Key Idea #1: Do It Differently

Someone once said, "Creativity is the making of the new or the rearranging of the old in a new way." Andy did the latter when he launched Boston Duck Tours. He had see duck tours but they didn't exist in Boston. To do things different you need to always be asking the question, "How can I do it better?" This is the mind set of all inventors. This is the mind set of all leaders. To rise above the crowd, you start by being unhappy with the status quo.

Q: What did Andy see that others didn't see in the Boston tourism scene?

A: He saw the view of the city from the Charles River and he was convinced that every tourist would want to experience that view. Starting a business by launching a new product is nearly impossible. You have to love the idea and enjoy the pain of doing something no one has ever done before. You can look for paths to follow or mentors to guide you, but so often you will find yourself very alone. Some inventors actually think a big company will give them millions for an idea they sketch on a tablet. Many many big companies buyout small companies but only after the product is made and proven in the marketplace by happy customers. Most inventors and entrepreneurs don't anticipate the amount of time and up front cash it takes to come up with a product.

You think back... What about the current situation in which you find yourself needs improvement? What really bothers you? What irritates you enough that you are willing to spend weeks, hours, months or years to change? What could you create that would fill a need?

Key Idea #2 : Hire Entertainers: All business is show business

A Boston Duck Tour is both educational and entertaining and the guides themselves must create a memorable experience.

Q: What makes Boston Duck Tours so entertaining?

A: The vehicles themselves are fun and funny to look at. They are the opposite of high tech. They are a novelty and make us feel as though we are stepping back in time. They are painted bright colors and cleverly named. They make people smile.

However, the key to the entertainment aspect is the tour guides themselves. They develop their own World War II character and "stay in character" the entire time they are working. They are excellent story tellers; and, even though Andy gives them a script, they are encouraged to make it their own.

Audience participation is key. Our tour guide got us all to say "quack, quack" on his signal. We had fun doing it and the people on the street laughed as we drove by.

Q: When customers act stupid on a tour, do you think it helps increase business?

A: Yes. Boston is a very special place, the most historical city in the country. It is the home of Harvard, MIT and many other very famous and staid institutions. The Boston Duck Tours almost seem outrageous as they drive the streets of this sophisticated city. However, they attract attention. People on the street smile and say to themselves, "I want to take that tour."

Q: How does a great tour guide win over the customer?

A: He greats the customer with a smile and a welcome then he transports the customer to another place. He makes the customers forget their troubles. He teaches them something they didn't know about American history and at the same time makes them smile.

Restaurant owner Bill Sugars says that he tells his servers to leave their troubles at home. This doesn't mean he doesn't care about his employees. During off-hours, he'll spend time sorting through problems with employees. This means: our customers are here to have fun, laugh, relax and enjoy themselves. The employees have to "put on a happy face" to help the customer have fun.

We suggest that providing service to customers over and over is emotional heavy lifting. Just as a roofer does the heavy physcial work of carrying tiles up a ladder, a service worker is dealing every moment with the unseen feelings of every customer. The service worker then can succeed only if they have the natural ability to interact easily with many different types of people who are all strangers.

Think about it... How do you hire employees now? Do you have employees who face the customers everyday? Do your customers tell you good things about the way your employees treat you?

Key Idea #3 : All business is show business To find the right people to run his tours, Andy came up with a unique hiring process that isn't dependent upon documention. A tour is both educational and entertaining.

Q: What makes the hiring process unique at Boston Duck Tours?

A: Andy uses a drama coach to help select employees. Andy is copying Disney in that Disney sees all of its theme parks as a stage and all of the employees as actors and all of the customers as the audience.

This works for Andy and many other companies. Customers want to have fun, and Andy delivers.

You may not see your employees are being on stage but we believe that all business is show business! What do "show people" do? They put on a happy face even when they don't feel so good themselves because the show must go on. When Bill Sugars interviews to hire new servers at his fun-filled restaurant, looks for strong communication skills and excellent body language. Another way to explain body language is to say he looks for a person who expresses themselves with their face and hands. He watches to see if the person mirrors him. This tells Bill if the candidate will be able to "read" the customer, which is the key to success in a service position.

Think about it... Does your hiring process need tweaking?

There is no such thing as corporate entrepreneurship. We know some academics who disagree with us but we don't mind a healthy argument. When your ideas are bigger than the job, you have to quit.

Q: Why did Andy quit his job?

A: Because it was boring and too small for him. Remember that big companies thrive and prosper on the systems they put in place to serve their markets efficiently. They don't want the messy activity that surrounds inventing a whole new way of doing things. Big companies want to keep doing what they do best and when they see a new idea working, they buy it -- lock, stock and barrel.

To work on a new idea, unfettered by protocol, is what every entrepreneur needs so we have to leave the comfort of the paycheck.

Think about it... What's your next new thing?

You don't have to reinvent to wheel to roll out a new product. Andy saw the Duck Tours in Memphis and wanted to bring them to Boston. Rather than starting from scratch, he located the man who knows more about World War II amphibious vehicles than anyone in the country and formed a partnership with him.

Q: What were the advantages and disadvantages of a partnership?

You think back... What were the advantages and disadvantages of a partnership?

A: You partner with someone who has what you need and hopefully they need what you have. Andy could have purchased one of these vehicles then hired someone in Boston to build it out for his purposes. Instead, he brought Bob McDowell into his business in Boston as the equipment expert. This gave Andy a faster start and no worries about equipment. Andy focused on marketing and the people side of the business.

The disadvantages of a partnership show up when there is poor communication, lack of respect for one another, greed, lack of shared values and/or a general disillusionment with the relationship. A partnership is like a marriage. Anything you have read or experienced about what goes wrong in a marriage can also go wrong in a partnership.

Andy and Bob live more than a thousand miles apart and Bob runs his business in Branson, Missouri - completely on his own. Bob then shares in the revenues of Boston Duck Tours. The relationship is good but strained and is one of the reasons Andy is not interested in expanding outside of Boston.

Think about it... Could you grow your current business by merging with another business? Could you grow by taking a financial partner? Is growing worth the headaches that may come with a partner? Do you find it easy to respect the opinion of others and let others be in the limelight?

Money can come from surprising places and for surprising reasons. Andy had no money when he started Boston Duck Tours, and so he went deeply in debt. But he's on the path to wealth. What is that path? How did he find it? His experience working in the finance community taught him that venture capital is available, but you have to know how to attract the right people.

Andy did his research, put plans in writing, and prepared an offering memorandum, but money didn't fall from heaven. It wasn't until he met Carrie McIndoe at Strategic Capital Resources that he was able to go forward. She was the catalyst. She raised the funds needed - $1.25 million.

How do you find your catalyst?

You become like Indiana Jones in search of the Holy Grail. You become like Andy Wilson, so focused, so enthusiastic, so persistent that you will find the money or you'll change the business plan until you have one that can be funded by outsiders. Venture capitalists don't want little ideas. They want big ideas.

Think about it... Get a big idea, put it in writing, and find some people who've already done it. Ask them to coach you and be willing to go without for months - maybe even years - before you actually see any cash for yourself.

Q: What is an offering memorandum?

A: An offering memorandum is a legal document that explains your business idea, how you're going to execute it, your financial projections and your exposure to risk. You are "offering" your idea to investors and must spell out all the details of how you expect to make money so they not only get their investment back but they earn a significant return for their acceptance of all the risk factors.

Q: What did Carrie tell Andy to do with his proposal and why?

A: Andy put a photo of the city of Boston shot from the Charles River on the cover of the offering memorandum. Why? Because there are plenty of tours and tourist attractions in Boston and the most unique aspect of the Duck Tours is that people ride in these odd vehicles that actually drive right into and up the river! He got the idea that people love the view of the city of Boston best from the river because he lived on a boat and would take people on rides. They would consistently say, "Wow, look at that view of the city!"

To start a new business that competes with all of the other Boston tourist attractions, Andy had to convince investors that his tour would be different. Carrie believed that a picture would be worth a thousand words and she was right. When investors saw the photo, they caught a glimpse of Andy's vision and they bought into it.

To convince people to invest in your idea, you must be able to articulate its unique selling proposition. You may have to use pictures to convey the idea.

Think about it... Does your business idea sound good? Can people visualize it when you talk about it? Are you clear yourself about why this would be a good business to start? Should you raise money to grow your exisiting business?

Most people have no idea what owners do to make things work. We found Andy repairing a duck boat engine the day we interviewed him.

Q: Why would the owner of a tour company be getting his hands greasy by working on an engine?

A: Because it needed to be done. Sure he has someone assigned to the task but if that person doesn't show up or if Andy is close to the problem when it flares up, as was the case when we were there, he just does it. This is a tactic used by many owners. They are trained on every task and they are present nearly all of the time and this is motivational and inspirational to employees. This works especially well when employees are young or seasonal or short-term.

Q: How do owners sustain enthusiasm?

A: We see our work as our play. At 90+ years of age, Ebby Halliday is still coming in to work everyday because there is nothing else she would rather do.

Think about it this way. When kids are sitting in a classroom studying a subject they don't like, time seems to stand still. When the bell rings to dismiss the class, the kids shoot for the door with an incredible force of energy that has been building up during the course of the 50-minute class. On the playground, the same kid that was nearly asleep in class, is running to dodge a ball or put one over home plate. Unlike kids, adults get confused between work and play. We're not psychologists, but we know what we see and how we feel. Kids are honest; they don't fake it. The saddest thing in the workforce is a person who actually thinks work is work. The right attitude is to see your work as play. Child psychologists say that play is the work of children. So, why can't work be the play of adults? At Small Business School we say that a job is something you are doing when you would rather be doing something else. Fortunately, most small business owners don't have a job, they have work that seems as if it is play. To get to this place they have made the right choices for themselves. People who don't understand this concept actually think small business owners have it easy because it seems as if we can do what we want when they want to do it. However, we arrived at our position through putting forth years and years of effort. And all along the way, we actually thought what looked like to others to be work was play.

Think about it... Do you see your work as your play? Does this frustrate your family since it probably means you spend long hours working?

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You have to play by the rules. Andy's business is enormously complicated. He has to have dozens of city permits and the tour guides themselves are required to have multiple licenses to operate the ducks.

What do you think? Why are there so many rules?

Answer: Sometimes for good reasons and sometimes for stupid, out-of-date reasons. However, if you're going to run a business, you can be shut down if you don't find out what the rules are and follow them.

What do you think? Where does one go to find out about the rules?

Possible answers: It depends upon the industry. If you invent a product that is made out of plastic, the manufacturers who make things out of plastic can answer many of your questions. The trade association that serves your industry is a great place to start.

There's nothing better than to be able to say in your marketing material that you are the biggest or the best at what you do.

Q: How did Andy get to be the biggest tourist attraction in Boston so quickly?

A: Passion, product, price, positioning, placement. You know.... all of those perfect "Ps" within marketing. Once he was able to say that he was selling more tickets than any attraction in Boston he was quickly able to say he was the biggest attraction in the whole state! He then went on to win an award that was presented by President of the United States. The key here is you can be small and be the biggest because you are in a small, sweet niche. That's the game you are playing.

Think about it... Can you define your niche smaller so you can be the biggest in it? Can you enter a contest so that when you win you can say that you won a top award? Can you get some industry expert to say you are the best?

Key Idea #9.Make More Than Money--Make an Impact.

All of us who own our own business expect to make money. In fact, the more money we make the more people we can hire and the more customers we can serve. In addition to making money, the business owners in our library are big-hearted and generous.

Andy's initial idea was to take people on a lovely tour of Boston with the top feature being the view of the city from the Charles River. However, as he worked longer and harder to make the business a success, his mission got bigger in scope.

Andy teaches that the mission of your small business should be big.

Q: What really motivates Andy?

A: Teaching people about democracy.

Q: Why does Andy love telling the story of Mary Dyer?

A: Because Mary Dyer gave the world the right to religious freedom by sacrificing her own life. It is people like Mary Dyer we must thank for the life we live today. Our tolerance for diversity is unprecedented in the world, beginning with the state of Rhode Island being set aside as the one place in the world where any person can practice any religion without fear of persecution.

Q: Why must the mission of a company be big?

Answer: Because starting and running a business is so hard. Nobody does it just for the money. You have to feel you are making a difference in people's lives. You have invented or product or service that people will not only pay for, but whose lives will be made better by it.

The mission is the reason behind the work. This mission is what you have to focus on when you hit obstacles that seem insurmountable. Andy is glad he can show people the city from the Charles River; but, he is motivated and inspired to keep on keeping on because he is teaching people about the greatest government in the history of civilization.

Here at the Small Business School, we've studied many successful small businesses. We always ask the business owners about their motivation for starting and operating the business. No one has ever told us they started their own business because they wanted to make a lot of money and that they operate their business to make as much money as possible. Instead, we hear time and time again that small business owners believe if they have a good plan and execute it well and fairly, the money, well it just comes.

Michael Novak, the theologian-in-residence at the American Enterprise Institute told us that there is a difference between self-interest and greed and that self-interest is good but greed is bad. Bill was not being greedy when he came to Pat with a great idea to expand Mickey Finn's. He was interested in being an owner of Mickey Finn's and making it prosperous enough to support two owners and many more employees. Bill was interested in working in Libertyville and making friends and working to improve the entire historic business district.

What are you interested in? What are you trying to accomplish in your business? If you are motivated to provide a high level of customer service, to produce a quality product, to establish a nurturing environment for your employees, then that's your self-interest. That's what is important to you. That's not greed because greed is gluttony and avarice, the motivation to improve one's own lot without any consideration for others. Self-interest, on the other hand, is our passion, what motivates us, why we start our own businesses and make successes out of them.

Think about it... What's your self-interest? What product or service could you offer that would bring you greater satisfaction? What could you do to improve your entire industry or neighborhood?

Only the optimist wins.

Q: Who taught Andy to be an optimist?

A: His grandmother.

Q: Why is optimist key to success?

A: Because it opens the flow of ideas for problem solving. If one is always down, feeling like a victim, and suffering from that terrible disease called pessimism, one can't come up with new ways to deal with the complexities of starting and growing a business. A pessimist will usually assume that an optimist is naive.

Well, history is on the side of the optimist and the great preacher, Norman Vincent Peale said, "Genius is taking enthusiam (optimism) for life to the grave."

A pessimist should not start a business.

Think about it... Do you have some rose-colored glasses? Do you wear them when you are running your business? Has life beaten you up and sometime during the fight the glasses you used to have got knocked off? Do you need a new pair? Where can you get some? Hint: Have a conversation with a child.

John Wargo is talking about knowing your customer which we might argue is the most important business concept. Peter Drucker said the purpose of a business is to create and maintain customers. Therefore, to build a business we must fully, wholly and deeply know our customers.

Q: What does John say you can do to find more customers like the good ones you already have?

A: First, you have to figure out who you customer is. And, the starting point to achieve this is to develop a database of customers. A customer's name, title, complete address, phone number adn email in a computerized file is essential. You should keep records of who buys what and when. With this information you can better offer your customers what they need when they need it.

One of the most successful catalog retailers we know, Bob Orenstein, says that knowing your customer means you know much more than their name, address, phone number and email. He says knowing means understanding them. In Bob's case, he is personally part of his customer base which makes it easier for him to get inside the minds of his customers. But you have to remember that you are only one person and you have to listen to others even if you are part of your audience.

Bob is a member of the Direct Marketing Association which is good place to learn about demographics and how to reach a specific target of people. Also see www.demographics.com, and www.fedstats.gov.

Second, John is suggesting that you can ask those current customers to refer you to their friends and family. A referral program is fun but it takes discipline as does all marketing.

Step 1 of a referral program is to ask your current customers to send you new customers. We are convinced that many owners are afraid to do this because what if the current customer says that they aren't comfortable referring? What has the owner just discovered? That there is a problem with that particular customer relationship. Oops. The good news is the owner can work to solve that problem and the referral program has already paid off as it helped to convert a luke warm customer to a hot customer.

Step 2 is contacting the referrals.

Step 3 is tracking the referrals.

Step 4 is rewarding the customer who made the referral. We know a hairdresser who gives a 20% discount off a customer's next visit when that customer has brought in a new customer. This is perfect. Everybody wins and the happy process repeats itself.

Think about it... How much does a good customer spend with you in a year? Should you start a referral program? What would it look like? Who would run it? How will you track it? Could you reward customers uniquely or with a generic gift?