This interview with Mr. Fisher shed some light on a few of the financial setbacks that seemed to plague Family Moons. My uncle said an interesting thing about business, "you have to set yourself up to succeed." Those words still echo through my head constantly. Family Moons hasn't really set itself up to succeed: no formal business plan, no formal management structure, and no description of managers roles.
Give it a read:
Introduction
Donald Fisher is an investor based out of Houston, Texas. At eighty-three years of age, the man is a wealth of knowledge. While his experience is not in the entertainment industry, his knowledge and expertise in retail, management, and investments can transfer to practically any industry. Mr. Fisher started his first company, a Retail Merchants Association, in the early nineteen fifties. The business was located in a small town and was supplying credit reports to business. The company was unsuccessful and after the sale of the business him and his wife, Estelle, bought an appliance retail store then a Laundromat in the same small town. After an unsuccessful run, Mr. Fisher sold both business and moved to Houston, Texas. During a long stint as a traveling appliance salesman, Mr. Fisher would work at a pawnshop, owned by a friend, on the weekends. His skills as a salesman and managing inventory developed during his employment and Mr. Fisher decided that he “could run a pawnshop better than him” (personal communication, September 19, 2009) and set out to open his first store. The first Circle Pawn Shop was opened in 1966.
Donald Fisher is still active in the pawn community. Mr. Fisher helped form the Houston Pawn Brokers Association and was president of the Texas Pawn Brokers Association. He was influential in pushing for fair legislation providing greater protections to both pawn businesses and their customers. Conversational points centered around: business startup, maintenance, qualities needed by owners and mangers to sustain a profitable business and the role as an investor.
Startup Capital
The question was asked how Mr. Fisher raised the startup capital and the answer was surprisingly shocking. The Fishers sold there dream house and began renting a small house right around the corner. It was with this money that the first store was opened. The decision to use this form of income was based out of necessity. This was due to the Fishers not having any capital assets to use for a loan. Mr. Fisher expressed that “it takes money to make money,” and that is the most difficult hurdle when forming a business.
Mr. Fisher used a local bank to finance short term loans that would help supply cash flow for the day-to-day operations and often to help pay income taxes. Stress was placed on an open communication and relationship between a business owner and a lender. Even more stress was placed on the relationship. Mr. Fisher states, “Most small businesses will start out with a bank loan. It is important to use a local bank.” Mr. Fisher’s reasons are simple. A lender must understand the nature of the borrower and the nature of the business. Within large lending institutions it is difficult to obtain timely information and responses to loan requests due to the different parties involved in the process. Mr. Fisher encourages the use of locally owned financial institutions because of the market understanding that they will have. Further more, the ability to have your requested handled by someone with instant authority is important because it helps develop the relationship with the bank. Mr. Fisher used the bank that supplied the company’s short-term loans for many years to follow.
Within the Master of Science in Entertainment Business program through Full Sail, the thesis is based on the formation of a business plan. This plan is integral to the formation and maintenance of successful business. Mr. Fisher explained a question for creating a plan and, in turn, a business: How can I provide a service, enjoy doing it, and make money? His answer was, “find a service or product, either new or make one better, be willing to do what ever it takes to do it, and start digging.” His answer was similar to Rich Dad, Poor Dad. Rich dad explains why he likes Texans. Rich dad states, “When Texans win, they win big. And when they lose, it’s spectacular.” (Kiyosaki, 2000) It is perseverance that creates a successful business.
Maintenance
The maintenance of a business can be the most challenging, yet most exciting experiences. Mr. Fisher said, that a business could be “a lot of fun, but with a lot of heartache.” The key to understanding your business is to understand your market and your plan. His advice was to “know what’s going on” and “constantly reviewing your plan.”
A business owner must: know people in the industry, know the laws, and stay involved. Mr. Fisher did this by, 1: being involved in the various associations with in the state, county and state communities. These associations give market feedback that is imperative to the survival of the industry. If Mr. Fisher didn’t have an association in the area, he created one and ultimately helped create markets in areas that didn’t have pawn services. The creation of these associations also aided in garnering support from politicians. By having influence in the political community, laws are easier to create and change when necessary. And, 2: read. The information in trade magazines and publications are important because of information on market health and trends in the rest of the country and world. Mr. Fisher reads Forbes and the Wall Street Journal constantly. He said, “I would read about the large companies and try to model what they were doing. If it works for them, then it could work for me.”
Maintenance of a business requires constant attention to the business plan. Flexibility and commitment are the primary attributes when addressing problems and solutions. As a business owner “you worry about the business twenty four hours a day, everyday.”
Qualities of a Business Owner
Mr. Fisher said, “you either work for someone else or you have people work for you and neither is wrong.” This phrase rings from all facets of the business community and all throughout the textbooks in the Full Sail program. In Executive Leadership the concept of integrity overflows from everything that is read. It is Mr. Fisher’s integrity that has allowed him be successful. Success is understanding, nurturing, and believing in your employees. Mr. Fisher knew that the more he built an employee then the more productive his business would be.
Donald Fisher shared a story of his first business partner. A manager with the company was working six days a week. Mr. Fisher told the manager to start taking Saturdays off to have more time with his family. The manager, about two weeks later, approached Mr. Fisher and stated that he wanted to work six days in order to make more money. The manager’s perseverance led Mr. Fisher to offer the manager a partnership within the company. The manager became successful, as did the business, and Mr. Fisher eventually sold the store to the Manager. This perseverance on part of the manager and the integrity of Mr. Fisher to help build the manager created a symbiotic relationship that enhanced the business.
Investments
The success and wealth of Mr. Fisher grew out of the investments he made in his businesses. Through the sale of the various pawn chains, he created a new role for himself. Moving from owner to investor, Mr. Fisher how uses his experience as a vehicle for educating his investments and providing consultations for businesses involved in the associations.
Mr. Fisher’s decisions on investment are based entirely on the business plans provided. His investments are primarily pawnbrokers and real estate and small businesses. Emphasis on the business plan enforces the importance of quality research and planning. Primary information that is reviewed is the financial statements, specifically the balance sheet and income statement. Proof of a viable plan is the most important factor when deciding to finance a business. Mr. Fisher’s investments are also primarily business that were started by him, in which he sold and continues to consult.
Conclusion
“You have to do what ever it takes to be successful,” Mr. Fisher states over and over. The people involved in the company are counting on the business owner to provide and manage in a responsible and efficient manner. Integrity and the desire to build the employees within the company is the start to a successful business.
Reference:
Bergernon, Pierre G. (2002). Survivor’s guide to finance.
Mason, Ohio: South-Western.
Kiyosaki, Robert T. (2000). Rich dad, poor dad.
New York: Grand Central Publishing.
No comments:
Post a Comment