PPB July 2021

Think Red Flags: A Proactive And Profitable Approach For Your Small Business The simple but effective method of “red flagging” is a way of thinking that will become your greatest business asset. by Walter Hill, Jr. This article is an excerpt from Think Red Flags , a 210-page book published in May by Walter Hill, Jr. An accomplished businessman, Hill was CEO of Los Angeles- based distributor Icon Blue from 1998 through its merger with distributor PromoShop in 2018. Read more about Hill on page 67. I t hit us one day like a proverbial ton of bricks. Although we had thousands of competitors in the promotions industry, many of themmuch larger than us, very few businesses had achieved the levels of efficiency and profit that we had attained. Even companies far bigger than us could not match our performance or profitability. And so, we asked ourselves the obvious question: “What makes the difference?” The answer came back quickly: Our Red Flag approach gives us a huge edge. We knew almost from the beginning that Icon Blue was onto something important with Red Flagging. We also recognized that if you’re doing something that works, keep doing it. Countless times in the promotions business, we had incidents where Red Flagging became crucial to our success. “But will it work in my industry?” someone asks. “We don’t do promotions; we make educational apps. How could Red Flagging work for us?” The Red Flag approach is not a rigid system so much as a focused way of thinking. Think of it as systematic mindfulness trained in a certain direction, not a rigid 1-2-3 step system that must be followed in order. Anyone can learn and grasp its processes and then apply them in appropriate and potent ways to their own business for better performance and profitability. Regardless of your own industry sector, what important tasks must you efficiently get done to achieve your goal? These are your Red Flags. Ask The Right Questions To better understand what Red Flagging can do for you, make a list of all the reasons why you want to start a business (or are operating the business you currently lead). Take a few minutes to compile your list, then come back and continue reading. Of the reasons you just listed for starting or operating a business, which of the following did you include? • Make a profit • Provide customers with services or products that represent real value • Provide secure employment and future opportunities for staff • Achieve financial success for myself and my team • Become an asset to my community • Share the benefits of my success with the less fortunate • Gain more control over my own destiny Unless you are highly unusual, I expect that more than one of the reasons named above made it onto your list. And if they did, then your next question should be, “How do I achieve these things?” To find good answers to the key issues you face in business, first you need to ask the right questions. Red Flagging goes far beyond identifying and avoiding potential problems in your business. It also involves developing a matrix to establish clear guidelines for what you need to do to avoid a problem and accomplish your goals. You need to address key elements of your business process, and it’s not terribly difficult to identify the key 64 | JULY 2021 | THINK