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Paula Gregorowicz, owner of The Paula G. Company, helps you discover and successfully create the work you are meant to do in the world. Through the p...
 
 
 
 

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What the Amish Can Teach You About Running a Successful Business

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Road sign in Amish country

Even though I live only a few hours from Amish Country in Lancaster, PA and regularly purchase baked goods from an Amish family that comes weekly to a farm I frequent, I never gave much thought to their successful business track record.

I first became aware of their enviable success record via the Time magazine article "Management, Plain and Simple." The article poses the question -- is it their lifestyle or the way they work that is responsible for their success? They are not just a little more successful than the average U.S. small business, they are exponentially more successful:

A new study in the Global Business and Economics Review says the failure rate of Amish businesses is less than 10% in the first five years, compared with 50% of small businesses in the U.S. over the same time period.

In the age of social media and technology at every turn, why is it that people who travel by horse and buggy, don't have phones in their home and shun electricity succeed in business at a rate that leaves the rest of us in the dust? So much for the social media pundits' advice that if you aren't online, your business doesn't exist.

This question intrigued Erik Wesner, a former sales manager, enough that he lived and worked among the Amish for three years and wrote the book Success Made Simple: An Inside Look at Why Amish Businesses Thrive. While I have not read the book personally, it certainly is getting widespread coverage and sounds like a solid read for any business person.

CNN Money talked about "Why Amish Businesses Don't Fail" and the secret is?

Wesner, who worked in business management and sales before immersing himself in all things Amish, thinks it lies in the culture, which emphasizes "qualities like hard work and cooperation." Networking through Facebook doesn't exactly have the same community-building pull as teaming up with neighbors to build a barn, and few Americans these days can point to a childhood where they awoke regularly at dawn to milk the cows.

To me, it sounds like true connection and serious discipline. These people stick to what they know (you don't see the Amish branching out into Web 2.0, right?), and they deliver consistent, quality products and services. I know I have never purchased baked goods from the Amish that weren't made with real ingredients (no high fructose corn syrup there). Everything I have ever purchased simply tasted heavenly.

The Amish build their businesses on a strong foundation of their personal values. They know what is most important to them and don't compromise it. In this book review of Why Amish Businesses Thrive, we see this example of how the Amish are not willing to compromise their integrity or their values:

Here is my favorite point from the “Doing Unto Others” chapter.

  • The customer is always right – even when he’s wrong.  But only to a point.  He stops being right when you have to compromise your integrity or sacrifice your resources beyond a predetermined acceptable level.

They have also mastered the art of single-tasking, which means they are focused and present while working in their business and living their lives. I have to believe this is part of their secret to being at peace with their work and their lives as well.

Within their many business success secrets lie their willingness to be uncomfortable, feel the fear and yet move forward in faith. So many of the rest of us don't seem to want to get even a little uncomfortable, yet alone do what it takes. This is summarized well in "Amish Small Business Secrets Revealed":

Fear and faith. Although Amish business owners feel the same responsibilities and fears as other business owners, their faith keeps them grounded.

This may also explain why their businesses are fairly recession-proof, and they aren't casualties with highly leveraged financial lives.

One thing that rings out strong and clear, no matter what venue I go to and encounter an Amish business, is that they are fundamentally pleasant and seem to be at peace with who they are and their choices. They don't try to be who they are not, and they don't apologize for being who they are.

While we're not likely to see an Amish CEO of a top company

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Erik Wesner 5 pts

I appreciate the kind words on Success Made Simple. Writing and researching it was a fascinating experience. While it is true that the Amish to non-Amish comparison is not exactly apples to apples (ie there are some advantages-and disadvantages exclusive to Amish culture) there are a number of principles and ways of thinking that work universally.

One of my favorites is the emphasis on humble leadership: "I would never ask an employee to do something I wouldn't be willing to do". Amish bosses tend to walk the talk.

Derek Raptor 5 pts

When considering the success of the Amish their exemptions from some of the laws that regulate other small business' should be considered; tax exemption, child labor and others.

But at the same time they're not looking to make a killing in a year or two and then retiring, and as is pointed out they go with what they know.

MiriamAnton 5 pts

This is so interesting! Growing up in Philly, I was always intrigued by Amish culture which seemed so other-worldly and exotic - such a stark contrast to the grit and pace of the city. What is fascinating here is that the Amish have their own core values of community, hard work, simplicity and trust literally baked into their design. While mainstream businesses have to construct and build a brand, the Amish seem to own one by default. At the risk of being reductive and lumping Amish businesses together here... their aesthetic is tied to nostalgia and quiet in an age of fast paced frenzy. If you think about it, as insulated as their culture may appear, the Amish represent (as a brand) a level of authenticity most businesses can only hope to achieve.

croqzine 5 pts

Great article, thanks! I think we could all benefit from simplifying a bit and learning what we can from the solid business practices you've highlighted here!

www.croqzine.com/blog ( http://www.croqzine.com/blog )

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Kathleen W. 5 pts

I also live close to Lancaster (Berks County, actually) and agree with what you've written here. I find their work ethic inspiring and I often see the local Amish/Mennonites pulling together as a family to run their businesses. I've even seen young kids out in the fields picking things to sell at their roadside stands (not child labor, mind you). It seems like work really matters to them, unlike the way most Americans treat their jobs.

Katydid and Kid

http://katydidandkid.blogspot.com

paulag01 5 pts

Thanks for all your comments..

Laurie I think I read in one of these articles I linked (or maybe another in my research) that they can use certain amenities if it is something the customer expects. So if they have a physical store, there would be electricity in that store. That sort of thing. The ones I've done business with have usually been at markets where it is outside, etc. but I have been at some stands where it is inside a building in which case of course they have lighting and also refrigerated display cases for certain items.

It certainly points to the value of being conscious of choices.

Paula Gregorowicz
The Paula G Company
http://www.thepaulagcompany.com

Learn 5 Steps to Move from Fear to Freedom ( http://www.thepaulagcompany.com/feartofreedom ) (free)

lauriewrites 5 pts

I don't live too far from Lancaster either, Paula -- I've been up there a couple of times for a conference. Of course this year I got the best sushi there that I've pretty much ever had in a restaurant so times they are changing. :) Anyway, I read somewhere -- and I'm not being specific here at all, I'd google around if I had the time -- that it is considered acceptable for the Amish to benefit from the skills and technology of English as long as they themselves do not POSSESS the gadgets or processes or whatever. Or maybe it was that they can have, say, a cell phone, because it's necessary to keep up with commerce. I think it had to do with the greater good of the community.

I agree with the points here, too. There is something to be said for simplicity and purpose. I just remember reading something along these lines and thinking it was interesting.

Laurie
LaurieWrites ( http://lauriewrites.typepad.com )
Photos on Flickr ( http://www.flickr.com/photos/rubyshoes )

Melissa Ford 5 pts

I taught a class in the sociology department on the Amish and it's sort of amazing to see community thrive without the dependence on the technology we use to "bring together community." I think it's one part hard work and then one part people outside the community coming to support the work because they believe in the product.

Melissa writes Stirrup Queens ( http://stirrup-queens.com ) and Lost and Found ( http://lostandfoundandconnectionsabound.blogspot.c... ). Her book is Navigating the Land of If ( http://thelandofif.blogspot.com/ ).

JennaHatfield 10 pts

I went to college in an area populated by a large number of Amish. I now live in an area where they live in the countryside outside of our city. Which means? I get awesome treats at the Farmer's market. Breads, cookies, veggies, fruits, flowers. AMAZING.

Jenna Hatfield (@FireMom ( http://twitter.com/FireMom )), from Stop, Drop and Blog ( http://stopdropandblog.com ) and The Chronicles of Munchkin Land ( http://thechroniclesofmunchkinland.com ), is a freelance writer and newspaper photographer.