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In a series of “quick-read,” colorful chapters, Tompkins vows to help small business readers spare the pain he inevitably faced. From employee considerations and financial planning to long-term growth and succession goals, The Insurance Wars promises real-life examples and advice designed to help small business owners avoid entrepreneurial pitfalls and prosper.
The Insurance Wars words of wisdom
- If your marriage is shaky, probably having your wife help you in business for no wages is a bad idea.
- Do not count on a loan until you are certain you have one.
- Network, network, network: when you are done doing that, network some more.
- Do not ignore good technology, even if you are hard up for money.
- Advertising can be fun and does not have to cost you an arm and a leg.
- If good employees show up on your doorstep, hire them, even if you do not know if you can afford them.
- You can still do handshake deals in the Old West.
Following are excerpts from the book:
Tough times, tough budget
Father-in-law’s loan saves Western Agency
...Heavy-hearted, I scheduled an appointment with the "new" banker and went up to see him. I told him how I had gotten Western Agency, Inc., lean and mean: how our sales, income, and profitability were up; how we were writing more premium with fewer employees; and how we finally had the agency on a solid course for recovery. I showed him we had $90,000 in earned commissions coming in within a few months. Once more I offered to bring my CPA in to help explain my numbers if need be. With a face of granite he said, "But you still owe us the same amount of money you did six years ago."
...Bankers are like blind bus drivers. You, the borrower, are sitting behind them (Bankers) in the bus, shouting directions as to when and where to turn, knowing these idiots could kill you at any moment. No way, however, will they let you drive the bus. You know nothing about it, right? There we sat with a vibrant, excellently managed agency, moving ahead with strong sales, at a time when all other agencies in town were reeling and losing premium; and this stupid, cold-hearted fool was turning me down for a loan...
...My next best bet was Linda's parents, Don and Darleen Ballantyne. Don, who passed away this past fall, was not just my father-in-law; he was a good friend of mine. A tough, self-made millionaire oilman, he was one of the best people I have ever had the privilege to know. Also, contrary to all the jokes about mothers-in-law, Darleen and I did then and do now get along great. What super people! I got hold of Linda, and she and I went up to her folks' place.
...My voice was shaking as I told Don I needed to talk to him. He said, "Sure, let's go for a drive." I do not really remember what we talked about until finally I blurted out, "Don, I need some money." He did not ask me what for or for how long. He did not remind me about having too many toys. All he said was "How much do you need?" I told him $10,000. Without batting an eye he simply wrote me a check for $10,000. At least for the moment, he and Darleen had saved Western Agency, Inc. We paid them back 49 days later with interest.
Persevering amidst the storm
(especially when there could be big money in small places)
...A big fat low pressure weather system had come into North Dakota that morning, and the front end of it was due to be in Minot late that afternoon. The difficulty with flying in the clouds in North Dakota that time of year is that often those clouds in the spring of the year cause severe icing conditions. As any of you pilots know, ice and small planes do not mix; this can be a fatal combination. I did a quick flight plan calculation that morning at the hotel that told me I had better be in the air and headed home by around two that afternoon in order to be safe. I headed for the airport and checked the weather. As I saw the front approaching Minot, a chill shot through me. I was too slow getting out of Rapid City and the front was moving too fast. At any rate, the route to Bismarck, North Dakota, which is 100 miles south of Minot, looked fine, so I filed an IFR flight plan and headed in that direction.
...A huge danger, however, was that as I said before, in North Dakota in the spring many times rain in the clouds will turn into ice when it hits your airplane. In icing conditions the worst place to be flying into a large low-pressure system is in the northeast portion of it. Where was the northeast portion of this big low? Where else? Right over Minot, my destination. My plane was not equipped to fly in icing conditions. If I had had a brain in my head, I would turned back and stayed in Bismarck a couple of days. What did I do--what else? I kept going..
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