Chapter 1 Meet Dennis Zink, the 'New Jerry' Published: Monday, March 10, 2014 at 1: 00 a m

When Jerry Chautin told us he would be spending less time in Sarasota and would have to stop writing his weekly small-business column after 10 years, we turned to SCORE, the volunteer mentoring organization he belongs to.

Susan Hicks, of PRecise Communications, who works with SCORE, said she had just the person for the job.

Dennis Zink introduces himself in today's column, but here's some additional information about him.

Originally from Flushing, N.Y., he moved to Tampa in 1980, then to Bradenton last June. He lives in University Place in southern Manatee County.

He's a product of Long Island and Fordham universities who describes himself in LinkedIn as a change agent and business alchemist, among other things.

We describe him as a go-getter and a font of information he is happy to share, both as a mentor and a Business Weekly columnist.

He has a list of subjects he will address but welcomes suggestions and comments.

Ten years of writing a newspaper column is a long stretch, and Jerry Chautin did an outstanding job with his Let's Talk Business column in Business Weekly.

On Nov. 12, 2012, I was reading Jerry's column, and noticed he was a SCORE mentor in Atlanta and Sarasota. I emailed Jerry to let him know I enjoyed his column and was new to the Sarasota area.

We exchanged several emails, and Jerry suggested I become involved with Manasota SCORE. He knew it would be a good way for me to meet people and get involved in the business community. Jerry directed me to the local membership mentor and the group's chair. I attended the next monthly meeting, introduced myself, gave my 30-second (OK, maybe a little longer) elevator speech and chatted with many of the chapter's mentors.

Weeks later, I decided to join the local SCORE chapter -- that is if they thought I'd be a good fit.

I met with Charlie Sax and Dick Radt, the group's intellectual security gatekeepers. I call them the twin SCORE keepers -- sort of lions at the gate. They interviewed me, offering me $1 if I knew where the term mentor originated. I did not, so they proceeded to tell me about Greek mythology and the derivation of the word (which means someone who imparts wisdom to and shares knowledge with a less- experienced colleague).

I filled out the required forms, read the online training, was assigned a sponsor and became a SCORE certified mentor.

To complete my training, I had to undergo more than a dozen hours of classes. I first attended the Simple Steps workshop series, a set of five three-hour sessions recommended for start-up business clients.

Another requirement was to co-counsel clients with three certified mentors, to see what they do and how they do it. This was right up my alley, with my background in varied industries.

Toward the end of this process, I finally met Jerry Chautin. He and I immediately hit it off. We were both from The Bronx, New York, and we shared commercial real estate backgrounds.

Fast forward one year: My name was suggested for vice chair of the SCORE chapter. Though my initial reaction was "not interested," I eventually agreed. Shortly after I made that decision, the chair elect resigned, and I was asked to move up to assume the role of chair elect and take over as chair a year earlier than planned.

My goal was and is to improve and modernize the chapter. I began a podcast series, called "Been There, Done That! with Dennis Zink," interviewing mentors and business leaders on business topics in a series of audio recordings that are available on iTunes and Stitcher.

In November 2013, we began a MeetUp group (see MeetUp.com) called Success Strategies For Business Owners, which meets monthly at the Manatee Chamber of Commerce in Lakewood Ranch. These MeetUps are free educational workshops geared toward existing companies. They are open to anyone interested.

Working with Neil Spirtas, vice president of public policy and small business at the Manatee Chamber, I helped develop a CEO Roundtable for chamber members. I am a facilitator for one of the two groups, which meet monthly and function as an informal board of directors for participating CEOs.

Three weeks ago, Jerry Chautin told the SCORE executive committee about his decision to spend less time in Sarasota. With the Herald-Tribune's blessing, I was asked and agreed to write the weekly small business column. Jerry passed the baton to me.

Jerry, we surely will miss ya!

My goal in writing this column is to educate, entertain and help people improve their businesses.

I hope you benefit from and enjoy what I have to say. I look forward to your feedback, questions and suggestions.

Next week: CEO Roundtables.

Chapter 3

Twenty-six years ago, I entered a conference room with a dozen CEOs for the formative meeting of what was to become our CEO peer group roundtable.

This was a new group of TEC (The Executive Committee). This group had nothing to do with high-tech. It was a franchise based in California, with a franchisee in Jacksonville for the state of Florida.

Our group met 9 a.m. to 4 p.m., monthly, rotating venues among the participants' businesses.

In the first year, each meeting began with the host conducting a walk-through tour of their business operations. A Q&A followed. This was a great way to learn about the other members and their businesses.

A guest speaker presented in the morning, the host provided lunch, and the afternoon was about issues and opportunities from the members. An agenda kept the meetings orderly and on track.

A full-time chairman led the group. Paid from the members' dues, the chairman provided facilitation of the meeting, arranged for speakers and scheduled follow-up appointments for one-on-one sessions with members. In these follow-up sessions, goals, issues and opportunities were discussed. Of utmost importance, the chairman held the CEOs accountable for verbal commitments made.

With little turnover, our group bonded over time as the desire to be there for each other grew. The group functioned as an informal board of directors for each other. Dues were about $1,000 per month back in 1987, and virtually every member would say it was the best money they ever spent. I was in this group for seven years, and I remain in touch with many of my former TEC members.

The Vistage franchise (TEC), established in 1952, is the oldest CEO peer group in the world and today boasts 15,000 members internationally.

Art McNeil, a 10-year Vistage chairman, leads the local chapter. Monthly dues are about $800 per month, and membership is by invitation.

Another local group is the Gulfcoast CEO Forum, composed of CEOs from entities with a minimum of 10 employees and annual revenue exceeding $1.5 million. Annual dues are $1,750.

Why belong to a CEO group? Because it's lonely at the top.

Most CEOs from small to mid-size companies do not have a formal board, and they may have no one to "run things by." Over time, many of the participants tend to become good friends, as they openly share the good, the bad and the sometimes ugly aspects of running their businesses.

Confidentiality is strictly enforced, but this was never an issue with my group.

Fast forward to today: Last April, I was asked to help the Manatee Chamber of Commerce develop a CEO roundtable program. This had been the No. 1 "to-do" item coming out of the chamber's retreat.

Ron Forney, Doug Van Dyke, Richard Randolph and I met with the chamber's Neil Spirtas to discuss and develop CEO roundtable formats.

Florida's chief financial officer, Jeff Atwater, announced the launch of two Manatee Chamber CEO Roundtable groups in May 2013. The groups meet monthly for two hours, and we now have two openings in each group. To be considered, members must be profitable, have at least one other employee and be open to learning and sharing with the group.

Signed confidentiality agreements are required. The fee is $350 per year for chamber members.

What does a CEO roundtable do?

These groups help CEOs improve business performance by sharing their knowledge and experience with their peers, as most business issues are similar even among different industries.

This facilitates open, timely discussion of issues or opportunities affecting the participants' businesses. In addition, relevant education on topics of interest suggested by the group is presented by top-notch experts.

What do participants say about these programs?

"The CEO roundtable forum allows a wonderful opportunity to gather and share business experiences and challenges with some of our community's most influential leaders," said Angela Massaro-Fain, president of Grapevine Communications

"The CEO roundtable meetings have been both thought-provoking and useful. Truly beneficial time spent, and I am having fun!" said Trudy Moon, president of Air & Energy

"... well organized and has focused on using our time productively and providing us with useful content," said Bob Rosinsky, president and CEO, Goodwill Industries of Manasota

"... for executives and organizations interested in optimizing both their short- and long-term results," said Johnette Isham, executive director of Realize Bradenton Inc.

According to Spirtas, vice president of the Manatee Chamber of Commerce, "The goal is to connect local leaders in a manner that will encourage them to share ideas and access tools that accelerate their professional development and help their business soar."

Our tables are generally not round, but our participants are well-rounded.

I am often asked about how to run a successful small business. What are the keys that will ensure success?

There is no magic formula, but over the years I have put together a list of tips, and today I would like to share 23 of these with you.

While most of these tips are original constructs, others have been adapted, modified, altered, or garnered from fellow business executives, employees, friends, seminars and books. They are numbered for your convenience.

1. Cash is king; thou shall not run out of cash. Cash is the lifeblood of every business. When you run out, your business is dead!

2. Don't reinvent the wheel, just change the spokes -- This is my best adaptation of any tip. Just a small change to a proven strategy may make all the difference in the world.

3. "Just Say No!" -- Nancy Reagan said this referring to drugs. In business, there are so many decisions to be made, and many are bad ones. This is especially true for start-ups with limited dollars and limited time. You cannot afford to make big (and usually expensive) mistakes. Learn to "Just say no."

4. Prioritize by doing first things first, and second things never. Always do the most important thing for your business first, and when that's done, the second one will become the first.

5. Count everything that's countable and then determine the most important metrics for your business, AKA key performance indicators, or KPI. Every business should develop its most important numbers. Measure them consistently.

6. Don't dig a deep hole. Do what you can yourself. Keep your business lean and mean.

7. Hire only when you must. Wait until you need 11/2 persons to do a job before you hire to fill that job.

8. Hire slow, fire fast. Admit the mistake, face up to it and terminate immediately -- it will be better for all concerned. Most people do the opposite of this -- they hire fast and fire slow.

9. Don't fall in love with your business. You can be passionate about what you are doing, and that's great. But it's still a business. Save your love for family and friends.

10. Do the research yourself, because you must internalize it. Don't hire someone else to do your key research. You need to do it yourself, so you can understand all aspects better. Create your own business plan, too.

11. Inspect what you expect from others. If you ask someone to do something, make sure they do what you wanted and that it is done properly.

12. The boss should be the top sales person. Stay in touch with your clients. Go on sales calls, stay tuned into the market.

13. "About right" now is better than exactly wrong later. Act now! Don't procrastinate because you're waiting for information.

14. Hire smart rather than manage tough. You can't change people and shouldn't try. Hire for attitude and train for skills.

15. Do the right things rather than do things right. Be effective first, efficient second and solve the right problems.

16. Pull the plug if you know it's not working. Many lose their life's savings because they are stubborn. Be honest with yourself. Take the loss and move on. The sooner the better.

17. To solve a problem, you have to be aware of the problem. Learn how to know what you don't know. Easier done than said, and this "how to" will appear in a future column.

18. Nobody cares how much you know, until they know how much you care -- about them! Take the time to learn what your customers and employees really want.

19. Create written goals. The "what" must have a "when." Write specific, achievable, worthy goals (the what) with realistic dates for accomplishment (the when).

20. Think both outside the box and inside the box. Use divergent thinking to explore possibilities and convergent thinking to drill down.

21. Try to improve just a little, maybe just one thing, every day. Over time, the result will be enormous.

22. Bet on the person with past successes in the industry. People who have been successful will tend to be successful again and again.

23. Network constantly. Be particular where you go, and network with a purpose. You don't need to meet everyone. Before you go to a networking event, try to learn who will be there and decide whom you would like to meet. Think quality over quantity.

If you like these, please let me know, and I'll give you more tips in a future column.

WHEN I WAS A CHILD, my family regularly watched the Ed Sullivan show. In addition to having guests such as the Beatles, the Byrds, Buddy Holly and Bo Didley, Sullivan had other noteworthy acts, such as puppet Topo Gigio and Eric Grant.

Eric Grant was a plate spinner. It amazed me how he could spin one plate, then two, then three and, before long, he could spin five plates, on top of 4-foot-long sticks, and eight more on a table below, while performing other feats.

The plates continuously faltered, and Grant would spin them back up, one by one, until all were revolving nicely again.

He ran to the right and then the left side of the table. As the last plate was topped-up with his index finger, he had to run back and re-spin the first plate, then the second -- you get the picture.

What does this all mean for a small business? Well, running a small business, perhaps as a sole proprietor, is the same as this plate-spinning scenario. Until, of course, you realize there are only so many plates you can spin before you have to hire someone else to spin a plate or two for you. Just substitute the words plate spinning with business tasks/functions.

Nothing happens until someone sells something. I am sure you've heard this one before. There is nothing to do other than sell something or prepare to sell something (the start-up phase).

Okay, you sold something. Now what? You might need to acquire or manufacture a product, then deliver, distribute or provide a product or service to a customer. You might need to provide follow-up customer service. You will need to bill or collect money for whatever you just sold.

The more you sell, the more time you need to perform these other functions of your business and the less time you have to sell because you are busy doing these other things. Catch 22?

Back to the plate spinning.

You need to show the new employee how you want plates spun, how many to spin and how fast. Then you must let go and delegate it to your new hire.

You will need to inspect for what you expect, but you must delegate the task or function nevertheless. Your employee probably will spin the plates differently, but that is OK. You have to decide how good they have to be, considering that they are not you, will never be you and they will do it a little differently.

My contention is that if you are the owner, CEO, or top person in your company, you should work your way out of every task/job that you are able to delegate. Your goal should be to get an acceptable replacement who will get the task done even if it will be different than the way you would get 'er done. Hire those plate spinners. Pay market rates to ensure that you will have adequate talent for the tasks at hand.

Do only those jobs that you must do because they are too important to delegate at that time. As you grow, you should be working more on your business than in your business.

One caveat, however: If you really enjoy doing something and it is part of your raison d'etre (reason for being), then just do it.

This plate-spinning strategy, if done properly, should result in putting you fully in charge of your business and give you the time to work on your business and the time to do what you want to do outside the business.

Happy plate spinning!

Chapter 6

You should have to do – and to don't – lists

Published: Monday, April 7, 2014 at 1:00 a.m.

How can you possibly remember everything that you need to do on a monthly, weekly, or more frequent basis? That's why the To Do list was invented. You may also have a Honey Do list -- the list your spouse gives you to change light bulbs, mow the lawn and do other chores that are generally not much fun but are necessary and keep the peace.

As a successful business person, you probably already have a To Do list for your small business. Maybe you have several lists. You may find yourself copying old items onto new lists. Sure you do!

Often these lists reside on a pad with lots of lines and cross-outs, perhaps on a spreadsheet. Or maybe your smart phone or tablet holds this valuable information and keys to your sanity. Hopefully, each item's due date is included on your list.

This list seems never to stop growing, or to end. Undoubtedly, the list helps you run your life and your business in an organized way.

But have you ever thought of creating a To Don't List? That's right, a To Don't list, a list that has all of those things you shouldn't do. (This type of list will not go over great with your spouse, trust me on this. "Honey, I can't pick up Johnny from soccer today," or "I can't mow the lawn, it's on my To Don't list." Not a good idea.)

However, a To Don't List for your business could work wonders for you. Here's how:

As the top dog in your business, what should you be doing and what shouldn't you be doing? Have you thought about this?

Recently, on a beautiful Sunday, I was having breakfast at John Dough's (great name for a bakery-restaurant) in the University Park area. A woman was outside spraying down the tables and cleaning them. I asked her if she was the owner. She answered affirmatively. She told me her name was Jan and that she also owns Kilwins on St. Armands Circle.

I asked her why, as the owner, was she cleaning tables? She told me she'd rather do that than stand behind the cash register. This way she could talk to customers like me. At first, I thought, "Hmmm ... market research? Sure, why not."

As the owner of your business, where should you spend your time and effort? Conversely, what shouldn't you do and where shouldn't you spend your time and effort?

Most of the things on your To Do list are probably things you should not be doing. Just because you can, doesn't mean you should.

My answer is simple: You should spend your time doing whatever advances your business.

Do those things that only you can, should and must do as the top dog -- those things that need to be done, that no one else can do for you because you have not hired someone to do these things. You are, in a sense, stuck doing these To Do's, and hopefully you're good at doing these tasks efficiently.

Second, do those things that you love to do, that may represent the reason you got into this business. If you really enjoy it, to quote Nike, "Just do it!"

Everything else should be on your To Don't list. I repeat: Everything.

If you have the staff, delegate, delegate, delegate these items. If it is something that someone else can do, have them do it.

Now we get to you "working on your business," compared to "working in your business." You only have so much time, so make it as effective and pleasurable as possible.

There are times, however, that as an owner it helps to slip into a role that someone else now handles, to keep in touch with operations and get a broader view of the business.

Like Jan wiping the tables, I sometimes opened the mail, to see for myself everything that was coming in to my business.

To recap: Your To Do List has items you like to and should do as the owner. Your To Don't List has everything else, things you will now delegate to others or outsource where possible.

This should help eliminate some anxiety and create more time for you to focus on your To do list.

Overall, this will be more profitable for your business and more enjoyable for you. Who knows, you may even have more time for changing those light bulbs.

Chapter 7

Your business will die. 'When' is the big issue.

Published: Monday, April 14, 2014 at 1:00 a.m.

When new retail developments crop up, I often drive around parking lots, trying to guess which yet-to-be opened establishments will not be there in a year.

How can a store that sells $4 cupcakes, for example, sell enough units to pay the rent? What about other expenses, such as electricity, product costs, equipment maintenance, payroll and, perhaps, franchise fees? How many cupcakes will this business have to sell in a month, given that the cupcakes are the absolute best ever, look terrific and taste great?

Have they thought all of this through? Do they have a business plan driven by real-world assumptions? What if their assumptions are wrong? How much money are they prepared to lose? Will they know when to pull the plug, or will they hang in there, hoping things will improve for unknown reasons?

Watching the ever-popular Shark Tank on ABC, Shark Kevin O'Leary (aka Mr. Wonderful) often suggests that he will get his money back by receiving a payout per unit sold, in perpetuity. This is often in lieu of taking equity in the form of stock. How long is perpetuity and what are Kevin's expectations?

When a prospective business owner considers the various ways to structure their business, such as C-corp, S-corp, LLC, etc., inevitably he learns that beyond the sole proprietorship, various types of company formation have perpetual existence -- that is, survival as its own entity beyond the life of the founder.

I hate to break this perpetuity business bubble but, generally speaking, most businesses will fail, become obsolete, be mismanaged, or just plain go out of business for myriad reasons. In a relatively short time, their business will die. Even gigantic companies with household names sometimes cease to exist. Lehman Brothers, Washington Mutual, WorldCom and Enron are just a few examples.

What about franchises? There are good and bad franchises.

Some of the worst, according to SBA failure rates, are Wings-N-Things (94.12 percent); Noble Roman Pizza (86.36 percent); and Blockbuster Video (78.57 percent). Some of the best have a 0 percent SBA failure rate, including Wendy's, Merry Maids, Harley Davidson, Five Guys and State Farm Insurance.

What does this mean for your business? If you haven't yet begun one, choose your niche with care. What type of business will you decide to operate, in what location, and with how many employees? You'll want to keep your break-even number as low as possible and make your mistakes as inexpensively as you can. With limited funds, you can't afford to make costly mistakes.

If you're already in a business, what is the stage of your business life-cycle? When might your business become obsolete, be out-competed or run out of money? Maybe pivoting or reinventing your business to stay viable as an entity is the right call. How will you know?

I encourage you to assess where your business stands.

Ichak Adizes, founder of the Adizes Institute consultancy, created a simple 10-stage corporate lifecycle model. This model shows how a business proceeds from one stage through the next, from inception to cessation.

It provides a fundamental basis for understanding organizational change. The model can help in understanding principles such as reinvention, domination and acquisition.

Adizes' "Corporate Lifecycles: How Organizations Grow and Die and What to Do About It" (1988) is regarded as a classic in management theory.

According to Adizes, there are 10 stages in the corporate lifecycle: 1 - Courtship; 2 - Infancy; 3 - Go-go; 4 - Adolescence;' 5 - Prime; 6 - Stability; 7 - Aristocracy; 8 - Recrimination; 9 - Bureaucracy; and 10 - Death. You can read more about what these terms mean at businessballs.com/adizeslifecycle.

At www.adizes.com, in 10 minutes you could learn where your company is in its lifecycle and learn more about what you can do at this stage to improve its longevity. (Although the Adizes Institute says the model may not apply to all business types.)

In addition to the business-lifecycle stages, Adizes offers 11 methodologies to help make businesses survive, grow, change and be successful. These include: 1 - Organizational diagnosis; 2 - Team building; 3 - Change management; 4 - Vision/mission/values; 5 - Structural alignment; 6 - Management information systems; 7 - Technology transfer; 8 - Peak performance stretching; 9 - Strategic resource allocation; 10 - Systemic cybernetic structure; and 11 - Synergistic rewards systems.

How can you master change? The first step: Know where your company is in its business lifecycle. The second step: Know how to get to "prime" (the top of your game) and stay there as long as possible.

Although this is obviously beyond the scope of this column, I want to point you in a direction that can help you take the steps necessary to better understand and improve your business.

Remember: If this was a cake walk, everyone would do it. I think I'll have one of those $4 cupcakes now.