The Story: Businessman goes from hospital orderly to CEO of $5 million healthcare products company, resists pressures to offshore manufacturing.
Mike Murphy floated through life for a while, having held several interesting positions, including janitor’s assistant, busboy, cook, welder, Maytag repairman, hospital orderly and orthopedic technician. It was in those last two roles Murphy developed a passion for improving patient care, and he’s since gone on to found and build Comfortex, Inc., a Minnesota-based healthcare products company that develops, manufactures and distributes hospital mattresses and injury prevention products.
Murphy’s chalked up a few life lessons while living the American dream of business ownership, and he gladly offers them up for evaluation by aspiring entrepreneurs.
1. Find something that really gets your goat, and build a better mousetrap.
“You always hear, ‘Find something you’re passionate about and learn how to make a living at it,’” says Murphy. “While working in hospitals, I saw so many opportunities to make patients more comfortable and to reduce injuries sustained from falls common among older and less-mobile patients. It really bothered me there weren’t, at that time, concentrated efforts to reduce falls and other injuries sustained during hospital stays.” Comfortex, Inc. broke into the hospital market with an innovative low-pressure mattress called the Rest-Q. Its success was due in large part to improved materials, lower costs and an unprecedented 15-year warranty. “Most importantly, the Rest-Q achieved my goal of improving patient care by reducing the risk of infection through the use of non-porous surface materials, stiffer beveled edges to keep patients from rolling out of bed and low-pressure foam to prevent bed sores.”
2. Always look forward.“
When I founded the company 25 years ago, there weren’t that many players, and mattresses are still the foundation of our business,” says Murphy. “However, recognizing the needs of an aging, yet active, population, we’ve expanded into injury prevention products, such as the Landing Strip.” The Landing Strip is an ultra-thin bedside floor mat that absorbs and dissipates the impact of a fall. Customers, both in long-term care settings and hospitals, have seen marked reductions in fall-related injuries after adopting Landing Strips as part of their fall prevention strategies. According to Murphy, the company is currently developing other injury prevention products to help older people maintain mobility while reducing the risk of injuries. “We’re expanding our product line based on the needs of an aging population,” says Murphy. “Not only is this a solid business practice, but we are potentially helping people live longer, more actives lives.”Murphy cites studies that show 20 percent to 30 percent of those who fall suffer injuries that reduce mobility and independence while increasing the risk of premature death. It’s estimated that the cost of a non-fatal fall averages more than $20,000. Nationwide, that ads up to more than $20 billion annually.
3. Commit to your employees, your community and your country.
“We’ve been encouraged to manufacture our products abroad to save money,” says Murphy. “However, having lived the quintessential American dream myself, I have no desire to take jobs away from the U.S. economy. Our commitment to our employees, our community and to our country is that all Comfortex products be manufactured 100 percent in the U.S. simply because it’s the right thing to do. Furthermore, we work with partners who share this philosophy.” Resisting the temptation to offshore is difficult as it’s a popular trend among U.S. manufacturers from auto companies to information technology services. Murphy remains steadfast, however, in his commitment to promote the American dream.
4. Find creative outlets.
Murphy found growing a business a life-encompassing endeavor, as most entrepreneurs do. However, he’s found an outlet through writing about his overall life experiences. “Have you ever made a comment and then a few minutes, hours or even days later wished you would have said it differently?” asks Murphy. “I know the answer to that question is always yes, so I wrote a book filled with examples of what I did say and what I wished I would have said later.”Murphy’s book, appropriately titled What I Meant to Say, is a warm, encouraging walk through his life’s big and little moments, ranging from a night out with his wife to the wedding of his daughter.“The book was a great exercise in remaining grounded and close to the people I care most about in the world,” says Murphy. “It’s both an outlet and a tribute.”
5. Surround yourself with like-minded people “
All the people I work with share my passion to improve patient care,” says Murphy. “We’ve had the amazing fortune to find each other and have the excellent opportunity to improve lives while still making a great living. From product development to sales and distribution to customer services, our work focuses on what’s best for the end-user of our products.”Murphy jokes he only hires people smarter than he is, a quality he ascribes to Comfortex. President Andrea Terek. Regardless of IQ, it is clear Murphy continues to build upon a visionary strategy to ensure the long-term success of Comfortex, Inc.
I came across this interesting video at experiencecurve.com and I think it shows great insight as to the new and different behaviors of students who WILL be our future leaders and employees. Are you ready for them? Take a Look.
Fear, uncertainty and doubt. We are surrounded by it. We are in recession, isn’t it awful, we have to do something, the world is going to end.
You would think that we have never faced economic cycles or variation before.
I believe strongly that we move toward what we think about, both individually and collectively.
Those who would benefit from a recession (politicians, etc.) are spreading FUD as fast and as deep as they can because if we collectively believe it then it will be so.
And with the FUD being spread of course our government is running to the rescue. (It is an election year after all)
To me the US Government in this scenario is financially behaving just like the mortgage bankers they criticize, let’s give them more money, don’t worry about paying it back, things will get better and you will be able to afford it when it is due.
After all whats $150 Billion out of a $2+ Trillion expense budget!
Keep in mind 2007 Q2 GDP growth was 3.8% and Q3 was 4.9% according to the US BEA. Q4 is not available yet and 2008 is forecast to be somewhere around 2% GDP growth. The last definition I heard of recession is two consecutive quarters of negative GDP growth.
A recent guest on Small Business Trends Radio, Dr. Scott Shane, Professor of Entrepreneurship at CASE Western Reserve University shared with us that the industry you start a business in has WAY more impact on a startup’s success than the talent of the entrepreneur.
Speaking as a 20 year entrepreneur focused professor and an angel investor as well he definitely has the research, facts and experience to back up his statement.
We all have the same, all our money won’t buy us more. Sometimes we don’t use what we have wisely, need a reminder, a boost of attention, then check out this clip I purchased some time ago.
I intended to use it within a church fundraising campaign but was never able to. I think the content is powerful and the way it is delivered is clever.
One of the key responsibilities of a CEO is what I call Environmental Scanning, meaning that you must consciously be aware of things external to your business. This scanning can provide insight as to market threats and opportunities.
I ‘Stumbled Upon’ a website recently called 192021.org that provides an overview of the rapid urbanization that is occuring on our planet and what this new organization is doing to provide communication about this trend.
The premise is that 19 cities will have populations over 20 million in the 21st century and this change will change our lives in ways we are unprepared for. As an entrepreneur in change is opportunity.
I am working on a project right now where I am implementing a new sales compensation plan that will better align with our new ‘Customer Intimate’ orientation. That being we serve a well defined set of accounts or markets and we bring them solutions, not products, not transactions but complete answers to their problems.
So I want to change the compensation plan from one of reward on margin per transaction to one that rewards revenue and margin for assigned accounts or markets along with a slightly higher base pay. My aim is to keep cost neutral about to about 10% of revenue.
The issue is that a few members of the organization don’t, can’t or won’t believe that a sales professional will work as hard if they are not ‘transaction’ rewarded and I have a problem with that. If that was truly the case then we should put all employees on a transaction reward program and leverage a portion of their pay, just like the sales team.
Side Note: I worked for Digital Equipment Corporation for 17 years and there was never a commission program and the company grew from a couple of hundred million to over $14 B in revenue and the sales teams worked very hard with only ‘base pay.’
I just don’t believe it is true that ’sales’ people are wired any different than the rest of us, at least the kind I think are successful at the sales model we want to use. They/we/I have a work ethic where we work hard and effective at whatever our job may be, minimum wage in a retail store or a CEO.
I want sales professionals whose passion it is to ’serve others’ by listening to client issues and then working with our firms resources and our partners capabilities to craft and implement ‘valuable’ solutions that provide an economic return to all parties, the client, ourselves and our partners.
It is tough to do the above when you need to get a transaction sold in order to put bread on your families table because that is how you make money.
It seems like every year at this time my person to person spirit grows stronger. I generally have a little more spring in our step and a smile on my face.
I also find myself continously reflecting on the past year(s) and doing what I call ‘wisdom development’ meaning that I make conscious some of my lifes lessons and human operating paradigms. (Had to throw in some business lingo) Below are some widom thoughts that ring true with me as written by Andy Rooney.
I’ve learned…. That the best classroom in the world is at the feet of an elderly person.
I’ve learned…. That when you’re in love, it shows.
I’ve learned…. That just one person saying to me, ‘You’ve made my day!’ makes my day.
I’ve learned…. That having a child fall asleep in your arms is one of the most peaceful feelings in the world.
I’ve learned…. That being kind is more important than being right.
I’ve learned…. That you should never say no to a gift from a child.
I’ve learned…. That I can always pray for someone when I don’t have the strength to help him in some other way.
I’ve learned…. That no matter how serious your life requires you to be, everyone needs a friend to act goofy with.
I’ve learned…. That sometimes all a person needs is a hand to hold and a heart to understand.
I’ve learned…. That simple walks with my father around the block on summer nights when I was a child did wonders for me as an adult.
I’ve learned…. That life is like a roll of toilet paper. The closer it gets to the end, the faster it goes.
I’ve learned…. That we should be glad God doesn’t give us everything we ask for.
I’ve learned…. That money doesn’t buy class.
I’ve learned…. That it’s those small daily happenings that make life so spectacular.
I’ve learned… That under everyone’s hard shell is someone who wants to be appreciated and loved.
I’ve learned…. That to ignore the facts does not change the facts.
I ‘ve learned…. That when you plan to get even with someone, you are only letting that person continue to hurt you.
I’ve learned…. That love, not time, heals all wounds.
I’ve learned…. That the easiest way for me to grow as a person is to surround myself with people smarter than I am.
I’ve learned…. That everyone you meet deserves to be greeted with a smile.
I’ve learned…. That no one is perfect until you fall in love with them.
I’ve learned… That life is tough, but I’m tougher.
I’ve learned…. That opportunities are never lost; someone will take the ones you miss.
I’ve learned…. That when you harbor bitterness, happiness will dock elsewhere.
I’ve learned…. That I wish I could have told my Mom that I love her one more time before she passed away.
I’ve learned…. That one should keep his words both soft and tender, because tomorrow he may have to eat them.
I’ve learned…. That a smile is an inexpensive way to improve your looks.
I’ve learned…. That when your newly born grandchild holds your little finger in his little fi st, that you’re hooked for life.
I’ve learned…. That everyone wants to live on top of the mountain, but all the happiness and growth occurs while you’re climbing it.
I’ve learned…. That the less time I have to work with, the more things I get done.
Many of us middle-aged souls spent a good chunk of time honing our public speaking or simple presentation skills at a Toastmasters meeting, usually over breakfast or lunch.
Toastmasters is an organization designed to help individuals improve their speaking skills. One of the things I remember most vividly learning was the need to eliminate fillers in our speaking, sounds such as “Um, uh, you know, like” and so on. I specifically remember this because, one it is important but second our club had a fine for every filler used of 5 cents and someone was always the “uh” counter and at the end of the meeting would report out on the count and collect the fines.
In listening to Hillary Clinton doing some recent ad-hoc, impromptu interviews and question sessions it is clear she did NOT attend Toastmasters. She would go broke at our club with all of the fines from the speech fillers she uses.
We learned that fillers are a device used by us to allow us time to think of our response, behind every filler is a forced pause to our allow our brains to formulate supposedly coherent words. We also learned that the best filler is silence, it is ok to pause quietly while thinking, it is much less distracting to the listener.
Maybe Hillary has so many fillers because she has to think really hard about her answers, I would hope that by now she has been asked everything at least once and her answers would come more naturally. Maybe she could hire someone from Toastmasters to travel along with her and help her in this regard.
Anyway, if you need help to improve your ability to speak effectively then you might check out Toastmasters, I am sure there is probably a local chapter near you.
Fear, uncertainty and doubt. We are surrounded by it. We are in recession, isn’t it awful, we have to do something, the world is going to end.
A recent guest on 
