Inner circles give small
businesses an edge

Jack Welch, chairman of General Electric Co., meets quarterly with his corporate executive council to review and discuss the problems of the 12 business groups that make up the $79 billion conglomerate. When a challenges arises within one of GE's subsidiaries, "work out" teams involving managers, shop workers, suppliers and customers gather to hammer out the fastest and most cost effective solution.

    That's swell for Welch, who can call upon an army of 235,000 employees, has his own little university for training management and who can bring in a consultant from any of America's finest management schools.

    Maneuvers like that would be out of the question for Maureen Gray, president of KBM Building Services, or for Karel Guardado, president of We Kare Therapy Registry, or for Ron Britton, owner of Electronics Marketing Group. These owners of San Diego-based small businesses often have to look outside their companies to get the business counsel they need. Certainly they don’t have the kind of cash that GE does to spend on corporate strategy.

    However, thanks to Gary Hawk's Inner Circle, Gray, Guardado and Britton have access to tools and concepts similar to those GE uses. Call it "work out," as GE does, business encounters or whatever, it amounts to brainstorming sessions with like-minded, experienced, similarly motivated people.

    In recent years local small businesses have had an increasing number of options for networking, business development, and outside advice. Students at some local business schools, for example, will help entrepreneurs develop business plans, marketing plans or other management tools. Chambers of commerce all over the county, the Convention and Visitors Bureau, the Small Business Administration and even local governments regularly hold training courses for specific disciplines.

    What makes Inner Circle different is that Hawk himself is an entrepreneur. An attorney with 30-some years experience working with growing businesses, including franchise operations such as Nutri/Systems Weight Loss and Jenny Craig, Hawk can focus his accumulated knowledge on a single effort.

    "In 1994 I was trying to decide what to do with the next phase of my career," Hawk says. "I had two friends in Minneapolis who were members of Inner Circle there. They suggested I meet with Norm Stoehr." Stoehr is the Minneapolis-based founder of Inner Circle.

    "I sat in on one of his sessions and it was the most stimulating meeting I'd ever been in. There was the chairman of a bank holding company, a woman with a computer consulting business, someone who ran an ice cream manufacturing company — all such diverse backgrounds, giving each other such incredible advice," Hawk recalls.

    That year Hawk held his first Inner Circle here. At first he had only a loose affiliation with Stoehr's group in Minneapolis. Since then Stoehr has created a franchise network and Hawk is a franchise holder.

     The Inner Circles are small with only one member from each type of business. Hawk, as the facilitator, makes sure that the monthly, three-hour meetings stay on track.

    At the heart of it all, Hawk says, is vision:

    "At Inner Circle we help our members clarify their vision and stick with it," he says. "Yes, we also deal with mundane issues that come up when running a business, like how to find a lawyer in Europe, how to hire a new general manager, what to do when a business outgrows its key people, and so forth. We clarify gray areas. If things were black and white, our members could figure it out on their own."

    The monthly meetings are intense. In the first 90 minutes each member gives a progress report. If someone has a question or an issue to discuss, it is done at this time. With only 12 members, each has a chance to speak. Because the same group meets together every month, they get to know one another and become familiar with the businesses. Trust and honesty build.

    The second half of the meeting is the "vision quest." Once a year, each member must make a presentation about himself or herself, the company, goals and specific actions that are planned to achieve those goals. It is a "baby business plan" that requires preparation, including much soul searching.

    "We are really looking at who the owner is, what kind of things impacted them to make them what they are," Hawk says.

    In addition to the usual business-oriented questions, Inner Circle members zoom in on personal issues. "Is this really the right business for your skills and passions?" Hawk says.

    And, the painful one: What kind of things have you done to sabotage yourself in the past?

    "What’s exciting about the meetings," Hawk says, "is watching the ahas that come out of them."

    Hawk now has three groups — Mission Valley, Del Mar and Carlsbad — and soon will launch another Del Mar Inner Circle.

    Members, who range from single practitioners to owners with hundreds of employees, pay $4,000 a year to participate.

    Ron Britton, whose advertising and marketing company caters to electronic and software manufacturers, says he gets an extra, very practical benefit.

    "Gary Hawk maintains the hugest Rolodex I’ve ever seen. Whatever consultant you might need, copyright research, etc., he's got three of them right there to refer you to. He knows everybody in town who can help your business in quick ways."

    Hawk says Inner Circle has put him in touch with many skilled business leaders.

    "They're fun, they're witty and I get to hear some incredible ideas, see some incredible energy," Hawk says.

    Jack Welch says that with GE, he has tried to create a big business with the energy and innovative spirit of a small business. At Inner Circle, they do the opposite. Hawk tries to give small businesses some of the brain power and breadth that is associated with big business.

    Janet Lowe is author of several investment books, including "Value Investing Made Easy" (McGraw Hill) and "Warren Buffett Speaks" (John Wiley & Sons).