When Everyone Zigs... Zag
When I began the Tri-State Neighbor, a regional magazine for informed farm and ranch families in the depths of the farm depression in 1983, it was a bare bones start-up. I was a one-man show for the first nine months. My commitment and belief was high.
It worked. The magazine started strong and has moved at a gallop ever since. Ideally niched, it has provided valuable opportunities for our employees. It has also been effective for our customers, helping many of their businesses grow by redefining and broadening their geographical coverage. The regional concept of our magazine was totally new. We created and are effectively serving a unique regional trade area that allows advertisers to reach customers they couldn't efficiently reach before the introduction of our magazine. And it came to life during the worst cyclical downturn in agriculture since the '30s.
The Tri-State Neighbor is a classic example of contrary thinking. Agriculture was so depressed at the time that if I had gathered 100 people and told them of my idea, 99 of them surely would have told me I was crazy. In reality, only one person I shared the idea with thought it was a good one. His name is Frank Stinson, a highly successful auto dealer who taught me much about the power of regional marketing.
I remember a charity dance my wife, Lynne, and I attended between the time I decided to start the magazine, and when the first issue appeared. As is often the case, a friend asked what I was doing that was "new and exciting." I mentioned the concept of a regional magazine and shared my excitement for the idea. He caught my enthusiasm and asked why I thought it would work.
I recall answering, "Dick, I know it will. The market's waiting for it and I've done my homework." My "go against the cycle" intuition was yelling at me, and I went with it. I'm glad I did.
Bucking cycles is a profoundly important habit in building wealth, but it's not easy. Among those who do it poorly are managers and administrators who make their living concentrating on the business in front of them. Their close-in, internal focus isn't conducive to understanding the big picture.
On the other hand, entrepreneurial thinkers have an external focus, a higher awareness of the world about them. The entrepreneurial thinker isn't always smarter than the manager or administrator, just focused on more distant objects. External focus complements the entrepreneur's desire for change. The entrepreneur is thinking about creating another payroll while others are picking up their paychecks. This continual process of seeking change wears some down. If entrepreneurial leadership is present, however, change will occur. And change is at its best when it runs against a business cycle.
Contrary thinking is a powerful ally, helping one to lean into the wind while others are leaning with it. Contrarians buy stocks when others are complaining about the beating they're taking in the market. The contrarian startles the banker by wanting to borrow money to start a new business at the bottom of a recession. This is the same person who sells his stocks and his business to waiting buyers as the top of a cycle approaches. This is the person who is likely creating wealth. And he does it by zigging when others zag.