Successful entrepreneur, political activist, small business adviser, film maker, and founder of Tweezerman, Dal LaMagna, was kind enough to take the time to answer a few questions about his inspirational and practical entrepreneurship guide book Raising Eyebrows: A Failed Entrepreneur Finally Gets it Right.
Dal LaMagna shares his inspiration, his misfortunes, his mistakes, and his triumphs in building a successful company in the beauty industry. He also points to his conviction and commitment to responsible capitalism.
What was the background to writing this book Raising Eyebrows: A Failed Entrepreneur Finally Gets it Right?
Dal LaMagna: Ten years after I had graduated from the Harvard Business School I could not afford to attend the 10th Year Reunion. Frank Suttell a classmate and friend had announced to the class that I had cause its average income to drop $80. I only made $2,500 that year - painting and odd jobs. I had failed at numerous attempts to start a business. I assumed I suffered from some tragic flaw and left Venice Beach California, where I was living, and returned to Long Island, New York to live (for free) with my mother and younger sister. As an exercise I wrote up a chronology of all my business failure. I thought it could be a book. I called it Failing To Get Ahead. When I finished it 300 pages later I realized that people would not be very interested in a tale of woe unless there was a success at the end. I shelved the book. Twenty-five years later after I sold Tweezerman for millions I decided to finish the book. That took another six years.
You founded a successful company called Tweezerman. How did you get that idea for a business?
Dal LaMagna: One day my backside was covered with splinters. Read the book if you want to know how that happened. I was looking between my legs in a mirror, at my butt. I had a tweezers in one hand and a needle in the other trying to take them out. I couldn't even get one. I thought if the tweezers were itself a needle I would easily grab the splinters. I went to the drug store in town to buy one. They didn't have them. Nor did the local hardware store. I was at the end of my rope living in Venice Beach, California and - see above - moved back to live with my mom. I borrowed my sister's bike and found a job at an electronic company located in the neighboring Industrial park. The workers were picking up capacitors and diodes with needle pointed tweezers. They looked exactly how I imagined they should to work as splinter tweezers. I bought several from the purchasing director; packaged them as splinter tweezers; and that launched the business.
As an entrepreneur, what lessons have you learned about creating a successful start up business?
Dal LaMagna: Find something you can do with the money you have or can easily get. Focus on on idea. Don't expect to make a million dollars overnight. Don't overreach. If your friends think your idea is stupid, they are probably right. Don't spend any money on your business unless you are forced to. Buy things used. You can find anything you need - almost - on Craigslist. Don't fear failure. Get over it. Fear success - make sure you want the life you will have when you succeed.
All growing businesses need employees. What advice do you have for employers in creating people policies?
Dal LaMagna: Pay attention to your gut feeling when you are hiring people. Remember they will be in your life every day. If they don't click with you don't hire them. The first person you will hire is your assistant. They must be organized. I followed my candidates to their car and if their car was a mess I didn't hire them. When you do hire them have a trial period of at least one month - meaning you can let them go for any reason during the first month. Take care of your employees and they will take care of you. I empowered my employees. if you want to hear more go to www.askDal.com.
Dal LaMagna (photo left)
Many business people experience difficulty with debt, revenue, and cash flow. How can a business person better manage their money and finance their company without a crippling debt load?
Dal LaMagna: Keep track of all your expenses. I now use Quickbooks for my record keeping. Run profit and loss statements every month. Remember, there are three basic functions you need to finance - the product or service, selling it, and running the company. Balance your spending among these three things. Don't buy anything new. Don't build infrastructure until you have to - e.g. run your business from your house or garage until you get it running.
Have you got a few do's that every entrepreneur should consider adding to their business policy?
Dal LaMagna: Do write down all your agreements with everyone you are engaging in your business. Tell the truth. Be patient.
Are them some don't's that business people should avoid doing; or stop doing?
Dal LaMagna: Don't exploit anyone. The Law of Karma will bite you back. Don't fire people unless a second person in your company (assuming you have more than one) agrees. Don't gamble. Running an expensive ad to see how it might work is a gamble.
Capitalism has taken a few lumps in recent years, as many business models have failed, workers have been displaced by off-shoring, bad management has been rewarded, and bailouts have become the standard. How can a business person be a responsible capitalist today?
Dal LaMagna: Take care of your employee=, your customers, your vendors, and shareholders and they will take care of you. Give your employees a share of the profits yearly (I gave 5%); make them part owners (at the end mine owned 20%). Give 5% of your profits to charities that you and your employees select. Pay a living wage. Provide health insurance (if you can't afford full blown insurance, have a policy with a high deductible, so employees are covered for catastrophe.
What is one piece of advice you would give to any current or would be entrepreneur?
Dal LaMagna: Read my book Raising Eyebrows: A Failed Entrepreneur Finally Gets it Right.
What is next for Dal LaMagna?
Dal LaMagna: I am working as a small business responsible capitalist activist. I am a trustee and major funder of BGI Bainbridge Graduate Institute, a graduate school awarding MBA's in sustainable business. Recently, I became a managing part of IceStone a Brooklyn based manufacturing company that make counter tops out of recycled glass and cement.
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My book review of Raising Eyebrows: A Failed Entrepreneur Finally Gets it Right by Dal LaMagna.
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