Question: I hear that some of the best advice in managing my small business comes from a book called "The Art of War" by Sun Tzu. Can you share some of his advice translated to managing my business?

Answer: "The Art of War," written in the 6th century B.C. by Sun Tzu was a treatise on war, but his wise teachings are directly translated to owning and managing a business. His tips were based on strategy not weapons. Business is a game of strategic thinking. Peter Johnson, a California-based strategic marketer, said if you think and act strategically you can eclipse even the largest competitor.

Advice from Sun Tzu:

Make a plan. “The general who wins the battle makes many calculations in his temple before the battle begins.” Make a plan. Don’t wing it and plan as you go. Sit down and think through your value proposition and what need you are fulfilling. For whom are you fulfilling the need, or who is your target customer? How will you communicate with them? What channels of communication is your target customer tuned into? Make a budget that is the financial interpretation of your plan. In terms of cash, what will it take to launch and operate your business? Successful small businesses are built upon the foundation of a sound plan.

Assess your competitive landscape. “If you know your enemy and your know yourself you need not fear the results of a hundred battles.” Spend the time before investing your hard-earned money or that of friends and family to understand the competitive environment you will be entering. Know your potential customers. Are there enough of them to create and sustain your business? Who are your competitors? What do they offer that you don’t? What are their competitive advantages compared to yours? Do on-the-ground research and validate that there is an adequate market for you to engage enough customers to create a profitable enterprise.

Plan first, then act. “Ponder and deliberate before you make a move.”

Perform exceptional service. “Supreme excellence consists in breaking the enemy with no fighting.” Before you open your doors or launch your online business, determine how you will “delight” your customers. Customers who are just satisfied are as likely to leave you for a competitor as one that is not; however, those who are delighted become fanatics — loyal followers — and will recommend you to others. Determine what your customers want and then exceed every expectation.

Build your customer base through referrals. “Opportunities multiply as they are seized.” Outstanding customer service will generate referrals. You cannot depend on all outreach marketing to grow your business. You have to have clients telling others they need you, too. The momentum you achieve from gaining referrals can be sustained over a long period of time. But you have to ask for referrals. When you treat them like gold, they will multiply.

Grow only when the need requires it. “Great results can be achieved with small forces.”

Hire the best and treat them well. “Regard your soldiers as your children and they will follow you into the deepest valleys – look upon them as own beloved sons (and daughters) and they will stand with you even unto death.” As your business grows you will need to hire talent to support your mission. Focus on becoming a leader of a team. Care about them and they will care about your business.

Lead by example. “A leader leads by example, not by force.”

As a leader, you have to set the example. When you create the culture of your business, you establish the values that define who you are to both your customers and your competition. If promptness is a value that defines you, then you need to be on time to work, for meetings, to appointments. If taking the “high road” in client interactions when there are disputes is important to you, then you have to set the example to show your team the way. If lifelong learning is a cherished value that defines your brand, then sharing with your employees what you are reading, hearing or seeing sets the example.


Use alliances and strategic control points in the industry to “shape” your opponents and make them conform to your will. Changing the rules of contest and making the competition conform to your desires and your actions will shape the way you and your competitors face one another. It means taking control of the situation away from your competitor and putting it into your own hands. You do this by creating strategic alliances with complementary business that change the landscape of competition. By building a strong web of alliances, the moves of your competitors become limited.

— Contributed by Marc L. Goldberg, certified mentor, and the teachings of Sun Tzu. To change the way you compete, contact SCORE Cape Cod and the Islands for free and confidential mentoring at capecod.score.org, capecodscore@verizon.net or 508-775-4884. We go where you are.