TEB Book Review: Pumpkin Plan by Mike Michalowicz

If I could tell you that within 30 seconds of meeting someone, you could determine if they are a good fit to work with you. Would you believe me? What about if I told you that there were people and businesses out there that desperately needed the value you provide through the product or service you deliver; would you believe that? Ok, what if I told you that there are some companies that have such raving fans that they will wait in a line for days, just to be among the first to purchase their new product. Is that believable?

As unbelievable as this sounds, I know it is true. But you have to really want to discover what makes your “perfect customers” perfect. Once you know that, you can start to understand what it is they crave and need. Then, you have to have the creativity and courage to transform your company so that it satisfies those needs (even if your perfect customer doesn’t know what those needs are).

I have been going through this transformation in my banking practice ever since I read The Pumpkin Plan by Mike Michalowicz. When I first heard of the book, I thought that it was a pretty wacky title of a book (fitting for a Mike Michalowicz book), but I was intrigued. I soon discovered that every entrepreneur can learn a lot about client selection from blue-ribbon winning pumpkin farmers.

Have you ever seen a 1,200-pound pumpkin at the state fair? It takes a very specific (Dill’s Atlantic Giant) type of pumpkin that has been nurtured and protected ever since it was placed in perfectly prepared soil. The devotion to THE PUMPKIN and dedication to eradicate all distractions is key to success.

I literally could talk for hours about how this book has make my practice more successful and enjoyable, but I want to share how I discovered what makes my “perfect clients” well, perfect.

At first, this was a difficult exercise for me, because I feel that I have a real connection with all my entrepreneurs. But this is was a truly eye-opening exercise. Mike has developed a process that walks you through how to rank your clients based upon current (and future) revenue (profitability), likability (removing those that you send to voicemail every time you see their number), their ability/ willingness to communicate with you, and other key characteristics. The clients that you enjoy working with them most (and are most profitable) will jump off the list. You can then start to discover what similar characteristics they have (industry, demographic, ideological beliefs, age, hobbies, etc). One word of warning, you must be honest and don’t let your emotions cloud your judgement. I already admitted this was hard for me; in fact, I had to go over this list 3 times to narrow it down because I kept thinking “well, they are not too bad” and “I really like them”. Remember, this is not a list of your friends, this is a list of people that you want to grow your business with.

For some entrepreneurs, this leads to industry specialization, for others it is a list of key characteristics that their perfect clients share. I fall in the latter category, as I do not have the luxury of servicing only a specific industry (after all, there are only so many manufacturing companies in the Bryan/ College Station, Texas area), so I came up with characteristics of my pumpkin, er perfect, client.

 My pumpkin client is:

• 30 to 60 years old
• 2+ years of business ownership experience
• Revenues of $2 million+ and they are committed to continued revenue growth
• Willing to learn and listen. I don’t expect them to do everything I recommend, but I don’t work with people that think they are the smartest people in the room.
• Members of some type of mastermind or peer development group. This can be a formalized group such as Entrepreneurs Organization or an informal meeting of like-minded entrepreneurs.

Now, that does not mean that I only work with clients that meet all of the above criteria; but it does help me identify clients that I can focus my efforts on. After all, I have built my banking practice to specifically serve these types of clients. As a result, the entrepreneur that fits all of these characteristics get the most out of working with me, and I get the most out of working with them.

These entrepreneurs tend to be strong individuals that are growing successful companies, creative in their approach to problem solving, strapped for time, and have an understanding of value received. I enjoy being around them because they allow me to prove myself worthy of being part of their circle of trusted advisers and by extension part of the rhythm of their business. I can then understand where they are leading their company and advising them on the best way to utilize their banking relationship. At times, this includes educating them on how the bank views specific risks compared to how they view the risks. All of this leads me to be a better adviser and advocate; while at the same time living my commitment to be concierge banker.

Concierge banking means that my team is constantly obsessing about how to give my entrepreneurs back time (by focusing on the banking so that they can focus on the business), knowing their business well enough to anticipate their needs, and communicating with other members of their circle of trusted advisers to ensure that I am giving the best advise to help them achieve their goals.

I would encourage every entrepreneur to read The Pumpkin Plan on at least a yearly basis. This not only reminds entrepreneurs to grow their practice with only pumpkin clients, but also allows you to assess the value that you bring to them, as this changes from time to time. For example, giving back time is one of the greatest values that my entrepreneurs get from me, but as the banking industry embraces technology, I am not going to be able to provide the level of convenience they demand (I am fast, but Siri is faster). So, I have to be sure that I understand where my entrepreneurs need help and find a creative solution to provide the to them.

Being an entrepreneur is one of the most difficult and demanding things you can do. The good news is that entrepreneurship today is a team sport. Hit the connect button on LinkedIn or Facebook NOW and together we will work towards hitting your 10-year target. Along the way we will increase your profit, strengthen your leadership skills and define your strategic vision. This will lead to confidence in your path, freedom to dream up bigger targets and a strategic banking relationship. When we connect, tell me about your pumpkin client.

Greg Martin is an entrepreneur’s insider to the banking industry and passionately believes that every person was uniquely designed for a higher purpose and calling. Greg guides entrepreneurs in defining and achieving their purpose and calling. His deepest passion is living life with his wife and their wonderful son.