Enterprise Building Challenge Stories

One of the reasons the tire business was wobbling was because collections were uneven—some customers paid their bills, others didn’t—but Fulton also had an issue with overhead costs, mainly labor. It was painful. He couldn’t keep all 12 employees, and he was forced to take the necessary step of trimming several jobs. Quickly, Fulton had to assess the skill of the workers and make decisions.

Fulton next focused on customer service which, he said, was “awful” inside the company. He started from scratch teaching his front-of-the-store people how to interact with anyone who came through the doors, how to win back customers, and how to get referrals.

Tim took another look at marketing and jazzed up the approach. He held a Ladies Car Care Clinic for female customers one weekday evening at the store and served wine & cheese. Not only was there a terrific response from customers, but the event was covered by the local newspaper, as well as in a national industry magazine. 

Slowly, revenues came back. The business was not only saved, it thrived. The shop was renovated and another location was opened. The Fulton business was successfully sold five years later.

Fulton went through another challenge in 1992 when Hurricane Andrew roared through south Florida and did $27.3 billion in damage. It destroyed Fulton’s home in Homestead and the office buildings where he had his successful travel agency. Instead of taking insurance money for home and business, and leaving south Florida and its cantankerous weather, Fulton rebuilt both home and business.

It was another win.

“Failure has never been an option for me,” Fulton said.

His experience in small business is one of the reasons Tim excels in executive coaching, leadership development, and entrepreneurship with his firm, Small Business Matters. 

What else matters to Tim? Here is a Q&A on select topics.

Who had the most influence on your career?

"In my youth I was always looking for different ways of making money. I had a paper route in the afternoon, I cut neighbors lawns on weekends, and I sold number stickers and candy at school. I was fascinated as a child at all the different ways one could make money. I was a young entrepreneur.

"My mom, Dorothy Fulton, was the best conversationalist I have ever seen in my entire life. She found even the most boring stories fascinating in her own way. Her listening skills were amazing as she always made me feel as if I was the most important subject in her life when speaking with her.

"My dad, Robert Fulton, was the general manager of the largest tire distribution in Florida. He taught me great lessons in business and leadership. As a leader, he was tough, yet compassionate. He was fearless, yet highly strategic in his business decisions. He was highly respected by his team and his competitors.

What was one of the more difficult parts about saving the tire business that sticks with you even today?

“I had to decide pretty quickly who was going to stay and who was going to go. We weren't going to be able to keep everyone there, so I had to make a quick assessment of the talent that we had and who I wanted to stay with us going forward. And then I think I met individually with each of them and I was very clear about what we're going to do and what their role was going to be going forward, and what my expectations were of each of them going forward.”

What is the blind spot that pops up more often than not for entrepreneurs, something they don’t see coming?

“I was guilty of this myself and that is you imagine that once we're in business, and we have gotten some traction in the business, and we've kind of figured out a fit between what we're selling and who we're selling to (product market fit), that it’s all going to get easier.

“And yet, the reality is from what I have experienced and there is a lot of research backing it up, is that it never gets easier. It actually gets harder and harder as the business gets larger and larger. So that's what a blind spot looks like. It's easy to get fooled by that.

What is the lesson for entrepreneurs on dealing with constant changes in technology?

“I'm a good example because I consider myself technophobic. I've always seen technology as an enabler, but I never wanted to be in a position where it's going to make or break my business. I wanted to use it as an accelerator to get me wherever I'm going to try to get there faster and more efficiently.

“Second, I've never been afraid to outsource, either the use of technology, or the development of technology, and bring in someone who understands something like a customer relationship tool, or help me with QuickBooks, or understanding my finances through a digital tool. So, as a small business owner, you have got to look for people who are really good at using the technology, and then bringing them on either as a contractor or a partner, even as an employee.

“One of the big lessons for any entrepreneur is to understand your strengths. ‘What is it that I'm good at? What is it where should I be spending my time’. For me, it was not studying technology.’

What about paying for the cost of technology?

“It's not at all unusual for small businesses in their first couple of years to not afford the most expensive technology, or to hire the best tech person. The alternative is to bring on a kind of new technology as needed, perhaps through a contract with professionals on a part time basis. Sometimes, rather than purchasing it, you look to share or lease the technology on an as needed basis. That's a way of managing the cost of technology.

What gets left out of the business plan?

“One is that people fail to take a really good look at the competitive landscape. Sometimes we focus so much on what's inside of our business and our people and our products and resources that I don't think we spend enough time looking outside of the business, particularly at the competitive landscape. The worst thing I can hear from an entrepreneur is ‘we don't have any competitors’. There's no such thing as a business that has no competition. A thorough competitive analysis is something that I always look for in the business plan.

“Another thing business owners don’t do is develop and articulate what's referred to as ‘The strategic intent of a business and the three components of strategic intent’.

“First, ‘What are our core values’? Second ‘What is the mission, or purpose of the business and why do we exist, and why are we here’? And then the third is ‘What is the long-term vision for this business? Where are we headed? What's our destination?’ Some people refer to it as a North Star. What's this business going to look like when we're done?’ 

“The question I asked frequently to relatively new business owners is, ‘What does success look like?’ And too often, we fail to begin thinking about that.

What's the best advice you've ever received about tackling business related challenges?

“ ‘Life on the high road’. That was a brilliant, and yet so simple piece of advice I got from a mentor when I was in Florida. He was a retired Navy captain, and a banker.

“When you are new in a career and young there will be temptations to take the easy route, or to do something that might compromise your values. I went to him for advice one time and his advice to that particular problem was ‘Tim, the only thing I can advise is to always take the high road.’

“With any decision, there's a distinction between doing the right thing, taking the high road, or taking the low road and maybe the more expedient thing.

How To Decide On The High Road

When Facing Big Challenges 

Why do entrepreneurs and business people struggle with change?

“One of the best books that I’ve read in the last decade was Mindset by Dr. Carol Dweck, a professor at Stanford. There are two different mindsets that people have. One is a growth mindset, a desire to learn, to better understand, to expand ourselves on a regular basis, to always be exploring and asking questions. And then there's a fixed mindset. And a fixed mindset is, essentially, ‘I know just about everything there is to know I'm not going to learn much more, I’m not going to grow much more, and I’m not going to take a lot of chances’.

“Entrepreneurs tend to have a growth mindset. They understand they know just a little bit of everything there is to know about growing their business and being successful. You need an awareness that comes with the growth mindset and be willing to question yourself, to question others, to read. One of the first things I ask all my clients on a regular basis is ‘What are you reading?’ Reading is one way to expand our universe in terms of knowledge.

"And I ask them ‘Who have you met recently? Who may be someone who doesn't agree with you, someone who challenges your ideas, that causes you to think differently?’

Why do you think others struggle getting results when taking on their business challenges?

“Unwillingness to ask for help. Fear. Fixed mindset.

“You need an awareness that comes with the growth mindset and be willing to question yourself, to question others, to read.”

How To Ask For Help

What core message do you have for tackling their next big challenge?

“Do your best.

What advice can you offer others about action steps to be conscious of when taking on any challenge? 

“Understand J Curves. Do a pre-mortem. Ask for help.

Tim  Fulton's Passion...

Tim Fulton can be reached at www.SmallBusinessMattersOnline.com