Every once in awhile, thoughts coalesce and observations come into a focus that had not been there before to illuminate insights that had been dormant and awaiting the introduction of a catalyst to come to life. While reading an industry publication covering the retailing industry (www.morningnewsbeat.com) published by Kevin Coupe out of his Darien, CT location, I came across three retail industry stories he was covering that caused me to pause, ponder, and process what implications there are for all businesses, and especially small businesses.

The Jaws Pause

Mr. Coupe, a movie aficionado, reflected on the passing of Roy Scheider, who expertly played the role of the Police Chief, Martin Brody in the movie, Jaws. Using some of the lines of dialogue within the movie, Mr. Coupe pointed out two very key points businesspeople must keep in mind in order to compete effectively.

The first was when the Police Chief first sees the shark in the water and comments from the vessel being used to track the shark, "You're gonna' need a bigger boat." Brody recognizes, to comedic effect in the movie, but with a serious lesson underpinning the comment that using conventional wisdom, thinking based on past experiences, and failing to see things as they truly are, instead of how we believe they should be - will lead to being at a distinct disadvantage against competitive forces. While the movie pits man against shark, the same point could be made in looking at the business

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landscape. Business owners have a tendency to believe because they once knew, that they currently know:

- Their customers' wants and needs
- Their competitors' strengths and weaknesses or vulnerabilities that can be exploited
- Their suppliers' capabilities to provide products, services, deliveries, support, etc. to them.

Unfortunately, the dynamic nature of business is such that what once was is no longer necessarily true or relevant. Holding on to past views of the marketplace and not refreshing one's views by critically scanning the horizon to identify not only current threats, but equally as important, future threats or even opportunities for the business is tantamount to trying to chase and capture a Great White Shark in a small dinghy. For businesses to succeed, and especially for entrepreneurial businesses to remain competitive, it may not come down to the size of the boat metaphorically, but as Mr. Coupe points out, it may mean having to be, "more nimble, maneuverable, and able to do things the competition cannot."

The article also spotlights another quote from the character, Martin Brody that has tremendous implications for small business owners. Although a self admitted non-lover of the ocean, when questioned why he chooses to live on an island, Brody comments, ""It's only an island if you look at it from the water." The point Mr. Coupe makes and the one that is essential to internalize is that it is a matter of one's perspective in how we frame our perceptions of the world around us.

The point to be made for businesses is to not look at one's business from only one's point of view, especially if it is based on a self perception, but rather to see the business as others view it. A business owner may see their manufactured products as better than competition, but until customers come to share that view and consent to pay for them, the business owner is only convincing him or herself of the merits of the product differences.

The Customer Ponder

Widely written about in the business press, and also covered in the same internet publication as the previous point is the apology offered by Wal*Mart stores for a clerk's indiscretion in insulting a customer because the paying customer wore a veil across her face in keeping with Muslim tradition. The clerk was alleged to have commented about the veil by requesting that the paying customer not "stick her up." I purposely emphasize that this was a paying customer because the clerk clearly acted inappropriately and should be dealt with accordingly. However, it does also bring up a point to ponder - does your business truly recognize who its customers are, and who could or would be a customer if properly marketed to by the business? While this example is culturally based and likely the result of prejudice, fear, and ignorance; the deeper point remains that had the clerk owned the business him or herself, there would be entire segments of the marketplace that would not be accessed by the business, and certainly would not choose to frequent this business if the reaction or response they received was akin to the one documented.

Extrapolating more broadly, business owners are well served to constantly be identifying potential new customers, uncovering different uses for their products and services, and not relying on the same customers year after year to continue to purchase from the business. If there is not the addition of new customers over time, a business cannot sustain growth as the existing customers will either eventually leave the marketplace, choose other suppliers or vendors within the marketplace, or cease to require the products or services being offered by the business. Customers are under no obligation to return to the same businesses time after time and to expect that they will without sufficient reason or incentive is a gamble that has very poor odds of succeeding. A business can only succeed if it can do one or more of the following:

-Sell different things to existing customers
-Sell same things to different customers
-Sell different things to different customers.

Expecting the same customers to buy the same things over time is not reflective of the needs of the marketplace in most situations as new products emerge, new needs develop, and current customers migrate to other options.

The Pepsi Process

To reinforce the enlightenment that occurred as I read the internet publication, Mr. Coupe then reiterated a story that had been covered by www.cnn.com about the CEO of Pepsi, Indra Nooyi. Ms. Nooyi is unlike most CEOs of U.S. based businesses in that she is a woman, born and raised in India, and admits that running a corporation, even one as large as Pepsi, is not her final step in her personal career. Ms. Nooyi views the role of corporations, and her role as the CEO as one of being more socially aware. In fact, she is quoted in Mr. Coupe's article, taken from the CNN interview as saying, "'If all you want is to screw this company down tight and get double-digit earnings growth and nothing else, then I'm the wrong person,' she says. 'Companies today are bigger than many economies. We are little republics. We are engines of efficiency. If companies don't do [responsible] things, who is going to? Why not start making change now?'"

If a large company such as Pepsi can recognize that a distinct point of difference they can have from their competition is to be responsible to the world in which we all live; it surely should galvanize small business owners, who are in much smaller and more nimble crafts on the competitive waters than Pepsi's own cruise liner to make much sharper turns and either outrace the Great White Sharks out there, or at least find calmer waters in which to swim and fish for new customers.

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David Zahn is a serial entrepreneur and consultant to Fortune 100 businesses (www.zahnconsulting.com) as well as entrepreneurial startups (www.startupbuilder.com).

The opinions expressed are the author's and not necessarily those of connpost.com. Please direct comments to cdauber@ctpost.com.