Around this time each year, you’ll see a news story about a farmer with a record-sized pumpkin, one much bigger than anything grown by his neighbors. How did he do it? How did he find success in the pumpkin patch?
He did it by nurturing his best pumpkin, a principle that can be applied to any small business. That’s the message of The Pumpkin Plan, a new book by Mike Michalowicz.
To make your business thrive, you must weed your garden, like a good farmer. This means removing the pumpkins that are too small or not worth your time, so as to focus on the one great gourd that can grow bigger than all the others.
In other words, the Pareto Principle. 80% of your sales come from 20% of your clients. The key to growth is to focus on the most profitable activities of your business.
(I satirize this idea in my novel Don’t Mess Up My Block, where my narrator chooses to eliminate all distractions – even family – to concentrate on getting rich.)
The most interesting section of The Pumpkin Plan is where Michalowicz talks about failure. So many entrepreneurial titles gloss over the hard work of building a business – yet, this is the norm. Each year Americans start one million new businesses, nearly 80 percent of which fail within the first five years. Michalowicz frankly discusses how his company was eating him alive, consuming every waking hour and ruining his family life. Only by concentrating on what he did best was he able to escape this trap. He learned to weed out the activities that weren’t worth his time so as to focus on his best customers.
Michalowicz is a serial entrepreneur who started his first business at the age of 24, moving his young family to the only safe place he could afford – a retirement building. With limited resources and no experience, he systematically bootstrapped a multi-million dollar technology business, sleeping in conference rooms to avoid hotel costs. After selling his first company, Mike launched a new business the very next day, and in less than three years, sold it to a Fortune 500 company. In the Pumpkin Plan, he describes his life story as well as the stories of similar entrepreneurs.
This is not a book of theory. It’s chock-full of real-world examples from people who have had to sell products, make payroll and keep themselves sane. Chapters expand on the Pumpkin Plan concept, with checklists on how to discover what you do best and how to get back on track if you stray.
What’s your Great Pumpkin? This Halloween, find out with The Pumpkin Plan.