Six lessons learned, from a business master (Pat McGovern, International Data Group)

I’m trying to mix up my media diet these days and recently rediscovered the Financial Times web site. I must say, the quality of the FT’s articles is excellent, giving the Wall Street Journal and New York Times a run for their greenbacks any day of the week.

For example, there’s an excellent article today by Richard Waters with some incisive business tips from Pat McGovern, the 70-year old founder & chairman of International Data Group, one of the world’s most successful publishing concerns. Here are the key takeaways (with verbatim excerpts):

Don’t undersell yourself

“Double your price, make it $80,000, and then people will take it seriously”.

Stay focused on (and as close as you can to) your customers

“When we presumed our competition knew what the market wants and we imitated them, we typically had problems.”

Keep businesses small and nimble

“All of those management books are written about how you, as the manager, are the key person controlling everything: you’re a master strategist… it is great for the ego of the book buyer, but in reality, you can see that the best returns on capital are not achieved by bigger companies. They are achieved by venture capitalists, who are always starting small, passionate companies.”

Learn to delegate to your best staff

“It became my new philosophy: find a market, get a leader, give them the resources they want, then get out of the way and be a cheerleader.”

Aim for cash positive out the gate

From those first nine cheques for advance payment, all IDG’s businesses have involved collecting revenue before incurring costs, producing enough cash flow to save him from looking for outside capital. (The only up-front investment came from the sale of his car for $5,000, he says.)

Enjoy the journey

“I think the Buddhist statement that the journey is the reward is very true… When you’re doing something you’re proud of and happy to do, you’re having a great time. When you reach the destination, depression sets in because there’s nothing more.”

It’s really worth reading the whole shebang if you have time (it’s possible a subscription is required anything less than same-day content).