The Facts of Business Life
Page 1
Contents
Foreword
Acknowledgments
Introduction
Chapter 1: The Facts of Business Life
The Facts
The Business Life Cycle
Chapter 2: The Five Levels of Business Success
Level 1: Ownership and Opportunity
Level 2: Creating Your Company’s DNA
Level 3: From Survival to Success
Level 4: Maintaining Success
Level 5: Moving on When It’s Time to Go
Chapter 3: Fact 1: If You Don’t Lead, No One Will Follow
Level 1: Ownership and Opportunity
Level 2: Creating Your Company’s DNA
Level 3: From Survival to Success
Level 4: Maintaining Success
Level 5: Moving on When It’s Time to Go
Chapter 4: Fact 2: If You Don’t Control It, You Don’t Own It
Level 1: Ownership and Opportunity
Level 2: Creating Your Company’s DNA
Level 3: From Survival to Success
Level 4: Maintaining Success
Level 5: Moving on When It’s Time to Go
Chapter 5: Fact 3: Protecting Your Company’s Assets Should Be Your First Priority
Protecting Tangible and Intangible Assets
Protecting Products or Services
Protecting People
Level 1: Ownership and Opportunity
Level 2: Creating Your Company’s DNA
Level 3: From Survival to Success
Level 4: Maintaining Success
Level 5: Moving on When It’s Time to Go
Chapter 6: Fact 4: Planning Is About Preparing for the Future, Not Predicting It
The Elements of a Proper Business Plan
Level 1: Ownership and Opportunity
Level 2: Creating Your Company’s DNA
Level 3: From Survival to Success
Level 4: Maintaining Success
Level 5: Moving on When It’s Time to Go
Chapter 7: Fact 5: If You Don’t Market Your Business, You Won’t Have One
The Elements of Marketing
Level 1: Ownership and Opportunity
Level 2: Creating Your Company’s DNA
Level 3: From Survival to Success
Level 4: Maintaining Success
Level 5: Moving on When It’s Time to Go
Chapter 8: Fact 6: The Marketplace Is a War Zone
The Products or Services You Sell
How Your Business Operates
How Your Business Competes—The “X” Factor
Level 1: Ownership and Opportunity
Level 2: Creating Your Company’s DNA
Level 3: From Survival to Success
Level 4: Maintaining Success
Level 5: Moving on When It’s Time to Go
Chapter 9: Fact 7: You Don’t Just Have to Know the Business You’re In, You Have to Know Business
Product
People
Accounting and Finance
You
Level 1: Ownership and Opportunity
Level 2: Creating Your Company’s DNA
Level 3: From Survival to Success
Level 4: Maintaining Success
Level 5: Moving on When It’s Time to Go
Conclusion
About the Author
Index
Additional Praise for The Facts of Business Life
“Who better to talk about business ownership then someone who has done it, lived it, loved it, and left it? The Facts of Business Life is not just a book about how to be successful, it’s a book that challenges some commonly believed entrepreneurial myths, and in my case, made me rethink my role as a business owner. Bill’s book will surprise some with facts such as ‘Protecting Your Assets is Your First Priority;’ what asset protection means and why it’s important; and his explanation of the ‘War Zone’ and how all these facts work together to create unbelievable success. If this isn’t enough for one book, Bill gives us more; the business life cycle makes so much sense, and when you understand it, it makes my role as an owner so much clearer.”
—Gil L’Hommedieu, founder, President, and CEO, Net Claims Now
“Bill McBean is the consummate business executive. Just ask the manufacturers he represented so successfully, the competitors from whom he regularly grabbed market share, or the employees who were fiercely loyal to him. But Bill also has an amazing capacity to reflect on his business experiences and convey the lessons he’s taken from those experiences. The five levels of a business life cycle is a perfect example of this. It’s Bill’s concept, simple to understand, and makes perfect sense. Two of these levels, ‘Creating Your Company’s DNA’ and ‘Moving on When It’s Time to Go’ are worth the price of a dozen books.”
—Fritz Kern, former SVP and General Manager, U.S. Passenger and Commercial Vehicle Operations, American Isuzu Motors
“Bill McBean is one of the best business owners I’ve ever come across. I think so much of his ability that I seek out his opinion on my own business issues, and have referred some of my best clients to him for his expertise. Every page of The Facts of Business Life has something owners can use in their business, but I found the ‘War Zone’ and ‘Marketing’ facts to be especially powerful, as are the levels on DNA creation, opportunity and its Analysis, and the maintaining of success. This is a great book, and the way Bill describes the business life cycle concept, like a light switch being turned on—it made so much else make sense. It will be a wonderful gift to my customers and a great introductory tool for my sales force to pass out to prospective customers.”
—Tony Fincannon, CEO and President, Dealer Associates
“What impressed us most about Bill was the clarity he brought to complicated business issues. Bill’s book, The Facts of Business Life, does just this; it discusses the priorities business owners need to concentrate on to be successful. The life cycle Bill describes is brilliant and brings clarity where there was none. His book makes business ownership easy to understand for the rest of us.”
—Victor Papazov, Chairman, Bulgarian Stock Exchange, and Irena Komitova, Managing Partner and Publisher, Creative Solutions; Sophia, Bulgaria
“Bill McBean is a self-made businessman. He started with little and turned it into a lot. I’ve been able to closely watch how he takes troubled businesses and turns them into successes, then uses their collective successes to create a competitive advantage in the marketplace. Bill is a competitor who attacks a market with preparation, skill, and determination. His book is a must-read for every business owner because the seven Facts of Business Life and the five levels in an ownership life cycle are the summation of his four decades of experience and success, and a tribute to the great business owners who mentored Bill. Level Five, ‘Moving on When it’s Time to Go,’ is a must-read, because Bill’s exit was as good of one as I’ve ever seen.”
—Tony Nolan, former President and CEO, NCM & Associates
“Bill is a great businessman who delivers a strong message, simply and to the point. The seven Facts of Business Life give owners the priorities they need to concentrate on to be successful and profitable. The five levels of a business (and/or owner) life cycle is something I’ve never thought about, but makes perfect sense and gives me a structure or boundaries to work within, as well as a clearer focus on where I am and where my business is headed. When you read this book, you quickly recognize why Bill was so successful, and there is no doubt that you’re talking to a business owner who has been where we are, and won the battle. This is simply the best business book I have ever read.”
—Dave Resendez, Director, Texas Towing Association
“Many people have common sens
e, but few people can turn common sense into uncommon success. Bill McBean is one of the few who can. As a successful businessman, Bill has demonstrated an uncanny ability to maintain integrity and honor in both his business and personal life. Because of that, his employees love to work for him, his customers trust to buy from him over and over again, and he endears himself to his friends. His book is a must-read and should not be limited just to entrepreneurs, but to individuals who are running any type of organization.”
—Jess Cole, Senior Pastor, Grace Community Church, Corpus Christi, Texas
“Understanding the entire realm of business—marketing, sales, costs, employees, and products—is a trait few business owners have. But Bill McBean can not only see the whole picture, he understands the small things as well. This is reflected in his book, The Facts of Business Life, and particularly in how he describes the seven facts and why they are important singularly, and then shows you the real strength of the facts—how they work in tandem with each other to create great success. Add this to the description of the five levels of the business life cycle and the result is a source of great knowledge for business owners large and small. A must-read business book.”
—Ted Oakley, Director, American Bank
“As a successful, hands-on entrepreneur, Bill has done a masterful job of presenting the essential elements for successfully running and growing a business. His presentation is straightforward and compelling, and anyone who owns, manages, or is considering starting a business should grab a highlighter and start reading his book.”
—Mike Lewis, CEO, Office Arrow
“Bill has a wonderful business mind and an uncanny ability to cut through the ‘noise,’ clearly see a problem or opportunity, and then attack it. His businesses are successes because he is a visionary, a leader, a motivator, and a focused manager, and because his employees believe in him. When you read his book you’ll know why. Bill sees the complete macro picture of owning a business and puts it all in an orderly, easily-understood, sensible format.”
—Tim Keen, Vice President, Sonic Automotive
“Bill McBean is humble, honest, has a great sense of humor, and is a sincere friend to all of us here at his alma mater. He was and is a hard working professional and a leader amongst his peers. It is little wonder that this former captain of his hockey team is now a captain of his team in the business world. The Facts of Business Life explains how Bill has taken some of the hard lessons sports teaches and used this knowledge in his business career. Particularly telling is the ‘The War Zone’ business fact, which tells about the competitive spirit needed to succeed or the business fact concerning the importance of protecting your business assets, which reminded me of how critical defensive play is to winning and becoming champions. Bill’s book is not just reserved for business owners; it should be read by managers in every occupation.”
—Bill Seymour, former Athletic Director and Men’s Hockey Coach, University of Saskatchewan
Copyright © 2012 by Bill McBean. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
McBean, Bill, 1951-
The facts of business life: what every successful business owner knows that you don’t/Bill McBean.
p. cm.
Includes index.
ISBN 978-1-118-09496-9 (cloth); ISBN 978-1-118-22360-4 (ebk);
ISBN 978-1-118-26189-7 (ebk); ISBN 978-1-118-23699-4 (ebk)
1. Entrepreneurship. 2. Success in business. 3. New business enterprises. 4. Management. I. Title.
HB615.M3728 2012
658.4’09—dc23
2012017202
This book is dedicated to my mother and father, Bill and Nona McBean; my aunt and uncle, Mark and Margie Hulings; and my wife and friend, Lynnda McBean. Thank you.
Foreword
Congratulations, entrepreneur-minded reader. In your hand is a terrific book with real-life, ready-to-use-now lessons that should help you see more success and tackle life more comfortably.
In my 40-plus years in the investment business—most of which has been as head of my own firm—I’ve read over 100 books on starting and running a business—some useful, others less so. Most business books fall into one of two camps: how to start a business, or personal ruminations on business leadership from some widely recognized figure. There’s nothing wrong with either, and many of those are great, but if you’re a would-be entrepreneur or a business owner embroiled in the day-to-day business of business, there’s not much that speaks to the full life cycle of what it means—truly means—to be an owner, manager, CEO, and board chairman.
That’s where Bill McBean comes in. I know Bill personally—have for years—and he’s a sharp, shrewd, no-nonsense businessman. Most folks are lucky to find business success once, but Bill has met repeated success in a variety of venues, geographies, business lines, you name it. One time is luck and more than once is skill, but if you’re as repeatedly successful as Bill has been, that takes serious acumen and drive. Oh, and by the way, he’s a heck of a nice guy. His experience alone would probably make a good business book.
But this book isn’t memoir or rule book. It’s a usable, open kimono look at the nitty-gritty of what’s truly required not just to start a business, but to take it from a new business to a surviving one to a thriving one. And once you’ve got a thriving business, he covers what few people have ever done in books I’ve seen—he describes how to decide whether to exit the business, when, and how. Sometimes foldin’ ’em is better than holdin’ ’em.
I don’t want to give away too much of the book, but another important lesson Bill delivers—another I’ve not seen well covered elsewhere—is the need to create your company’s DNA. This is a key lesson—critical—for building a business that lasts.
In fact, this is how I think about my own firm. Over the years, we’ve built processes to ensure that my firm’s DNA is embedded in each employee so no matter how far we expand geographically and no matter how far into the future, I can be assu
red our clients continually get the kind of service (or better) they get now and that I’ve wanted them to have since the beginning—and with it, the culture gets carried forward and is self-perpetuating. If you don’t build an enduring culture now that you’ll be proud of in the long-term future, you’ll have a long-term future with a culture that mildewed on you en route. That alone is a lesson worth the price of this book. Get that and his other Facts of Life in your bones, and this will have been time well spent.
Entrepreneurs are a special breed. They get, inherently and without effort, the myriad benefits of being the boss. They have vision—without it, you can’t hope to even think about starting a firm. But where I see folks fail is in their lack of grit. Grit is what it takes—and that’s what Bill takes you through in this book. It’s no-holds-barred. It’s not sugar-coated. And if you walk away thinking, “Nope, that’s not for me,” then this, too, will have been time well spent, saving you (and your spouse, kids, next-door neighbor, and dog) the future multiple heartaches inherent in starting a new venture. But if you’ve truly got it in you, and my guess is you do, or want to, or you wouldn’t be reading this book, then Bill gives you some clear to-do, think-this-through steps to help you on your way to success.
One more thing: In my 2008 book The Ten Roads to Riches, I make the point that entrepreneurship and failure go hand in hand. The most successful founder-CEOs have often failed a few times at no-go ventures. Nothing wrong with that. Failure is a great way to learn—again, nothing wrong with it, so long as you learn from it and fail differently next time and learn still another perma-lesson. But the lessons Bill gives here will help you learn still more from your failure and make a better go next time (and the time after that). And I hope you do try—and succeed—because the entrepreneur road is insanely rewarding, not just in money but in every other part of life, when done right. Bill will help.
Enjoy the read.
—Ken Fisher
Founder and CEO of Fisher Investments 28-year Forbes “Portfolio Strategy” columnist New York Times bestselling author
If you are attracted to the seductive magnet of business ownership, there are only two possible outcomes. Either you resist it, and for the rest of your life say, “It might have been,” or you give in to it. But once you choose the ownership path, you had better be prepared to say, “I gave it everything I had” or you won’t succeed.