In 1783, the American Revolutionary War came to an end. Victory was had, but it came at a steep price. The outcome was significant. America would be an independent nation, free of monarchy, dynasty, and dictatorship.

Since that time, America has continued to exhibit distaste for dynasty in our political system. With the exception of father and son Adams and Bush, American politics has been largely free of family legacy. While George W. Bush was twice elected President, I would argue there were many concerned about the father-son relationship. On the other side of the isle, America’s lack of interest in a Clinton dynasty was partially responsible for Barack Obama’s defeat of Hillary Clinton in the 2008 Democratic primary. The thought of the White House being held by a Bush or Clinton for potentially up to 28 years was too much for most Americans to stomach.

With Senator Edward M. Kennedy’s recent passing, some in the media have suggested that it is unfathomable to imagine a US Senate without a Kennedy in it. Many have urged Kennedy’s widow Vicki or nephew Joe to run for the seat.

In my mind, family dynasties aren’t good for the health of our democratic system long-term. American doesn’t need more Bushs, Clintons, or Kennedys in politics if you ask me. We need more independent, “from scratch” individuals who want to serve their country for the right reasons and aren’t looking for a life in politics.

For the best of America, I for one am hoping to see new blood (and a new name) representing Massachusetts in the US Senate.

Filed under: Personal Journal, Politics | Post a comment

A few weeks back, airline industry pioneer JetBlue revealed what many would consider the most outlandish marketing promotion yet: unlimited flying for a 30 day period for only $599.

What makes this “good marketing” is quite simple.

First and foremost, the sheer outrageous nature of the promotion was enough to raise eyebrows throughout all media. The promotion is different and unlike anything ever done before. Because of that, JetBlue earned numerous media mentions from radio, television, newsprint, and online. JetBlue easily earned hundreds of thousands (if not millions) in free PR just by the news media talking about it. The promotion has already paid for itself before the first customer booked a seat. Furthermore, it got consumers talking in a positive way about JetBlue.

Secondly, the very nature of the promotion reinforces JetBlue’s reputation of being a “different” kind of airline. Considering the traditional hub-and-spoke airlines continue to suck wind (4 of the 7 have filed for bankruptcy in recent years), JetBlue is clearly onto something by maintaining its “different” streak. Why the other idiots haven’t copied the heck out of JetBlue is beyond my comprehension. The JetBlue promotion has few “catches” and is rather transparent, which again reinforces JetBlue’s relatively positive reputation as not trying to dupe customers (unlike most of the traditional hub-and-spoke airlines).

Finally, the marketing promotion makes logical sense, and contributes to JetBlue’s bottom line…which is what sales promotions are supposed to do. The 30-day flying period of August 18 – September 18 is by far the 30-day window in the calendar year that is the softest for flying, meaning JetBlue (as well as every other airline) have the most open seats. The plane is flying whether there are 100 or 150 people on the plane, ya know what I mean? Better to get some money for that seat than no money.

My applause to JetBlue for demonstrating yet again that it is an enlightened organization.

Filed under: Innovation, Marketing, JetBlue | Post a comment

This week I depart for South America. Specifically, I will visit the cities of Lima, Iquitos, and Cuzco in the Republic of Peru. The origins of this trip began from what was a casual lunch time conversation last November.

My friend and fellow Rotarian Todd Garrett was telling me of a micro lending enterprise he created in Iquitos a few years back. Todd, an entrepreneur in Charleston, SC, runs the enterprise from afar, making 2-3 in-person visits each year. I was instantly fascinated, and peppered him with so many questions through lunch that he barely had the time to choke down his sandwich.

For those that are unfamiliar, micro lending is just as it sounds the process of providing micro loans (as little as $100) to aid entrepreneurs in creating micro enterprises in developing countries around the globe. Pioneered by Muhammad Yunus of Grameen Bank, this form of financing has gained popularity and critical acclaim around the world.

An entrepreneur and free-market champion myself, micro lending is especially intriguing and fascinating to me. It is my belief that the individual and society gain dramatically more when a man is taught to fish rather than simply feed a fish. The power of self reliance should not be underestimated. Micro lending provides start-up capital to those who would otherwise be considered un-credit worthy.

This excursion to Peru will be a fact-finding mission of the highest degree. I am going to shadow Todd for a full week, interacting and engaging with his team, his credit recipients (customers), and government officials. It will be a fascinating and enlightening week abroad. For the little I know, it is my hope that micro lending can be a critical tool in aiding those in need around the world.

For those that are interested, I will publish a full report of my findings (with pictures) on the subject of micro credit upon my return. Until then, ya me despido (it’s time to say goodbye).

Filed under: Entrepreneurship, Giving / Philanthropy, Travel, Grameen Bank, Muhammad Yunus | Post a comment

Last month, South Carolina Governor Mark Sanford officially rejected a portion of South Carolina’s federal stimulus hand out. His decision was met with both tears of joy and tears of frustration and outrage, depending upon your viewpoint

While much will be made from all sides, one thing remains clear to me: this is a principled decision from a very principled man.

Mark Sanford’s primary tenant in rejecting the stimulus funds is simply that it is irresponsible and shortsighted to heap more debt upon existing debt. He argues that you can not spend your way out of debt. He views being a responsible financial steward of the State of South Carolina as primary responsibility.

When Mr. Sanford was a U.S. House Representative, he spent his six years in Washington sleeping on a cot in his congressional office. The money he saved was returned to the taxpayers in his district. Mr. Sanford has exhibited the same frugal characteristics during his six years in Columbia serving as Governor.

Mr. Sanford is one tight, penny-pinching politician. The times of trial and tribulation we now face will require many hard choices. Washington, state, and local governments are going to need far more penny-pinching politicians from both sides of the aisle if we are to exit this economic recession on firmer financial footing.

Filed under: Politics, Thoughts, Federal stimulus bill, Mark Sanford | Post a comment

Last week I had my first Southwest experience. For those that have never flown Southwest Airlines, the typical response might be “WHAT?” For those that are devoted Southwest flyers, the response was probably “did you take pictures?”

Being an entrepreneur with a commitment to client experience and Raving Fan Service, I was quite familiar with Southwest having read numerous books and articles on the airline and their famed culture and studied. I even spent 3 hours at a bar in Chicago with former Chairman and Founder Herb Kelleher sipping Wild Turkey and Water while discussing business.

Being a Charlestonian (Southwest doesn’t fly into Charleston, SC), I am a Delta man, if only by default. My virgin Southwest experience would be a direct flight from Baltimore (BWI) to Orlando (MCO).

As I approached the Southwest gate at the airport, I was enthusiastically greeted by the gate agent. We chatted for a few minutes. She discovered I was from South Carolina, and we spent at least a minute or two debating the perfect recipe for Beaufort Boil (there were no passengers behind me in line). After exhausting our culinary debate, I inquired if a business plus seat would be available for an additional fee. A business plus seat would enable me priority boarding so I could snag an exit row seat for my extra long legs. She responded “Good news Mr. Witty, the flight is not sold out. There will be plenty of extra seats in the back where you can spread out without having to pay an extra.” WOW! I teed up an up sell opportunity for her and she denied it. Two lessons became obvious. #1 Southwest people enjoy what they do (this can hardly be said of most other airlines) and #2 the employee made a recommendation that was in the best interest of the customer not the best interest of the company. Perhaps some employers would shirk at this thought. I have a feeling Southwest doesn’t. When you look out for the customer, the customer will ultimately look out for you (in terms of loyalty).

I boarded the plane and before I knew it we were in the air. The stewards began their in-cabin beverage and food service. I must have been asked at least 5 times if they could get me anything else. Every time with a sincere smile. I could only help but sincerely smile back. As we were preparing to land, I stowed my laptop computer and browsed the seat-pocket magazine, Spirit! I almost fell out of my seat when I read that Southwest was offering all passengers a complimentary cocktail on Valentine’s Day and St. Patrick’s Day. WHAT!?! US Airways is now charging $2 for just a Coke and Southwest is offering all passengers a complimentary cocktail? Are you kidding? #3 Southwest values and encourages fun and fun creates smiles (and happy passengers).

The 4th and final lesson became clear only after I submitted my expense report. My Southwest flight from Baltimore to Orlando (700+ miles) was $79. My taxi ride from the Orlando Airport to my hotel (20 miles) was $55. #4 Over-deliver value and the customer will keep coming back.

Incorporate these simple rules into your business and you will experience some Southwest magic too. Oh yea, my 2nd flight is already booked.

Filed under: Customer Service, Customer Service, Southwest Airlines | Post a comment

If you are an enlightened entrepreneur and you don’t know what LCV, listen up, because this will have a BIG impact on your business. LCV, or Lifetime Client Value, is the calculation of the total dollar value an individual client has contributed to your business over the life of your relationship with that individual/organization.

As an example, let us say Billy Bob does $100 in business with company XYZ every month. Simple math tells us that Billy Bob is worth $1,200 per year to company XYZ ($100 per month x 12 months). If Billy Bob has done business with company XYZ for 10 years, Billy Bob’s LCV is $12,000 ($1,200 per year x 10 years).

For a real life example, let us assume Billy Bob is really me (Adam Witty), and company XYZ is T-Mobile.

In 1999 I became a customer of SunCom, a regional wireless carrier. Through an acquisition I am now a customer of T-Mobile. In rough averages, I have spent about $100 per month for cellular service for the past 10 years. SO, my Lifetime Client Value to T-Mobile/SunCom is approximately $12,000.

If you are an entrepreneur or business owner, the TRUE story I am about to share with you will make you want to cry. If you work for a big, dumb, company you will see this as merely “par for the course.”

A few weeks back I ordered a new cellular telephone from T-Mobile. I had been resisting this day for a very long time. When it comes to cell phones I am somewhat of a luddite. I am anti-technology in this situation. I don’t want anything fancy. I want simple and efficient. I don’t need a camera phone. I don’t need (or want) e-mail capability. Ten buttons (one for each number) is about all I want. With the abovementioned criteria I purchased the phone that they typically give away for free with a 2 year service agreement for $40.

The phone was delivered a few days later. It sat in the box on my desk for about a week. I finally got around to opening the box. I struggled for a week to navigate the new device. After 7 days of absolute anguish, I made a decision. I would return the phone and simply purchase a re-furbished version of my old phone.

I called T-Mobile to inform them that I desired to return the phone for a $40 credit toward my next bill. The customer service rep. informed me that T-Mobile had a 14 day “change of heart” clause for this very reason where customers could return equipment with no hassles or questions asked. Great news I thought. Well, actually not, because I was calling exactly 15 days after my purchase. I was one day too late.

To me, this seemed a bit unreasonable. I asked to speak with a supervisor. The customer service rep. routed my call to a “senior manager,” though I was skeptical as to how “senior” the position was as it sounded like I was at a senior manager convention - I could hear hundreds of other senior managers in the background talking with other customers like me.

When the senior manager greeted me, she asked “how are you.” I replied, “not so good.” She said “my job is to fix that.” With that response alone, I saw a glimmer of hope. When I explained my predicament, I could hear her jumping out of her skin, she was ready to save the day. “Great news Mr. Witty, you ordered your phone 15 days ago, but it took 2 days for shipping and handling, so as long as you mail your phone back to us tomorrow we can give you a full refund!!!”

While that sure sounded like good news to her, it was hardly good news to me. I replied that wouldn’t help me much because I was leaving for a business trip to Detroit the next morning at 6am. Hoping to have solved all of my problems, she assured me that there would be a post office at the airport where I could drop off the phone and have the return package postmarked within the 14 day period.

I thought to myself “GREAT, just what I want to do when I am running to catch my flight, looking for a post office so I can mail my phone back to T-Mobile so I am within 16 days.” Hoping to appeal to some sense of reason, I explained to her this wouldn’t work as I had not received my new phone yet and couldn’t be without a cell phone while I was traveling.

After discussion for a few minutes, she informed me that there was simply nothing that she (a “senior manager”) could do to help me unless the phone was mailed back the next day. I explained to her that I had been a customer for over 10 years. I explained to her that as a matter of principle I would leave T-Mobile at the expiration of my service contract. She understood. Her hands were tied. The “senior manager” didn’t seem to be so “senior” after all. With that, she apologized, and ended the call.

Where does that leave me? While the $40 isn’t all that important, the principle of the matter sure as heck is. So, I will leave T-Mobile, and a 10 year customer will be gone. Poof. A $12,000 customer is being lost over the return of a $40 phone.

What are the lessons for us entrepreneurs?

First and foremost, your business should be calculating the LCV of every one of your customers and making that information available to all of your employees on a monthly basis. At Advantage, we have a software system (Infusionsoft) that makes this info available to all of our team members, real-time, every day. In addition, QuickBooks can provide similar information. This one step alone will help you and your employees make smarter decisions. If the senior manager knew that I was worth $12,000, would she have made a different decision? Maybe.

Another benefit of sharing LCV with your employees is that they now know who is responsible for putting food on their tables. If Client A has a LCV of $100,000 to your business and Client B has a LCV of $5,000, your people now know what phone calls to return first.

Secondly, you must empower your employees to make decisions that are in the best interest of your customers. For example, if your average client is worth $10,000, you might create an empowerment boundary that gives every team member the ability to make an on-the-spot decision of up to $250 to please a customer. It is up to each business to create the appropriate boundary. That said, customers are VERY impressed when rank and file employees are able to make decisions that are in the best interest of the customer without having to appeal to higher authority. It

Finally, think long term. There is a reason why we call it LIFETIME Client Value. Stop thinking transaction by transaction, and think 2, 3, 5, and 10 years out.  Think short term pain for long term gain. In the case of T-Mobile, for a short term hit of $40 they would have retained a $12,000 client for at least another 10 years. But instead, being myopic and only looking at the immediate, they are going to save $40 but loose $12,000.

The story above provides a real opportunity for entrepreneurial small businesses. LCV is a critical metric that you should be using to make intelligent business decisions to satisfy and delight your clients and customers.

Filed under: Customer Service, Entrepreneurship, Marketing, Sales, Lifetime Client Value, T-Mobile | Post a comment

I had dinner last night with an entrepreneur friend. This friend, a real estate entrepreneur, had a business that was flying high just a year or two ago. Over the past 12 months he and his business have hit rock bottom. The meal was supposed to be somewhat of an intervention, with me doing a lot of listening and asking good questions. The conversation was not easy. There were moments of pain and agony for my mealtime companion. He sobbed many times. Our talk however was necessary and healthy. It needed to be had…and up to this point, he simply hadn’t faced the facts.

While the entire evening was entirely about him, as I reflect, I realize there were a number of lessons that I took away from the night as well. The life of an entrepreneur has many peaks and valleys. Early into 2009 (and mid-way into a global recession) there are many entrepreneurs who are stuck in the valley. A few thoughts…

First and foremost, give thanks for what you have. When you reach a valley, or hit bottom, it becomes very easy to think that you have nothing positive in your life. Because you are constantly hearing bad news, you forget about any good. In my friend’s case, he has a family that loves him, he has friends and business associates that care about him, and most importantly, he has more real estate knowledge than anyone I know. You may be financially bankrupt or overdrawn, but you are not mentally. As entrepreneurs, the greatest gift we have is what we know and the tenacity to fight back. With your knowledge, you can always get back up, pick up the pieces, and claw your way back to the top.

Secondly, don’t feel sorry for yourself. Easy to say, not easy to do. That being said, there is no journey that you face that has not been conquered by others before you. In real estate, look at Trump, a man who has twice been bankrupt and worked his way back to the top. There are dozens of other examples in all fields and industries. More importantly however, each human being only has so much energy in a given day. Happiness requires energy. Sadness requires energy. If you are going to right the ship and turn your life and business around, it will require enormous amounts of energy. Spending precious energy on sadness and self pity doesn’t get you closer to your goals.

Finally, you must get back to basics, and by that I mean developing good habits and eliminating bad habits. Nido Qubein said “Good habits are hard to develop, but easy to live with. Bad habits are easy to develop, but hard to live with.” So true. My entrepreneur friend had developed a lot of bad habits over the past year. He had taken his eye off the ball, and now he was badly bruised lying in the tumbleweeds. Being a real estate man, I knew that my friend would relate to the “broken windows” theory. As soon as a window is broken in a vacant house, you must immediately fix it, otherwise all of the other windows will soon be broken too as it indicates that no one cares about the home. My friend had a lot of broken windows because he had not eliminated the bad habits as soon as they entered his life. Now, he had a house full of bad habits. To fix this requires immense discipline. Every entrepreneur I have ever met with sustained success exhibits significant amounts of self discipline that go above and beyond most other people.

Should you find yourself in a similar place as my entrepreneur friend mentioned above, I hope these words will help you begin to turn your ship around. Remember, this will take time. The journey of 1,000 miles however must begin with a first step.

Filed under: Entrepreneurship, Nido Qubein | Post a comment

With the 2nd week of February now under our belt and a $787 bill emergency spending / stimulus bill now passed by both houses of congress and on its way to the President’s desk for signing into law, one thing became very clear during the past week…the game of “politics as usual” has won once again. I should be clear that the winner was non-partisan, because the game of “politics as usual” does not discriminate between Republicans or Democrats.

So, how and why did “politics as usual” win yet again?

How: The bill which is 1,073 pages long was released to members of congress in physical print format only (so much for being green) and not offered electronically. Why: Legislators will oftentimes use computer programs to automatically search for certain words that might raise red flags. This is deliberately done to make it more difficult for the opposition to find measure that they object to. This is a favorite technique to mask transparency and slide things in under the radar.

How: The bill contains lots of pork. For a bill that is supposed to “stimulate” our economy and put American’s back to work, it is peppered with dozens of pet projects, including over $30 million for wetlands conservation in the San Francisco bay area, House Speaker Nancy Pelosi (D-CA), home district. I am not arguing that we should not preserve wetlands, but that is not the purpose of this bill. Why: Politicians are addicted to pork…because it appeases the special interest groups that got them elected in the first place…and making it easier to get re-elected.

How: President Obama made a campaign promise to put every single bill online for the American public to view for no less than 5 days prior to signing anything into law…this hasn’t happened. Why: The more information you withhold from others, the more power you hold. Furthermore, after the bill is inspected with a fine tooth comb, invariably their will be more questions and objections…not something Mr. Obama wants, he just wants to get the bill passed.

How: After the bill’s passage, Democratic leaders held a press conference back slapping one another for “looking out for the American people” while blaming Republicans for giving the American people the cold shoulder once again. Why: Political rule #1 - take all the credit when things succeed, blame the other side when things fail.

To be fair, Republicans have played the same games years before. In fact, former House Majority Leader Tom Delay (R-TX – no longer in congress) practically invented these games. The democrats screamed and moaned about how awful it was then…now they are the majority and playing the same games too.

Barack “Change” Obama was elected by the American people with a mandate to change Washington and turn the page on the same old tired political tactics of yesterday. It looks like he has his work cut out for him.

Filed under: Personal Journal, Politics, Barack Obama, Democrats, Federal stimulus bill, Nancy Pelosi, Republicans | Post a comment

Over the holidays I had the opportunity to watch the movie Charlie Wilson’s War. For anyone interested in politics or simply how government works, this movie is an absolute must. Despite the drunkenness and debaucher the movie contained valuable lessons for the Enlightened Entrepreneur.

My favorite lesson comes at the very end of the feature file. The movie concludes with US Congressman Charlie Wilson (played by Tom Hanks) sitting in a US Congressional sub-committee meeting with 3 colleagues. Charlie is petitioning his fellow congressman to appropriate $1M for the reconstruction of schools in Afghanistan. The congressmen laugh. Charlie reminds his colleagues that the US just invested over $1 billion helping Afghan freedom fighters resist a Soviet invasion to remain a free country. To ensure this not happen again, Charlie pleads with them to appropriate $1 million toward the reconstruction of schools in Afghanistan so the children will be educated and not fall prey to a future power vacuum and/or dictator.

Oh do Charlie’s colleagues laugh. Once and for all, they say no, and tell him that he is crazy. They quickly move on to the next item on their agenda. And then, in the last scene, Charlie murmurs these words “that ball, it keeps bouncing.” The colleagues ask Charlie what the hell he is talking about, Charlie reiterates. His colleagues dismiss his words and the cameras fade to black.

Enlightened Entrepreneurs can glean from this a valuable lesson: there is danger in being penny wise and pound foolish. Simply put, consider the long term. In the short term, these congressmen saved US taxpayers $1 million by not supporting the rebuilding of Afghan schools. Long term, an uneducated Afghan populous fell prey to the power vacuum knows as the Taliban and Osama bin Laden. Tyrant rule came to the country, building to an unwelcome and unimagined crescendo that we know as September 11, 2001

It is estimated now that US taxpayers have invested well over $1 trillion dollars on the war on terror in both Afghanistan and Iraq. No price can be put on the lives that have been lost.

In your life and mine, that ball will keep on bouncing. Charlie Wilson’s provides a lesson for us all. Don’t loose sight of the “big” picture.

Filed under: Personal Journal, Politics, Charlie Wilson's War | Post a comment

I remember when I was a kid in scouts (I am an Eagle Scout) my backpacking group had t-shirts that read “that which does not kill us, only makes us stronger.” Looking back, it becomes more apparent to me every day that scouts taught me much more about life than I ever thought.

Fast forward twelve years. As a CEO, entrepreneur, and marketer, I can tell you that people buy for one of two reasons; to avoid pain or to move closer to pleasure. With the exception of sex, people will always choose to avoid pain above gaining pleasure.

Perhaps most folks (including our federal government) have it all wrong. Can pain actually be good for us? Exercise can be very painful, but also very good for us. Eating brocolli and Brussels sprouts IS very painful, but very good for us. Going to the dentist every 6 months can be painful and terribly inconvenient, but once again it is good for us.

You see, most pain is short-term. Much of the gain however is long-term. Getting up at 5:00am every morning to run in 30 degree frost is hardly pleasurable…but perhaps this short-term pain is the key to living a life of health, vitality, and pleasure – long-term. In sales, making 20 cold calls every morning is painful, even to the most seasoned sales professional. But, cold calling is vitally important to maintaining a pipeline that puts food on the table. As the old saying goes, timid salespeople have skinny kids. Or maybe it should read pain-averse salespeople.

No pain, no gain. The enlightened entrepreneur embraces this concept. Starting and building a business is no easy task. Mistakes will be made, opportunities missed. Short-term pain will undoubtedly be endured. Enlightened entrepreneurs know that building good systems, good habits, and staying lean all entail short-term pain…but it can and will lead to long-term pleasure.

Just because the medicine is good for you doesn’t mean it tastes good going down.

Filed under: Entrepreneurship, Sales | Post a comment