich was recently recognized by Utah Valley Business Q magazine as one of the ten coolest entrepreneurs in Utah Valley!  With the incredible amount of entrepreneurs and small business start-ups here in the Valley, this was a really fun recognition to receive.  You go cool cat!

Here is a quick sampling of the article:

‘Rich Christiansen is the definition of entrepreneur.  The tried-and-true businessman has founded 28 companies – eight of which had been multimillion dollar successes.  He even co-wrote a go-to guide for entrepreneurs called “Bootstrap Business” and founded an uber-successful company (CastleWave) simply to test the principles in the book.  We know, right?’

Check out the full question & answer article in the Winter 2009 issue of BusinessQ: http://utahvalleybusinessq.com/winter2009/cover.html.

Congrats, Rich!

Your administrative assistant is the most important person you will hire (which you may have figured out from chapter 14). I make this statement with confidence, as the result of trial and error. Your admin, to be effective, must be in the position to peer into the inner workings of both your head and your bank account. As a result, he or she will see you in a different light from your other employees. Your admin should consciously and unconsciously represent you and your company to the world. He or she witnesses firsthand your fears, weaknesses, concerns, strengths, opportunities, and hopes. If your admin has bought into the vision and is naturally confident, he or she can and will carry a good portion of your load, diverting or deflecting lesser challenges. Your admin will literally make the difference between success and failure.

Have you ever called your doctor’s office only to be answered by a grumpy receptionist? What about the time you walked into an office and the first person you met was rude and indifferent to you? Now think about the time you encountered a cheerful, competent, intelligent individual sitting in that “first-impression chair.” How did you feel in each situation? How do you want people in consumer, vendor, and trust relationships to feel when they come to your office?

The other day I went to the dry cleaners to drop off some of my shirts. As I walked in, the lady working the front desk growled, “You’re bringing me all those shirts?” I replied, “Isn’t that what gives you a job?” She responded with a blank stare and confessed that she was tired and just looking forward to a light day. The woman didn’t equate her work with the success of the business; rather, she justw anted to put in her hours, get paid, and go home. If I were the owner of this business, I would have been mortified to know my first-impression employee was discouraging customers from bringing in large bundles of business.

Porter’s Points – The Most Important Hire

• Define your company culture before interviewing for your most important hire. Your admin, more than any other employee, has to fit. Consider having one of your trusted relationships, such as your spouse or mentor, interview the candidates as well.
• Conduct real-time, surprise skill tests with all finalists: how do they handle phone calls? Upset customers? Can they write intelligent and purposeful letters?
• Don’t rely just on looks. She may have polished nails and shoes or he might have walked right out of Men’s Health, but being easy on the eyes does not guarantee that either one can handle your company with confidence. Appearance is part of the first impression, but your admin tackles behind-the-scenes work, too.
• Your admin must be an office-politics agnostic. No pot-stirrers at the front desk, please.

What happens when you are certain that someone is the right hire, but thirty days later, it just isn’t working out? Don’t let that month stretch into months—or years. If the new hire is not fitting into your culture and doesn’t opt out voluntarily, something needs to be done.

A cultural misfit might be someone who gossips, makes other employees feel uncomfortable, acts or peaks inappropriately, or unsuitably represents the company. Maybe the new hire has proven he or she cannot be trusted. Maybe you just aren’t getting the level of contribution that you were hoping for. Maybe they really aren’t up to the task at hand. The list can go on and on.

What now? Act quickly. You know, they know, and everyone else in the organization knows that the fit is not right—for anyone. Don’t beat around the bush. Go through the necessary steps (whatever you deem them to be), but go through them as quickly as possible. If you wait too long, the bad egg will begin to really smell, negatively affecting the rest of your team as well. Why does it affect the rest of the team?

Everybody knows who does and does not carry their weight. The team all knows who fits in and who does not. If they see someone acting contrary to the goals of your company, they will either begin to feel alienated or they will take that person’s actions an excuse to offer less than their best. Which of these options would you prefer? I’ll take neither. Set the right tone. Do the hard thing with kindness, respect, and courtesy, but do it. Between the two of us, Ron and I have hired hundreds of individuals. Some have worked and some haven’t, but ultimately, rotten apples seldom turn delicious.

Just remember before you fire that certain States are “Right to Work” States. The labor laws in some are tougher than others. It is important to understand the laws of the State where you are doing business—yet another reason you need that savvy attorney as the second most important person in your life.

Also, take caution not to let the rumors fly. It is especially important in a burgeoning company to gather the troops around and communicate any changes that are occurring. The following style of speech has worked well for me:

“Today we made a difficult change in the organization. We had to let John go. We appreciated John’s contribution; however, our needs were no longer compatible. We wish him well. These situations are always difficult, but are necessary at times. This was one of those times. If any of you have any specific questions or concerns, feel free to come and talk with me privately.”

But don’t just leave it at that. Turn the direction of the conversation to your next goal and what you are attempting to accomplish. Leave your team with a positive feeling about their contribution and what you hope to do together. This meeting should last twenty minutes or less. Remember, ninety-five percent of the time, everyone else knows what is going on before you do. They might even be glad to see John go, but don’t let those feelings fester. Turn your team back to your goals and start things rolling ahead again.

Now, lest I be misunderstood, let me add a few words about diversity. I not only appreciate but actually seek out diversity. Conflict can be creative. I have no need or desire for a “yesman” organization. I detest the “good ol’ boy” clubs I saw time and time again in the corporate world, teams staffed and managed by less competent individuals who happened to get along with the right people and offered no diverse opinion, input, skills, or attributes. I detest politically-correct employees who take measured steps to posture themselves and look good around the right people but offer no diverse thinking. Look for diversity, but apply the same principles outlined above.

Porter’s Points – Quick to Fire

• Trust your intuition as concerns come up. Be ever vigilant of the workplace atmosphere; if things head south, get to the bottom of the problem and fire if you have to.
• Be courteous but act quickly. It’s best to know things like labor laws and company expectations up front so that you can move swiftly through the firing process without causing too much damage.
• As soon as you release someone from the company, pull the team together and publicly announce it. This isn’t time to paint a bullseye on the ex-employee; it’s the time to be positive and focus on your company goals to get productivity back on track.

I mentioned a favorite saying of mine in the last chapter: “Slow to hire, quick to fire.” This is truer than ever when you see your killer team in light of your company culture. The culture of your company is all about the people you hire. Your first hires will help you firmly plant the roots of the culture you want to nurture.

These initial hires should be generalists. You have your specialists in your accountant and attorney; from there, you need to hire switch-hitters. These generalists must carry with them “can do!” and “how can I contribute?” attitudes. The last thing you want is to hire a person who can or will wear only one hat. To avoid singlehatters, you need to carefully go through the hiring process, considering everything from the cover letter to final references before you sign on the dotted line.

Not only does your team mold your culture, but you can use your culture to mold your team. (See chapter 16, “The Holy Grail,” for details on creating your company culture. In this section, I will focus on the hiring side of that endeavor.) One of the side benefits of getting your culture somewhat established prior to the hiring phase is that interviewees will see it and sense it. You will better discern whether or not the interviewee will fit into your culture. Hire people who will choose to jump in with both feet. These people will embrace your vision and help you quickly and effectively move your enterprise forward.

In July 2004, I was interviewing for a creative ad copywriter for one of my companies. These ads would be seen by millions of people each month. I needed someone with solid writing skills and the ability to create imaginative and pertinent advertisements. I looked through about one hundred and fifty resumes. About one hundred and forty-nine of the cover letters looked something like this:

To Whom It May Concern:
I am writing this email in response to the job order for
creative ad copywriter. I am very interested in the position
and I have attached my resume. If you would like additional
information about me, I am registered with the Department
of Workforce Services. If you would like to contact me,
you may do so via email or phone. I appreciate your time.
Sincerely,
Applicant

The hundred-and-fiftieth resume really stood out. Here’s the cover letter it came with:

Dear Rich:
Do you need a writer who can create charismatic, creative,
captivating, and compelling ad copy? Are you missing
some zing-da-ba-ding in your current ads? Do you just
need a little dash of this, or a pinch of that, to make
your copy more palatable? Well, consider me your word
chef! I can slice, dice, and spice the ad in a way that will
make your mouth water and taste buds anticipate. I have
included my past engagements as chef extraordinaire, but I
am looking for ways to bring home the bacon, while never
really leaving the kitchen. That is why I was drawn like a
magnet to your enticing placing with Workforce Services.
I love to write, read, research, and analyze, and I believe
these are skills that are really gifts. I was born with it, and
it has been sharpened and honed over time. I have not only
the ability to tap into my creative side, but also am quite
left-brained in my attention to detail and my organizational
abilities. I can work alone or with others, and I never run
with scissors. I’m a great person to work with because I am
funny and personable, but I can also be very professional
and prudent. I would look forward to an interview with
your company, partially because my curiosity is piqued,
but also because it sounds like a great opportunity. Even
if this email reaches you too late and finds you have filled
the position, please keep me in mind for future positions in
any of your catering needs.
With spice,
Marta Wells

Who do you suppose got my attention—and the job? Watch for applicants who stand out! You’ll always need an interview, of course, but the first contact can tell you a lot about a person, the way they think, and the attitude they will bring. Make sure that this all lines up with your culture, and don’t be afraid of a little spice!

Consider building quirks into your culture, just left or right of established norms. Killer teams need creativity. Creativity can sometimes get pretty quirky. In the hiring process, do not be afraid to mention these quirks in an interview. You might say something like this:

“We are a nimble, dynamic team. Our culture is not for everyone. We embrace accountability and expect all of our team members to do the same. It may be a bit out of the ordinary, but we display everyone’s prioritized objectives on the whiteboard. We conduct regular ‘face the whiteboard’ sessions where everyone reports on the status of their objectives. We all answer to the team as a whole. If that kind of accountability bothers you, this is not the company for you.”

Also, share a story or two in the interview process that has helped define the company. This fun and revealing practice might highlight some successful but intense negotiation or a silly snafu that you had to escape. See how the candidate responds and comments. Making bold statements and telling stories weeds out the people who want to sit in a cubicle and offer only the “status quo.” It also gives positive signals to the
person who is the right fit.

Recently, Ron and I went through the process of hiring a new engineer. A talented fellow applied, and our interview team explained the prevailing mentality we needed in whoever filled the position. For this special object, failure was not an option. We knew we had to see this project through to the end, even if it meant extreme days and nights. Accordingly, we wanted to hire someone who could jump on board with both feet. There wasn’t time to dilly-dally.

This applicant’s response to our need was something along the lines of: “At this stage in my career, all I really want is to work from home. I want to start whenever I get up, go work in the garden when I want, and then get back to the project later in the day.” Not a bad aspiration—plenty of people want a little freedom— and perhaps it will fit somebody’s culture somewhere, but not ours and not now. We all opted out. We went on to hire someone who had the attitude we needed. As for our other applicant, we heard he found the right fit and is contentedly programming software from a lawn swing tucked away in the corner of his secret garden.

Take time to compile a list of interview questions that will reveal the attributes that you want and need to know. Ask every candidate the same questions so you have a level playing field. Keep notes on the answers in case you have to choose between two or three really good candidates. Take time to find the candidate that fits the culture. Be slow to hire—always!

Porter’s Points – Slow to Hire

• Employees make your culture as much as culture makes your employees. Before you start faxing out tax forms and contracts, consider the following:

1. Make the finances fit. Reducing your workload so you can hang around the water cooler more often is not a valid reason to shop around for additional employees.
2. Consider whether or not you can outsource the job.
3. Take as many applications as possible for the position. Screen them by phone before inviting people in for a formal interview.
4. Interview finalists back-to-back to be able to make good comparisons.
5. Call the references and check out candidates’ backgrounds

• Culture is crucial to your company. Once you have done your homework, don’t settle for anything less than the best.

1. Listen to your gut. You can make a culture outside of the norm.
2. Know what type of culture you want before you hire.
3. Don’t be afraid to add a little spice to the ingredients of your office recipe.
4. Hiring may not really last ‘til death do you part, but treat it that way.
5. Doing it right up front beats back-end cleanup.

If you’re married (or in some other significant relationship), sharing the following list with your spouse or significant other is often all he or she needs to launch into a horrific harangue. Stay with me, though, as I explain who I consider to be the three most important people in starting a new business. In order of priority, these three very important people are:

1. Your accountant
2. Your attorney
3. Your spouse (or significant other)

My wife has no problem voicing her feelings about coming in third. She fervently proclaims that neither my accountant nor my attorney has ever had to wonder if they were going to live without health insurance or income, or whether they would not see me for weeks on end as I started a new venture. And I agree with her! Your spouse or significant other is actually the first relationship you have to consider when deciding to start a business. Without her or his support, your venture will crumble from the beginning.

However, I order my VIP list this way for several reasons. First, I do it for the fun of forcing a reaction from my wife. (She knows to expect a little bit of this by now, and it enriches our relationship.) My teasing her aside, I cannot overstate how much you need this same support, which brings me to my second reason. Her or his support won’t just magically happen, so you need to open a dialogue about the role of your significant other in your venture. Finally, I use this order to stress how vital it is to ensure that you have the right accountant and the right attorney in your corner as you strive to push your endeavor through its formative rounds.

The reality is that having a spouse or significant other who is willing to embark on this adventure with you is, without question, the most important variable in being a successful entrepreneur. I worked with an individual who had an incredibly gifted business mind and a deep understanding of technology. He was very intelligent, with amazing intuition and market sense. To top it all off, he possessed the rare ability to clearly articulate his knowledge and communicate with engineers.

My first impression of this man was he had the potential to be one of the most amazing entrepreneurs I’d ever come across. We actually embarked upon a short-lived partnership, aiming high and beaming broadly. Why short-lived, then? His wife kept him from ever giving it a healthy go.

She required him to keep his working hours between 8 a.m. and 5 p.m.; anything after 5 seemed to violate the terms of an unwritten prenuptial agreement. Furthermore, his wife—a delightful woman, by the way—mandated a certain level of financial security. She could not stomach the thought (much less the reality) of going without a paycheck for more than a week. She didn’t want to sign up for the risks and rewards associated with entrepreneurship; as a result, he could not, either. His home situation simply did not enable him to consider being an early-stage entrepreneur.

As he did to me, Dr. Peter Horne frequently reminds his protégés of this imperative: “You can replace anything in your life except your family, your health, and your trust relationships.” To this end, it is vital that you analyze your home situation and assess your significant other’s ability to live the entrepreneurial life. In more ways than one, the spouse or significant other of an entrepreneur could be the more difficult role to manage.

During the nurturing stages of the business, your spouse is often relegated to living with a lack of clarity about financial circumstances. To add insult to injury, in this stage spouses tend to live life looking at a control panel that is just beyond their reach. Often, unless they are actively involved in the venture, they share all of the risks with none of the decision-making power.

If your significant other does not have the temperament for this lifestyle, there is no shame in following a different path. As badly as you may want it, don’t do it. You can use your entrepreneurial spirit in some other way—really tackle your corporate work in innovative ways, pick up a hobby, or bootstrap a small business on the side instead of taking the complete plunge.

It is better to come to this realization during the idea stage. Do what you must to secure this trust relationship; don’t go so far down the road that you are faced with a no-win decision. Perhaps, with time, you two can be on the same page. Until you are, trying the waters will always lead to failure on at least one of the two fronts, if not both. We paraphrase this wisdom from the Gospel of Mark: “What therefore God hath joined together, let no venture put asunder.”

Now that you’re convinced that number three on my list should be number one, let’s go back to one and two. Through the years I have tested numerous accountants and many, many attorneys. The reality is that finding the right attorney and accountant is not as easy as it sounds. From my experience, many accountants and attorneys are more eager to tell you “how it can’t or shouldn’t be done” rather than “how it could be done.” You need professionals who can find creative solutions.

There are so many laws and variations of those laws governing how to set up a business that it is crucial to engage an accountant and attorney who are on top of the latest ways to get things done. Many attorneys and accountants are familiar with one or two ways of doing things and hesitate to take the time and effort to figure out different ways of setting up your business. Find an accountant and an attorney who are willing to be creative and uncover personalized solutions that are right for you and your venture.

In all of this, however, I do not promote illegal or unethical activities. Worse than an uncreative lawyer or accountant is a liar—and whether that liar is one of them or you, dishonesty is no way to build a business.

One of my favorite anecdotes exemplifies the necessary honesty-and-creativity-oriented mindset for an accountant. In the early days of his company, an assertive CEO was hiring a financial controller. He invited a candidate into his office and a short interview ensued. The CEO asked the applicant, “So, you know numbers pretty good?” The would-be controller responded in the affirmative. The CEO shot back, “What’s two plus two?” The candidate paused, looked the CEO in the eye, and quipped, “What would you like it to be?” The CEO hired him on the spot.

One key reason the right attorney and accountant are so important in the early stage of your bootstrap adventure is cash flow. You must understand the implications of the tax structure you are setting up. You must understand the ramifications of tax laws and why cash accounting may be more appropriate than accrual-based accounting. You must protect your asset, your intellectual property, your good name, and your reputation.

Savvy and intelligent accountants and attorneys are critical. The right attorney can be used as a hammer in difficult circumstances. Consider what course you might be forced to take at the butt-end of a deal involving unscrupulous customers, partners, or employees. Could you use a tenacious and assertive attorney? Unequivocally, the answer is yes.

Don’t guess! If you are uncertain about where you stand in these relationships, do some digging. Talk openly to your loved ones, make plans and promises, and do your research on the people you hire to handle your affairs. This foundation builds your successful team. If your spouse or significant other is on board and if you have a clever, assertive attorney and a creative, energetic accountant, you’re well on your way to success. I cannot count the times along my entrepreneurial trail one of these three people has saved me from charging over a cliff. It really is as simple as that.

Porter’s Points – The Three Most Important People in Your Life

• Do not attempt to replace your family or your trust relationships with your entrepreneurial dream. Find alternate ways to build your dream and test the waters if you need to. People and circumstances may change with time
• Look for an accountant and attorney with a “can-do” attitude. If one of these two crucial people gets annoyed when you ask “Is there a better way?” then you know you need a better fit.
• Listen to and for the truth when you talk to these three most important people. It may hurt a little at times. You need someone willing to dream, but you don’t want to be fed peaches and cream when what you really need is spinach and broccoli.
• Seek to surround yourself with young, hungry individuals, as opposed to stodgy, set-in-their ways corporate counsel.

Today Ron introduces chatper 15 in Bootstrap Business by explaining the necessity of building a killer team.

When you consider all the activities associated with building a great team, what do you think of first? Where you are going to post the position? What about creating a detailed job description? Determining salary and title? Before you even consider filling your office with employees, there are three other people who need your primary attention. In this chapter, Rich will tell you who those people are.

As you build your killer team, make sure you are particularly deliberate with your first few hires. Prioritizing relationships, creating appropriate culture, knowing who to hire when, and keeping your employees technologically equipped and informed helps keep your team killer.

Rich and I had a close call when we were working on our team for a recent venture. While interviewing for an administrative assistant, one of our appointments committed a hit-and-run in our parking lot. When the police came, we discovered that she was a convicted felon. We consider our administrative assistant one of our most important hires. Needless to say, committing a hit-and-run was not one of our mandatory job qualifications!

In this chapter Rich will also give critical insight on the power of the team, and how to structure an effective organization. No individual can do as well as an effective team.

It is important to have a solid grasp on the concepts in this chapter. They are the foundational principles upon which you will build your business. You can’t build your team unless you have a good foundation, a killer foundation. Rich knows that as well as or better than anyone else I know.

Today’s Buzz Your Business features a special interview with Master PR Strategist Jill Lublin. Jill is an international speaker and the author of three bestsellers; Guerrilla Publicity, Networking Magic and Get Noticed… Get Referrals, her latest book to hit the shelves. She teaches crash courses on publicity around the world  and her passion is to help people bootstrap their publicity. That’s the tip she wants to share with you today: How to bootstrap your publicity, improve your visibility and get your business moving!

BB: How would you say bootstrapping relates to publicity?

JL: Guerrilla Publicity is all about bootstrapping; the subtitle of my book says, “Using time and imagination instead of money,” and that means bootstrapping! I’ve always been a bootstrapper myself. I started my own business on credit cards. I’ve grown it and I am now a successful author, I run courses all over the world; but truthfully it started on nothing; some good ideas, and me and my energy! And I think that’s what bootstrapping often is; it relies on terrific people with their vision and their purpose; and then you go out into the world. But you do it smartly, using specific tactics and techniques. In regards to publicity, you don’t go out and buy expensive ads. That would be crazy. You don’t go waste money on high-falutin’ marketing strategies. You take step-by-step replicatable systems that drive profits to your pockets and prospects to your door.

BB: In terms of you own consulting; how would you support someone who is launching a new business and bootstrapping?

JL: The first thing I look at with any client is what I call, “It’s all about your message.” How are you going to get your message out to the public so that the public embraces it and says, yes! I want to hire you. I want to play with you. I want to buy your product or service. And that’s what we’re trying to get people to do; buy your product and your service but without hitting them over the head. We do it by giving them stories and placing stories in the media using what I refer to as, “Everything you’ve got;” which is all about creating a message that works. You have to solve people’s problems and present yourself as an expert. Experts solve problems; so stop thinking of yourself as a widget maker, or a provider of services, instead think of yourself as an expert. So what are you helping other people with? What problems are you solving? Once you focus on that, then you can go into the media, then you can make the media interested in you. It’s never about your business and that’s a mistake most bootstrappers and entrepreneurs make. They keep thinking that the news – and that’s what we’re talking about here, the media, publicity – is all about them and it isn’t; it’s about the readers, and that’s what they need to keep in mind.

BB: What are the three publicity tips you would give to bootstrappers? Are there three things they can do?

JL: Yes, first thing is baby steps. Focus on your message. Don’t just bring yourself out there until you have honed in on your message. That will help you have something to say when you’re addressing prospects without being a deer in the headlights… it will become a script that you can use in networking events, with prospects, clients, customers and with the media.

Number two is become a celebrity in your own backyard. In other words, don’t forget where you live and your geographical region; make sure you get lots of local publicity. National publicity often comes from local, from the city or provincial news. Create ongoing announcements that you can place in the local business journals and the local daily newspaper every sixty days or so.

The other piece that I would suggest is focus on your “ooh and aah factor.” What is it about you that makes people go “ooh and aah” about you? What is it about your personal message that other people would be interested in? A variation of that is to do what I call “Everything you got;” which means capitalizing on your ethnicity or your religious affiliation, so if you’re a Christian, you will want to target Christian media.

BB: What do you think it takes to be an entrepreneur?

JL: It takes guts, determination, focus, commitment, and a “No matter what” attitude, because there’s going to be plenty of “No matter whats.” You have to be willing to keep going and to believe in yourself.  And to stand tall, because sometimes it’ll be all rough, sometimes you won’t know where the cash flow is coming from and sometimes you’ll be praying for your next customer, but by being consistent and persistent – those two key words are very important, consistent and persistent – and if you focus on publicity, marketing and keeping your vision forward, no matter what, then you will find success. I know very few people who don’t who are that committed. So keep going and keep a “No matter what” attitude so that you can stay in the limelight.

BB: How did you get your idea for your current business?

JL: I was working in the music business helping musicians promote themselves and I found out I was really good at it. That was after going to law school for a year, which I did not like because for a creative mind like mine, it just wasn’t the place to be. So I ended up working for a music business attorney, and the music side of the business was interesting so I started promoting entertainers and musicians – usually for independent record labels. Then I started working my way up and became Director of Promotion and Publicity at several independent record labels. And here is where I learned to bootstrap because I was working for independent record labels with no budgets and no marketing department besides for me – I was the marketing department – and I could see these big record labels marketing departments with two million dollar budgets! I mean, give me two millions and I’ll make anyone famous! But we had to do it with zero budget, or by bootstrapping, or with fifteen thousand dollar max. We once sold out a Carnegie Hall show before the artist even arrived in New York! We used what is now called viral marketing and which I then called grassroots marketing. We used all our resources and got very creative in order to build interest for our artists. That’s were I got started and then I opened my own business because I thought if I can do this here, I can do this for others as well. And I love working with all kinds of businesses and all kinds of entrepreneurs because each one presents a new challenge, a slight variation on the marketing aspect, and this brings together all my bootstrapping ideas and my Guerrilla Publicity techniques. And it all serves to move entrepreneurs forward and my commitment is to helping entrepreneurs get their message heard. That’s what I am all about.

BB: Do you think it’s important to have support from friends and family when running a business?

JL: Yes, it’s important. I am not saying that you’re always going to get it because they’ll look at you and say, “gosh you’re not making any money,” or “how come you can’t afford this or can’t afford that?” What can help with that is to set out rules and have a strong foundation and get help for the gaps in your knowledge. Mine was around financial literacy and how to structure a business. So I got trained and I also got a team around me. I am all about hiring a team, even if it’s for one hour a week, if that’s all you can afford. Or get an intern, who does not cost anything except for my time and consulting and that’s a very good bootstrapping idea.

BB: Do you think it’s important to be aware of your higher purpose in business and if so, is your higher purpose related to your business?

JL: I think my life, my business and my spiritual practice; it’s all become one now. It wasn’t always like that and in fact I used to feel quite a bit of frustration because what I always wanted was to touch people’s hearts, connect people and help them get their message heard. And then I found myself in a man’s world of business and then I realized that this is exactly what I got to do! Touch people’s hearts, connect people and help them get their message heard! So yes, I want to be one with my life, my business and my spiritual life. Before I go on stage, I pray. I hope that I will touch the hearts of the people in the audience. I pray for God’s words to work through me so I can touch others. I pray that I can give them benefit and value by my being in that room and that I too shall be supported, because it is a symbiotic relationship, of course. I feel that I am here to do God’s work, and I don’t think of it as religious but a spiritual calling. Right now I am doing God’s work by helping people get their message out and that’s pretty powerful. I am also working on a TV show about hope, called “Messages of Hope” and that’s powerful too and that’s part of my calling. It’s important to structure my business so it works, financially, physically, emotionally, spiritually. It’s all about doing what works for you.

BB: Does spirituality or religion play a part in helping you succeed?

JL: Yes. In the past few years, I have been working closely with spiritual mentor Bill Bowman. Prior to that, I had always been committed to my transformational work. I am very business oriented and I am very structured in many ways but then I have this spiritual world where I have always gone to learn about transformation and practice it too, first in myself and then in the world! I believe that as we heal ourselves, we heal the world and how fabulous it is for me that as I heal myself, I heal my clients and that, who I become, they become and we can all rise to the top together! So I am very committed to my growth and transformation, I have always been a seeker. But I have noticed that in the last few years of working with my mentor – who is very gentle and all about spirituality and soulfulness – I have noticed my business increasing, my revenues increasing, my clarity around my mission expanding, my level of peace expanding, no matter what is happening in the outside world and we all know it’s been a wild ride.

BB: One of Bootstrap Business’s principles is “Know Your Channel,” and I imagine that in publicity it’s very important to not only know your message but who wants to hear it. Could you share some comments about channel and PR?

JL: In that regard, what I would do is look at your target audience; you have to find your market. Once you determine that, you have to ask: what are they reading, what are they watching, what are they listening to in the media? And then you go after that. You want to get your message heard in those areas. One of the first sessions with my clients is all about that. So you call it channel and I call it reaching your target audience, but it’s the same thing. Who are they, where do they live, are they in your region, are they national, or international, are they in your age range, are they men or women, do they belong to a certain group either ethnic or otherwise. Those are the questions you need to answer and those are your channels. The good thing about those channels is that they each have media specifically oriented to them and that’s a good thing.

BB: Do you have any rules or guiding principles that you use in running your business?

JL: If it ain’t fun, don’t do it. And that includes working with clients now if I can see some… let’s call them warning signals. It’s come to a point where I won’t work with people if they are too demanding or too difficult to work with, or simply not enjoyable because life is too short. And I have rules in my business. I have no-refund policies; I have contracts people have to sign. I am much more structured. I know exactly how long I spend with each client. We have a system now on how to reach people and I think that having systems in place is a good guiding principle. In publicity, it means making replicatable and duplicatable systems and the truly magnificent thing to me about how I work with people is that they get to do this over and over again.

BB: What are the top three things people should make duplicatable in regards to their publicity?

JL: The first thing is how they send out announcements and what they do with them. The other is the step-by-step formula, like what are they going to do every day, every week, every month or every quarter. The third thing is having someone who is scripted and who can smile and dial; someone who will get your message heard and get people to pay attention to you.

BB: How important is it to set goals and reward ourselves when we meet those goals?

JL: I set myself a monthly revenue goal and, each day, I write three high value activities that I am going to do to meet that goal; those activities have to be measurable in both time and money and this is a powerful strategy that has guided my life for the last few years and interestingly enough, reaching my monthly revenue goal is often dependent on whether I accomplished those three high value activities. I highly recommend it!

Thank you Jill!

For more info on Jill Lublin, her books and her schedule of courses please visit: www.jilllublin.com

To find her books and more on Amazon.com: http://tinyurl.com/ydxxwex

To win a chance to get your business buzzed on our network, please send an email to: buzz@bootstrapbusiness.org

When my family and I were trekking in the Kumbu, the Mount Everest region in the Himalayas, we hired my dear friend and climbing guide, Pema Dorje Sherpa. He is an energetic and charismatic man and we loved his stories. He was responsible for planning how much food to take, how many porters were needed to carry supplies, and where we would stop to rest or sleep. He basically coordinated all the details of the trip so we
could stick with hiking.

Trek coordinators like Pema usually hire porters from local villages. These men are paid to carry heavy loads on their backs. As I observed other hiking parties, I noticed that they had a lot more porters than Pema had hired for our adventure. Although we didn’t have as many porters, our group had more yaks. One day, I asked Pema why he used yaks rather than porters. Yaks were more expensive, ate more food, moved slower, and couldn’t climb the high mountain passes. Having so many yaks meant the group had to take the valley routes, which required a lot more travel time. What kind of business sense was that?

Pema thoughtfully answered, “Yes, that’s true, but they don’t get headaches. They don’t complain about sore eet. They don’t whine and gripe. They don’t beg, work the clients for tips, or swindle handouts, and I never have to fire them.” As the trip progressed, I realized the wisdom of Pema’s philosophy. This little lesson shaped my thoughts about how I do my hiring. Let me explain.

Several years ago, I sold several of my businesses and shut down a couple of others. In working with one, it came to a point where a good part of the team had been dissolved. Consequently, I was required to jump in and, for a short time, handle aspects of the business that were previously taken care of by others. I was dismayed as I discovered that I was able to complete tasks that I had previously hired five people to work on.

I might not have done some things with the same level of accuracy as they were doing them, but they took me far less time. While running a one-man show was not a long-term solution, I was, in large measure, able to do the job of five individuals. What I would have given for a yak! I’ve seen this situation frequently. It is vital that you keep your business lean and only hire enough people to cover the tasks at hand.

One of my heroes is a man named Ray Noorda, the charismatic leader of Novell, Inc, in the 1980-1990s. One of networking technology’s pioneers, he had a philosophy that, for many years, bothered many people at Novell, including me. He was heard to say, “It’s spring cleaning, whether we need it or not!” Every spring, Novell would lay off 15 percent of the employees, regardless of the financial status of the company. The longer I’ve been in business, the more I’ve come to understand the reason behind this action. This was his way of systematically keeping the company lean and effective.

More than just streamlining, this spring cleaning gave him an excuse to get rid of all the deadwood drifting around the hallways. It sounds harsh, but no matter how vigilant you are, growing organizations accumulate more dead wood the larger they get.

Many of you have seen employees playing video games or surfing the Internet while they think the boss isn’t looking. As a general rule, you can always run much leaner and have happier, more satisfied employees when the company is running efficiently. Everyone likes to feel that they contribute. Doing busy work is both draining and demeaning. Don’t have employees who get stuck with that kind of work. Around here, the team hears me say, “Slow to hire, quick to fire.” Make a lean, effective team.

My personal preference is to have no more than 15 employees. To maintain that level, I will outsource certain aspects of the business. After hitting that 15-person threshold, I find that we lose the intimacy we enjoy in our small-business environment. On top of that, the team begins to lose energy. In my work at Novell, I was always fascinated by the company’s startup story. A small team of five individuals named SuperSet created 90 percent of the famous network operating system, NetWare. Once the core was created, Novell went about hiring thousands of additional engineers to write and maintain the remaining 10 percent. That just isn’t necessary. The brutal reality is that employees will expand their work to fill the workday, often wasting money, momentum, and time.

Porter’s Points – Don’t Hire Stupid

• Always run a little lean in the organization. It’s okay if some of your specialists take on one or two general assignments.
• Whether you set up a schedule or not, always be sure to know when it’s time for spring cleaning.
• Decide now what limits you will put on hiring. Perhaps your idea will grow bigger than Rich’s 15 employees; if you think it will, decide what your action will be. Growth must be deliberate, not accidental.

In the community where I live, there are two brothers who are successful businessmen. One day, one of their employees got frustrated with their attitude toward their finances. He complained to me, using the following joke as an illustration: “How do you make copper wire?” When I didn’t give a satisfactory answer, he said, “You throw a penny on the ground and let these two brothers pull on each end.” Although he meant it to be demeaning, I took it as a compliment and wished someone would tell that joke about me.

Now, you don’t want to stretch every penny into copper wire. There is a difference between being frugal and being downright cheap. Frugality means living within your budget and being realistic in what you can spend; cheapness means buying poor-quality ingredients for low prices while expecting to produce a high-quality item. It doesn’t work. Don’t even go there.

Often, people end up cheap because of extravagance in other areas. Some rent expensive office space but skimp on salaries. I have a simple tip for keeping things under control: never buy inessential things with money that you do not have. That way, you’re more likely to have the money there for the things you absolutely need to take care of, such as bills, payroll, and equipment.

While you should be frugal in your business, be sure to treat your employees as well as you can. Don’t overspend, there, either, but you cannot let employees take second place, especially when they see you spending company money on nonessentials that benefit you and not them. Some entrepreneurs try to cut dangerous corners. Skimping on essentials or not fulfilling contracts is a surefire road to disaster. As important as it is to be frugal, it’s more important to be honest and keep your word.

Setting up an office is a very encouraging, “feelgood” part of starting your business. Developing your workspace, whether it’s a rental suite or a basement, is part of acting big. You need to be able to “go to work.” But be careful! It’s a lot easier to order nice office furniture and a thousand “Post-Its” than it is to get on the phone and get your product or service into the market. Let your frugality keep you in check, and never, ever forget this: don’t substitute the joy of accomplishing something with the thrill of buying something.

You’re not creating an office; you’re building a business. Your passion and devotion to your venture should carry you through, regardless of your locale or the style of your desk. When bootstrapping, your funds are your best friend. Think about the needs of your business. Before you invest in nice furniture and expensive office space, think: can I hire employees to make use of the space I currently have? Wait a bit and make sure you have some cash coming in before you make any big changes.

Several years ago, a business acquaintance of Ron’s started a health services business based on a revolutionary piece of equipment. She made proper financial and use arrangements with the patent holder of the equipment, hoping to help people and make some money. Things should have gone well. However, the equipment was extremely expensive.

In order to purchase a few of these machines, the business owner and her partner set about raising $2 million. Once the money was available for their use, the pair went and bought a whole bunch of office furniture and other accoutrements. They had no customers lined up to purchase the machines yet, but wanted their new, “triple-A” office space to look full and attractive. They knew the importance of acting big and felt they had to look like they really could compete with the other healthcare practitioners. Sadly, though, they had no idea how to behave small.

In addition to setting up shop in a high-rent business district, they filled each office with plush furniture, outfitted the lunch room with a professional, automated ping-pong table, bought the latest in computer equipment for each office, and—last but not least— purchased not one, but two airplanes. Airplanes? It was important for them to act big, sure, but behaving big in this fashion proved to be a disaster for everyone. No revenue in sight, no potential customers, no idea if insurance companies would approve their service—and they were buying airplanes. Their seedling company, the partners, the venture capitalist, and the bank all yook a nosedive. The two partners chewed up the $2 million before the business ever left the hangar.

It is important to give the perception that you are big enough to play the game; however, acting big should not be at the expense of your stewardship for the company’s resources. Some of the greatest successes pinch pennies, pay attention to details, and manage every resource in a scarcity mode.

Sam Walton, the founder of Wal-Mart, did exactly that. It is said that when he saw a penny on the street, of course he stooped over and picked it up. I love that story. You have to think that way. In the early stages of your company—really, in all stages of the company— you must create a fiscally conservative culture. Behave small by asking yourself, “Do I need it?” before you try taking off without any gas.

Porter’s Points—Do You Need It?

• Never confuse putting on the face of confidence, stability, and professionalism with bloating your company with unnecessary frills. Outside of your organization, act big. Inside, behave as small as possible.
• Don’t let your employees think you are cheap. Frugal and cheap are not the same thing.

Identify the power players in the organizations you do business with. Every organization has decision makers and decision stoppers. The latter are often disgruntled individuals who, when faced with any sort of query, will usually assert, “No, that can’t be done.” Face it; the admin’s job is to get you off the phone. He or she, doing his or her job, will attempt to create a buffer between you and the person he or she represents.

As a business owner yourself, you can appreciate not wanting to talk to everyone who calls. However, to get things done you need to contact the decision makers. Escalation is a way to get through the door, past the front desk, and all the way up to where you’re playing on the same level as the power-playing managers. The key is also to make them escalate back to you. Doing this maintains your big-organization persona, regardless of how small your bootstrapped business may be.

When you want to get decisions made, you have to match layer for layer. To talk with decision makers, you cannot start by calling the admin—that is, you cannot. Your admin calls their admin. If there is another layer between the admin and the manager, have your admin request that layer to get back in touch with your business through a similar layer—and then have your admin or your partner take the call. The key is that you don’t want to have to be on the phone until you can verbally sit down with your target manager or other power player and get things done.

In this same way, when somebody calls back, it’s okay to make them take the escalator up to you. If mid-level management calls, your admin answers the phone. Even if upper-level management calls, let your admin determine how urgent the call is. You don’t want to be the one to answer your phones. The chain of authority must match up. Because of that, whoever answers your phones needs to be on the same level as their secretary or admin. Make sure you have someone there to boost your level for you, even if it has to be our partner. This first use of escalation—matching layer for layer—shows your contacts that you have just as much right to be in business as they do, no matter how small of a business you might be.

A second thing escalation does is give you a way to reverse course when a poor decision or miscommunication is made. We use this tool all the time, and it has gotten us out of some sticky jams. Though you as the owner are responsible, at the end of the day, for every decision in your organization, having an escalation buffer gives you the ability to reverse course when necessary.

Recently, one of our partners inadvertently placed a wrong term in a contract we were negotiating. He had committed us to do some intensive work before payment. Upon realizing the misstep, another partner was able to reset the client’s expectations so that work would not begin until payment was received. One of the powers of partners is the ability to play good cop or bad cop as needs be.

The third invaluable tool that comes from a line of escalation or an “admin buffer” is crucial: you have time to react. When faced with a ringing phone and a direct line of questioning, you may feel pressured to make decisions quickly. Sometimes this works out perfectly; other times, you make mistakes. It’s much better if the question goes through an admin.

Even if you don’t have an admin, be the admin for a moment. Say that you need to think it through, or to talk it through with one of the partners. Confidence in any relationship can be undermined with even one mistake, so to buy time by not shooting from the hip and by instead using an admin or time buffer gives you the ability to react appropriately, deliberately, and thoughtfully. Don’t let a customer press you into a knee-jerk decision. There are very few cases where someone has to have the answer right now.

Your administrative assistant plays a crucial role in escalating your business, as I explained. When I was first starting at Mitsubishi, we were a relatively small office, attempting to land a contract with a very large company out of Chicago. This company built many of the pinball machines and video games that are available throughout the world. My administrative assistant—the wonderful Shawn Jensen—had left a message with the vice president, and a couple of days later he called back. We were a small enough division at the time that I was painfully aware when a VP called back. I was available at that moment to talk, but Shawn answered the call smoothly, saying, “Oh yes, you’re trying to reach Mr. Christiansen. He’s available at either 10:25 or 2:50 for approximately 15 minutes. If those times are not possible,” she casually mentioned, “you’ll have to wait a few days because Mr. Christiansen is flying down to Mexico for a weekend with his wife and then to the UK to take care of some business there.”

Shawn’s collected, confident nature further established my credibility and escalated my importance in the eyes of this VP. Everything she said was true, even if a bit embellished. In the end, the vice president got the message: Rich Christiansen is a very important and a very busy man.

In the early stages of your business, you might not have all of the pieces in place. The important thing is to act like you do. In the early stages of my startup with Ron, any time either of us got into a tight spot where we didn’t have a definitive answer, we’d say to the customer, “I need to talk with my partner.” That bought us time to mull it over ourselves before we approached each other to confer. Sometimes, I wouldn’t even have to check with Ron, or him with me, before we could reach a decision. But it gave us time. The key is to have the levels in place so you have the space and time to step back and take a clear-headed approach.

Porter’s Points – Escalation

• You need to put an escalation path in place— admin, mid-level management, owners—for those times when you require time or space to respond.
• If you are a team of one, get comfortable saying, “I need time to think that over. Let me get back to you.”
• You don’t want to be like the government. Escalation can obscure critical decisions at the bottom of the chain of command. Role play or talk through how escalation will function—who are the key people, interaction points, clients, and vendors that need to be escalated? Put a buffer in place, then follow up with decisions and communication!

Last winter my wife came home and told me about a strange sign she had seen in the window of a local specialty children’s clothing store. It said something along the lines of, “My kids can’t live on clothing— everything’s on sale!” At first, my tender-hearted better half was worried and wanted to shop there so the owner’s kids would get some dinner that night. However, the desperation on the sign made her feel uncomfortable, and she end up not even going in. Desperation is a major turn-off.

Lots of small businesses are afraid that if they try to create a big persona, someone will see through them. Rather than trying to act big, they act desperate and behave small. They beg clients for work and plead for lower prices from their vendors. This kind of attitude makes clients, vendors, and competitors alike all cringe. It’s embarrassing.

Have you ever seen the movie Hitch, starring Will Smith? Smith plays Alex “Hitch” Hitchens, a love specialist who helps men take the right steps to find and catch their dream girl. At one point in the movie, Hitch teaches one of his clients how to kiss. First, he says, you have to watch the signals. A woman fiddling with her keys at the door is signaling that she wants to be kissed. Once you know she wants to be kissed, you lean in; however, you have to stop right before you seal the deal. Let her come the final 10 percent of the way, Hitch explains. If you take it upon yourself to just kiss her, you might succeed that once, but likely not again.

Watching two men discuss and practice the art of kissing was absolutely hilarious, and at the same time the situation contained a principle that is true in many aspects of life. When you are a small but competent company, you have to make a great first impression, be creative in your approaches, and make sure you have a “great first date.” When you find the company fiddling with its keys, go in for the kiss. As you approach, however, make sure you allow them to come to you in the end. No matter how badly you need the work, letting them come to you helps them feel that they really are benefiting from your services and not just giving you a handout. Using language such as, “We’ll give this some time to make sure we’ve got the best fit,” is an amazing tool to make your interest known but not appear overly excited about the deal.

Porter’s Points – Don’t Do Desperation

• No matter how badly you need that deal, play it cool. Great business deals and great first dates are based on confidence and common interests, not on groveling and haste.
• A good business relationship is almost intangible and unwritten. It’s not strained, emotionally charged, or jittery. It needs to feel natural and comfortable. You won’t create that feeling if you’re operating out of desperation.