Doug Richard

Going the extra mile…or why the little things in life really do matter

Extra Mile - Palm Springs style!

Extra Mile – Palm Springs style!

Do you remember this poem from your schooldays?

For want of a nail the shoe was lost,
for want of a shoe the horse was lost,
for want of a horse the knight was lost,
for want of a knight the battle was lost,
for want of a battle the kingdom was lost.
So a kingdom was lost—all for want of a nail.

I was fascinated by this story as a child and it’s a theme I often return to when I think about startups or small businesses. As an aside, the idea of a small issue leading on to something much bigger lends itself to many aspects of life outside business too – but more about that later.

In my mind, there are two ways that smart small businesses elevate themselves above basic bog-standard delivery and every new business struggles with either or both. Those organisations that can get these two things right effortlessly, consistently & with grace are the ones most likely to succeed.

The first part is about making sure that nothing important gets dropped. I know there’s a saying in startup land – “if the wheels don’t come off, you aren’t going fast enough”. Ignore this sort of silly “bro” culture nonsense when you’re starting your business – startup chaos is never fun from a customer perspective. If you can get efficient delivery right with some consistency in the early days as you expand beyond your founder team and early doors customers then you have a chance. It’s always very difficult to instil your founding team’s customer service ethic into your employee team. Fact. You can devise methods of measuring and monitoring customer service standards until the cows come home, but in my view the better way to tackle this when you’re starting out & beginning to expand and grow your team, is to focus on bringing the right people on board in the first place. People who already share your values and have the right mindset.

It’s ok to make a rare exception (maybe someone completely new to the workplace?) but really take care with your early recruits as those first team members are the foundation on which you’ll build out the next layer as you expand and then the layers after that. Never, ever employ someone who in the first 5 minutes of a job interview can’t articulate to you why they really want to work in your business and what specific value they will bring to you. That “better a hole than an xxxhole” statement is very true and one that I wish I’d paid attention to a bit more closely myself on several occasions – because you do really know in your gut whether or not someone is right to bring into your team. It’s all about creating the right sort of culture in that first wave of team members. If you get this wrong you are lost. In the course of my career, the most difficult customer issues I’ve ever had to resolve have been minor situations made worse by lack of communication or people in my own team lying to customers in order to cover their backs.

Also – everyone screws up from time to time. This is ok. The important thing is to learn as a team from mistakes made and to fix things for your customer as quickly and painlessly as possible for them. If you get this bit right, you could find yourself in an even better position with your customer because they’ve seen how you behaved in a time of adversity and they will admire you more if you’ve been honest.

The second part of this blog is more fun – once you’ve figured it out. What does “going the extra mile” actually look like in your particular business? I once heard Doug Richard say “any conversation with a customer is too short” – and he’s absolutely right. Without knowing why your customers buy from you instead of anyone else and which bit of what you provide they value most it’s pointless trying to go any extra miles as you could be wasting your time providing them with something that doesn’t really delight them and may even annoy them. U2’s music for example!

Everyone knows that startups have to over deliver. It’s one of the ways to get your first few precious customers – the ones that will hopefully go on to become ambassadors for you. Subsequently, stories about delivering customer delight and the resulting karma are legendary in entrepreneur circles. Hearing these tales from other entrepreneurs is one of my favourite pastimes and in my anecdote kitbag I have countless stories of huge contracts won on the back of a small act of kindness delivered at some point in the past. One is about a sales guy getting home at night & receiving a call from a school he’d just delivered some computer kit to that day. The teacher called him because he was delivering a presentation the next day & the printer cable he needed was missing. The sales guy didn’t complain, quibble or argue – he simply grabbed a cable from the office, turned the car around & drove the 70 miles back up the road to take it to the teacher with good grace. Years passed and the small computer company had pivoted & grown into something much bigger and different. The teacher changed jobs too and when he was looking for a supplier to provide an airport security system, he went back to that same sales guy.

My own favourite is a Learning Pool story. Sam Barbee & I went to a large and remote unitary local authority to deliver a lengthy sales presentation to a big group of people in a most unsuitable room. It was one of those rooms used for computer training and many of the people were hidden from view behind computer screens. We didn’t know anyone in the group and introductions weren’t made. The council had recently become a unitary authority, swallowing up the district councils in the process. Many of those in the room had been through long drawn out rounds of local government restructuring and were feeling fragile and bruised. Sam & I soldiered on with the presentation. Suddenly a woman at the back got to her feet and announced that in her previous role she’d been a Learning Pool customer in one of the district councils. Without waiting for permission, she launched into a tale about how she’d been working one day as administrator on her Council’s learning environment and had got it into a bit of a muddle. Tired and fed up she went home. Next morning she came into work with a feeling of trepidation, knowing she had to undo yesterday’s mess. She switched her computer on and immediately realised that her Learning Pool account manager had noticed overnight that she’d got herself into a muddle and without waiting to be asked, had gone in & fixed it for her. She finished off by saying that in all her years of working in local government she had never worked with a more customer focused supplier than Learning Pool. It was incredible. Sam & I could have kissed her. The atmosphere in the room changed in a heartbeat and 6 months later, after jumping through all the usual procurement hoops, the contract was ours.

But where do you draw the line? And how do you know what your own extra mile is? This is the tricky bit. As a small company you have to find ways to delight your customers that don’t eat too heavily into your margin – but you can only do that if you know your margins on your various products and services and the dependencies between them. So – know your customers and know what they want from you, know your margins and be aware across your team of where you have a bit of space to give a bit more. Delivering the extra mile doesn’t have to cost you a lot of money but you do need to give this some thought. If you get it right, it will pay you back in spades and you’ll sleep easier at night. A good start is to make a vow never to nickel and dime your customers from Day 1 and to always extend the same high level of courtesy from everyone in your team to everyone you deal with – no matter who they are.

I’d like to hear any of your stories about instances of a small act of kindness in business paying back many fold so please do share in the comments section below.

On a personal note, I keep a loose mental tally on favours I’ve done in business for others and favours I’m owed. I can’t help it – it’s the accountant in me wanting to classify everything in life into debits and credits. Don’t worry – I haven’t started noting it down in a ledger yet. I try to keep it so that I’m in credit with everyone in terms of favours I’ve done for them. I’ve done this all my working life and it’s only ever led to good things happening for me – and it means that when I really need a favour or need someone to pull me out of a hole, there are usually lots of people I can ask.

Entrepreneurs are story tellers…so says Doug Richard

I’m so glad that I took yesterday out to attend Doug Richard’s excellent “Starting & Growing a Successful Business” lecture in Letterkenny.  Learning Pool’s now an established business (when do you stop being a startup I wonder?) but most entrepreneurs have one eye on the next opportunity – it’s part of our condition…

Doug’s a man I could listen to all day.  He sounds exactly like the wonderful architect Frank Gehry (a Toronto man who’s also lived in LA for a long time) and he doesn’t mince his words.  I knew a bit about Doug already & I expected him to be like his reputation – ferocious, blunt to the point of rudeness & flashes of vitriol.  Instead – he’s a caring pussycat trying to impart his vast experience of being an entrepreneur to those folks that are just starting out.  Impressively, as part of his School for Startups social enterprise, he’s spoken to 7,600 entrepreneurs or would-be entrepreneurs in the last 2 ½ years.  He says he does it to show it can be done & to prove the government wrong – he thinks the way UK government supports & starts new business stinks.  I think most startup businesses we network with (and there are an awful lot of those) would wholeheartedly agree with him.  So – he’s a sort of energetic entrepreneurial avenging angel.

What impressed me most was his ability over the course of the day to really add value & give advice completely on the spur of the moment to people in the audience with businesses as varied as stainless steel catering equipment, online bridal directories, health clubs, micro-breweries, logistic businesses & distributors of artwork – so it must be true – business really is just business and entrepreneurialism can be learned – you don’t have to be born to it.

Doug’s written plenty of stuff & there are loads of good & free resources on his School for Startups website including his excellent blog – so I’m not going to regurgitate all that stuff again here in my blog,  Instead – I’m going to give you the quotes from Doug that I liked enough yesterday to write down – just to give you a flavour of the day and a flavour of Doug Richard.  Here we go:

Entrepreneurs are not born; babies are born

Some businesses can simply not succeed; entire industries exist that do not make any money (example he gave was the airline industry with the exception of our friends at Ryanair)

Some industries are harder to make money in; you need to know what industry you are in

A brand is a residue of what’s left; it’s a promise – you need to have a promise that you’re offering

Simple businesses are the ones that are most likely to succeed; but everyone does too much in their business – it’s human nature

You should make your promise accurate & narrow – how narrow can you get?

The story you tell as a young business is the most important thing – often you have nothing else

Entrepreneurs are defined by the story they tell

Risk & reward walk up together in a perfect continuum

Look elsewhere for tomorrow’s today (advice to go & check out other countries when looking for a business idea)

Government makes the measurable important instead of the other way around

You must delight your customers & exceed expectations – even by just a little – this will create word of mouth

If you’re building product, think about how you can include whimsy (he used the example of Apple’s “bounce” when you scroll to the end of the menu – utterly unnecessary but Steve Jobs felt it should exist)

Your family & friends are there to support you when you’re wrong so don’t ask them to appraise your new business idea

There is no conversation with a prospective customer that is too long, they are all too short

Every company should write a short profile of who their customer is – write it as a story – give them names

Most business expenditure is not driven by need but by ego (e.g. company cars)

Adults should only be rewarded for accomplishments, not for trying hard

Entrepreneurs are on a journey of discovery not invention – all the answers are already out there

Don’t stop at Page 1 of Google when you’re doing market research – there’s value in the long tail

You make more money from having an innovative business model than you do from having a great product or service

Business models matter & you should think about yours

Don’t overlook affiliate marketing (if this is your bag, Doug runs an 8 hour class on this alone)

Take the first offer – it might be the last offer!

Product doesn’t have to be better, it just has to be different (example used was skype – although of course it is also free!)

Just ask your minority customers why they don’t buy more from you (what a blindingly obvious idea – thanks Doug – we’re doing it)

A patent is not protection, it’s a hunting licence to protect (talking about the costs of defending patent breach)

No-one has ever started a company in Silicon Valley & ended up with what they thought they would – they are all Plan B companies

In an entrepreneur, resilience is so important (as an aside – in the very first conversation I ever had with Paul McElvaney many years ago, I asked him how resilient he was.  It’s something we as business partners return to from time to time to make sure we’re still resilient as – yes – you really need to be)

It’s a very, very rare business that succeeds with just one person – there needs to be a team

You have to be optimistic to be an entrepreneur

There were a few “funnies” as well that I noted – please be warned that there’s a small bit of bad language coming up:

I don’t speak “local” – when he couldn’t understand a few of the strong accents in our Donegal audience

I’ll take better, I’m good!

We don’t use the phrase “poison chalice” in the USA (talking about being Chairman of the Tory task force to review SME support in the UK)

I’m saving you an entire MBA today

Thanks for the validation…I was a bit concerned.  I know I’m obnoxious (to a member of the audience that told him he believed he was right about something)

On software development – Imagine selling a fridge where in v1 it just holds stuff

On Google rankings for your company – Do you know what we call the second page? – Siberia

On competitors – It’s not that you’re paranoid, they’re after you; they want to rip off your head & piss down the hole

On being an entrepreneur – Resilience, overcoming adversity, survival – they all pale into insignificance if you’re an asshole

In conclusion, a fab day where we learned a lot and Doug even made up a word – perfical (a perfect vertical).  Don’t miss him – he’s brilliant, warm & very well informed – and he’s running one of these again in Dublin on 16 Feb & a Belfast date is to be announced.  Come along with your questions & expect him to challenge you – he isn’t your mum & surely you’d rather know if your baby’s ugly.  I guess you want to know what I asked him don’t you?  I asked him how he decides on the one investment he chooses each year from the 3,000 business plans he receives.  He was candid & admitted that there isn’t a “one” from  the 3,000 – he decides what the next big thing is & goes hunting for a company to invest in.  All I can say is I hope he has an urge to invest in a public sector online learning community – come talk to me if you do Doug!

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