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!!!

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.

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.    

Is comparing ourselves to others healthy or even necessary?

Doug, a good friend of mind, a Man of deep thought, who I admire and respect deeply, recently gave me some appetizing  food for thought which I gladly share with you folks of Enterprising Minds. He said the following:"When we compare ourselves to others we confine ourselves to one of two destructive attitudes, superiority or envy".

I responded by asking: "where does Respect, Admiration and consequently emulation come in then?"

Doug replied that he was thinking of the kind of comparison that is based on what the other has, and not on who they are.

I asked that because Doug said "Comparing ourselves to others"... and not comparing what we have to what others have or comparing our possessions, our professions or our family situations (marriage, kids, single, divorced....etc). Even then, are we not but the sum of all we have worked hard to obtain? Whether it is material possession, social status, professional position, knowledge, enlightenment or whatever it is we strive to obtain? Why limit the result of a comparison, any comparison to those 2 negative end results: the "destructive attitudes of Superiority or Envy"? There is room for so much more.

There's always room for improvement. Comparing ourselves to others is a natural process. It underlines our perpetual quest for betterment. One could deduct from this statement that we are never satisfied with what we have, that Greed is inferred by that very desire to constantly get more. Will we ever be happy with what we have, with who we have become? The problem lies within that very question. Happiness should not be defined as a line in the sand we have crossed over.

Happiness is not a goal or a destination, it is a state of mind. You either are or you are not. If you are not happy during the journey how can you expect to be happy once you've reached your destination? if you have to compare yourself to anyone, there are a multitude of "feelings" you should have, most of them positive, and if there is any negative feeling, it should only be a sense of frustration, for lagging behind your own sense of where you should be on your journey. In my opinion the only healthy and true competition in life is the one we have with ourselves. Just like an athlete truly competes against his own stats, not anyone else.

The information one gleans from the achievement of others should only be notches on one's own measuring stick. Better your own score, use someone who has achieved more as a goal for you to meet on your road to bettering yourself. Bring your score to par with that other person ahead of you. Do not compare yourself to him/her but to the mile post they have reached on their journey and compare it with where you are now on your own journey. That is the true measure of a HUMAN BEING. The measure against one's own accomplishment, using the performances of others to remind one that since other humans have done it, it is therefore possible for one to do it too. Unless we truly don't believe that all men are born equal, despite physical differences.

All is possible. Some adaptation will always apply because we can only run our own race. We cannot run anybody else race just like we can never walk in another man's shoes, not for a mile, not for a single step. We can only step with our own feet. Once we understand that, the only feelings we should have when comparing ourselves with others is either, satisfaction with distance we have covered so far or frustration born of impatience to reach one's goal.

Other people's achievements are just sign posts on the side of the road to our goal. The runner cannot feel superior to the finish line just because he crossed it. Just like he cannot feel envy to the sign post that says "25 miles to Finish line" on a 26 mile marathon. Those are just indicators on the dashboard of our life as we navigate through it on this wonderful journey. In Life, the Journey is the destination. What else is there but the journey? Death.

Before Christophe Lemaitre, the French Sprinter, knocked the 10" barrier of the 100 meter dash, no one thought that a White Man could do it. It had never been done. Now that he did it, he is aiming at Usain Bolt's record, he now knows that he belongs to the same species as that seemingly extra terrestrial Man. Just as Bolt keeps breaking records, others follow on his steps.  Yohann Blake never thought he could beat the Fastest man in the world until he actually did it twice. By doing so he brought the Demi-God Usain Bolt back down to earth among us common mortals and it energized a whole bunch of athletes who pushed themselves to keep up with Bolt, now that it has been proven that he can be beaten. Bolt on the other hand, just got the incentive he needed on his road to better himself and remain the fastest man in the world. He will keep breaking records, pushed by the record breakers nipping at his heels. He is truly competing against himself, his own record. THAT is the true and only competition one should have. The others are just examples to either emulate or keep as reminder of what NOT to do.


So when we compare ourselves to a fellow traveler on the road to enlightenment, we should feel compassion if that traveler is struggling, lost in the dark in spite of his wishes and efforts, and, if we can lend a hand, we should particularly since it is part of our trip (why else is that person on your path). If is just a name mentioned in the news or someone we know personally and that person is further ahead than we are, envy should not be what we feel, but a sense of satisfaction, because that person just materialized for you the reality of your goal. What you formulated in your mind as a future milestone to reach on your journey, without truly knowing if it is possible to reach it, that person just made it possible for you simply by reaching it him/herself.

Comparing ourselves to others is destructive if it generates envy, or worse, a sense of inferiority. It that is the case, it also means that you lack confidence, self worth, self motivation and need help.  It is just as destructive if it generates a sense of Superiority since it would indicate that you have a over blown opinion of yourself and that leads to misjudging the size of the impediments lying on the road ahead of you. Over-confidence is just as fatal in Business and Life in general as is the lack of self-confidence. One leads to underestimating the dangers encountered on the way and potentially crash head on to the wall that is REALITY. The other leads to overestimate the level of difficulties to move forward and consequently abandon the current path to success for a safer but less rewarding one and what could possibly be a dead end path.

Taking all of that into consideration, is comparing ourselves to others necessary? if you have a healthy dose of self confidence and  are self motivated,  probably not. Is it healthy? Absolutely, but only if it is done in a positive way. In a way that spurs you ahead and inspires you to keep pushing, keep trying and be an example, a role model for those who come after on their own journey.