• Offer one-of-a-kind products and services.
• Work hard for the people who work for you.
• Flaunt what you've got.
• Find the talent under your nose.
• Recruit an insider.
• Embrace a long-range human resource strategy.
• Use partnerships to improve the lay of the land.
• Get word-of-mouth marketing.
• Be generous because good pay plus benefits plus a clean truck wins loyalty.
• Give people a job for life.
• Set the standard of excellence.
• Do what you promise to do.

First Principles: Hattie opens this episode of the show saying,

"When a person decides to start a business, they create at least one job for themselves, and there are about 15 million of these one-person companies in the US today. As the business grows, more jobs are created. Small businesses create 75 percent of all new jobs and we do it because, in Thoreau's words, `We are living the life we've imagined.' With an idea that we think is better than the next guy's, we create work and wealth for our employees and our communities. In one of the country's least populated states, let's meet business owners who are living the life they've imagined by creating work for others."

We believe that creating a job is a sacred trust. Leadership-development consultant and coach, Donna Stoneham says that we must, "Hold each person's story as sacred." This is what great business owners do. They hire people then consider each person sacred to the organization. They think about a person's life wholistically and shoulder the responsibility to pay that person fairly and help them grow. Creating a job is creating a sacred trust.

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Key Idea #1: Offer one-of-a-kind products and services. We have discussed this concept many times in these pages as it is key to the success of a small company and an art gallery is the epitome of this idea. Linda and John beam with pride when they talk about their inventory. They told us that many well-traveled and sophisticated art collectors are amazed by what they find in this small, out-of-the-way town. Silver City, New Mexico is working to brand itself as a destination for people who love and the unusual.

Topic for discussion: Why is it so hard to offer one-of-a-kind products and services and why does it take courage?

Possible answer: If any item is enormously successful, it will be quickly copied and improved on by your competitors. Just look at Netscape, the inventor of the first popular Internet browser. Once Microsoft realized its potential and the threat to their core business, they created Internet Explorer and within three years Netscape took the back seat. And, it truly is hard to find one-of-a-kind products that people want to buy! It takes courage to be different because every time you stick your neck out you risk getting it chopped off. The easy way to build a business is to do the thing that you know will work because others have proven the business model. For example, people have to have insurance and there are plenty of profitable insurance agencies. Or, people have to have eye wear and there are plenty of profitable optical shops.

Linda and John are inspired and motivated by their one-of-a-kind inventory and it is their courage to offer the unexpected that has enabled their enterprise to win and keep customers. David Milly, founder of Theatrical Lighting made us laugh when he said, "If Walmart sells it, I don't." This is not flippant. This is the way we have to think to build a strong small business.

You think about it: What one-of-a-kind products or services can you add that might help you increase revenue? When was the last time you stuck your neck out to offer the unusual?

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Key Idea #2:Work hard for the people who work for you. Linda and John have created work for over twenty artists. This is their personal passion and because of it we have art that would not otherwise exist. They consider their relationship with the artists to be a sacred trust.

Topic for discussion: What does Linda do to keep the shop full of beautiful work?

Possible answer: Everything she has to do to keep the artists happy and productive. This means understanding each individual and tailoring her communication style to match them. She knows them deeply and has great respect for them or she wouldn't be able to sell their work. Artists are not easy and we wouldn't want to trade places with Linda.

You think about it:Who works for you that you do not know deeply? What can you do to learn their "sacred story" and help them achieve their potential?

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Key Idea #3: Flaunt what you've got!Terry told us that most travel magazines have very small pictures and the reason is, not many people can take excellent big pictures as can Joe. In fact, this is the story of turning a hobby into a business. Joe loves taking pictures of the natural beauty found in Southern New Mexico. While Santa Fe and Taos have been center stage in the travel business for decades, Terry and Joe have worked to put Silver City and its surround, "on the map." It sounds simplistic to say that they have built a business on the idea that people like looking at big pictures, but it is true.

Joe is the photographer and Terry is the designer. Together they have put their own stamp on the travel industry's publications and they are not shy about flaunting Joe's talent.

You think about it: What talent do you have in your organization that should be brought to the fore?

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Key Idea #4:Find the talent under your nose. Typcial small business owners, Terry and Joe thought they were the only people in Southern New Mexico who could take pictures and design a magazine. As the market accepted and praised their products, the two had to find a way to add staff.

Topic for discussion: What might have been Zia's problem in hiring people who can write, design and take amazing pictures?

Possible answer: Everyone knows the best people in these fields are in New York City or Los Angeles. This is not a construction company or a retail store. This is a high-end magazine publishing business.

However, as you have learned from Joe, they have found terrific talent in Silver City and other even smaller towns in the area. Joe is most impressed with the great writing being submitted by some of the newest members of the Zia team. The time is right for Zia. People are leaving the big cities to find beauty and quiet in rural areas. Also, Zia is hiring and teaching people who show potential.

Zia is a good place to work. It produces a quality product and we know that quality attracts quality.

You think about it: Where is your next hire? Does your business languish because you haven't brought in the right talent? What can you do to be the quality employer?

Key Idea #5:Recruit an insider. TMC Design has been successful very fast because the founders recruited a customer. They have bid on 63 projects and won 61. Yes they target and yes they have a niche but getting the foot in the door is easier if the person going in knows the lay of the land. In 1997, Leroy Gomez retired from working for the government as an electrical engineer. He was one of the people who would buy what TMC now sells. Perfect. He knows the people, the buzz language and even what the competitor's bids look like. Chris and Troy offered Leroy ownership in the company and Leroy's wife told him he was too young to sit around the house. Today the trio of owners see growth on the horizon.

Topic for discussion: What are the pitfalls of giving ownership as a recruiting strategy?

Possible answer: There are horror stories but this one is happy so far. Partnerships are like marriages. You can have a stack of legal documents explaining the nature of the relationship that spells out all the details and even lays out an exit strategy. But, we all know that a happy marriage is not about the marriage license. It is about respect and trust. Troy and Chris like and trust Leroy. They had done business together in the past. They all graduated from New Mexico State's School of Engineering They had the same teachers, learned the same things, cheered for the same football team.

In addition, Troy and Chris are humble men who know what they don't know.

You think about it: Do you have a customer you can hire? Do you have someone inside an organization you can steal away? Remember that big companies can't offer what you can offer. And, remember that retired people today are too young to sit at home.

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Key Idea #6: Embrace a long-range human resource strategy. Troy said the reason they started the company is that he thought he could be a better leader than most of the people he had worked for in his career. He also said that he has 45 nieces and nephews in the area and there aren't enough good jobs so he intends to change that fact by growing a business people want to work in.

Topic for discussion: What tells us that TMC has a long-range human resource strategy?

Possible answer: Their intern program is designed to grow their business over the long haul. Anyone trying to make a quick buck wouldn't fool with college kids. The owners of TMC consider it a sacred trust to put a person on their payroll. They have never had to lay-off anyone even though it would have been the easy thing to do.

The benefits package tells us TMC is committed to employees. It pays 100% of health care and has annual leave and good wages. Accomplishing this takes enormous will as Troy said, "Everything is important--the marketing, making sure that you track everything, making sure that you treat your customers properly and making sure that financially you're doing smart things, and then, of course, taking care of your people. And if you don't take care of the business, you're not going to be able to take care of your people."

You think about it: Business owners are not driven by the same things that drive employees. This is the biggest lesson we all need to learn. Troy, Chris and Leroy have been in the government contracting arena for years and the greatest fear employees have is that they will be laid off if a contract is lost. By building carefully, TMC has taken the fear away for employees. What can you do to make your employees feel secure? Less fearful?

LB

Lightbulb: Use partnerships to improve the lay of the land. Las Cruces was ranked by Forbes magazine as the number one small metro area to do business. This doesn't happen without a coalition of the business community and government agencies and departments working together.

Topic for discussion: What might you do to strengthen your own local economy?

Possible answer: Join. Be part of the action. Thinking that somebody else should work on the area while you work on your business won't work. Most every episode of Small Business School is about business people who put their shoulder to the plow for their community.

You think about it: What are you doing now for your community? What results are you seeing? What could you do to achieve greater results?

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Key Idea #7: Get word-of-mouth marketing. Kevin McGinley, founder of McGinley Construction doesn't have to sell or market his business. He started very small in 1978 and today he has too much business. You might say, "He could be a lot bigger if he has a sales and marketing plan." Right, and we agree. But Kevin loves his business just the way it is.

Topic for discussion: How does Kevin measure his success?

Possible answer: His goal is to do a seamless remodel job. He said he wants the owner to have to tell people that the job was done. He also wants the owner to feel good in the newly created space.

You think about it: What should you goal be with each customer so that you get word-of-mouth marketing?

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Key Idea #8: Be generous because pay plus benefits plus a clean truck wins loyalty. Kevin pays well. In fact, he serves on a committee appointed by the Governor that spends its time studying wage and benefits in the construction business.

Topic for discussion: What benefit is most attractive to Kevin's team?

Possible answer: Kevin provides the trucks. In most companies like Kevin's, carpenters have their own truck and tools and are paid a salary. Kevin believes by giving the trucks to employees they not only don't have to put miles on their own trucks, they take great pride in driving a shinny truck with the company logo displayed on it. Kevin wins because people do better work when they are proud of what they are doing and his trucks with his logo are all over town.

You think about it: What benefit could you create for employees that would make them even more proud to work for you than they are now?

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Key Idea #9: Give people a job for life. Joseph Semprevivo is on fire about what he and his team accomplishes. His Mom and Dad owned a restaurant so he learned from childhood what it takes to make a business work. His parents had a terrible set-back when they took a much-needed vacation and returned to their business to find that their manager had stolen all the money taken in over the two-week period and that he had cleaned out the freezers!

Even seeing what his parents went through, for some reason, Joseph didn't get cynical about people. In fact, he figures that people will work harder and smarter if they know that they have a job for life.

Joseph considers the act of creating jobs a sacred trust. He trusts other to do the work they promised to do and he can be trusted to make the payroll. He sees that it is an honor to have people around him who want to be part of his vision.

Topic for discussion: What has Joseph's philosophy taught him about people?

Possible answer: If an employee knows he or she will not be laid off or replaced due to increased efficiency, the employee will find ways to increase efficiency. Seems so simple! The person doing a job always has more insight about that job than a supervisor and the best way to reduce the cost of making something is for the people making it to suggest improvements.

You think about it: Why don't more small business owners offer a job for life? Could you do it? Would you do it?

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Key Idea #10: Set the standard for excellence. Keeping people on the payroll for life is a big commitment for a man as young as Joseph. We think the reason he is already such a great leader is that he doesn't expect anybody to do anything he isn't doing or hasn't done. He sets the standard. He is smart enough to know that if everyone at the company puts out as much effort as he does, the company can not fail. He has an excellent product that the market wants he just has to keep it coming.

Topic for discussion: What is Joseph's standard for daily performance and who taught him to have one?

Possible answer: His father taught him to ask himself at the end of each day if he gave the day 100% of his effort. Wow. This can make us tired if we think about it too much.

You think about it: What would happen if you and everyone at your company gave 100% every day?

Marketing

Marketing: Do what you promise to do. John Wargo talks about a chocolate company in Denver started by two children who are now teenagers. They had so much publicity when they launched the business because they were so young and so cute every body wanted to tell their story.

Topic for discussion: Why has this little company been able to create 45 jobs in Denver?

Possible answer: Not because of publicity but because of service. Chocolate is hard to ship but customers consistently get the product in the condition it was sent and they come back for more.

You think about it: What promises do you make to customers now? What promised could you make? Should you make?

If every small business in your community were to add just one job this year, there would not be enough people to fill the jobs. These business owners in today's show are proof that good ideas with good execution create good work and many jobs. We small business owners are the artists, the innovators, the problem solvers, the creators of wealth and work. With every employee we hold in our hands a sacred trust.