Emery Kertesz III. June 10, 1956-January 29, 2021
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When someone close to you dies, it’s difficult to accept that reality. I find myself mentally composing e-mails to my partner, Emery Kertesz, who died on January 29, 2021 at age 64.
That’s precisely what happened when I read about massive layoffs at Best Buy, the giant electronics retailer. In the two decades since Emery and I started our online electronics business on a shoestring budget, a host of giant competitors have filed for bankruptcy or ceased doing business altogether. The list includes Circuit City, CompUSA, Guitar Center, Fry’s Electronics and RadioShack, among many others.
Emery ran our company, which expanded into manufacturing its own line of electronics products.
Since our first year in business, we have been profitable. Even in 2020, when the pandemic hit, we continued our track record, although our revenues modestly declined.
I used to ask Emery this question: “How do you do it? Companies with far more capital, manned by the best MBAs in the world, are dropping like flies. What’s the secret sauce?”
In this article, I will share with you some principles that guided his management of our businesses. You may find them applicable to yours.
Emery had some great quotes that resonated with me. I call them “Emeryisms.” Here are some of them.
Where does your brain first go?
Emery was a believer in the value of intuition – especially his. Whenever we discussed a new idea, he would ask: “Where did your brain first go when you heard that idea?” It was his belief that wherever it went first was probably the correct answer.
I adopted that approach in all aspects of my life. It’s quite remarkable how accurate it is.
Drawing a bullseye
One of our biggest financial decisions was whether to manufacture a new product for our Pure Resonance line. It involved a meaningful investment in research and development.
When Emery introduced the idea of manufacturing our own product line, he said: “If we don’t sell the entire SKU (of the new product) before it hits our shores, I will eat the product.”
I asked him how he could be so confident. Here’s what he told me: “Dan, you know how to hit the bullseye every time? First you shoot the arrow, then you draw the bullseye around it.”
Before he recommended an investment in new product development, he had done such extensive market research that he knew there was a pent-up demand for it.
We have introduced 15 new products. They all sold out before the first shipment arrived.
Polishing the arrow
Emery likes bow-and-arrow references. Here’s another one: “There’s comes a time when you have to stop polishing the arrow and fire it.”
Emery understood that everyone wants reward without risk. No amount of research can provide 100% certainty that a business decision is the right one. As someone once told me, “90% is still an A.”
Too much analysis can be a killer in a corporate environment. We’ve all heard the expression “analysis paralysis.” Emery knew when it was time stop agonizing over a decision and implement it.
Not every decision he made paid off as much as we hoped, but his track record was remarkable.
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The value of preparation
One of Emery’s most memorable lines was: “If I’m going into battle with you, I will know what your ancestors ate for breakfast.”
Emery took nothing for granted. He prepared for every meeting, often writing out a script, complete with “what if” scenarios.
In the hundreds of important meetings we had with vendors and customers over the years, I never remember him saying: “I wasn’t prepared for that.”
After his death, many who interacted with him told me he had the best “vision” of anyone they had met. I don’t think it was his “vision” that set him apart.
It was his meticulous preparation.
Dan trains executives and employees in the lessons based on the research of his latest book, Ask: How to Relate to Anyone. His online video course, Ask: Increase Your Sales. Deepen Your Relationships, is in production.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.