Those who perform heroic feats for their customers don’t often call themselves heroes. In fact, some 800-Pound
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Gorillas try to escape the limelight out of respect for those they serve.
Blair Minton is an unassuming, genteel man who runs an incredibly successful company in a niche that very few others want to touch. Minton is founder and chairman of BMA Management, a company that owns and operates over 30 separate assisted-living residences in Illinois and Indiana. BMA is growing by double digits each year and enjoyed a 28 percent increase in 2008—a year in which no one else in the industry posted any growth. It has become the dominant company of its kind in the nation at providing housing for its specific niche: senior citizens with limited means.
“The big players in our business don’t want to get into the public aid business,” says Minton. Most every other assisted-living company goes after the cream of the crop—the private-pay or market rate residents who make more than $25,000 a year and can afford the housing on their own. BMA, however, has developed a formula that allows poorer people a chance to live in comfortable sur- roundings for 40 percent less than the government would pay for them to be somewhere else.
Occupancy has never been a problem for BMA’s residences. While the largest players struggle with 80 to 85 percent occupancy rates, BMA’s occupancy rate is above 99 percent. “There are always going to be poor peo- ple,” says Minton, matter-of-factly. “Our market segment is growing a lot faster than most others.”
Minton’s residences are state-licensed as residential care facilities and not as nursing homes, so they have far fewer requirements and reporting mandates. This structure is part of what allows them to operate more efficiently.
“We give people with little or no means of supporting
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themselves a place to live with dignity,” says Minton. “We give people their own clean, private place; we treat them with respect; and we give them the ability to live the way they choose.”
That passion to provide those less fortunate with some- thing better is what drives Minton and his staff. Minton is motivated in part because of what he saw his own mother go through several years ago as a traditional nurs- ing home resident. “The aides came in to give her a bath at midnight—because that was the only time they had avail- able to do it. She was a slave to their schedule. They didn’t care about her. There was no recognition of her as a human being; she was something that they had to deal with.”
Minton saw it as a problem that desperately needed fixing, and he and his company are doing it one resident at a time.
Although its profit levels may not be as high as its mar- ket rate competition, BMA’s business is booming, and that kind of volume is creating a healthy cash flow. “If you’re 75 years old and female today and your husband dies, there’s a 60 percent chance that you’ll be immediately thrown into a poverty-level situation,” Minton says. “The population is growing faster than we can ever handle our- selves.”
Indeed, part of BMA’s mission has been to open its books to other larger players to try to convince them to adopt its successful model. “There’s way more demand for this housing than we can supply, and we’re trying to show our competition how to do it,” says Minton. “Unfortu- nately, we’ve just not had very many takers.”
The bigger players are reluctant to place so much trust in the federal government to fund their ventures. This is also the principal sales hurdle Minton faces when he presents a new project to the attorneys of the banks and bond houses that finance his residences.
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“It’s my biggest sales challenge, bar none,” says Minton.
So he uses the following three strategies to sell his projects.
1. The Facts. In 2008, BMA saved the state of Illinois
$65 million in public aid as an alternative to paying a nursing home to take care of its residents. “The numbers will only be growing in the future,” he claims.
2. The Politics. Minton points out that as the num- ber of disadvantaged people grows in the United States, their voting strength grows, and public aid dollars will be at the forefront of sacred cows that legislators dare not touch for fear of falling out of favor with their constituencies. “AARP is the largest single voting bloc in America and will continue to grow,” Minton stresses. “Demand for assisted-living housing in the private-pay sector has all but dried up in 2009, but there is far more demand in our dis- advantaged sector, which is more than 60 percent of the senior population and growing.”
3. The Human Touch. His most convincing strategy is to show the attorneys the ways in which his prod- uct changes lives firsthand. Minton often takes the lawyers and bank executives on a tour of a nearby BMA residence. He shows them where their money is going and tells stories of how lives are being changed as a result of their investment.
One particular bondsman was so moved by BMA’s mis- sion that he took Minton aside after the deal had been done. “Blair,” he said, “this is the only project we’re involved with that I can honestly feel good about when I go to sleep at night.”
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A highly anticipated annual event is the BMA Bond- holders’ Thank-You Gathering, held in Chicago to honor those who are making the company’s residences a reality.
It’s a chance for BMA to retell its positive, life-changing stories, and to reinforce its investors’ decisions about their money and the good work it’s doing for others.
“People fly in from all over—from New York, California, or wherever they’re from—for this meeting,”
Minton says. “These are really busy people, but they want to hear the stories, what’s new, and what’s next. We love being able to reward their faith in us like this.”
Companies don’t necessarily have to have the highest profiles to qualify as 800-Pound Gorillas. Sometimes it’s enough to be a hero to those whose voices might never be heard at all.
TAKEAWAYS
Being a Hero to Those You Serve
Heroes are those in business whose meaningful actions affect others’ lives in a profoundly positive way. Those who deliver heroic kinds of products or services see their profession not as just a job but as the fulfillment of a much deeper mission.
The dominant players in any marketplace are ulti- mately the ones who are most helpful to others’
lives. Selling is helping, and the 800-Pound Goril- las in any category are primarily the ones who have found ways to help others best, whether measured by price, service, innovation, or any of several other criteria.
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Heroics don’t always equate to profitability. For many dominant players, the mission of the company is not solely driven by financial gain. Many 800- Pound Gorillas could make more money, but choose not to do so because of the reduced impact their product or service would ultimately have on others’
lives. By accepting less profit, these dominant players actually ensure their long-term success by provid- ing others the opportunity to win with them, which means more repeat business and more opportunities.
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