Saturday, June 16, 2007

Don't Name The Lobsters - Nurture The Right Relationships For Your Small Business

Small business, at its core, is about one thing and one thing only--success. How does our capitalistic society measure success? Dollars, my friend, cold hard cash. Now before you start emailing me about "relationships" and "making a difference" stop to consider that without positive cash flow, your entire enterprise can shrivel up and die right before your eyes.

It is imperative that you separate you and your intentions from your business. Put another way, your business is not you and you have no right to impose your needs, financial or otherwise, on it. The survival and health of your company should be your driving force, so be very careful what decisions you make.

Another name for "relationships" and "making a difference" is "naming the lobsters". Have you ever walked into a fine seafood restaurant and observed the Lobster tank? Inside are large lobsters waiting to be chosen for your next meal. In that moment--you make a decision. Will I eat them or not? If you let yourself emotionally connect to the Lobster, you will never be able to have them for dinner. The same principle holds true for your business.

Naming the lobsters is the lack of separation between an owner and their business and it becomes apparent to me when clients say things like:

* John's been with me from the start, yet he loses more sales than he makes.
* I charge this client less because they can't really afford my fees, yet they really need my help.
* Our kids went to school together so I sell to them at cost.

If you emotionally connect to people and customers, you will not be able to make the difficult but essential decisions that will ultimately determine the health of your business. Unproductive employees, less than profitable customers and abusive relationships weaken the very core of the enterprise. DON'T NAME THE LOBSTERS! Terminate relationships that don't nurture your business, no matter how painful it may be.

Think about this. Relationship building is the core of business building, yet--what happens when you have an employee that becomes detrimental to the relationships you've built? What happens when you have a client relationship that demands a lot of your time but gives little in return by way of purchases or profit? That employee and that non-profitable client relationship: Lobsters. Don't name them! Toss them back. One bad apple can truly spoil the whole bunch.

Owning, caring for and nurturing a small business requires true leadership ability, and can be a lonely road to travel. It is filled with difficult decisions and sleepless nights. I know, I've been there. Trust me; if you fail to embrace the truly hard decisions and you continue to name the lobsters, you are risking everything.