Many years ago I joined my
first business advisory group. I was in my late twenties and had already
experienced some success running a picture framing company. At the first
meeting I told my story to the other members. One of them, a guy in his
sixties, looked across the table and asked me this simple question: "Have
you toughened up yet?"
Twenty-five years later I
know exactly what he meant. Entrepreneurs tend to start out young and naive,
but sooner or later we all toughen up to survive. Sometimes you need to do
difficult things. Sometimes you have to take a hard line. So ask yourself: Have
I toughened up?
Employees. If you go into management, you must
be willing and able to hold people responsible for their work. This can include
having uncomfortable conversations about poor performance, personal hygiene and
inappropriate relationships.
It also includes "un-hiring"
the unwilling or unable. I had an employee in her late fifties who had worked
for me for more than 10 years. We eliminated her department and tried to
retrain her in two others. But after a year of counseling and moving her
around, my manager concluded that there was no hope for success. We fired her
together.
She cried, she screamed, she
prayed. My manager was in his late twenties, and this was a defining moment for
him. I felt awful for her and proud of him.
Vendors. I once ordered a set of
professionally printed invoices. The result was anything but. I called the
vendor and complained that his printing was crooked and sloppy. His answer?
"These fall within the standards in the industry."
I was shocked because the
invoices were really bad and this was a well-regarded printing company. I told
him, "That's laughable. The invoices will be on my dock. You can pick them
up whenever you like." (Luckily I hadn't paid for them yet.)
The vendor reprinted the
forms, and there was no comparison with the first set. That's how I learned
that companies don't always do the right thing unless you push back.
Customers. I'm proud to say that in more than 30
years of business I've had to take a hard line with only three customers.
One guy had us reframe a
print after movers shattered the glass. When he picked up the finished job, he
complained that there were small scratches on the print and asked me to replace
it. I explained that the scratches were obviously due to the broken glass, and
he said I should have noted it on the invoice. I told him he should take up the
matter with the moving company. He responded by saying he'd already tried that,
and then he threatened to take us to small-claims court.
I said: "I'm sorry you
feel that way. I guess I'll see you in court." Predictably, I never heard
from him again.
Receivables. Collecting money is one area where
you will definitely get eaten alive if you don't take a stand. And sometimes
that means legal action.
I know a woman who published
a retail guide that ran ads for local businesses in the Midwest. Once we were
talking and she complained about a retail customer who owed her money. After 90
days she went to the woman's store to get paid. The customer brushed her off,
saying, "I have more important things to do than deal with you."
I suggested she refer the
matter to an attorney, and here's what she told me: "Oh, I can't do that.
I'm a good Catholic girl!" Several months later she was out of business.
The lesson? Successful
entrepreneurship isn't about being a jerk, a screamer or a bully. It's about
standing up for yourself and your company. The meek might inherit the earth,
but they will struggle in business.