Seth Godin might be wrong

In response to his recent post about foundational modern business elements, I think I’m going to have to disagree, or at least comment on, one of Seth’s remarks.

“For example, the Scotch tape people at 3M can’t do #5, because of the structure of retail distribution and the way they mass produce and can’t track who is buying what.”

Balderdash. Perhaps they aren’t as agile, but they can private label their products, and WalMart has special arrangements with almost all their suppliers, so I find it hard to believe 3M wouldn’t be party to that. There’s just too much money to ignore.

Seth’s article is strong, though, and highlights some very powerful idea that any entrepreneur or business owner can start using right away.

To this, I would also add the necessity of creating a cash reserve. Cash flow is important, but a cash reserve (especially in hard economic times) keeps you from going the way of a company like GM. And for entrepreneurs, it’s highly unlikely you’ll be getting a multi-million dollar bailout anytime soon. Release yourself from debt sooner, and you’ll have more freedom to take advantage of great growth opportunities that come your way.