Big Idea #1: Work On Your Ecosystem Like all great business owners, Pete and John promote their neighbors while they promote Feasel's. Does this sound familiar? As the old fishing village of Newport, Oregon lost many fishermen, Cindy McEntee, owner of Mo's Chowder, jumped on the tourism bandwagon to help save the town's economy. Cindy changed her menu and hours of operation to accommodate tourists rather than the fishermen who were the restaurant's core customer for nearly 50 years. Cindy has made Mo’s an attractive, fun place to be and has worked hard to promote tourism in Newport. Mo's Chowder is considered to be the anchor of modern tourism in Newport today although new visitors would think it has been like what we now see forever.

Bill Sugars of Libertyille, Illinois worked to help the town win recognition from the National Trust For Historic Preservation's Main Street Program. His Mickey Finn's Brew Pub is an anchor for the town square that has been revitalized by many small business owners. Bob Sakata, a farmer, works constantly with the Onion and Sweet Corn Growers Associations to develop labor saving equipment and promote the consumption of fresh vegetables. We do not operate in a vacuum and when we work to elevate our colleagues, we all win.

The success of Feasel's is dependent upon the success of De Land's "Main Street." When Florida Victorian Architectural Antiques and Muse Books and the Doll Parlor do well, Feasel's does well. The structure of anything that's alive is cellular. It has seen and unseen dependencies. It's chaotic and ordered at the same time.

The Main Street program, with its planning, meetings and marketing efforts, is the structure. The chaos happens every day as merchants serve their customers, refer customers to one another, and make many decisions, all for the good of the whole.

Topic for Discussion: How is Feasel's involved in the development of DeLand's Historic Business District?

Answer: In several ways. John Gregory has been an active volunteer and cash donor to the revitalization efforts. Jimmy McKetta, a salesperson at Feasel's, is the volunteer chairman of the Facade Grant program. This means that, when a business owner in the historic business district decides to fix up the front of their building, they can access funds set aside for that purpose by the Main Street Program. Jimmy will be the administrator of those funds.

Topic for Discussion: Why is the Main Street program so helpful to small businesses?

Answer: A single small business can not offer shoppers and diners everything they want, and a small business doesn't have the money to do the advertising and marketing needed to bring customers to a destination. By working together, the small businesses attract attention to the entire district.

Topic for Discussion: Is the Main Street program run entirely by volunteers and what is its purpose?

Answer: No. Maureen France is the paid executive of the program and she said the program helps the business district with promotion, design, organization and economic restructuring. It also helps a new business get through all the red tape associated with opening the business and fixing up an old building.

Topic for Discussion: What does it take to create a successful Main Street program?

Answer: Maureen says, "The proven approach is to have balance in the retail mix." This means a business district does best when it has a variety of restaurants, shops, services, entertainment and night life.

You think about it: What are you doing to promote the ecosystem in which you operate?

Big Idea #2: Buy An Existing Business John started buying into Feasel's soon after the previous owner hired him. He did not say, but our guess is that he paid less for the business than he would have had he been a stranger.

Topic for Discussion: What is "sweat equity?"

Answer: You work in a business in exchange for ownership or part ownership. There is really no typical "deal" because every owner and potential owner makes an arrangement. If you have no money and want to own a business, this is a great option. Caution: get it in writing. You could spend months, even years, working for someone and expecting to take over (as did John) and then the person sells the company out from under you.

One of our favorite entrepreneurs, Jim Schell, sold one of his businesses to two of his employees. Like John, they had demonstrated their ability to not only run the business but to grow it. Jim priced the company fairly and set it up for them to pay him out over ten years which made the payments low for the new owners. They were so motivated to get rid of debt and they were so good at running the business, they were able to pay him off in three years and today the company is three times larger than it was when Jim sold. Thinking back over the experience Jim says that if you can't buy the business in three years from cash flow it's probably not a good deal for you.

You think about it: Could you sell your company to an employee? Is there an existing business you should buy? Should you buy your competitor?

Big Idea #3: Recruit From Big Business John had big business experience and Pete wanted to learn what John knew from his years in a large corporation.

Topic for Discussion: What are the ups and downs of hiring from big business?

Answer: The problems include: 1) Big companies succeed by keeping employees in a pigeonhole. Every person on the payroll has a very small highly-defined job and they are not to initiate. Imagine the mess if 236,000 IBM employees each did what they thought best in every situation? Systems would break down. In small business we want every employee to use their best judgment, to be creative and to initiate efforts that would serve the customers. 2) Big companies are a great place for the unmotivated to hide. Jobs are so small and payroll so large that a non-productive person can get lost in the shuffle and not produce but still get a paycheck. Small business can't afford to have any dead weight. 3) Big companies put everything in writing and some people really need that structure.

The benefits include: 1) People from a big company can think big and are accustomed to economies of scale. They understand that adding a location is not impossible and could be the smartest way for you to grow. 2) People from a big company are used to quality marketing and sales messaging and can push you to improve yours. 3) People from a big company have probably had hours and hours of business education and training that they may be able to share with you and your team. 4) People from a big company know how to work from a spread sheet and stick to a budget.

You think about it: Do you know someone that you should hire who is fed up with the bureaucracy of big business?

Topic for Discussion: Why is this idea so powerful?

Answer: Joy gives you energy and makes work seem like play. If you derive joy from making customers happy then you are never tired of doing it. Why is it than when kids are sitting in a classroom studying a subject they don't like, the time drags? When the bell rings to dismiss the class, the kids shoot for the door with an incredible force of energy that has been building up during the course of the 50-minute class. On the playground, the same kid that was nearly asleep in class, is running to dodge a ball or put one over home plate.

Topic for discussion: Why do adults get so confused between work and play when kids can so clearly define the two?

Possible answer: We're not psychologists, but we know what we see and how we feel. Kids are honest; they don't fake it. The saddest thing in the workforce is a person who actually thinks work is work. The right thing is to have Pete's attitude that work is joyful or playful.

I've read child psychologists who say that play is the work of children. So, why can't work be the play of adults? At Small Business School we say that a job is something you are doing when you would rather be doing something else. Fortunately, excellent small business owners have positioned themselves to play 24 hours a day, seven days a week. People who don't understand this concept actually think small business owners have it easy because it seems as if we can do what we want when they want to do it.

We arrived at our position through putting forth years and years of effort. And all along the way, we actually thought what looked like to others to be work was play.

Topic for Discussion: Does Pete think that all customers are alike?

Answer: No. He said there is a segment of customers that want "face-to-face, eyeball-to-eyeball service." Some people may prefer to go to a Home Depot where they can find lower prices but fewer knowledgeable people to answer difficult questions. Some people may even prefer to not speak to anyone when they shop. At Feasel's, a customer is greeted, often by name.

You think about it: What do you do for your customers that no one else does for them? If you can't answer that question, think about what you could do for customers that no one else does.

Big Idea #5: Offer Your Customers Expert Advice When you teach rather than sell, you lift yourself out of the realm of trying to compete toe-to-toe.

Topic for Discussion: Why is this a powerful strategy for small business?

Answer: Everybody has fond memories of some of their teachers and most people do want to learn something new. When you are the one who gives a customer the tools and the knowledge to use those tools, you form a bond that a big company can never form. Have you ever noticed what goes on at the cosmetic counters of the world? Yes, some selling goes on but most of the conversation at a cosmetic counter is about how to use the products. The individual who takes time to teach a woman how to look her best will sell much more than the person who just waits to fill a customer request.

You think about it: What can you teach your customers? Should you set up a regular teaching schedule to offer classes on popular topics? Do you have knowledgable customers who could teach the classes?

Big Idea #6: Hire Those Who Want To Learn Pete looks for people who want to learn then he takes time to teach them. Knowledge gives employees confidence and security so they feel good about coming to work. They are not on edge, they don't feel vulnerable and weak. They feel strong and competent. They get positive feedback from the customers and from the owners.

Topic for discussion: How did they get knowledge and why is this so key to success?

Answer: Many employees at Feasel's have what is called, "institutional memory." They have been around the business for years so their knowledge grows deep. To speed up the learning process though, the best businesses we find pay for continuing education. Jim Schell, asks, "Can a small business afford to train its people?" Then he answers his own question by saying, "small businesses can not afford not to train people?"

Why do so many business owners fail to teach employees? Fear, ignorance and procrastination are three reasons. Some owners believe that if employees learn too much, they will either demand more or leave. Some don't understand the power of education hen there are those who intend to offer more training and education but they just never get around to it.

Before she started her own firm, Leonor Ferrer worked for a large custom broker. At that job, she saw some things she did not want to see in her own company. She learned how not to do some things. Because of this experience, she prefers to hire people who have no experience in the customs business.

Topic for discussion: What is the down side to hiring people fresh out of school or who have never worked in your industry before?

Answer: You have to take time to teach them. Leonor says it is easier to teach skill than attitude. So, if you hire a person who wants to learn and who has a nice personality, you will build a better work team than if you focus only on hiring a person who has experience. Leonor has almost no turnover, which means she spends time in the beginning teaching; but, she keeps people many years, so it pays in the long run.

You think about it: Are you willing to take time to teach? Do you have a process in place to teach new hires?

Big Idea #7: See The Big Picture Committing to the improvement of your entire neighborhood, not just your business, makes you cause-driven. That is one of the benefits of stepping back and seeing the big picture.

Topic for Discussion: Would some hard-boiled business people think that focusing on a cause could be misplaced concreteness?

Answer: It could be but not in the case of the companies we have studied here. If you have a cause you believe in and use profits from the business to fund it, the cause is a motivator stronger than any other force could be. The cause is bigger than money, or fame or power.

In 1969, Robert Redford purchased land at the base of 12,000-foot Mount Timpanogos in Utah's Wasatch Mountains. The reason Mr. Redford bought the 6,000 acres was to preserve it and at the same time create a community that would foster artists. That is putting your money where your mouth is.

Debra St. Claire, founder of EcoNatural, maker of vegetarian breath mints, is working to support the Ethno-Medicine Preservation Project. This group is buying land to preserve the medicinal plant knowledge of indigenous cultures. Supporting a cause is good for at least two reasons.

First, customers like to buy products when they know some profits are going to a good cause. Most all small business owners work in their communities and make donations to local causes. But several of the ones we have studied here have had "the cause" as part of a corporate strategy and are committed to a particular issue. Two Hands in Providence works with a school for children with disabilities. Katz Deli gives 10% of its sales from one particular table to Aids Research. Jim Morris T-Shirt exists to help groups raise money to "save the earth."

Second, employees are energized by helping others. Coming to work every day is not just about making money at Sundance or EcoNatural. It is about working hard for the benefit of something bigger than yourself. People who suffer from feelings of uselessness are often urged to go out and do something for someone else. Stop studying your belly button and, by all means, stop your whining. The same is true for companies. If you focus all of your attention on yourself and how much money you and each employee is going to make, cynicism sets in.

You think about it: Is there a cause that you could be involve in that would be meaningful and energizing to you and your team?

Big Idea #8: Talk Through Problems Author Susan Scott says, "the conversation is the relationship." This means if there is no conversation there is no relationship.

Topic for discussion: Do you think talking through problems is easier with a sibling that it is with a non-family member employee?

Answer: Probably. Pete and John say they talk through things. This gives us a clue however that they probably talk through problems with employees. People are either talkers or they aren't. We found John especially verbal and it is good that the organization has one owner who is quick to talk! As part of on-going training, strong small companies teach communication and conflict resolution skills. Employees should be taught how to deal with conflicts as they arise to prevent bad feelings that always lead to poor productivity and sometimes to good people quitting.

You think about it: Does your company need conflict resolution training? Do you think this is only needed in a female dominated situation? What can you do to improve your own communication skills?

COMMENTS OR QUESTIONS. We invite your comments and questions.