This is a “how-to,” a “how-not-to,” and a “why” book: “Creating A World Class Company - A Triumph Of The Entrepreneurial Spirit.” In this book, Bob Thomas writes about his personal experiences in building two world class companies from scratch, showing you how to do it. One is today a major division of Emerson, a Fortune 500 company. The other is a division of ABB, the giant Swiss conglomerate. Considering the book’s serious subject matter, it is highly entertaining and loaded with humor.
Thomas leaves no stone unturned. This book covers every detail of what it takes to plan for, to build and sustain a new company from scratch with very little money. In fact, Thomas built both of his companies with zero money invested, zero stock sold, zero venture capital taken and zero money borrowed from outside sources. The Thomas method of funding is the most fail-proof of all. It is the only funding option assuring that 100 percent of company ownership remains with the active participants, not with outsiders who contribute nothing to the day-to-day operation.
Following eight years of dedicated work, Thomas sold his first company, UNI-LOC, now Rosemount Analytical (Emerson), for $48 million 1972 dollars. That would be about $200 million in today’s dollars. UNI-LOC-Rosemount has now been in business for 46 years and TBI, his second company (ABB), for 34 years. Both are in their prime, producing the latest versions of UNI-LOC’s original product line. True, founding those companies happened a long time ago but thanks to expanded markets, the Internet, computers and more readily available personal assets, it is easier today to fund and build a world class company from scratch than it was then.
Some of the book’s major highlights are as follows:
* Funding. All options for new venture funding are thoroughly examined, detailing the advantages and disadvantages of each. There is no longer any reason to be blind-sided.
* Competition. Methods of evaluating your competitor’s market shares, and choosing the most cost effective options to penetrate those markets, are outlined in depth.
* Business Plan. In the beginning, the only reason for making a detailed business plan is to satisfy potential investors or lenders, otherwise it is a waste of time. A detailed business plan will be meaningful only after you’ve been in business for a couple of years.
* Sales Plan. A sales plan is a must. Unless you are experienced in sales management you will not know how to make a detailed sales plan until you read Chapter Two. Sales is not marketing, not even close. Don’t confuse the two. Also, advertising belongs with sales. Public relations belongs with marketing. Sales is the short term. Marketing is the long term.
* Partners. Owner-partnerships are the best way to cover the operational bases provided all partners have dovetailing, not clashing skills. This book shows you how to select partners not only to assure compatibility in job skills, but compatibility in human relations as well.
* Primary Marketing. This involves a novel way to find new markets for your existing products and/or services. It also includes a sure-fire way to uncover sleeper markets for new products that can fit your company’s capabilities. This is a best-kept success secret.
* Secondary Marketing. This is mass marketing using focus groups, contests, questionnaires and demographics to seek potential markets for your latest R&D offerings. Tons of research. Larger companies are the users of Secondary Marketing. This is an ideal pastime for MBAs.
* Organizational Structure. This book outlines the only organizational structure that will preserve your company’s entrepreneurial status, with its many advantages, for the longest possible time before growth propels it into that horror of horrors, a bureaucracy. This is another best-kept success secret.
* Nationwide Sales. There are several choices for establishing a nationwide sales network. This book examines the advantages and disadvantages of each, and shows how to incorporate the best choices into your business at any given time, changing as your company evolves.
* Opening a Closed Market. You may one day find that your company is being frozen out of a lucrative market either by fair or foul play on the part of your competitors. If and when that happens, there will be limited options and those options will likely call for drastic action. This book shows you the most effective ways to initiate such action with minimum risk.
* Money Management. Getting the most out of your facilities, equipment and personnel without borrowing money is an ongoing lesson in this book. Paying interest is counter-productive, and rarely necessary if you learn how to consistently focus on the big picture.
* Personnel Management. Establishing salary levels and/or stock ownership equity based upon each member’s true functional value to your company, is a must. This must be done equitably in order to eliminate the most serious cause of dissatisfaction in most companies.
* Employee Loyalty. Learning how to innovate and adopt managerial policies that are designed to increase employee skills, while establishing your company as a “cool” place to work, are the best ways to assure employee loyalty. This book is loaded with proven ideas.
* Profit Sharing. While there are many so-called profit sharing plans, there is only one that absolutely pays dividends equally beneficial to your company and to your employees. This is brilliant! Increased productivity is guaranteed, and employees will never want to leave your company. This is still another best-kept success secret.
* Patents and Trade Secrets. You must protect your intellectual property rights. This book contains everything you need to know about patents, trade secrets and litigation.
* Lawsuits. Whether you are the defendant or the plaintiff in a lawsuit the odds are that when your company is successful, a lawsuit will eventually surface. This book shows you how to save tons of money in legal fees while running your opponent’s costs through the roof.
* Foreign Markets. This is risky business because all foreign markets are loaded with visible and hidden trade barriers. This book gives you foreknowledge of what you can expect and how to survive. Europe is much different from the Orient or the Middle East. You must be well established at home, and highly profitable before undertaking foreign adventures.
* Selling Out or Going Public. If and when the time comes that you may want to sell-out or go public with an IPO, this book explores in great detail the advantages and disadvantages of both. And should you elect to be acquired, it shows you how to double the shares of stock you will receive from the acquiring company in exchange for your company. This alone is worth thousands of times the price of this book.