The following article was originally printed in the March issue
of Axiom's newsletter. To view the newsletter in its original format
visit the Axiom web site.
Fred DeLuca is one of the two founders of Subway,
the international sandwich chain that has seen
phenomenal growth in the last two decades. This
easy to read book chronicles some of the company's
startup activities and is filled with anecdotes and
case studies of other famous and not so well known
entrepreneurs.
There are two audiences that I think can get a lot
from this book. The first is people considering
opening their own business. There is a tendency to
think businesses require tens or hundreds of
thousands of dollars in
financing and thick business plans to get
started. This book should put those misconceptions
to rest if you have them.
I don't want to give the wrong impression. One of
the biggest mistakes we see is undercapitalized
businesses, and DeLuca himself devotes a whole
chapter
to the maxim "Never Run Out of Money." Still, there's
more to a successful business than financing and,
you'll have to understand that before you start out
on your own.
The second group that should read this book is
business owners envious of competitors who
somehow, someway manage to be
more successful with less financing, smaller product
lines, inferior locations, etc. If you find yourself
asking "how
did they do that?" then this book will get you back to
the basic ingredients of success that are often
forgotten after expansion, relocation or a period of
fast growth.
DeLuca outlines 15 lessons he thinks are essential to
small business success. They are...
- Earn a Few Pennies
- Begin with an Idea
- Think Like a Visionary
- Keep the Faith
- Ready, Fire, Aim!
- Profit or Perish
- Be Positive
- Continuously Improve Your Business
- Believe in Your People
- Never Run out of Money
- Attract New Customers Every Day
- Be Persistent
- Build a Brand Name
- Opportunity Waits for No One
- Take the First Bold Step
I have given this book to a few people that are
starting or are thinking about starting their own
business. I read it before I struck out on my own and
it helped give me some peace of mind that I was
thinking about the right things. There is something
about DeLuca's story telling style that proves both
instructive and inspirational.
Interestingly DeLuca's personality and
the story of Subway are not exactly the best
examples of sound business planning. The fifth rule in
particular seems to apply to DeLuca and those who
usually leap before they look probably won't stop
long
enough to read his book. In that sense there may be
some disconnect between DeLuca's personality and
that of his audience.
However, the book provides a great alternative
framework
for developing a business plan
that I've used with a few people who don't relate
well to
the traditional analytical business planning approach.
In that sense DeLuca's 15 lessons provide a great
outline for turning someone's passion into a viable
business that both customers and bankers can relate
to.