Parables for Entrepreneurs

Parables for Entrepreneurs

By John D. SandersBusinessEntrepreneurshipInvesting
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Parables for Entrepreneurs episodes

  • Ep. 4 Bacon and Eggs - The hen is involved. The pig is committed.
    Bacon and Eggs

    Many times in business we deal with people who leave us cold at a certain point in a project or in driving a marketing deal to conclusion. They seem to have a strong involvement, but it begins to drift just when the tough aspect arrives. Some people are "involved" in a project or deal, and some are "committed."

    There's a classic illustration that compares "involvement" with "commitment" as being like "bacon and eggs" where the hen is involved while the pig is committed.

    If you're really counting on a project manager, a business partner, or a sales associate to produce results then you need to know the level of commitment to complete the deal. Sometimes it's not possible to know those levels until the heat of battle arrives, and a necessary amount of time, energy or reputation must be applied. Will that person commit when it's needed?

    In my career in sales and promotion, I've dealt with the whole spectrum of people. And, I've built up a cadre of trusted partners that are my preference with whom to work together. We all know what to expect from each other. We know the levels of commitment and production that can be expected at the critical times. This knowledge only comes from experience. I've heard that old cliché: he/she is a good person to do business with. My response is, "The world is full of good people. However, I don't have to do business with all of them, and I sure don't want to rely on just a good person." Of course, ability also counts. How many times have you observed that an extremely capable person just doesn't perform? Further, you have to recognize that sometimes a committed person doesn't have the ability to perform adequately. But I believe that capability is easier to determine than commitment.

    You can't always know what the results will be when that critical time arrives, but you sure can have an understanding between you and that partner in advance about what must be done. Make your needs clear. Get a "commitment" to perform, and then test that person to know what to expect in the future. It's the test that counts.

    As the level of responsibility increases, the testing continues to produce people who can be trusted to perform bigger and more critical functions. Therefore, be sure that you always have a "pipeline" of people who are being tested so that the various job functions can be performed by the person with the appropriate level of ability who will honor the completion commitment-- and then make sure that he is stretched beyond what you knew before. This is how the best managers produce their ultimate team. You can't give every job to the "best" person; it should go to the "appropriate" person.

    If something "absolutely and positively" must be performed, then you need a capable partner who will commit to the results.. Involvement only is too risky. Oh yes, don't forget to apply these concepts to test yourself!

    I would appreciate comments.

    prepared for the October 1997 Issue of the FLC NewsLink

    Be sure to visit JohnSanders.com.

    JOHN D. SANDERS

    Business Consultant, Investor, and Technology Advocate.

    In the provision of Management Consulting for Entrepreneurs, I design sound business plans I find worth investing In. With several decades of background in investment banking, strategic planning, and technology growth, whether you're handling one million or seventy million, I'm here to help.

    JohnSanders.com

    36 min
  • Ep. 3 Being small. Thinking Big.
    Topics, References, Podcasts, Articles, and Stories
    • Companies Running Out Of Money.
    • Article: Solutions Seeking Problems
    • "Here I am, John Sanders, running around the CIA with my bag of solutions looking for problems."
    • Podcast episode: Ch. 13 Only the Pope Could Finance the Sistine Chapel in the podcast
    • Northcote Parkinson Law sited here: Work expands so as to fill the time available for its completion.
    • If you're going to develop a product:
    1. Make sure you don't run out of money before you finish it
    2. The best way to do that is to develop it out of a company that already has cash-flow
    • You go to war with the army you've got not the army you want.
    • Buy the QQQs on the New York Stock Exchange - the 10 largest tech companies in one ETF.
    • Article: Being small. Thinking Big.
    • Selling typewriters door to door.
    • TechNews, Inc., publishers of Washington Technology newspaper.
    • AOL - America Online.
    • Computer companies going through adolescence.
    • How to tell a lot about a person from their handshake.
    • Make money. Make lots of money.

    Be sure to visit JohnSanders.com.

    JOHN D. SANDERS

    Business Consultant, Investor, and Technology Advocate.

    In the provision of Management Consulting for Entrepreneurs, I design sound business plans I find worth investing In. With several decades of background in investment banking, strategic planning, and technology growth, whether you're handling one million or seventy million, I'm here to help.

    JohnSanders.com

    24 min
  • Ep. 2 Golden Tongued Wisdom
    Topics covered in today's episode
    • Sheltering in place at Carlsbad By The Sea.
    • Small businesses adapting to this new future.
    • The two big advantages women salespeople have over men.
    • Talking about technology first-adopters. To be successful, it needs to get into the mainstream. And to get into the mainstream, it needs to be transparent.
    • Mary Cravet use of Zoom breakout rooms to help people build their relationships and business.
    • John Sanders ponders the relationship between the pandemic shutdown and saving lives.
    • How other countries have been dealing with the pandemic?
    • Bureaucrats. Sins of omission. Sins of commission.
    • The three basic laws of business as it relates to bureaucrats:
      • Murphy's Law
      • Peter Principal
      • C. Northcote Parkinson Law

    JOHN D. SANDERS

    Business Consultant, Investor, and Technology Advocate.

    In the provision of Management Consulting for Entrepreneurs, I design sound business plans I find worth investing In. With several decades of background in investment banking, strategic planning, and technology growth, whether you're handling one million or seventy million, I'm here to help.

    JohnSanders.com

    21 min
  • Ep. 1 The Music Man's Lessons for Sales Professionals

    "The Music Man" is a movie (videotape) produced first in 1966, after being a long-running Broadway Musical by Meredith Willson. It's loaded with stars such as Robert Preston, Shirley Jones, Ron Howard, Buddy Hackett, Hermione Gingold, and Paul Ford.

    Professor Harold Hill is a gilt-edged con artist who has more schemes than a hound dog has fleas. He hoodwinks the credulous townsfolk of River City, Iowa, into organizing a boys band so he can sell them nonexistent band instruments, then tries to skip town before his chicanery is unmasked by the suspicious and lovely Marian, the town librarian. In the end . . .

    Not only is this one of my all-time favorite movies with memorable music, but to me, the storyline contains most of the key sales principles for products and services:

    1. The environment for selling anything is constantly changing-- in this case, credit versus cash sales. Most of the old-time salesmen are complaining in the opening song about the new wave of credit sales.

    2. It's a big world out there and there are lots of customers for any product or service; and, you have to keep banging on doors until the right group of buyers for your product or service is found.

    3. You "gotta' know the territory" into which you'll be selling and the psychology of the people who will be potential buyers.

    4. There has to be a "hook". The customer must have a need. This is a critical aspect for any sales effort, and The Music Man recognizes that the new pool hall in town must have a counter-culture for the young boys, and thus is created the "River City Boys Band."

    5. The customer must recognize the need, and that action is necessary to fulfill the need. Dramatic selling may be required in some cases to enforce this principle.

    6. Find an advocate in an organization. Get someone who has influence (especially if they can be "converted" and thus become very zealous.) This is where The Music Man excels.

    7. Locate the official who can veto the decision. Involve that person in a positive aspect of the decision, or convince the secretary, marketing person, federal sales manager or spouse. Defuse the doubter and support the advocate.

    8. Don't be afraid to approach the customer directly for a decision.

    9. Recognize that your past promises and actions will catch up with you. If there are some bad results, be prepared to deal with them to future customers. Know the negatives and the competition.

    10. Ultimately, to be successful, the product has to do what you promise. Sooner or later, a flimflam will end your career. If promises or claims are made, the long term customer will have to be satisfied. There is no substitute for this.

    Yes, in the end . . . oh, why don't you rent the movie and study your lessons? You'll love it and learn from it. Get ready for "76 Trombones".

    I would appreciate comments. Please contact me on my Contact page.

    Here's The Music Man (1962 Film Soundtrack)

    6 min
  • Preface and Why I Wrote Parables for Entrepreneurs

    This book has been written in response to the many people who have grown tired of hearing me tell these stories and examples to entrepreneurs, corporate management and investors. I heard, "Write them down so we don't have to listen to you." In putting this series of parables together, I had in mind expounding my philosophies of making companies attractive for outside capital-- why to do it, how to do it, when to do it, how to promote it and what to do with it. 

    Entrepreneurs should gain insight into what makes companies attractive for different types of investors at various stages in a company's growth. 

    I believe this book will also be useful to: 

    • Seasoned management, to see how their policies should adapt to the changing needs of employees, suppliers, customers, bankers and investors with respect to capital needs. 
    • Investors, to set standards for the management principles that would be attractive for their investments. 
    • All, to understand the changing roles played by investment bankers, advisors, directors and investors with companies as the maturing process unfolds. 

    www.JohnSanders.com

    8 min

About Parables for Entrepreneurs

From the publisher's feed

Written for entrepreneurs, corporate management and investors, John D. Sanders expands on his philosophies of making companies attractive for outside capital - why to do it, how to do it, when to do it, how to promote it, and what to do with it.