Want to Improve Profit? Everything’s Negotiable

When I was a younger business person I wanted to be well-liked and do things right. Well-liked by vendors, customers, employees and investors. I wanted to solve not just my own problems but their problems, too. I'd pay bills in full even when a vendor failed to meet basic standards of performance. I'd coddle employees who did not give me reason to retain them. And I tried to "do things right," such as volunteer work for philanthropic causes.

Over the past 15 years, my focus has changed. I'm now free to spend more time on what is really important - building a successful business. I'm convinced that my old route was a recipe for failure. I no longer strive to please others. I simply try to please myself. I do so by consistently doing what I believe is right for all interested parties - me, my family, my employees, vendors, customers, investors, community, country and world.

There is a big difference. I know what I must do to please myself. I've given it a lot of thought. In contrast, I can never be sure what others want from me. Pleasing myself is much easier. There's much less uncertainty and the results are guaranteed. If I know how I want to live my life, and then live it, then I enjoy great personal peace and satisfaction.

For example, I believe that the best thing for my community is that I build a successful business. Then, once I secure success, I can spend more time and money serving in ways outside of my business, such as philanthropic endeavors. Some will not agree with this approach, but some do. If my goal was to please others, I'd be caught between the two. I've made my decision, and now I can live in peace - knowing that I'm doing what is best for me, my family, my employees, and my community.

Lou Holtz coached the Notre Dame football team while I was in graduate school there. He makes it very clear that he's not in a popularity contest. His goal is not to be liked but to build a winning football program. To do this, he's gonna drive the heck out of each player, coach, administrator and alumnus in an effort to do all that it takes to succeed. It's not going to be easy and some are not going to like it. But he believes that, when his players are older, they will look back and say, "Lou Holtz was a son-of-a-gun, but he cared for me and made me a better person."

I've also come to realize that I can't solve problems for people. People can solve only their own problems. My attempts to do so are simply arrogance. I have plenty of solving to do in my own life and affairs. Sure, if someone asks for my opinion or advice, I am obliged to offer it. If they deem my ideas to hold merit and be worth applying, then so be it.

There are plenty of opportunities each day to demonstrate trustworthiness and ability to pay. If I manage my business prudently and properly, enough will be said.

But I now know that I must protect my business and those who depend on it, and if that means standing up for what is right with a vendor or employee, then that's my duty. My call to help the weak and give to the hungry is exercised elsewhere.

A logical extension of this is reflected in the title of this article. I assume that in business, people are "big boys and girls." They alone know what is right and wrong for them. They're fully empowered to say "yes" and to say "no" on the sole basis of what is right for them or theirs.

To build a profitable business today, you must be tough. Tough with expense reduction and revenue generation. In my experience in banking and financial services, I've seen the financials of thousands of businesses. The 80/20 rule holds true - 20% make all the money. The rest break even, or worse. To secure the future, you need to make money. In doing so, everything is negotiable (except ethics). I suggest that you don't buy a single item without negotiating for a discount.

If you have a hard time being cheap, consider that your ability to consistently lower costs may be your only hope for ensuring long-term viability. Also, ask yourself - if you were in the shoes of your vendor, would you rather get the call and hear the offer, or not get the call at all?