Well I’ve got this guy I want you to meet. His name is George Cloutier. He’s a Harvard grad that Business Week dubbed a “Turnaround Ace” and his focus has always been on small business. Actually, you may not even need to hire him, just read his book.

His national best-selling book is called Profits Aren’t Everything, They’re the Only Thing. The book includes “The 15 Rules” that George Cloutier’s consulting firm has used to turn small businesses on life support into profit-making machines. His success with helping small businesses is immense.  In fact, in the first chapter of the book he talks about how his firm has helped more than 6,000 businesses in 300 industries. His company has identified more than $1 billion in additional profits for those clients.

So why wouldn’t every small business want to hire Mr. Cloutier’s consulting firm and get their share of the $1 billion in extra profits? Good question.  The answer is that these kinds of profits come with a price.

For example the book suggests that you should work seven days a week, never pay vendors on time and give up golf.  Are you ready to make those commitments or do they make you feel like maybe profits aren’t everything?

If these measures sound extreme, they are. Cloutier says you only have to make the hard choices if you want to be successful in business. If you want to have life balance, start a non-profit he adds.

The majority of Cloutier’s clients are family businesses. And two of his 15 Rules are specific to them: Love Your Business More Than Your Family and The Best Family Business Has One Member.  As harsh as that seems, Cloutier says too many family businesses mix family issues into the business and in the majority of situations they fail. The first of those rules states, “Your cell phone is for taking orders from clients NOT grocery lists. Weekends are for work. Pray at your desk if you must. Your business is not a part-time job. Be there or be broke.”

There is no doubt that much of Cloutier‘s advice is challenging and even scary.  Still, the book is both entertaining and thought provoking.

George Cloutier, a magna cum laude graduate of Harvard College and Harvard Business School, founded American Management Services in 1986. The company’s web address is www.amserv.com

Article By Paul J. Welsh

Interview was conducted by Jay Liebenguth

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Even during the best of times, small businesses in America represent the majority of all new U.S. job growth.  In fact according to the Small Business Administration, most net job loss occurs within firms that are greater than 500 employees.

In a recent Fox News Sunday interview, Steve Odland, Chairman and CEO Office Depot, told host Chris Wallace that, “All net job creation happens in small business.”  This is at least in part because many of the largest U.S. corporations have matured.  Prior to last year’s recession, job growth at many major corporations had slowed or evaporated in corporate America.

Over the past year, the slow churn of persons leaving larger companies to become entrepreneurs, or to go to work for smaller organizations, has grown from a steady stream to an avalanche.

The reality is, the ranks of the temporarily unemployed are growing.  These days, temporary unemployment all too often is turning into long-term unemployment or underemployment.

Is our glass half full or half empty?   The reality, I guess, is both.

Just when you begin to bemoan the present employment situation, your thoughts are illuminated by the present spark of American innovation and entrepreneurship.

A recent article in Wired magazine titled, “Go Ahead….Fire Me,” stated that after experiencing layoffs, most able bodied American workers will always be able to take their skills elsewhere.  It is a recession’s way of leveling the playing field.

With stock dividends, the companies with less new growth opportunities and fewer new ideas must purge capital in the form of (theoretically) ever growing dividends.  The companies with greater sources of new business ideas and planned new business growth are capital hungry, and retain their dividends to invest in the new ideas.

With people, it’s the same.   Companies who cannot, or should not afford to retain the best and the brightest, naturally lose them to better, more fulfilling opportunities elsewhere.

See the quote below.  And, while it is dated, I still believe it today.  Yes, a lot has changed it was written.  At that time, unemployment was likely hovering below five percent.  It’s twice that today.

Yet, the best people will still be seen inside the best companies, even if the companies have only a few employees.  It’s the American way.  It’s the American dream.  And, at this point, it’s the American reality.

Thoughts for the Day

“Five years from now, you will look around and realize that the best employees can be found working for the companies who were paying the most attention.”

Dave E. Anderson

Alpha Scouts^™ LLC

July 15, 2005