Introduction  |  Table of Contents  |  Index

Index

  • accountants, 215–18, 228
  • accounts receivable, 10, 49, 51, 69–73
  • borrowing against, 61–63, 64, 69
  • growth and, 83, 84
  • acquisitions, 44–48, 56, 86–90, 121–22, 156–58, 159
    • by Brodsky, 25–27, 154, 242–43
    • profit margins and, 149
  • advertisers, 54
  • advice, 211–28, 250
    • from accountants, 215–18, 228
    • from consultants, 48
    • from experienced businesspeople, 224–27, 228
    • from lawyers, 218–23, 228
  • advisers, board of, 216, 227
  • Allied Capital, 97–98
  • Anisa International, 75–77
  • antiquated industries, 43, 44
  • archive retrieval business, 43–44, 123
  • Arnold, 150–51
  • asset- based lenders, 61–63, 69, 73
  • assets, buying, 58
  • Baicher, Mike, 154–58, 211–15
  • bankruptcy, 79
  • Brodsky's experience with, 26, 100, 154, 242–43
  • banks, 61–68, 73, 120
  • bed- and- breakfast businesses, 169–71, 173
  • Bert, 197–98
  • bidding situations, 131–32
  • boss:
    • becoming, 166–79
    • managing and, 168–69, 175–79
  • brand:
    • building of, 138
    • devaluing of, 162
    • break- even point, 13, 17
  • Brodsky, Elaine, 2–3, 5, 82, 84, 104, 105, 190, 231
    • in CitiStorage management, 164, 183, 184, 186–87, 188
    • employee training program and, 206–9
    • hair salon and, 146–47
    • Malki and, 37, 40
    • at seafood restaurant, 232–34
  • Brodsky, Norm:
    • bankruptcy of, 26, 100, 154, 242–43
    • company acquired by, 25–27, 154, 242–43
    • delivery company of, see Perfect Courier
    • father of, 1–2, 4, 104, 105, 106
    • records storage company of, see CitiStorage
  • Burlingham, Bo, 3
    • business background, lack of, 85
    • business lessons, 1–2, 229–45
    • business plan, 5, 8–11, 13, 56, 57–60
    • four questions to answer in, 50
    • life plan and, 154–55, 158, 162, 165
    • mistakes with, 49–51
    • software for drawing up, 49, 50
  • buying a business, see acquisitions
  • capacity trap, 128–34
  • capital, 8–11, 13–14, 17–18, 19
  • from investors, 57–60, 63, 218–21
  • low- margin sales and, 130
  • niche and, 44
  • protecting, 13
  • raising, 49, 50, 51
  • capital expenditures (CAPEX), 88
  • cash, 13
  • cash flow, 8, 10–11, 13, 16, 17, 21, 69, 70, 79, 80, 81, 216
    • free, 86, 88
    • layoffs and, 190
    • predicting, 18
    • sales and, 18, 81–84, 90
    • seasonal businesses and, 125
    • self- sustaining business and, 29, 51
  • cash flow statement, 8, 10–11, 217–18
  • changes, 17–19, 21
  • charity work, 183–84
  • CitiPostal, 25
  • CitiStorage (records storage business), 30, 35, 43–44, 51, 122–24, 126, 136, 164–65, 180, 224
    • Brodsky's enthusiasm for, 260–61
    • competitors of, 109, 115, 116–17, 124, 137–38, 164
    • computerized customer services at, 140
    • culture at, 181–84, 186–87
    • destroy dates for boxes at, 139
    • help from experienced businesspeople at, 97, 224, 225–27
    • land purchased for, 96–99
    • loss of customer at, 22–23
    • management team at, 175
    • missing boxes at, 235–36
    • niche of, 107–9
    • receivables of, 69–73
    • rules at, 152–53
    • selling cycle in, 246
    • tracking the numbers for, 77, 78–79, 80–81
  • Clinton, Brad, 240
  • commissions, 199–204, 210, 248–49
  • competitors, 42–43, 56, 107, 108, 138
    • bad- mouthing, 114, 115, 124
    • ex- employees as, 143, 188, 195, 205
    • hiring salespeople from, 196, 210
    • losing customers to, 115–16, 120, 140
    • non- compete agreements and, 188
    • niche and, 113
    • reputation and, 115–17, 118, 196
    • rules for dealing with, 116–17
    • unethical, 114
  • computers:
    • doing calculations by hand vs., 10, 74, 77, 90
    • software for, 32, 34, 49, 50
  • consultants, 48, 125
  • contracts, rereading, 240, 245
  • controllers, 82
  • cookie business, 49–50
  • cosmetics accessories business, 75
  • cost of goods sold (COGS), 9, 10, 83–84
  • cost of sales, 9
  • costs, see expenses
  • critical mass, 17–21
  • culture, company, 180–94
  • customer base, 15, 17, 18, 19, 29, 107
  • customers, 135–44, 145–53
    • bad service to, 145
    • big, 119–22, 134
    • bill- paying policies of, 136–37
    • company rules and, 149–53
    • and dealing with problems, 239–40
    • differentiating yourself with, 43–44
    • direct contact with, 140–43, 144, 164
    • educating, 42, 56, 139, 144
    • established, treating like new
    • prospects, 139–40, 144, 232
    • lifestyle of service providers
    • maintained by, 145–46, 153
    • listening to, 126–28, 134, 141
    • losing to competitor, 115–16, 120, 140
    • loyalty of, 120, 122, 124, 139–40, 232
    • new, signing up, 122–24, 134
    • offering discounts to, 133
    • raising prices and, 108, 146–49, 153
    • relationships with, 14, 136–38, 144, 198, 201–2, 204, 205, 231–32
    • retaining, 135–44
    • salespeople and, 198, 201–2, 204, 205
    • small, 119–22, 134
    • unhappy, 23
    • see also sales
  • Data- Link Associates (Bobby and Helene Stone's company), 3, 5–11, 13–18, 20–21, 30, 74, 246–61
  • day care centers, 37–40
  • dealers, independent, 147
  • decision- making, 27, 102
  • taking time in, 242–44, 245
  • delegating responsibilities, 138
  • dentist, 145–46
  • discipline and focus, 28–30, 41
  • disputes, 99–102
  • diversification, 125
  • doctors, 58–59
  • document destruction business, 32–35, 80, 86–87
  • earnings before interest, taxes, depreciation, and amortization (EBITDA), 88, 89, 90
  • educational facility business, 52
  • ego, 127
  • Elsa the cat, 181–82
  • emotions, 6–7, 8, 11, 19, 20, 21, 102
  • employee relationships and, 166–68
  • employee theft and, 172, 173
  • employee, being, 36
  • employees, 166, 180
    • caring about, 190–91, 193, 194
    • company culture and, 180–94
    • company growth and, 174, 246
    • company rules and, 149–53
    • creeping expenses and, 189–93, 194
    • firing of, 170
    • former, becoming competitors, 143, 188, 195, 205
    • hiring of, see hiring employees
    • layoffs of, 190
    • relationships with, 166–68, 179
    • in sales process, 205–9, 210
    • theft by, 168, 169–73, 179
    • training programs for, 206–9, 210
    • see also salespeople
    • enthusiasm, 260–61
  • Erwin, 105
  • excuses, making, 26, 41
  • expenses, 9–10, 13, 16, 54, 75, 87
    • and conversion of luxuries into
    • necessities, 189–90
    • creeping, 148, 189–93, 194
    • growth and, 83, 84
    • and hiring an employee, 150
  • experimentation, 19
  • failure, see mistakes and failure
  • Feinstein, Bob and Trace, 86–87
  • financial statements, submitting to bank, 65–66
  • flexibility, 30, 32, 41, 76, 113
    • in negotiating, 91
  • focus and discipline, 28–30, 41
  • Fred, 106–7, 109
  • goals, 6–7, 14, 18, 20, 21, 31, 159, 243, 257
    • and buying a business, 44
    • life, 154–55, 158, 159, 162, 165
  • Gore, Al, 104–5
  • gross profit, 9–10, 13, 75, 76, 77, 87, 119, 198
  • gross- profit margin, 1, 9–16, 18, 72, 83–84, 108, 122
    • costs and, 148
    • and hiring an employee, 150
    • niche and, 44
    • small customers and, 120
    • tracking of, 74, 76, 77
    • and value of business, 149, 153
  • Groundhog Day syndrome, 24–27
  • growth, 154–65, 174, 175, 249
    • and advantages of small companies, 164–65
    • deciding on, 164–65, 246
    • life plan and, 154–55, 158, 159, 162, 165
    • planning for, 83–84
    • success factors and, 158–63, 165
  • herbal- lotions company, 45–48
  • Hier, Marvin, 229
  • hiring employees, 150, 180
    • salespeople, 195–98, 203, 205, 210, 212, 214, 246–47
  • Hot Pants, 160–63
  • Howard, 223
  • Hussein, King, 229–30
  • Inc., 3
  • Inc. 100 list, 25
  • Inc. 500 list, 2, 25, 61, 81, 86, 113, 135–36
  • income statement, 8, 10
  • independent contractor, 36
  • information processing business, 113
  • insurance rates, 148
  • Internet development services, 57
  • Internet sales, 147, 249–53, 255–59
  • investing:
    • profits back into business, 19
    • in risky ventures, 27
    • investors, 57–60, 63, 73, 218–21
    • threshold of, 59
  • Iron Mountain, 43, 164
  • Jack, 117, 121–22
  • Janice, 171
  • Jerry, 131–32
  • JetBlue, 141–43
  • job fairs, 125
  • Jordan and Seth, 57–58, 60
  • Josh, 45–48
  • Judy, 146–48
  • Kaplan, Sam, 97, 177, 178, 226–27
  • Ken, 216–18
  • lawsuits, 99–102
  • lawyers, 218–23, 228
  • layoffs, 190
  • leverage, 24, 58
  • Levin, Rob, 52–55
  • life plan, 154–55, 158, 159, 162, 165
  • Lightfoot, Patty, 190–91, 193
  • loans, 61–68, 84, 120
  • magazine business, 52–55
  • Malki, 37–40
  • management, 168–69, 175–79, 241
  • company culture and, 187
  • Marvin, 66–67, 68
  • Mike, 106–7
  • mistakes and failures, 16, 22–27, 28, 37, 40, 41, 54, 158
    • business plan and, 49–51
    • and buying a business, 45
    • repeating, 70, 235–36
  • Naomi, 169–71, 173
  • Neeleman, Dave, 141–43
  • negotiating, 91–103
    • and assuming other side is smarter, 93, 103
    • in disputes, 99–102, 103
    • listening in, 93, 94, 103
    • preconceived notions and, 93, 103
    • and questioning what you see, 96–99, 103
  • net profit, 12, 87
  • New York Enterprise Report, 52–55
  • Nextel, 193
  • niches, 43–44, 107–9, 110–13, 118
  • non- compete agreements, 188
  • Nor, Queen, 229, 230
  • numbers:
    • key, 79–80, 81, 90
    • tracking of, 74–84, 90, 253–56, 261
  • opportunities, 28–29, 30, 41
  • putting core business before, 163
  • taking time with decisions about, 243–44
  • optimism, 67
  • overoptimism, 8–9, 53–54, 55, 66, 217
  • overhead, see expenses
  • payables, 15, 49, 84
  • payroll increases, 148
  • Perfect Courier (delivery company), 25–27, 30, 42–43, 51, 52, 64, 111–13, 135–36, 138
    • culture of, 185–88
    • customer size and, 120
    • customers lost at, 135–36
    • dispute with supplier of, 99
    • hotshot salespeople at, 197–98
    • management of, 175–76
    • pens at, 191–92
  • peripheral vision, 32–35, 41
  • Pierce Leahy, 43
  • Polly, 218–21
  • Post, Patti Kanner, 204
  • preparation, 237–40, 245
  • prices:
    • capacity trap and, 128–34
    • competing on, 108, 111
    • cutting, 12, 13, 14, 133
    • quality linked to, 148–49
    • raising, 108, 146–49, 153
  • problems, 39–40, 70, 102, 175, 232–37
    • advice and help with, see advice
    • bad rules and, 153
    • solving, two- step process in, 235–37, 245
    • taking time with decisions about, 243–44
    • tracking numbers and, 78
  • profits, 10, 11, 12, 46, 79, 81
    • company valuation and, 86–87
    • gross, 9–10, 13, 75, 76, 77, 87, 119, 198; see also gross- profit margin
    • investing back into business, 19
    • net, 12, 87
    • raises, 199, 200, 204
    • receivables, 10, 49, 51, 69–73
    • borrowing against, 61–63, 64, 69
    • growth and, 83, 84
  • recklessness, 19
  • records storage business, 30, 43, 89, 107, 109, 115, 137–38
    • capacity trap and, 131–33
    • length of storage times in, 139
    • rates in, 120
    • see also CitiStorage
  • reputation, 113, 114–17, 118, 196
  • research, 51, 55, 59
  • reserve, 11, 16
  • resilience, 22, 28, 41
  • risk, 19, 26–27, 222
    • in borrowing money from
    • in- laws, 67
    • in buying a company, 27, 44
    • in extending credit to a customer, 254
  • sales, 119–34, 135, 195–210
    • capacity trap and, 128–34
    • cash flow and, 18, 81–84, 90
    • company valuations and, 86–90
    • cycle of, 246
    • high- margin, 14, 15
    • and hiring an employee, 150
    • Internet, 147, 249–53, 255–59
    • low- margin, 13, 14, 75, 76, 119, 130, 131, 253–54
    • preparation for, 239
    • projections of, 8–9, 66
    • size of, 119
    • tracking, 74–81
    • volume of, 9, 18
    • see also customers
  • sales mentality, 11, 12–16, 19, 21, 119
  • salespeople, 110, 195–98, 231
    • commissions for, 199–204, 210, 248–49
    • compensation systems for, 199–204, 210, 248–49
    • customers and, 198, 201–2, 204, 205
    • entrepreneurial, 195–96, 203, 210
    • fear of asking and, 104–5, 108
    • hiring of, 195–98, 203, 205, 210, 212, 214, 246–47
    • hotshot, 197–98, 201, 203, 210
    • mindset of, 105–6
    • raises for, 199, 200, 204
    • return on investment in, 247, 261
    • teaching about business, 247–48, 261
  • Scali McCabe Sloves, 111–13
  • seafood restaurant, 232–34, 237
  • seasonal businesses, 125
  • secure document destruction business, 32–35, 80, 86–87
  • security, 20–21
  • selling cycle, 246
  • Seth and Jordan, 57–58, 60
  • Seymour, 160–63
  • Simon Wiesenthal Foundation, 229
  • Sky Courier, 25–26
  • spouse, working with, 184
  • SRC Holdings Corp., 79
  • Stack, Jack, 79
  • steady- income rule, 224–27
  • Stone, Bobby, 3, 5–11, 13–18, 20–21, 30, 74, 246–61
  • Stone, Helene, 3, 5–8, 10, 11, 13–18, 20–21, 74, 246–61
  • Stone, Jennifer, 253
  • Stone, Rebecca, 258, 259
  • Stone, Steven, 246–49, 251–52
  • "Street Smarts" column (Brodsky and Burlingham), 3
  • success, 257
    • company culture and, 189
    • factors in, 158–63, 165
    • suppliers, 51, 142–43
    • supply costs, 148
  • Target Corp., 77
  • Telwar, Anisa, 74–77, 168–69
  • theft, by employees, 168, 169–73, 179
  • time, 51–55, 56
  • trade directory for restaurants, 216–18
  • trucking and warehouse business, 211–15
  • trust:
    • company culture and, 182
    • of customers, 124, 142, 232
    • employee theft and, 171–72, 179
    • management and, 176, 177
  • uncollected funds, spending, 65
  • unique product or service, 42
  • utilities, 148
  • value, price and, 148–49
  • value of business, 86–89, 90
  • profit margins and, 149, 153
  • venture capitalists, 58, 60
  • viability, 5–9, 11, 14, 18, 19, 29, 53, 54, 74, 254
    • niche and, 44
  • volunteering in a startup, 233
  • Weiner, Louis, 34–35, 193, 209
  • X factor, 35–40
  • "You don't ask, you don't get," 104–5, 118
  • Zitron, Ben, 97, 225–26, 227