Key Idea #1: Build Your Own Sales Team. Many attractions use organizations such as Ticketmaster to handle telephone ticket sales, but, Greg does it himself.

You think back: Why does Greg (Catalina Express) have his own employees who handle in-bound telephone sales when he could easily outsource this function?

Answer: He said he wants to control the sales process. The word, control, so often sounds negative and might seem as if Greg doesn't trust people. But we think Greg wants to manage the selling process because he has more confidence if the people who take the in-bound phone calls actually work at the water's edge. We saw the offices of Catalina Express and everyone can either see the ocean from a window or easily step outside to be part of the passenger loading process.

When we called to book our trip we were treated with great care. We were asked questions so that we would buy the right trip. The person on the other end of the phone was full of information about the weather, the island, and even consulted with us about the ideal length of stay. Someone working for an in-bound call center located in Utah (or India) probably would not deliver this kind of service.

What do you think? Why would any company outsource the selling process?

Possible answer: Because it can be efficient. We have studied over 150 companies that use independent contractors, independent distributors, franchisees and a variety of strategic alliances to sell their products and services. All of these strategies can work perfectly. But, you as the owner must be able to completely trust any and all persons who represent you to your end user customers. See Debra St. Claire and Ebby Halliday on independent contractors. Learn about independent distributors from David Arnold and Anne McGilvray. And, decide if you should sell franchises by studying Anne Beiler and Gary Salomon.

You must stay close to the customers and not use outsourcing as a way to distance yourself from the real reason you're in business and that is to create and maintain customers.

Engaging "outsiders" to handle the sales part of your business is OK as long as you don't think of them as "outsiders." These people are your sales department and must be championed, rewarded, taught, encouraged, loved and appreciated. Never forget the old adage: nothing happens until something is sold.

Key Idea #2: Promoting from within builds employee loyalty. At Catalina Express today's captains were yesterday's deck hands.

What do you think? Does the past predict the future?

Answer: Yes. Greg is telling his employees by his actions that a person can start at the bottom and make it to the top. The fact that Greg doesn't have to tell people they can work their way up is powerful. He doesn't have to say it because it is the way things are.

This goes back to the idea that people will believe what you do not what you say you're going to do. To lead people over the long haul you must be consistent, you must walk the walk. If you expect employees to be nice to customers, you must be nice to the employees. This concept is well documented in the book Nuts which tells the story of Herb Kellerer and Southwest Airlines. Mr. Kellerer never said the customers come first, he always said, the employees comes first.

In this day of low unemployment and in an industry that doesn't pay big bucks, Greg has built a company with loyal employees who come to work for him and stay. To study other companies with almost no turn over, look at Ferrer Brokers, Record Technologies, Sakata Farms and Calise Brothers Bakery.

Key Idea #3: Sharing marketing initiatives saves money and energy. All these people are also very involved in their local Chamber of Commerce of the town of Avalon which is the only town on Catalina Island.

You think back: What does the Chamber do that no one of them can do alone?

Answer: The Catalina Island Chamber of Commerce markets Catalina all over California as a destination. No one business on Catalina has a large enough marketing budget to reach out to the state. By paying his dues to the Chamber, Brown's Bikes shares in the benefits of the Chamber's efforts. There are many ways to market your business with other businesses. In Libertyville, Illinois downtown merchants share a newsletter and in Madison, Wisconsin the businesses on Monroe Street do events to draw traffic and my own historic business district in San Diego's downtown works together to coordinate marketing efforts.

Another way to share marketing expenses is to participate in direct mail put together by a third party. As a member of a trade association you may have access to see how they put advertising in what's called a "card stack."

Key Idea #4: Change your products as customers change.
When Gary opened Brown's Bikes he only had two styles and now there are a dozen different syles.

You think back: How did Gary decide what to offer his customers?

Answer: With simple point-of-sale software he can track the use of each type of bike. However, he also studied the demographics of Catalina Island visitors and he spent enough time talking to customers that he vould react to what is called anecdotal research.

It won't surprise any American who is leading a rather normal life to see that there are more choices today than five years ago. Every business offers us more choices. There's no such thing as just a cup of coffee. People expect choices.

At Joe T. Garcia's after only offering one item on the menu for nearly 40 years, you can now have your Mexican food in any combination you choose.

Bonus: Ten years from now will be here before you know it. Gary started in business, first with a restaurant and then in 1978 with the bike rental shop. Thirty years went by as if only a day.

What do you think? Why is it so important to think ahead?

Possible answers: It's the ability to think into the future that will separate an owner from an employee or a successful owner from one that just barely makes it. Being visionary takes mental discipline because we are so caught up in the tyranny of the present. If you don't stop to think ahead, you'll fall behind.

Another example of a visionary is Bill Hagstrom who took a company from 12 to 250 employees in 2 years they executed a successful IPO. And, there's Wanda Brice who taps into trends and starts new companies to take advantage of the trends and my favorite on this topic is Bill Tobin. In 1995 he was already an Internet legend (most people were still trying to learn what it was about!).

One way to force yourself to think ahead is to have your own board of directors. Go back and study The Enterprise Network to find out more about what a board of directors can do for you and also review On Target Supply. Albert Black has both a board of advisors and a board of directors.

The good thing about working for yourself is you have no boss and that's also the bad thing. A board's task is to guide the vision of the company, so, if you're not doing it for yourself, recruit some help.

Key Idea #5: Infotainment works better than entertainment. Think about Bunny Putnam's love of Catalina Island. Today when tourists come to Catalina Island they want to learn something. Bunny and her people are very ready to teach.

You think back: Why?

Answer: Teaching challenges people to learn more. And, when people are learning something, it enriches the experience.

What do you think? Can any business owner use this idea?

Possible answer: Yes. We're not saying that every business sells entertainment but we're saying that every customer exchange can be embellished by offering more customer education.

The goal to educate your customer should be an integral part of every sales and customer service activity. In Bunny Putnam's case she has discovered that people want to know about the history of the island, they want to know about the plants and animals. They even want to know from her what it's like to live on an island all year round.

Position yourself as the expert on your product or service and your business will increase. You don't just sell something to somebody, your goal is to make their lives better. You must go beyond the basic idea to give someone what they ask for and give them more than they ask for. Think about a nice restaurant and how interesting it is to hear how a dish will be prepared rather than just reading the name of the dish on the menu. A waitperson who knows the ingredients of menu items can educate the customer enough to make the customer feel enlightened and enriched by the dining experience.

Greg Steckler of Log Rhythms is using this idea to market his Internet site. He is the "expert" on the most popular Log Home Web Site. So, he is not seen as just another log home designer, he is seen as a knowledgeable log home designer. People come to him for his knowledge and they feel they get extraordinary value.

Andy Wilson's Boston Duck Tours is very popular in Boston and partially because the tours are full of little known American history facts.

Key Idea #6: Prevent burnout by sharing the load. The average life expectancy of a Bed and Breakfast is seven years.

What do you think? Why would people shut down a business in seven years even if it is profitable?

Possible answer: Burnout. This is very demanding work both physically and emotionally. It can be seven days a week and 24 hours a day. It is constant. Marlene and her partner have worked together to build this business since the beginning. Now they have it to the point where each works one week then is off one week. Marlene says to build a business that survives past the flurry of the startup phase, "You need to take a day off. You know, this is not your whole life. But hire good people that you trust. I think you're more powerful if you let go. It means you've chosen the right people for the job, and the more power you give them, the better off you are."

Tom Gegax who built his $100 million-in-sales business from scratch has some other good ideas about how to prevent burnout. And, Marty Edelston is a senior citizen who starts his day on the stationary bike then takes a short leisurely drive to his office. Marty discovered that commuting is an energy drain not just for him but for valuable employees.

Key Idea#7: "Mothering" achieves 60% repeat business. Marlene and her partner were Girl Scouts leaders; and in business they are still dishing out what Moms know best how to do.

You think back: Why did Marlene say they "mother" their customers?

Possible Answer: That is how she describes they way they interact with customers. Even the environment is conducive to this. They have people as guests in their "home." This is a bed and breakfast and lots of moms would describe their home as a bed and breakfast. The mom does the laundry, the cleaning and the cooking and even the gardening. Well, it's the same at the Inn on Mount Ada.

But, beyond the obvious, there's a warm concern for the guest's comfort and an excellent style of softly questioning what they can do for a guest. The customer I met said, "Marlene takes care of everything." Staying at the Inn on Mount Ada means for people who have many responsibilities and lead hectic lives, they can come to Marlene's "house" and Marlene is the responsible person. You leave your cares behind you and let Marlene take over.

This is the type of relaxing environment that so many crave today. And, since 60% of the business is repeat, you don't have to ask if "Mothering" customers works. All of the business owners in this program know that Catalina is one of the most beautiful places in the world and it is easily accessible to the heavily populated Southern California. But, profits are made on repeat business and people don't make return trips for the scenery, they come back for the service.

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