Lessons from SBA's best businesses
By Jenny C. McCune • Bankrate.com

Small-business owners can learn a lot from failure, but even more from success. That's particularly if the lessons are from the successes of this year's winners from the Small Business Association's Small Business Person of the Year Contest.

The SBA chooses a winner for each state, as well as the District of Columbia, Puerto Rico and Guam. Winners are picked not only because of their financial successes, but also because of what SBA calls "staying power, employee growth, innovativeness, and creative solutions." During Small Business Week, held in May, the SBA will select one overall winner.

Certainly these are small-business owners worth listening to. Bankrate.com interviewed a small sample about how they achieved success. Many of their tips and secrets can be applied to any small company. Here's what they said:

Keep your eye on the prize, not only the profits
Several SBA winners mentioned that profit wasn't the sole compass used to plot the course of their business.

"Contrary to what the business books tell you, we have never focused on profit at all," explains Shaun Bradley, president and CEO of Bradley-Morris Inc., of Kennesaw, Ga. "We have focused on making money -- that is certainly part of it -- but it's not the only thing. We look to have this a good place to work and to give good service to our customers."

Bradley and co-founder Sandy Morris established their recruitment agency 10 years ago. Bradley-Morris recruits military personnel leaving the service and places them in civilian jobs.

Of course, companies need to make money, but that happens naturally when you follow through on your other goals, adds Charles W. Keller, president of C.W. Keller & Associates Inc., Plaistow, N.H.

"The philosophy of this company is quality and service comes first," Keller says. "Profits will follow if you adhere to those two things."

Keller's company does custom woodworking and specializes in outfitting executive offices -- for example, by designing and decorating the corporate boardroom. Between 60 percent and 70 percent of the company's revenues comes from repeat customers, in part because of the excellent service and quality furniture that it provides, Keller says.

Work hard, persevere and be passionate
"If you have an idea of something that you want to do, put 100 percent into it," says Julia Valdes, founder and owner of Flowers2U.com of Las Vegas. "Work very hard and never give up and you will eventually succeed."

Valdes used to arrange flowers for big hotels in Las Vegas. Four years ago she came up with a business idea that gripped her: providing floral arrangements around the clock, 24 hours a day. She thought that offering such convenience in a city that never sleeps would work. She believed in her idea so strongly that she quit her job and set up her aromatic business in her garage.

She has since become synonymous with hard work in Las Vegas. For example, one day she was rushing to deliver an arrangement. She tripped and fell in her yard. Valdes saved the flowers from being crushed, but ended up with multiple bruises and a chipped tooth. When the ambulance arrived she argued with them for 10 minutes to not only take her to the hospital, but deliver the flowers. It worked.

"The reason we've been successful is that we give a good product, good service and have unique signature arrangements," she says.

Always return your phone calls
Sounds like a simple enough tip, but Susan Lyon, president of Lyon & Associates Creative Services Inc., Encinitas, Calif., says following such prosaic advice has paid off for her advertising and graphics company. "Maybe someone is trying to sell you an alarm system or something you have no need of -- now," Lyon says. "But you never know when you'll be looking for a product or a service or when this person will need a company with your services."

That's why Lyon not only returns her phone calls, but extends other courtesies to the people she meets. "I interview people all the time. I'll say, 'I don't have a job, but I'll talk to you,' " Lyon says. "You never know, this graduate from San Diego State could be the assistant vice president of marketing at Hewlett Packard two years from now."

In an industry where connections are all-important, Lyon thinks that being nice is the right thing to do, both ethically and from a business point of vie.

Find out what customers need and give it to them
For Joseph K. Beckman, owner of Home Lumber Company in Crown Point, Ind., that meant coming up with a mission statement that addresses the needs of his customers, construction contractors.

The abridged version of Home Lumber Company reads: "Get the right material to the right job at the right time." Beckman's got the statement plastered all over his lumberyard. He not only has taught his employees to follow it, but he's also constantly looking for ways to give the customer more.

That's why he's branched into land development. He realized that contractors hated or didn't have the skills to deal with local subdivision rules. So he buys the land, deals with the red tape, puts in roads and sewers. All the contractors have to do is buy the land and build on it. And, of course, these same contractors return to Home Lumber Company to purchase the timber they need.

Hire the person, not the skills
"I think the most important thing when hiring anybody is finding someone with a good work attitude," says Keller of C.W. Keller & Associates. "They may not have the skills, but skills can be taught." A good work ethic, by contrast, is much harder to cultivate and find, the New Hampshire business owner says.

Make your business a good place to work
Both Keller, the woodworker, and Bradley, the recruiter, believe a happy workplace is a productive workplace. "We have fun at work," Bradley says. "We have five offices nationally. Everybody works together at most companies, when you have five regional offices, people don't know anybody outside of their division."

To foster collaboration and camaraderie, Bradley-Morris holds a big company trip every year. "It binds us together. And not only does it make it a fun place to work, but it connects us to something. It helps us to do our job better."

Think decisions through thoroughly
Most small-business owners think they must deliberate all important business decisions. However, what's really required is not just sitting down and talking it out, but playing business like a chess game. Not just where this one decision will get you now, but how it will effect the business three or five moves later, Bradley says.

One safeguard at his recruitment company: Both he and his partner have to agree to a change. If one balks, then "We'll decide not to do it," he says. "It's worked very well with us."

Although a lot of these business rules may sound like common sense, the number of companies following the leads of these SBA winners is obviously pretty small given the high failure rate for new companies. "It may sound simple, but it's not," Lyon says.

Jenny C. McCune is a contributing editor based in Montana

-- Posted: April 16, 2001