Why did you become a small business owner?
I was an outside sales representative for an Indianapolis chemical company and joined Rainmakers to start networking. I realized I did not care for the outside sales job, but loved Rainmakers and all the entrepreneurs I met. They were so full of energy and ideas, and I knew they would support me in my venture to own my own business.

What did you do before?
Before the outside sales position, I had spent the last twelve years as a social worker and advocate in the world of public health.

What prepared you for owning and running a small business earlier in life?
I grew up having to be pretty intuitive, and I realized pretty fast that if I were to succeed, it would be all up to me.

What do you like about owning your own business?
The freedom and flexibility – making my own decisions and setting my own destiny.

What is difficult about owning your own business?
Two things – the lack of a steady paycheck and not having week-ends like I used to.

How did you get the specific idea for your business?
As a social worker, I worked with many pharmaceutical companies through their community liaison programs. I saw their need to have someone behind the scenes making everything come together, so they could concentrate on their programs. I did not know there was such a thing and began to do research – and figured out it was virtual assistance. I did not have the courage to venture out on my own, though, until my involvement with Rainmakers.

Why do you believe you will succeed?
I am a very competitive person with lots of compassion to help others succeed. I also have a tremendous support system – starting with my incredible husband and family and then some key business people who not only support me, but promote me often when they meet people.

What is the next step in your business?
I just relaunched my business. We are now a relationship management company helping businesses grow their business by leveraging and elevating their customer relationships. I am working on making this business a true business, which means playing more of an executive role and having my sub-contractors work on the projects.

What is your ultimate goal for your business?
When it all boils down, my business is a means to an end for me in the sense of helping me concentrate on what really matters in my life, which is my family. My goal is to have a successful business that one day I can walk away set for life and know that I helped make a difference in the world – be it helping other businesses succeed, so they can achieve their goals or starting a charitable foundation to help children become who they are destined to be.

Serina Kelly
Relevate
www.getrelevate.com
317-203-7740

Questions for Susan Robertson:

1, How is U3 differentiated from other local networking groups?
Unique3 offers Conference rooms in Indianapolis, Fishers & Noblesville. We are the most cost effective networking group only $99 for annual membership. We are a faith based group with a salvation message in our logo.
2. What are the benefits that members of U3 receive?
Our website allows members that are product based to upload their products directly to the website for sale. In addition they can upload their YouTube Video and banners.

3. What have you learned during the first year? With our event planning, we’ve learned how to organize an event better and gain successfully attract volunteers
4. What are you planning in the near future? We’re going to build our U3 Power Hours in Greenwood
5, How are you able to balance your work on U3 and your other job?
I could not have made U3 what it is today if it were not for our precious organizers Shelly Keyler, Geoff Heisey, Kimberly Finnegan, Lisa Worman, John Rollins, Sabrina Hill, Karla Shone, Melissa Hughes & Johnnie Firari
6. Describe the growth of U3 and how did you grow it?
We grew it by building a core group and appointing leaders, then working together as a team.
8. What are the geographical limits on U3 currently and what do you envision for the future?
We are Indianapolis and surrounding right now. We plan to stay only in Indiana for now.
9. Are you looking for persons or companies to collaborate with you? How will each side benefit?
We are always open to work with other business networking owners. We would collectively see how teaming together could be mutually beneficial
10. Who works with you and what do they do? Chris Naviaux is our CFO & business partner; Julie Strubble is our secretary; Tom with Inverted Staircase creates U3 videos; and Ron Sukennick does our public speaking.
11. Feel free to discuss any other aspect of things crucial to U3’s success; also, how do you measure success for U3?
We measure U3 success by the relationships that are created and formed with long lasting partnerships. We desire to see each member working together and referring business to each other.

Questions for Chris Naviaux:

1. Why did you see U3 as a good business opportunity?
Because as a business owner myself, I saw a lot of potential in a low cost/high payback networking model. Using this model would attract other business owners and allow for the expansion of membership
2. What are the long-term goals for U3 as you see them?
The long-term goals for U3 are to continue to provide opportunities for our members through advertising, business bashes, and power hours. As we increase membership, we will expand from the Indianapolis area
3. What will be the crucial factors for U3’s continued growth?
The crucial factors are to continue the relationships we have and form new relationships with other businesses to provide growth opportunities for current and future members at a low cost
4. Are there investment opportunities in U3?
At this time, the company is owned equally by Susan and myself. While straight investment opportunities are not available (short of selling portions of our share) at this time, U3 is always open to collaboration efforts with other businesses
5. Why is U3 different? What differentiates it as a networking group? (No cheating–don’t look on Susan’s paper; please answer this question on your own–thanks)
U3 provides a more open forum for networking without unneeded structure at a low cost. We welcome other networking organizations and keep our members’ interests at the forefront of everything we do.
6. What are your duties as Chief Financial Officer?
I am responsible for insuring the financial stability of U3, including growth plans for the future
7. How do your duties for U3 mesh with your other job?
While I perform CFO responsibilities running my own construction company, my duties for U3 are separate and do not overlap
8. Please free to discuss any other aspects of U3 that you feel are crucial to its current success and in the future.
Other than what has been listed, our volunteers and organizers have been crucial to our current success and future expansions. Susan and I would not be able to organize and hold the multitude of meetings each month without their help.

Thanks, Susan and Chris, for sharing with us.

Having recounted Turner Broadcasting’s history chronologically (see Part 1 and 2 of Ted Turner: Love Him or Hate Him), it is now time to analyze it, identify its components, and see how they were arranged to make the whole greater (sometimes Much Greater) than the sum of its parts.

To the casual observer (or even to many of the media establishment), Turner Broadcasting’s holdings did not look like much, especially early on. People thought that Turner was crazy or a poor judge of business value when he purchased his various properties.

Taken individually, his assets, inherited and purchased, initially ranged from promising to high-loss properties. However, when the components were combined, leveraged through Turner’s creative revenue streams, and harnessed to microwave and satellite cable distribution, they provided a potent source of income.

Below are listed (not unlike a scout for the Atlanta Braves might list and evaluate rookie prospects) the roster of the “businesses within Turner’s business,” with a succinct evaluation of their value when Turner acquired them.

1. Took over Turner Outdoor Advertising from father (billboards), 1963 – still on shaky financial ground 15 months after assuming control
2. Bought 3 radio stations, 1968-70 – performing modestly
3. Bought Ch. 17, WJRJ – losing $900,000/yr., 1970
4. Bought Ch. 36, WRET, in Charlotte, 1970 – it was sold to him as previous
ownership had hit hard times; Turner himself had to stage a “Begathon” to keep the station on the air
5. Bought Atlanta Braves, 1976 – baseball club was losing money and before his purchase was perhaps leaving town
6. Bought Atlanta Hawks (basketball), 1976, Atlanta Flames (hockey), and Atlanta Chiefs (soccer) – 3 sports teams were bringing in modest profits
7. Wins America’s Cup (Sailing), 1977
8. Started CNN – big investment, ongoing infusion of money for beginning years- 1980
9. Bought MGM (eventually just the film library) for $1.5 Billion – “experts” said he overpaid by $200-300 million, 1986
10. Sold minority position in Turner Broadcasting System to consortium of 31 cable owners with added conditions: limitations on Turner’s free-wheeling spending and 7 of cable owners on Turner Broadcasting Board, 1987
11. TNT launched, 1988 – Started with 17 million subscribers (most successful launch in cable history); within a year it had 50 million

The early holdings (except for the Outdoor Advertising business) looked dismal, but numerous synergistic effects began to take hold by 1980, and by 1989 they were paying handsomely. These strategic synergies can be summarized by the following:

#1: Cross-Promotion across holdings
A) Advertising
B) Publicity

#2: Revenue Streams (breadth and innovation)
A) Advertising
B) Direct-response ads (Ginzu Knives, Pocket Fisherman, etc.)
C) Payment by cable operators for his stations’ programming
D) Syndication of content

#3: Distribution multipliers
A) Microwave cable
B) Satellite cable
C) Regional sports network

#4: Purchased properties provided content for his stations
A) Sports teams
B) MGM film library

#5: Increasing returns (success of one enterprise catalyzes subsequent successes)
A) Subsequent networks and stations boosted by previous track record of existing Turner Broadcasting stations
B) Funding opportunities
C) Cable network options
D) Transponder position on the satellite

#6: Coalition
A) Consortium of cable owners bought minority share in Turner Broadcasting System
B) Turner spoke on behalf of cable industry in the media, before Congress

#7: Celebrity Status
A) Enhanced value of stations, sports teams through publicity
B) Enhanced relationship with cable distribution owners

Examined in detail, it is as if Turner put together these components so they would work multiplicatively like so many triple letter and double word scores in a game of “business Scrabble.” In brute detail below are listed the multiplicative effects generated across the separate components of his media empire

1. Outdoor advertising business he inherited from his father
A) Bought additional outdoor advertising firms (to become fifth largest in country)
B) Used this part of business as tax right-off for all of company (using accelerated depreciation)
C) Its profits fueled purchase of radio, TV properties
D) Used to promote his radio stations
E) Cross-promoted with Ch. 17
F) Used to promote his sports teams
G) Spun it off in the late 70’s

2. Bought 3 radio stations, 1968-70
A) Promoted them on any of his billboards that were empty

3. Bought Ch. 17, WJRJ, 1970
A) Put Ch. 17 on microwave cable – added 250,000 audience with first cable commitment (Teleprompter)
B) Up on the satellite in 1976
C) Revenue stream 1: ads (contacts made in billboard part of company valuable in making Ch. 17 ad sales
D) Revenue stream 2: direct-response ads (Ginzu Knives, Pocket Fisherman) ultimately made $1 Million sales annually
E) Revenue stream 3: payment by cable operators for content
F) Paid local rates for content despite regional and verging on national audience coverage

4. Bought Ch. 36, WRET, in Charlotte, 1970
A) Shared programming with Ch. 17 (movies he already had purchased)
B) Shared equipment with Ch. 17
C) Captured NBC affiliation, beating out longer-established rival WCCB through commitment to increasing signal strength and beefing up news department; then sold WRET’s inventory of sitcoms, movies, and cartoons to WCCB, who would have to make up for the lost network programming
D) Ultimately sold WRET in 1980 for $20 million (NBC affiliation was key to high value) to provide start-up funding for CNN

5. Bought Atlanta Braves
A) Use of content filled 3 1/2 – 4 hours of Ch. 17’s programming slots — Even if the Braves were losing a million dollars a year, they made up for it by saving on content acquisition costs
B) Fresh programming up against summer re-runs
C) Extra and different programming for cable subscribers paying $4.95
per month, so cable operator sees value of Ch. 17
D) Made sure Brave’s leasing price did not go up
E) Ensured that no else outbid him for Braves’ broadcasts
F) By buying the Braves, he not only made certain that “the content” did not leave town, but he was seen as a hero by fans for keeping the Braves in town
G) Syndication of Braves with regional network in Georgia, North and South Carolina, Alabama, Florida, and Tennessee (carried in 33 markets)
H) Atlanta Braves player had Channel 17 instead of just 17 as the number on his back (commissioner of baseball made Turner desist)

6. Bought Atlanta Hawks – use of content (3 hours every other day) in winter on Ch. 17; bought Atlanta Flames (hockey) – use of content on Ch. 17; bought Atlanta Chiefs (soccer)

7. Wins America’s Cup (Sailing), 1977
A) Celebrity status enhanced value of stations, sports teams through publicity
B) Celebrity status enhanced relationship with cable distribution owners

8. Started CNN
A) Ch. 17 (TBS) gave lift to CNN credibility with cable owners
B) CNN’s news quality ultimately lent greater credibility to Turner Broadcasting as a whole
C) Gave TNT boost when it sought cable outlets

9. Bought MGM (eventually just the film library)
A) Eliminated leasing expenditures for films
B) Basis for TNT content
C) Syndication revenue

10. Sold everything up to 51% to consortium of 31 cable owners
A) Gave Turner an inside position (more than he already had) with the cable owners
B) Turner and cable industry supported each other when asked to comment to media, Senate hearings

11. TNT launch
A) Most successful launch in cable history at that time
B) Cable owners who were on Turner board and OK’ed TNT’s development controlled 2/3 of all cable distribution, so that TNT’s successful launch was assured
C) Heavy use of MGM film library property gave distinctive programming with no outlay for its content
D) Advertising and cable subscriber fees combined to power sizable returns
E)

12. Direct-response ads (sell-through): Ginzu Knives, Pocket Fisherman, etc.
A) Proven income
B) Reduces need for salesmen to sell ads
C) Not limited by local advertiser-can be sold to anyone, as opposed to local car dealer ad – Combined with increased audience from cable to result in dramatic profits

13. Cable owners
A) Cross-promoted with them
B) On his board
C) He defended cable interests at congressional hearings

14. High-profile ownership: sports, broadcasting
A) Keeping Braves and Hawks in Atlanta was good PR for the whole company
B) Notoriety, combined with America’s Cup triumph lifted Turner into the “Big-leagues” quicker than without

Why examine these practices in so much detail? Because there are many clever tactical combinations that can be replicated in your own small business. You don’t have to use all of the component tactics, but you can take those examples listed and use them as a template to plan innovations in your business that can lead to those “double letter” and “triple word score” effects. Understanding what Ted Turner did can give you a sense of the deep structure of how businesses can make big leaps in profit by working smart, as well as hard.

In the next and final part of the Ted Turner Synergy story, I’ll suggest ways that the Turner scenario can provide a template for generating strategies for your small business.

These days you’d be hard pressed to find a man, woman or child who hasn’t heard of Walt Disney. For many, Walt Disney, the man, is an American hero and an icon of our times. His name is synonymous with wholesome family entertainment and good old-fashioned American values.

Today the Walt Disney Company is a commercial juggernaut which employs over 100,000 people and generates annual revenues of approximately 35 billion. But its beginnings were much more humble. Starting with only $3,200 borrowed from an uncle and his parents, who mortgaged their house for the money, Walt Disney had a unique idea for a cartoon and ended up with a dramatically successful film studio. Always the visionary, from his studio successes he branched out to theme parks and resorts, hospitality, cruise lines, merchandise, licensing and media networks.

All of Walt Disney’s works, from his movies to his theme parks, seem to be infused with an almost magical quality. The real magic, however, was Walt’s ability to attract so many talented individuals and then persuade and motivate them to consistently produce at the peak of their ability.

Walt Disney was a tenacious businessman who was very driven. He was notorious for having a robust ego and for being a difficult man to work for. Yet he had thousands of fiercely loyal employees. He set standards that required those in his employ to stretch significantly, yet they were happy to stretch, because they wanted to be part of the world Walt was creating. He built a company with a vision they were passionate about. Something they felt proud to belong to. He even renamed specific positions and gave them titles to reinforce their pride, like the famous “imagineers.”

Wilfrid Jackson, an animator and director with Disney from 1929-1959, encapsulated Walt’s crucial ability in his summation of the way Disney worked, “When he would get an idea for a cartoon, he would picture it in his mind so thoroughly and so completely that when the thing came out, if some part of it wasn’t quite the way he thought it was going to be, then it had shortcomings for him.” Disney imagined what could be and brought along with him his fellow “imagineers.”

Sure, it’s easy to see why talented individuals would seek employment with The Walt Disney Company now. It’s a fortune 100 company. But long before the company was a household name, Walt Disney attracted the best of the best to help with his endeavors.

And any entrepreneur can follow the same principles employed by Disney to attract and keep top employees… the same techniques he used to get them to do their very best work. The secret has everything to do with passion. People, as a general rule, are not terribly enthusiastic about jobs. “Job” is not a word that conjures much passion. Nor is “employee.” People are, however, passionate about and want to feel that their work stands for something and makes a difference… that in some small way the world is a better place because of their contributions. Give them that chance and they’ll thrive, giving you their best work in return.

Use this principle to your advantage. Make your business about something. Let it stand firmly for or against a position. Infuse a powerful philosophy into the core of your business culture. Even the most mundane jobs can be re-defined to become more prestigious and important. Walt made brick-layers “castle builders.” The same concept can be used by virtually any business. Imagine what can be and share that vision and passion with your employees.

Make your business a place top level talent would want to be associated with and be a part of. And that has little to do with compensation. Some (not all) will even accept less pay to do work they feel passionate about.

This is one of 186 strategies and applications that will appear in Putting Your Small Business on Steroids — 186 Strategies to Increase Your ROI, by John Gifford and Matt Hall. If you would like to be notified when the book is available, please send an email with the Subject: Book Notification to johng@indysmallbiz.com.

Matt Hall
Merritt Hall Insurance
(317) 247-7737
mhall@merritthall.com