The Lifeblood of a Business

Yesterday I watched a news report about a fascinating individual. Everyday he sets up a table and a chair on a curb in New York City and sells $5 potato peelers to passersby. Seventy-four years young, he rises at 4 a.m. every morning and sets up shop in time to catch the early crowd. He warehouses his inventory in one room of his Park Avenue apartment. Yes, he lives in a Park Avenue apartment. He sells enough of those $5 potato peelers to live in an expensive apartment in New York City and to save for his granddaughters' college education.

"Never underestimate a small amount of money," he says.

Obviously, this gentleman is an excellent salesman. Once someone has purchased one potato peeler, he suggests that the person buy three more. "Why should you buy three more," he questions, "when they last a lifetime?"

"Because you've got three friends, that's why!"

Although he never takes a vacation, he views life as one. "The secret to success," he notes, "is not doing what you like, but liking what you do."

We can learn a great deal from him.

Take a look at how much he does without a storefront, a business name, a permanent location, and employees, except himself. How does he do it? He focuses purely on the revenue-generating function of his business. He sells potato peelers, preferably more than one, to everyone who passes by. His entire day is spent taking in money.

Now I realize that not every business can function this simplistically. Most businesses do have storefronts, employees, and permanent locations. Most businesses must attend to many other functions of the business other than just selling their products or services. Most businesses, even small ones, have many systems which require regular attention.

What concerns me is that in the midst of tending to all of these functions and systems, many businesses lose their focus on generating revenue. They get "caught up" in the daily routine of tending the non-revenue-generating functions of their businesses and unintentionally neglect the revenue-generating activities. They set aside marketing, customer development, and publicity, instead taking care of building maintenance, inventory control, and accounting problems. Perhaps business people feel more comfortable with these activities or perhaps these activities seem more urgent because they are right in front of them, demanding attention.

In contrast, revenue-generating activities are acknowledged to be important but often do not seem urgent. At least, they are not urgent until the business needs revenue. Then, they become urgent. Then marketing gets attention. When the bank account is low, marketing, the business's revenue-generator, becomes important and urgent.

That's always too late.

Everyday a business does not work at generating revenue, the business loses money. The gentleman selling potato peelers recognized that fact, which is why he focused on generating revenue everyday. Although many other functions are important to running a business, the lifeblood of a business is revenue. To generate it, you must give it your attention.

Do you give attention to your marketing everyday?