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TELEVISION THAT TEACHES |
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| Key
Ideas of this episode |
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He comes from
a town of less than 40,000 people, a solid hour south of Des Moines. So, he is
definitely a "country" man; his business supplies people who love
the country lifestyle; and his customers are from all over the country,
in fact from many different countries.
So, let's
visit Country Supply and some of the people Scott loves to
love.
First, know
that Scott is a merchant. He started his business while in junior high school.
The business was a business even before he graduated from high school. His list
compiling story is a classic; everybody should smile. So many of us, when we
first start out in business, get leads (name-address-telephone) from the
Classified Ads sections of the newspaper, then newspapers throughout the state,
then throughout the country. Classic stuff.
He is a bit
of a Will Rogers storyteller; Scott trusts people and trusts that people are
good. Everybody is family to him. And, to run a global business with five
people that in turn creates jobs for literally hundreds of people he tells
us: "We can live anywhere and
"do" our business. We've done back to the farm to be
successful." "We can identify and
cultivate a huge community of customers and really get to know their
names."
As you would
imagine, Scott learned a lot on the job.
He had grown
his business to about eighty people. They did everything and it was exhausting.
He just about burned out when he learned about outsourcing -- "do what you do
best and find somebody else to do the rest." After researching and interviewing
he chose the Stark Brothers Fulfillment Services in "his backyard" about 100
miles south in Louisiana, Missouri. By having Stark's specialists focus on his
orders, inventory, shipping, and first-line customer support, Scott and his
people had the freedom to focus on their core competencies. |
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THE LIGHTBULB. We all learned so much
from Scott. Hattie takes to time reflect within this segment of the show on
Scott's authenticity. It is a big word. To review that part of the transcript,
click here. The Key Ideas that follow
are mostly Hattie's reflections after studying all the transcripts and other
source materials.
- MISSION - VISION: We call small business
owners the new pioneers and quiet heroes, the innovators, the risk
takers, and the job generators. And now that we've stopped to think about it,
we believe that much of the legacy of small business began on the back of a
horse. Here is a piece of the economy in the USA that is little studied and
under-appreciated.
- Background history: The chronological
story starting in 1976 about Scott Mooney and the founding of Country Supply
and the evolution of the business with his wife, Marthalee, from 1983 to this
day.
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We also learn
that he was an early adopter of technology and his business is increasingly
moving to the web.
These are all
good lessons for all of us today. Yet there is something else going on here and
our guess is that it all has to do with those big animals. This is a very
special community of interest.
- NATIONAL TRADE ASSOCIATIONS / LOCAL
CHAMBERS.
There are over 100 associations and publications for
horse lovers! Now that we have met Scott and all these very decent folks, we
want to do another story now about another small business where we just look at
this deep-seated affection. We believe it has a lot to do the role/history of
the horse in settling the USA. MORE EPISODE OF THE SHOW OM THE
COUNTRY
HORSES: This episode of the show is
really all about the horses. All these people truly love horses and they tend
to gravitate and associate with people who also love horses. And, it is a huge
family of families. For those of us who do not have animals, we really need to
stop and look at this affection (of course some might call it an affliction).
To spend so much time, energy, and money on an animal, what is that
about?
It is a world unto itself. Scott and his group support a number
of good causes where horses are involved in therapeutic work with people with
special needs. In the USA there are hundreds of associations and publications
dedicated to meet the needs of
horse lovers;
foremost among them is the American Quarterhorse Association.
Most of the horses that are owned by families are quarterhorses. This
association is the largest with over 350,000 members. Other groups are
generally subsets with that family -- United States Trotting Association, the
Palomino Horse
Breeders of America, and there seems to be a hundred more!
- RURAL AMERICA'S SPECIAL GIFT TO THE
WORLD: Scott kiddingly said, "Yea'ah, we just got ourselves some
electricity out he'a not long ago." We had never heard of Scott's hometown of
Ottumwa. Maybe there is something magical in the water. Maybe it is the clean
air. But Scott not only has electricity, he has high speed access to the web
and he virtually runs his business from his laptop. With Wi-Fi / mobile he is
constantly connected to his server at his fulfillment house, Stark Brothers in
Louisiana, Missouri and to his server in his office.
Want to move to
Ottomwa?
It is "the land of perserverance and rippling waters." Check
them out! (1)
The City of Ottumwa, (2)
Economic Development Commission and (3)
Ottumwa Area Development Corporation (4)
Chamber of Commerce and
Ottumwa Courier, the daily
newspaper
There is electricity: (1)
National Rural Electric Cooperative
Association,
Touchstone Energy Cooperative,
Edison Electric Institute and
MidAmerican Energy Company, the largest
utility company in Iowa.
Give me land, lots of land: There is plenty
of rural land in America and it has magic.
Read more from the USDA's Economic Research
Service (link from the header goes to their wonderful description of the
quality of life in rural America). There is an endearing quality to their
publication,
Amber Waves.
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ABOUT THOSE NUMBERS. It takes a critical
mass of customers to make a business. Scott got his systems down well enough,
he knew he could service people outside of Ottumwa. He constantly worked on his
systems; he constantly looked at certain key critical ratios, particularly
gross return-on-mailed-catalogs, return-on-repeat-customers, and
gross-revenue-per-employee. These ratios speak volumes about a business. It is
a red-to-white blood cell count of business. There is an organization that
built an industry around these numbers. It is called the RMA --The Risk
Management Association.
This is real insiders information on your
financials so take note.
This organization is your banker's
banker. They know more about key critical ratios than anybody on earth.
Over 3000 banks and 16000 other kinds of financial organizations contribute the
essential financial data from their loan inventory to RMA's "Annual Statement
Studies" to calculate key critical ratios for every major industry type (and
for most subsets of business vis-a-vis the SIC and
NAICS). As a group, they do over 150,000
loans per year; that is statistical relevancy.
Do you know the average
key ratios within your industry?
Not many of us do. We do not know ours
yet within the TV/Production Industry, so we all need to ask our banker.
To really make a study of it, keep an eye out for the next seminar by RMA in
your area. It'll be the best money you'll spend to understand the organic
nature of your business, and learn what it is that your banker so quickly knows
about your industry.
For more, read online:
RMA
seminars,
RMA
history, and their
small
business scoring (i.e. used by the SBA for their Low Docs).
- CASES BY BUSINESS TYPE. Click on the
heading to find all the business types and then click on your type of business
to check out those case studies.
- SUPPORT PUBLIC
TELEVISION:
Become a member of your local station. If you are
already, great. If not and your business is doing well, consider joining the
Producers' Club ($1000).
- JOIN, JOIN, JOIN: Your professional
associations in your industry are your key to continuing education, market
research, collaborations, strategic partnerships, capital and so much more ...
often you'll find that you enjoy like-minded people and many will become
friends for life.

If you identify with your community, you can know
it. Scott knows 467,541 of the 30 million people who own 11
million horses. Scott's wisdom about life: "It was as
simple as, 'OK, I can't ship the people in from out of town, so the next
natural thought was we just go into the catalog business.' In that way, we can
expose our products to tens of thousands and hundreds of thousands of people
all over the country."
On
the database: "So we got out the Des Moines telephone book, and classified
ads in the Des Moines Register, and the newspapers around. In fact, at the
library, they had newspapers from all over the country."
On success: "Sometimes you just have to
take leaps. If you take the leap, know that you're willing to do what it takes
to make it work." |
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