Présentation de l'Entreprise Dronéole

Un autre jeune Bugiste qui a le courage de se lancer en micro-entreprise. Bravo! A encourager, a suivre et surtout a emuler. Un excellent exemple pour les plus jeunes. Bon courage et bonne continuation Joe'!

Miami Dolphins Owner: Steve Ross the Portrait of a Bona fide Businessmensch!

The Miami Dolphin's Sunlife Stadium

I was listening to Jimmy Cefalo's Radio Talk Show this morning while I sat in traffic. He was interviewing Steve Ross, the latest Owner of the NFL Franchise of the Miami Dolphins. The subject of course was the renovation of the Football Stadium, for which Mr. Ross seeks Public Funding help, as many Sports Franchise and Stadium owners do.

Miami Heat's AA Arena

For those of you who have followed the Fiasco of the past with regards to the first Miami Heat Arena and recently the catastrophic and scandalous scam of the Marlins Stadium, you must think that Ross is either out of his mind, asking for help from the County Authorities, or he must think the Miami-Dade County Politicians and the rest of us must be.

After the fast one the Miami Marlins pulled on the taxpayers a couple of years ago, Ross must have a Brass Pair the size of Footballs, to come out so soon and ask for what initially seemed to be public funding for his private stadium. I always say that if you choose to go into business for yourself, you must be prepared to pay the cost as readily as you are to reap the profits. Right? Private business is private business.

Miami Marlins Stadium

This morning's interview by Jimmy Cefalo opened my eyes on a few points. The deal, is not comparable by any means to those of the past like the Miami Heat Arena (at least the Heat has always kept its arena full and doesn't churn & burn the franchise and its fans like the Marlins do) or the Marlins Stadium. Ross knew that he faced an uphill battle with the authorities who must now prove they are neither corrupt nor mindless
drooling idiots by falling for the same trick twice. He face a public relation nightmare as well since Public Opinion  was decidedly turned against anymore public funding of private enterprise particularly another allegedly Rich Sports Franchise.

That is until you analyze the deal and the Dolphins' objective point by point:

1. The stadium has never received a dime of public money: In 1966 Joe Robbie founded the Franchise and 2 decades later built the "Joe Robbie Stadium" with his own funds, knowing he wouldn't get any public funding help. 
2. The "Sunlife Stadium" (current name of the Stadium) is the only in the NFL and in the US, who pays Property taxes to the County, since it has no public money invested in it. It currently pays approximately $4 Million annually in Property Taxes. Not too shabby.
3. The funding is essentially an Interest Free Loan to the franchise that will be fully repaid over the next 2 decades by the Dolphin's Franchise
4. The funding will come from additional taxes on Hotel rooms fares, some of which is already being collected. So tourists will essentially pay for it.
5. Mr. Ross has committed in writing to bring 20 Major International events to the Stadium, including 2 superbowl events the first of which will be Superbowl 50 or 51 and some 18 BCS events, not too mentions MLS and other Major Soccer Events.
6. There is  a penalty  of well over $100 Million, if the Dolphins fail to bring those 20 events to town.
7. The cost of the Referendum vote has been paid up front already by Mr. Ross, around $4.8 Million and is NON-REFUNDABLE, even though, the bill that would allow the referendum vote to take place is currently going through the State House of Representatives and may not even pass. If that is the case, the Referendum won't happen and Mr. Ross would have lost his $4.8 Million, not to mention the fact that he will be stuck with an aging Stadium that can't really compete with other venues for major events like the Superbowl.
8. Mr. Ross became a Billionaire in Real Estate Development, but the Miami Dolphins Franchise is in the Red and has been for the past few years. He knew that when he bought it and did it anyway, confident in his ability that he would be able to turn it around once he gained full control of the ownership (Huyizenga out).
9. Ross never threatened to take the Dolphins out of Miami to get the deal, like the Marlins did shamelessly.
10. Mr Ross signed a comittment binding himself and his Estate not to sell the Franchise to anyone who might take the Dolphins out of Miami, for the next 30 years, thus limited his ability to leverage or liquidate his business asset.

Taking the above 10 points into consideration, one must wonder about Mr. Ross' business wisdom. From a busisness stand point it doesn't appear to make much sense. Why would he pursue this, the risks seem to outweight the potential benefits.

Either that or Mr. Ross is as tough as the Game of Football his team plays. He is risking a lot in Financial Capital and Business Credibility Capital. He grew up in Miami Beach, and as a Floridian he remains true to his roots, in that aspect. He wants to rebuild the franchise and make it the winning team it was in the late 70's. The one who still holds the record of 2 consecutive Superbowl rings with at least one fully undefeated season. If he pulls this off, he would have demonstrated the extent of his exceptional business acumen, by transforming against all odds, a major business enterprise, that has been failing for years by all standards and whose fan base and political support has been steadily eroding. It is plagued by deterioration assets, saddled with the worse deal of the NFL history (no public money ever received, and the only one paying local property taxes). It is competing with venues, for major events, with brand new State of the Art Stadiums less than 10 years old outnumbering the Dolphins facility 10 to 1. I could go on and on...

So he has proven that he is reliable and frank. I mean, he already fronted the Referendum cost and is not even sure that referendum will be approved by the State Legistlators. Did I mention that the upfront cost are not refundable? He was open about not moving the franchise out of the county, no matter what the outcome of the referendum if there is one, will be. He also knows that if he pulls this off, and turns the team around to the winning team we all know it can be, he will have a gold mine in his hands and will more than make up for all the risks he is taking. So he is very brave but also a very smart risk taker. This isn't the apparent brazen move of a gambler. The Franchise is in a pretty bad shape on all levels. Attendance at the stadium is low and he admitted to Jimmy Cefalo that no matter what happens, even if he gets his way with everything, the only way to pull out of the financial mess the Dolphins are mired in, is to win games and keep winning games. Winning is everything. In a sports franchise, winning translates into earnings and then into net profit. Mr. Ross is not only a visionary of the Caliber of Joe Robbie when it comes to this NFL Franchise, he is also a Formidable Strategist. Everymove has been evaluated in advance for its risks/benefits ratio. Everything has been carefully planned, weighed and he has made preparations for any adverse event that might occur on the way, including a total failure of the project.

Jimmy's interview has opened my eyes on this matter. I no longer have the negative Knee-jerk reaction have had when hearing of this deal prior to this morning. Those were the side effect to the sourness I still feel from the Marlins Deal.

Mr. Ross, you have my RESPECT, as a business man, a Corporate citizen, as a strategist, as a Man, you have impressed me today. You truly are a Business Mensch!

GO DOLPHINS!!!

Will China overtake the US as the World's largest economy by 2016?

China forecasted to overtake US by 2016

This was the title of an  Article by Simon Rabinovitch in the Financial time of March 22nd of 2013. When it comes to International trade and world Economies, China is the Country on everyone's lips. But what do you think? Is it that close? And if it is, would it be so bad? This article was just brought to my attention again in a business group forum. A lot of the responses to it were very antagonistic, not to say outright belligerent, as if it was a Them against US type of situation. This is business, it is always them against us, for a while and then them and us against the others, and so on. The Economies are fusing with one another more than ever and faster and faster as time advances. So will soon be us against us as we will all be swimming in the same pond. It is not a political or national matter but a matter of economics, worldwide, global market economics.

As usual, I'll engage here, what I never do professionally as a business strategist, or business development consultant. I will engage in predicting the future. After all, this is my blog, and the purpose of it is to share my opinions, conceptions and interpretations of what I see out there in the business world at large. So here it is...

If you look at it from a strategic point of view, they owe their fast growth to 4 main factors:

1. Their totalitarian communist regime allows them to control fully or influence greatly the means of Production and distribution of their country. 
2. Their infinite amount of extremely cheap labor (including child labor) coupled with their total disregard for Human Rights, environmental regulations, World trade and Fair Trade practice regulations gives them  a distinct advantage over any other nation in the world, except maybe India who can rival with them point to point (well almost, India is a wee bit more respectful of "Most" human rights and World Trade agreements).
3. The manipulation of their national currency with impunity by the Regime, keeps their prices even lower... (but sooner or later that pressure cooker is bound to blow).
4. Japan, the European Union and the US are the worlds 3 largest markets and are all addicted to their consumerism and the comfort it brings. Their consumers constantly need more products, faster and cheaper, only China can respond to those criteria... for the moment.

However, their very success is what is slowing them down. China has made one huge strategic mistake. It focused solely on Export, bet everything on foreign currency and foreign markets to shore up its fast growing economy that it neglected its own national market. China is the largest human (as opposed to corporate consumer) potential consumer, market, but for it to transform into the largest world economy it needs to raise the purchasing power of its average citizen, not just the citizens in the large Modern Metropoles of the East who live off the Foreign Investors and Foreign companies, (who have come to invest in the Chinese market in hopes to participate in the "future" feeding frenzy)...

Although the standard of living of the average Chinese citizen, particularly in rural and semi-rural area, has improved dramatically, over the past decade, it still has a very long way to go in order for that average citizen to be able to afford the traditional Western or even Domestic traditional consumer product. It will be a ways yet before you see 2 or more TV in each household, even the poorest (as it is in the US or the EU), 2 cars in each garage, a PC in each household, a mobile phone for each family member above 13 years of age...etc. The purchasing power is still too low, the currency keeps anything foreign too expensive (not to mention the tariffs), the household budget for food and shelter still represents more than 50% of the entire household Income for the largest segment of the population. The New Millionaires and Billionaires are scheming as fast as they can, to acquire assets abroad so they can emigrate with their families and "defect", even knowing that the Government will seize all their assets within the country. Some Billionaires are ready to sacrifice their lives as Billionaires in China, in order to live as Millionaires in the US, Japan or Europe.

However, their largest problem is not so much that their domestic market is not strong enough to sustain their growth in anyway shape or form within the next 2 decades.... No, it will eventually get there... maybe after a regime change, similar to what happened in the former Soviet Union but in a smoother fashion. No, their biggest problem is the source of their new-found wealth. The very markets to which they ship all their goods, the US, Japan and the EU have all hit a brick wall in their economic growth. As these economies slow and the purchasing power of the average Japanese, European and North American ( Us & Canada) disintegrates, they buy less and less goods (most of which come from China). Moreover, as the times become harsher, the average consumer who is also feeling the pinch as an employee or employer of these tough economic times, start to resent the trade practice of the Chinese. In this age of hyper-speed Information access, a voluntary choice is made to buy anything but Chinese.

Their strength comes from sucking the economic life out of our markets, what happens when we are so weak that we cannot or choose not to buy their products anymore as it is already happening? (their drastic decrease in growth from double digit to single digit practically from one year to the other). They are weakened as well since their domestic market is not ready yet to take over the consumption of all the goods produced to keep feeding  their economic expansion.

So I would not be surprised if that dooms date of 2016 is pushed back a decade at least. Without the 4 major world markets actively buying them, they cannot sustain themselves even if they experience stagflation.  The growing middle class is essentially in the vast Urban Centers of the Eastern Seaboard. It is not large enough yet and has not yet reached critical mass to self-develop, economically speaking. The slightest decline in the Chinese economy will see that budding middle class hit the hardest, reverting right back to the poor and very poor, creating a domino effect on the entire Economy from which it will be very hard to recover.  Japan's Government has been injecting funds into their economy trying to jump-start it for the past decade and a half to no avail. The Nikkei Index who flirted with 40,000 still remains in the suburbs of 10,000 ten years later.

A lot can happen in 5 years, more even in 10. The only way to boost the Chinese Economy is to allow more free market  enterprising, particularly by deregulating and liberating the creation of free small enterprise with very low Government taxation. That is the most powerful weapon in the Chinese arsenal, as the Chines is intrinsically a merchant at heart. Like the Middle-Eastern Man, trade is in their soul. The Chinese Business Man is a risk taker, a Gambler, that risk taking intrepidity is the essential fuel of a humming economy with solid individual and Small enterprises at its core. The conundrum comes from the fact that liberty, freedom of enterprise and the taste of comfort is not only contagious, it is invigorating. It gives strength of character and  reinforces convictions. Those are traits who do not sit well with a Totalitarian communist regime. Once the Fox is out of the box, it is a lot tougher to stuff it back in. As the middle class grows and its standard of living rises along with it. The salaries will rise as well. The cost of labor will consequently be higher, beginning thus a leveling of the playing fields with the competing foreign markets.

I predict that Socialism will eventually morph into a more if not completely free market economy within 15 to 20 years (Or sooner if a major economic disaster ensues within the next 3 years). Once that happens, then yes, China WILL BE the worlds Largest Economy, but not necessarily the strongest yet. In the Next 3 decades the EU will be a Powerful Market with the newly joined Eastern European countries much stronger economically. So will Russia be. So China, Japan, North American, the EU and Russia will be the Top Economies jostling for top spot without a clear distant winner. Some Latin American Markets will be closing in from Behind, like Chile, Brazil, Colombia and Argentina. The African and South Pacific Markets with a very rare exceptions will bring up the rear.

Don't fear China, plan for it. It won't be so soon as the Doom Sayers prophecy, but only fools ignore it. China is a Sleeping Economic Giant.  Napoleon said: "Quand la Chine s'eveillera, le monde tremblera". "When China will wake, the world will quake". That's a prophecy I believe in, so prepare yourselves for it so you can take advantage of that market when it does become strong enough to play in the big tank with us hungry sharks..

Pourquoi perd-on des clients?

Tout propriétaire d'entreprise, chaque artisan, chaque directeur des ventes, chaque PDG, tôt ou tard, se penche sur la même question. Pourquoi perdons-nous des clients? que fais-je mal? Que puis-je faire? A qui est la faute?

Il n'y a pas de réponse magique pour ca. C'est aussi difficile que de se demander pourquoi son entreprise va bien.  Il n'y a pas une seule chose, mais une multitude de choses bien ou mal faites qui aurait pour conséquence soit le gain ou la perte de clients. Parfois, il s'agit simplement de la providence qu'un client soit gagné ou perdu (mais je ne voudrais pas que vous comptiez sur la providence pour gérer votre entreprise).

Il y a quelques temps, j'ai emmené un de mes clients à déjeuner dans un petit restaurant local. Je tiens à encourager  les petits entrepreneurs courageux qui misent tout sur leur entreprise, chaque fois que possible. Je préfère les petits restaurants familiaux. Ceux qui s'engagent irreversiblement dans leur entreprise sont les plus susceptibles de réussir. Ils ont le bon etat d'esprit de réussite. Nous nous sommes assis au comptoir et commandames a déjeuner. Comme c'est mon habitude, j'ai rapidement regardé autour  de moi et ai brièvement évalué la santé de l'entreprise [réflexe professionnel], basé sur ce qui est offert  au champ de vision des gens qui frequent l'etablissement. Ce que les clients voient de l'entreprise represent ineluctablement l'image de l'entreprise et de ses dirigeants sur plusieurs niveaux. Cette image influence le client inconsciemment et donc affecte son assiduite et sa loyaute a l'entreprise.

 L'endroit était modeste, mais très propre. Derrière le comptoir, plusieurs postes de travail ont été typiquement arrangé, même si cela a été fait discrètement. À chaque station, se tenait un employé sans en avoir avoir l'air. L'oeil avise ne remarquait la station de travail que parceque chaque employe utilisait sa propre station meme si il s'en eloignait legerement. Les gestes avait la pratique resultant de maintes repetitions. Tout ce qui etait  nécessaire a l'employé pour servir le client était à portée de main. L'équipement qui était partagé par le personnel derrière le comptoir, etait stratégiquement situé à mi-chemin pour les 3 membres du personnel. Les petits appareils qui s'utilisent beaucoup ont été dupliqués, un par station, puisqu'il n'était pas trop coûteux de le faire. Le but etait de réduire le va et vient et augmenter la vitesse de service pour la commodité du client. Tout ce qui etait affiché semblait fraîs et appétissant, tous les ustensiles et l'équipement étaient très bien entretenus, propres et organisés. Tout était à sa place. L'un des propriétaire (la maman) se tenait près de la cuisine et inspectait chaque plat qui traversaient le Passe-plat de la cuisine, avant que le personnel  n'ait le temps de le saisir et de le porter à la clientèle. Les platss insatisfaisants etaient discrètement retirés et rapidement remplacé par une version approuvée par la Maman, sans que les clients ne s'en rendent compte.

 Chaque membre du personnel, certains étaient membres de la famille, d'autres des employés, etait  tres cordial envers les autres et véritablement agréable envers le client. Tous semblaient heureux d'être là. J'ai remarqué que les pourboires laissés sur la table pour un repas simple, étaient plus importants que d'habitude pour ce genre de restaurant et le type de clients (classe ouvriere à faible revenu). À côté de moi au bar, un client a demandé s'il pouvait avoir des oeufs et commander de la carte du petit dejeuner. Sans hésitation, la serveuse lui a dit que la mise en place du petit déjeuner est rangée à 11h00 pour être remplacée par celle du déjeuner. Elle a expliqué que la cuisine etait petite et le personnel de Cuisine essayait d'être aussi efficace que possible pour que les plats soient bien préparé dans un espace tres reduit ou 3 personnes travaillent et ce d'une manière rapide. Cependant elle va prendre la commande de son petit-déjeuner de toute façon et demandera au cuisinier combien de temps il faudra pour preparer  le repas . Elle va revenir à lui et puis si le délai est acceptable, il aura ce qu'il a commandé autrement elle  le dirigera vers une alternative dans le menu du déjeuner. J'ai été impressionné, il n'a jamais été question de refuser au client son souhait. Une explication claire et logique a été donnée pour expliquer pourquoi il ne serait eventuellement pas possible, tout en assurant au client que tous les efforts seront faits pour satisfaire son désir. Il s'avèra que le cuisinier fouetta  l'omelette qu'il voulait en peu de temps et le bonhomme fut servi exactement comme il le souhaitait. Le client s'est tourné vers moi et a debite eloges sur eloges  sur la qualite de la cusine, combien la famille qui tient le restaurant était sympa et professionnelle et ainsi de suite ... Je lui ai demandé s'il aurait été tout aussi heureux si ils n'auvaient pas été en mesure de fournir sa commande. Il a réfléchit pendant une seconde seulement et a répondu: "Bien sûr que si, elle [la serveuse] a pris le temps d'expliquer pourquoi il n'est pas toujours possible de donner satisfaction, car il était déjà l'heure du déjeuner et il y avait beaucoup de monde, mais il savait qu'elle allait faire de son mieux. Pour la franchise et son effort pour se conformer, pour cela seulement, il était reconnaissant et se sentait respecté, contrairement à certains autres endroits ... [il a ensuite procédé medire de quelques établissements similaires dans le quartier, en debitant un par un tout ce qu'il jugeait mal chez eux ... [et, je crois, enexagérant certains points négatifs].

Je ne  sais pas si ce jour-là, le service et la cuisine étaient exceptionnellement bons, ou si c'était la norme pour l'entreprise, mais vu la taille de la foule, dans le restaurant (une cafétéria cubaine) et la queue a l'extérieur  en attente de sièges disponibles ou de leur commandes a emporter, tout en sirotant leur café, le jus de fruits ou «batidos", je ne pense pas que c'était un phenomene exceptionel et particulier a ce jour la. L'entreprise etait bien menée. Le propriétaire (le père) était dans la cuisine cuisine avec 2 autres cuisiniers et un plongeur, l'autre propriétaire (la maman) était le gardien de la porte d'entrée  Cuisine / salle à manger, veillant a ce que tout aille comme il se doit, prêt à donner un coup de main d'un côté ou de l'autre de la porte si nécessaire pour maintenir la fluidité du service. Tout le monde semblait être bien formé et savait quelle était sa tâche et comment la faire. Tout le monde avait un sourire au visage et plaisantait aimablement mais respectueusement avec les clients. La plupart de ces derniers semblaient être des clients fidèles de longue date. C' était impressionnant. Rien de vraiment extraordinaire, juste une cuisine traditionelle, voire familiale, bien servie, preparée avec soin, dans un environnement propre, dans un delai raisonable, à un prix abordable et ce dans une bonne ambiance et en toute convivialité. A la fin de notre repas, mon client et moi comparions l'établissement à la façon dont il dirigeait sa propre entreprise. Lui aussi était impressionné par la famille modeste, qui semblait avoir une solide connaissance du principe de base des affaires : Gardez vos clients heureux en leur donnant la qualité qu'ils attendent en biens et services a un prix juste. Puis, j'ai remarqué une feuille de papier encadrée et placé dans un endroit très visible de sorte que tous les membres du personnel, mais aussi les clients puissent la lire facilement. C'était en espagnol bien sûr, mais je vais mettre ci-dessous la version Francaise:

Pourquoi les clients se perdent?

• 1% parce qu'ils meurent.
• 3% parce qu'ils déménagent loin.
• 5%, car ils deviennent amis avec d'autres propriétaires d'entreprises.
• 9% parce que la concurrence a des prix plus bas.
• 14% en raison de la mauvaise qualité des produits.
• 66% en raison de l'indifférence et du manque d'attention aux clients  de la part des employés des ventes et du service.

Cela  expliquait tout. Je n'ai pas la moindre idée où le propriétaire a obtenu ces statistiques, mais de mon expérience ca sonne  à peu près juste. Ce qui était évident, c'est que les propriétaires croyaient en ces Statistiques et prêchaient la qualité de service à leurs employés. Je me demandais pourquoi ils avaient mis ce texte dans un endroit bien en vue, afin que les clients puissent le lire aussi ... Mais bien sûr, j'ai compris pourquoi. Les propriétaires voulaient que les clients sachent qu'ils ne prennaient pas leur fidelité pour acquis, qu'ils travaillaient dur à preparer de bons plats et à donner un bon service pour que les clients se sentent bien accueillis, respectés et pour qu'ils continuent à revenir. Ca fonctionne!

J'ai découvert plus tard lors d'une autre visite, que les propriétaires étaient venus de Cuba il ya 20 ans. D'abord vint le père, qui ne trouva du travail que comme plongeur pendant les premiers mois, puis a commencé comme comis de cuisine a la preparation des aliments dans un restaurant d'une chaîne hispanique populaire. Il lui a fallu 5 ans pour faire venir sa femme et ses 2 filles. Une fois que la famille a été réunie, il a travaillé comme chauffeur de camion-cantine ambulant et a commencé à préparer ses propres plats afin de les vendre sur son camion. Sa réputation grandit et en 2 ans, il rassemblé assez de fonds pour acheter une petite cafétéria dans un quartier ouvrier d'origine hispanique. Il a choisi son emplacement avec soin. Il voulait être à proximité de la zone industrielle du quartier afin d'accaparer le marché des travailleurs, mais assez proche des quelques centres commerciaux ainsi qu'une zone résidentielle. Il aurait ainsi du monde pour le soir et le week-end. C'était un choix judicieux. plus de 12 ans se sont ecoules depuis, ses deux filles travaillent avec lui quand les cours a l'Universtite le leur permets. La famille vit très confortablement. Lui et son épouse aiment ce qu'ils font. Ils ont vraiment plaisir à venir travailler et de voir leurs clients qui font presque partie de leur famille. Ils n'ont pas l'intention de s'épandre ou de démarrer une franchise, en dépit de toutes les offres qu'ils reçoivent en permanence. Ils sont heureux avec les résultats qu'ils ont, mais ne dorment pas sur leurs lauriers. Jorge le propriétaire m'a dit que la seule raison pour laquelle il ouvrirait un autre restaurant serait si l'une de ses filles, ou les deux prendraient en charge l'affaire de famille et souhaiterait la développer. Une de ses filles est en faculté de droit de l'autre (la plus jeune) est en pré-med. J'étais et je suis toujours impressionné par le succès de cette famille. Le travail acharné, la passion, la vision, l'attention au détail et le soin du client a donné le résultat attendu:  LE SUCCÈS.

Why do businesses lose customers?

 PORQUE SE PIERDEN LOS CLIENTES?

Every business owner, every Craftsman, every Sales Manager, every CEO sooner or later ponders the same question. Why am I losing business, what am I doing wrong? Is there anything that can be done? Who's at fault?

There isn't a single magical answer for it. It is as difficult as asking why is my business doing well. It isn't one single thing, but a multitude of things done right or done wrong that would result in either the gain or the loss of customers. Sometimes, it is simply providence that a customer is gained or lost (but I wouldn't rely on providence to run your business, though).

A while back, I took one of my clients to lunch a small local restaurant. I like to encourage the brave Mom and Pop shops who put everything on the line for their business,so whenever possible, I favor small family owned restaurants. The ones that go all in are the most likely to succeed. They have the right kind of mind  for success.

We sat at the counter and ordered lunch. As it is my custom, I quickly looked around and briefly assessed the health of the business [professional reflex], based on what it offers to the field of vision of the people they cater to. The place was modest, but very clean. Behind the counter, several work stations were distinctively arranged, even though it was done discreetly. At each station, stood an employee without seeming to. Everything that employee needed to serve the customer was within easy reach. The equipment that was shared by the staff behind the counter, was strategically located midway for all 3 staff members. The small appliances that were used a lot were duplicated, since it was not too costly to do so. Reducing the back and forth and increasing the speed of service and convenience to the customer. Everything that was displayed looked fresh and appetizing, all items and equipment was kept clean and organized. Nothing was out of place. One of the Owner (the Mom) stood by the kitchen and inspected every food item that came to the pass through before the staff had a chance to grab it and bring it to the customer. The unsatisfactory looking plates, were discreetly removed and rapidly replaced by a Mom-approved version, with the customers none-the-wiser. Every staff member, some were family members others just employees, were cordial to each other and genuinely pleasant to the customer. All seemed grateful to be there.

I noticed that the tips left on the table for a single meal, were larger than usual for that type of restaurant and the type of customer (lower income working class). Next to me at the bar, one customer asked if he could have eggs and order from the breakfast menu. Without hesitation the waitress told him that breakfast set up is put away  at 11:00 AM to be replaced by the lunch set up. She explained that kitchen is small and the 3 kitchen staff try to be as efficient as possible so the food is prepared well and in a speedy manner. However she'll take his breakfast order anyway and will ask the cook how long it might take to get the meal ready. She'll get back to him then and if the lead time is acceptable, he'll have what he ordered otherwise she'll direct him to an alternative in the lunch menu. I was impressed, never was it question to refuse the customer his wish. A clear and logical explanation was given as to why it might not be possible, while assuring the customer that all efforts will be made to satisfy his wish.

Turns out the cook whipped up the omelet he wanted in no time. The customer turned towards me and raved on how good the food was, how great the family who run the restaurant was and on and on... I asked him, if he would have been just as happy if they wouldn't have been able to accommodate his order, he thought about it for a second only then replied: "of course, she [the waitress] took the time to explain  why it may not be possible since it was lunch time already and there were a lot of people, but he knew she would try her best and for the frankness and her effort to comply, for that alone he was grateful and felt respected, unlike some other places... [he then proceeded to bad mouth a few similar establishments in the neighborhood, ticking off one by one everything he felt was wrong with them... and, I suspect, exaggerating or overemphasizing some negative points].

I don't know if that day, the service and the food were exceptionally good, or if that was the norm for the business, but, from the size of the crowd, in the restaurant (a Cuban cafeteria) and the line outside the door waiting for available seats or for their take out order, while seeping on Cuban coffee, juice or "batidos", I don't think that was a one time fluke. The business was run well. The owner (the Dad) was in the kitchen cooking with 2 other cooks and a dishwasher, the other owner (the Mom) was the guardian of the Kitchen/Dining room Gateway, watching that everything was done as it should, ready to lend a hand on either side of the door as needed to keep the flow smooth. Everyone seemed to be well trained and knew what and how to do his duty. Everyone had a smile on their face and would banter playfully but respectfully with the customers, most of whom seemed to be long time loyal customers. It was impressive. Nothing fancy, just plain food, served well, cooked with care, in a clean environment, in a timely manner, at affordable price in a great and convivial atmosphere.

At the end of my meal, my client and I were talking drawing comparison with the way he ran his business and the restaurant and he too was impressed by the unassuming family, who seemed to have a firm grasp of Business 101: Keep your customers happy by giving them the quality they expect in goods and service for a fair price.

Then I noticed a piece of paper that was framed and placed in a very conspicuous place so all the staffers but also the patrons could easily read it. It was in Spanish of course but I'll put below the English version:

WHY CUSTOMERS ARE LOST?

• 1% because they die.
• 3% because they move out of town
• 5% because they become friends with other business owners
• 9% because competition has lower prices
• 14% because of poor quality of goods
• 66% due to the indifference and poor attention of sales and service staffers

It sure explained a lot. I don't have any idea where the owner got those stats, but from my experience that sounds just about right. What was obvious is that the owners believed in those Stats and preached quality of service to their employees.

I wondered why they would put that text in such a conspicuous place, so the patrons could read it as well... then of course, I realized why. The owners wanted the patrons to know that they did not take them for granted, that they worked hard at putting out good food and giving good service so the customers would feel welcomed, respected and would come back.  It worked! I found out later on another visit, that the owners had come from Cuba about 20 years ago. First the father, who only found work as a dishwasher the first few months, then started as a food prep in a popular Hispanic Restaurant Chain. It took him 5 years to bring his wife and 2 daughters. Once the family was reunited, he worked as a lunch truck driver and started preparing his own dishes to sell on his truck. His reputation grew and within 2 years he gather enough to buy a small cafeteria in a working class Hispanic neighborhood. He chose his location carefully. He wanted to be close to the warehouse district of the neighborhood to capture the workers business, but close enough to the few shopping centers and a residential area so he would still have business coming in for the evening and weekends. It was a wise choice. That was over 12 years ago. His two daughters work with him as their college classes permit.

The family lives very comfortably. He and his wife love what they do. They truly enjoy coming to work and see their patrons who are almost "family" to them. They do not plan to expand or start a franchise, in spite of all the offers they receive constantly. They are happy with the results they have, yet do not sleep on their laurels. Jorge the owner told me that the only way he would open another restaurant is if one of his daughter's or both take over and wish to expand. One of his daughter is in Law School the other (the younger one) is in Pre-med. I was and still am impressed by the achievement of that family. Hard work, passion, vision, attention to detail and to the customer yielded the expected result: SUCCESS.

Decision Points - A Book Review -

DECISION POINTS

Georges W. Bush

A very detailed account of some of the major decisions President G.W. Bush made during his 8 years in the white house. A candid, autobiographic, straightforward recounting of what he did, how and why he came to make the decisions he did. He never responded to the vociferous criticism, mud slinging, denigrating and downright insults. That is he never did as the President of the United States of America. He still doesn't take on the vitriol hurled at him to this day, he simply gives his side of the story. An point of view, only he can give. Answers straight from "The Horse's Mouth". A very interesting book that gives some perspective on the most eventful 8 years in America's History since the Time of President Lincoln. 

Regardless of your philosophical, political or religious penchant, you owe to yourself to get G.W. Bush own version of the story. The entire world has heard all the possible motivations for his actions during those intense 8 years, but it is at best 2nd hand hearsay, at worst conspiracy theorist foaming-at-the-mouth mumbo jumbo. Whether you believe any of it or not, even if you have already made up your mind about that portion of the world history at the dawn of the 3rd millennium, the first decade of the 21st century, you owe it to yourself to at least read in his own words, the version of the Man who was at the helm of the country at the center of these world changing events. You may not change your mind about all that transpire or even about G.W. B, but at least you'll have learned another version, another side of the story, opposite to what has been published and broadcasted so far.  An opened and astute mind should prefer to broaden its perspective on a particular subject of interest. Reading this book, is one step, among very many, in that direction.

Small business wisdom

Cuban Restaurants "Words to the Wise"

 

Times are tough for everyone nowadays, particularly for the average consumer.  The first thing one cuts in tough economic times, is the superfluous. We go out to eat less often if at all. When we do, we tend to order less extravagant items on the menu and go to less expensive venues. 

In Miami, there are a multitude of Cuban Cafeterias, a small restaurant, usually family owned and operated, with a few seats at the counter and half a dozen tables. Much like the traditional American Diners but with Cuban flavor.

If the place is clean, the food is usually pretty good, although very simple. The purpose here, is to get you fed heartily so you can go back to work, without breaking the bank in the process. Food is served relatively fast, in generous proportions, for a very fair price and usually in a humble setting, using paper place mats, plastic glasses, often plastic cups for the "Cafe con leche" and paper napkins. Patrons don't usually linger much; they come, they eat, they leave (just like the Ants said about the Crickets in Disney's Cartoon).

Both sides find a valid deal, the owners make a very small profit, but offer very little service, in a relatively cheap setting, and make up for that in the volume of orders . The patrons eat a well prepared hearty meal at a price, often lower than most fast food chains would offer for far less quantity and quality. 

That arrangement is precarious, however, particularly for the owner of the Cafeteria. The Mom & Pop setting makes for a convivial atmosphere that adds to the charm of the establishment and contributes to the repeat business and customer loyalty. Nevertheless, the slightest error in judgement in assessing the cost of a dish, can translate to a loss that is rapidly multiplied by the fast pace and the volume of business. Most of these small cafeteria operate on a cash basis, and I am not talking about the accounting term (as opposed to deffered sales basis), but almost everything is paid cash by the patrons (few exceptions are usually made for large tickets amounts) and the Business Operator often pays cash for most of its daily supplies with a few exceptions for the goods delivered on account by a large distributor. 

So that tenuous arrangement  between the Business Owner and his Customers hinge on the latter paying immediately for goods served, and the former on serving them rapidly, in generous proportions for a very fair price. Should the former fail on his end, the latter will no longer frequent the establishment since there are so many offering the same service in Miami. Should the customer no pay in a timely manner, the owner will be forced to deny further service to that customer from then on, margin being so low, charity is a luxury the Business operator can not afford since most of his patrons are in the same situation as the one needing that charity. Spreading that generosity to everyone in financial difficiulty is the same as committing business suicide. 

The problem a Mom and Pop small business such as these cafeteria have, is the following: 

• How do you prevent a situation where a customer has to be "thrown" out of the business and denied future service for lack of payment? 
• How do you do it without alienating the rest of the Patrons? Even if the customer recovers his financial health, he will never willingly return to a place where he was humiliated.

Most Cuban cafeterias and small shop owners have a very simple solution to that problem: Communication. A direct, in-your-face, can't miss type of communication. It sounds blunt, but in reality, it is subtle enough and delivered in a non-caustic way, that it is highly effective. These is what they do: 

1. They post a sign where it is very visible, that all credit, debit or charge cards, will either require a Non-Cash fee, or a minimum amount (usually $10.00 min).
2. In addition, more than a few use humor and poetry by posting the following Poem in the most Conspicuous place in the restaurant: 

Si fio

Pierdo lo mio

Si doy

Al abismo voy

Si presto

Al cobrar molesto

Y para evitar todo esto

Ni Doy

Ni Fio

Ni presto

 

Loosely translated (the riming is lost in the translation):

If I open a tab

I lose what is mine

If I give it away

I'll go bankrupt

If I lend

When I ask for it back I annoy

So to avoid all of that

I don't give

I don't lend   

I don't open a tab

It is clear, concise and to the point. Every Patron knows in advance what the policy is and both parties can avoid the embarassement of a situation and ruin a good relationship. That is effective communication, on that forwarns of the consequences in a seemingly non personal and non threatening way.  Evey time I sit down a a Cafeteria counter and see such a poem displayed conspicuously, I can't help but smile and internally applaud the simple genius of the whole thing. Excellent business communication.