American business is dysfunctional. Small and medium-sized companies, the backbone of capitalism, have been lured into a misconceived and dangerous operational model. It works like this:
- Step 1: Invest blood, sweat, tears, and money to start a new business or to innovate a new product or service.
- Step 2: Sell to the biggest customer possible.
- Step 3: Maximize the volume of sales to that big customer.
- Step 4: Deal with the inevitable customer demands that are sure to follow.
- Step 5: Try to keep quality and service at a high level while earning less and less.
- Step 6: Lose money.
- Step 7: Wonder what went wrong while trying to keep your head above water.
Much of what drives the high failure rates of businesses, along with the lack of success ...