By C. Ray Johnson

This publication starts off with the principles of commercial good fortune: the advance of a enterprise philosophy that works for you, and the strategic program of that philosophy in all parts of your undertaking.

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In today's successful businesses, great people, good strategies, guaranteed customer satisfaction, and even some of the off-the-shelf management programs such as re-engineering, are important elements. But if you pick the wrong business, good companies and great people will fail. Select an industry in decline and even the best strategies will be meaningless. Target customers who cannot afford to buy, and customer satisfaction will be irrelevant. Pick a business where suppliers or buyers have too much power and your re-engineering effort will fail.

Match your funding needs to the specific loan products offered by various lending institutions. To get their money, learn their rules and present bankers with "zero risk" opportunities. Page 10 Discipline 7: Cash Management Cash is king. No cash, no company. End of story. Discipline 8: Tough Times and Turnarounds Survival displaces all other rules of management during tough times. Survivability depends on cash, credit, and product viability. See Discipline 7. Concentrate resources only on core opportunities.

When Michael expanded his operation, he attempted to duplicate his original concept. Eventually he opened 11 stores in mostly urban locations. Business was good for a while. But his success brought competitive challenges. First, other appliance chains expanded into his territory. That hurt margins. Then he faced competitive challenges from specialists who competed in only one or two facets of his business. That hurt volume. At this point, Michael realized that just being an honest, fair, and somewhat crafty businessman was not enough.

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