Alan Weiss' The Uncomfortable Truth

The rate of failures of small businesses is astounding: 20% fail during the first two years, 45% during the first five years, and 65% during the first ten years.  While there are myriad reasons, such as succeeding generations of ownership not being as motivated or competent, most of these fail under the original founders and owners. That’s because they tend to think of their business and tasks and not the customer’s happiness and results.  In this episode, I discuss the 20 or so common mistakes and oversights that contribute to the problems. For example, most owners don’t sufficiently shop their own businesses, hire “bodies” instead of talented people, and view customers as an impediment to doing business the way they’d prefer! Instead of passing on every possible cost to the customer, client, or patient, small businesses should be passing on every possible value and benefit. They should make it easy for the buyer to buy. I’ve come to believe “Someone will be right with you” about as much as I believe “Th

Some suggestions to build credibility with a buyer during the initial meeting. (This assumes you’re meeting with a true economic buyer who controls the budget.) 1. Assume a peer mentality. Don’t allow yourself to be cast in a “dog and pony show.” (I suggest you never show up with visual aids for this very reason.) Adapt an attitude that the two of you are peers mutually exploring a working relationship. Either of you might accept or reject it. 2. Be patient. Don’t barge into silence and state, “Let me tell you about myself.” You’re not there, believe it or not, to get a sale. You’re there to develop a relationship. That might require several meetings. 3. Use provocative questions to get the buyer to talk about him- or herself, or at least the company. Show an interest in the buyer and the business. 4. Do your homework. Learn the current stock price, the company history, the major competition, and the primary markets served. Become conversant in the client’s business environment before you meet the buyer.

There are 330 million people in the US that we know of. There are 12,500 school districts, 18,000 police departments, 17,000 libraries, 400 different languages spoken, 45,000 flights per day, 5 million privately and commercially owned vehicles, 200,000 dentists, and 641 amusement parks.  There are nation-states (Japan, Korea), multi-state nations (Saudi Arabia, Jordan, Kuwait), and multi-nation states (US, UK). The US is probably the most pluralistic and diverse nation on the planet, especially in these numbers. Comparing us to Denmark, Thailand, or New Zealand is plain silly. I'm not disparaging those nations; I've been to them and another 60 besides, and like almost all of them (apparently, I'm alone in finding Iceland totally boring and Brazil scary). It's like saying if a hybrid Kia can get 60 miles to the gallon, why can't a Ford pickup? Well, because they're entirely different vehicles with different appeals and purposes. I pointed out to a client in Denmark while arguing these points that there are

This is a marketing lesson for the Catholic Church. I’m a lector and a Eucharistic Minister in the Church and converted 18 years ago. As some of you know, I’ve also spent a great deal of my coaching and consulting career in the field of strategy and have written two commercially published books on the topic. The average age in the church my wife and I attend is north of 60. Young people are not drawn to the church in the numbers of old, and as the population ages, it also diminishes. Churches are closing and being combined because there aren’t enough priests to go around. They, too, are aging as young men aren’t becoming seminarians in large numbers.  Strategically, the Church needs to permit women and married men to become priests, as is the case in many other religions. This would provide not only more people, but more diversity: female points of view (Mary is important only second to Jesus in the Church and many people feel they’re equal), and priests experienced in marriage, raising children, and intima

The agenda of inequality and wealth focused only on the richest might not reconcile with reality. There have been increases in home ownership (even though buying always has its difficulties, from interest rates to inventory). There is a record of intergenerational wealth transfer from retirement savings and the Regan-era IRA legislation. In the West, family prosperity is higher than ever: assets, cash in banks, pension funds, etc. Daniel Waldenström's book Richer and More Equal makes a case that the West is richer and has less inequality than in the past.  US wealth concentration is higher than in Europe but is lower than before WWII. Major improvements that lower wealth concentration have been pension/retirement funds and home ownership.  Wealth improvement leads to successful business ventures, hiring, and investment, and the most net, new jobs. We are not there yet. Many inequities remain. Capitalism does a fine job generating wealth but not distributing it. It is an ethical and societal responsibilit

Just tell me what I want to know. People instead tell you everything that they know. College professors are reading their dissertation notes. Electricians are telling you about high and low voltage, amps, and watts. The tree guy tells you about diseases of poplars when you asked if he could prune some dead branches on an oak. The auto guy explains why a repair isn’t as easy as it looks because of the wiring, which is different from last year’s, which is subject to weather conditions…. On the other hand, there are some benefits. Keeping someone talking at a bar and not having to talk back. Feigning interest in someone’s work by asking a question every five minutes. But it doesn’t work with politicians because they put no stakes in the ground. The phrase “How Are You?” isn’t actually a legitimate question because the asker is not seeking an answer but merely providing the secret handshake. Catholic Confession can be burdensome when you confess to impure thoughts, and the priest’s reply is, “Let’s begin wi

Even in truly tough times and horrible market segments, there are winners and strong companies. You have to play the hand you’re dealt, and you have to play it well. If anything is happening to you more than two times out of ten, it’s you, not them. With high interest rates, houses are still being sold. With food being expensive, people are still dining out. But you can’t expect yesterday’s ideas to thrill people about tomorrow. Nor can you tap dance on hot coals, in sweat tents, or with rah-rah speakers. You have to show people that you have ideas for tomorrow, anticipating change, not answers to past problems. Don’t create false narratives that drive your approaches, e.g., “I can help you cut expenses” or “We need to lower our expectations.” Don’t allow your prospects’ fear to scare you or infect your thinking. The Titanic was a bad idea: mistaken design, insufficient lifeboats, and a poor route. FedEx was a great idea: postal service weakness, hub and spoke, “guarantees.” We are accountable. Not the fa

If you win a race by .001 seconds, have you really “won.”? And certainly, you’re not the “best in the world.” On that day, in that place, at that time, you finished barely ahead of the next person. What if you did it again an hour later? Of course, if you constantly and consistently win, you might be the best in the world or the best ever: Yankees, Celtics, Tom Brady, Rocky Marciano, Serena Williams, Jack Nicklaus. In subjective judging, it’s really a joke. Those that are the best also get the most benefit in the scoring. Brady threw touchdowns, or he didn’t. But the ice skaters, divers, gymnasts, surfers—those with the best records get the best treatment. Then again, there’s the doping and the cheating. The Chinese escaped disqualifications for doping by claiming they consumed “tainted meat.” I wonder who slipped them that? By the way, if the Olympics are about simply the fastest, strongest, etc., why keep medal counts and raise national flags to national anthems? What about the bad calls and missed calls

The Olympics sparked several replays of an Australian swimmer, Cate Campbell, being interviewed on what I think was an Australian TV news show. In a prior competition, she had beaten out the Americans for the gold medal. The interviewer asked her what it was like.  She ranted on about how glorious it was because she detested the Americans using a cowbell to motivate the team and hated the chant of the fans, “USA, USA, USA,” which she mimicked in a sarcastic tone. Let me repeat: her team won. She was a sore winner. If you’re a world-class athlete and you can’t take the pressure of people rooting against you in favor of their teams or motivational techniques used to un-nerve the opposition, maybe you have some serious esteem problems. If you don’t want to endure the pressure of the limelight, don’t walk into it. I’ve been to Australia 19 times, I have friends and clients there, and I find Australians to be “in touch,” personable, and have a great sense of humor. It’s when we take ourselves too seriously whe

You’ve known wowsers. They’re always trying to be the “second smartest person in the room,” and they correct you even though you’re correct to begin with. They are official “killjoys.” They are critical of others’ pleasures and accomplishments. Lacking expertise doesn’t inhibit their critiques and corrections. They never converse; they lecture as perpetual professors. They’re distraught if they think someone else is having a better time than they are (and most people are). Wowsers are dismissive according to their own biased criteria. “You smoke cigars, so you don’t make good life choices, so your opinion on the climate is flawed.” For them, everything they do is the best, no matter what: The trip was the most thrilling, the play was the most sensational, the restaurant was seven stars, and the restroom was the cleanest. They announce awards and honorifics no matter how transparently unimportant they are. “I’ve been named as most likely to write my first book within four years in my zip code.” Knowing nex

People may think of a "Grand Challenge" as an exceptionally worthy and difficult problem to solve, and they'd be right. But it's also representative of a more formalized and impressive approach to what appear to be intractable societal issues. Seth Kahan specializes in these, his most recent being to remove stigma in mental health issues. This involves a farrago of interested parties, from television writers who want to depict the issue realistically and correctly to pharmaceutical companies which seek to develop the proper medications and police departments which need proper responses. These challenges can be about education reform, immigration reform, climate safeguarding, reproductive rights, and other such vast issues. They tend to be nonpartisan. The correct approach to mental health issues, for example, benefits a wide range of society, from treatment to facilities, from crime deterrence to cures. Learn where the funding comes from, how varied organizations become involved, and the timing needed for

My wife wasn't feeling well, so I went out to eat at 5:30 and brought her something back. When I do that, I bring my iPad and read a book at the bar. I finished, the takeout arrived in a shopping bag, and I drove home. At 10 pm I thought I'd play some Angry Birds before going to bed but realized my iPad was gone. I used "Find My iPhone" to determine that it was still in the restaurant. Although after hours, they answered the phone.  "We have it right here," said a manager, after a brief search, "come around to the door by the bar, it's open. We're cleaning up." They were cleaning up, and the same bartender from five hours earlier came out and handed me the iPad. We chatted, I thanked him, drove home (and played Angry Birds). That's the way it's supposed to work, right? Friendly people, honesty, using technology as a help to solve something. Yet we keep valuables locked in hotel safes, we're careful about where we keep our wallets or carry our purses, and some stores don't accept any cash larger than a tw

I recorded and wrote this prior to the presidential debate. When I couldn’t publish it before the debates, I was going to abandon it. But in view of what occurred, I’m publishing the recording and show notes now. In the upcoming debates, no notes will be allowed, and the moderators can mute the microphones. Moderators have had undue influence on past debates, becoming the inappropriate centers of attention. Think Meghan Kelly. It will be even easier now. One of the candidates is 78, and the other is 81. One has no vice presidential nominee as yet, and the other appears to be continuing with Kamala Harris, who was chosen originally solely because of her identity and her ability to gather votes to beat Trump. She has failed at every major initiative given to her since then. Trump often digresses into blather. Biden often falls victim to confabulation, where things he’s invented to fill memory losses become real to him. He was not at the top of his law school class, despite his claims that he was, but was 74t

The only way to “coast” is when you’re going downhill. Even on a plateau, you have to pedal to keep moving. However, there is a way to “coast uphill.” To succeed, businesses must keep growing. And to keep growing, they must innovate. No business can grow simply by solving problems and “fixing” things (or, worse, blaming people). Problem-solving keeps you afloat, but it doesn’t raise the water level or get you into a boat. There are three kinds of innovation, and we speak in this session about what they are, why they are important, and who exemplifies them. As social proof, we discuss avatars in these areas, from the Wright Brothers to Fred Smith and Jeff Bezos. Innovation is not the result of “skunk works,” outdoor experiences, or building sand castles. It is the result of a constant focus on improvement, finding promoting actions to enable it, and exploitative actions to capitalize on it. There was only running, no passing in football, until someone decided to try throwing the ball. The high jump was a s

They Shoot Horses, Don’t They? No, they don’t. The advent of the automobile around 1895 did not engender a huge equine genocide. We use horses today: for work, for recreation, for crowd control, for sport. Hence, the internal combustion engine is not disappearing in your lifetime, despite stupid political statements such as the recent “all cars must achieve 65 miles-per-gallon by 2031.” (Let’s also pass a resolution that there needs to be world peace by November. That should take care of that, right?) I listen to Vivaldi, Sinatra, Lady Gaga, Billy Joel. In my business, I accept credit cards, checks, and wire transfers. I choose not to use Venmo or PayPal because their service is dreadful. It’s hilarious to listen to the pseudo-snobs who prelatically inform me that they haven’t used checks in ages. And they only use Tik Tok via Instagram, and insist on a text before receiving a phone call. I imagine in their spare time, they’re shooting horses. I can drive an automatic transmission and a seven-speed manual

Our 60th High School Reunion On the way to the reunion We’re on Amtrak on our way to our 60th high school reunion: Emerson High School, Union City, NJ. It was then and is now the most densely populated city in the country. Emerson is now a middle school, but back then it was one of two full-fledged high schools with all sports, and dances and typical teenage angst. We had about 200+ in the class. About 30 of the original class will be at the reunion, along with spouses and assorted hangers-on. Two of the teachers with whom we’re still in touch were able to be at the 55th, but not this one. They’re both in their 90s and one is quite active on Facebook. He’s told me he reads my books. I do have one lifelong friend, Robert Borghi, whom I’ve known since kindergarten. He used to put a nickel a week away to someday buy a helicopter and a ranch. He does, today, have a pilot’s license. At the last reunion, a woman walked up to talk to me as if we had been speaking continually. I could not place her. As I leaned

Show Notes Mario Abbondanza and Noah Chantharangsy have been bartenders for quite a while, Mario for about a quarter century. I see them so often from the customer side of the table that I thought it would be fun to “step around the bar” with my listeners and discover what that would be like. You’ll find out that the hours are often brutal, but the job—rewarding. There’s fulfillment in helping people. And the belief that people turn to bartenders to discuss even intimate details of their lives—often as first-timers and often as regulars—is quite true, not a myth. “More than I want to hear,” says Noah. Neither of my buddies could explain to me why people order espresso martinis—an after-dinner drink, a digestive—as a cocktail before dinner, an aperitif. I can’t imagine having a cup of coffee before or during dinner. You’ll find out what the craziest drink request Mario ever had was (surprised me) and how bartenders have to take care of people who have had too many drinks. One of the antidotes is actually q

We claim we don’t like elites, but we eagerly follow every ridiculous and pompous movement of the British Royals. (They’re now upset about a Nigerian trip that Harry and Megan took where they were treated too much like a state visit!) We belong to air clubs, hotel clubs. We have Amex green, gold, platinum, and black cards. Hertz has a platinum service. On our recent trip to LA, we arrived and departed though Amex suites. Once upon a time, elite offerings were only open to invited, important guests. Then a court case opened them to all, with the wonderful result that we can watch people clip their toenails in a Delta lounge. (No, I am not making that up. Nor am I making up the woman who changed a filthy diaper on a first class United seat.) So since lawyers of course sued to open private clubs intended for the top guests, people struggle for other elite experiences. This happens at beach resorts, in school, on the job, and when traveling. (There’s a rigid “culture” among people who commute by train every day

I met Doug at Merck where he worked as a sales executive and I was an external consultant. Some years later, he called me from his current pharma company and asked my advice about an ethical issue he was seeing. About five years later, he was presented with a huge (listen to find out how much) “whistleblowers award” for turning the dangerous practices in for the government to investigate and eliminate. We talk here about the courage and risks of being a whistleblower (two such people formerly employed by Boeing have since died, one by suicide, one by unknown causes, and Doug faced physical threats) and why they are needed more than ever today. We discuss whether drug prices are reasonable in light of the investment in creating them and, if efficacious, obtaining FDA approval. The results might surprise you. We also discuss the high mortality diseases, such as Alzheimer’s, diabetes, and cancer, and whether too much is spent on “cure” and treatment at the expense of investment in prevention. The issue of exte

The old apothegm is that the first generation starts it, the second expands it, and the third ruins it. Probably not so true any more. It’s not about a mandatory spendthrift or wasteful generation. It’s more about hunger. I don’t know about you, but I grew up poor, and when I was fired as president of a consulting firm, we had relatively little money in the bank and two small kids with private schools and a wedding ahead of them. We also had elderly parents who needed our support. So I did whatever was necessary to make money. I would charge $25 for resume reviews for people looking for work. I charged $750 to speak, though I often did it for free to get in front of potential clients. That hunger subsided when I had “made it,” but it has never really left. I don’t work hard, but I work very smart. I pursued success and create tougher goals and higher standards for myself. I think the metaphorical third generation I mentioned may just be bored. They don’t want to expand the business further, the don’t wa