Mob Mentality 🤌

Faith here! I recently watched Netflix’s America’s Godfathers: The Five Families, and I can’t stop thinking about New York City’s history with the mafia. When I finished the series, I started watching another series on the mafia in Philadelphia – this is my entire personality now. As is our style at Pedal, I couldn't help but see the connections to retail life, and I've shared my observations below. Grazie and arrivederci!

Before we dive in, let me set the stage. The history of the mafia in New York City starts as an immigration story. In the late 1800’s and early 1900’s, Italian immigrants were coming to the United States with little more than their family and the hope of opportunity. After arriving, money and work were hard to come by, and with familiarity with the concept of extra-legal business enterprises in the old country, some “community-oriented” Italian immigrants saw a path to financial success and started protecting property in and around their neighborhood...for money. One thing led to another, and with some ambition and a little omertá, they were taking advantage of every opportunity available. 

Early mafia members were dealing in low-level petty crime and extortion, but who among us hasn’t dabbled in those, right? Jk, I don’t know who wrote that, officer. Anyhow, by the 1930’s, there were five heavyweight mafia outfits. They became known as the Five Families and had control over major industries in NYC, they were active across the country, and they were raking in BILLIONS of dollars. Eventually, in 1970, President Nixon signed the RICO Act, which pretty much halted the mafia’s activities, but from 1930 to 1960, the Five Families had wealth, power, influence, and, if you love Goodfellas as much as we do, fur coats and carefully-stirred pasta sauce. 🍝

Now, if we zoom waaaay out, one might argue that what we’re looking at is a group of…small business owners. Highly organized, extremely disciplined, passionately entrepreneurial small business owners.

Were their businesses and management tactics illegal? Yes. Were they also effective? Very much so. Underneath all the drama (and by drama, I mean murder), there are some very real parallels to running an effective brick-and-mortar business.* 

📜 They put the organized in Organized Crime

Talk about Type A personalities…the Five Families were governed under La Cosa Nostra (basically a business cartel) which included a Commission, voting members, and strict rules. 

The rules dictated how each Family ran their business. It created a hierarchy, job functions, and systems. Clearly, everyone knew who was boss! They also knew what was on the line if they didn’t finish the job (I'm looking at you, Crazy Joey Gallo). 

This clear power structure and organizing doctrine allowed them to effectively manage and scale their enterprises. One might even say they had clearly defined job descriptions with regular performance reviews, a strong management structure, and employment policies.

As small business owners, there are always a million competing tasks, questions, and challenges to deal with. Having systems and procedures that you and your staff can follow will keep you sane and keep you from axing your underboss if he clocks in 20 minutes late...    

🍸 They Sold What People Wanted 

These guys built businesses around market demand and had a deep understanding of what consumers couldn't easily procure at the local corner store — drugs, gambling, alcohol, and "companionship." So what happens when prohibition hits? Alcohol becomes illegal, scarce, and highly desirable. So they did what any logical mafia member would do – they built thriving businesses around getting alcohol into the country and into people’s hands. 

From alcohol – they moved to drugs and organized a highly successful (in dollars, not in outcomes, let’s be clear) Sicilian heroin trade. While we personally don’t have experience in doing Class A felonies, we do know that you can do some serious business supplying customers what they really want…particularly if it’s highly addictive.  

🔄 They Adapted to Whatever the Market Threw at Them

I find it reassuring knowing that no matter what era we’re in, small business owners have faced economic and political headwinds. The Five Families dealt with one shock after another. Every time the external environment shifted, they adjusted their business model.

Prohibition? Rumrunning and bootlegging.
Great depression? Street gambling and sports betting.
Labor movement? Union infiltration, extortion and racketeering. 

The businesses were constantly evolving based on what was happening around them and what customers needed next. Retail is no different. There will always be market changes to contend with, not to mention shifting customer preferences and shopping habits. Adaptability is a better long-term strategy than racketeering. 

🎯 They Specialized Instead of Fighting Everyone

Despite operating in the same city, the Five Families didn’t try to compete directly with one another – they knew how that would end. So, the Families carved out their niches. Some focused on the major ports and trade. Others on construction, politics, gambling… you get the picture. There was plenty of opportunity for everyone.

Not only did they know that direct competition would literally kill them, but they also knew that building expertise in a field and not spreading their investment too thin would bring them cornered markets and the ability to scale faster, giving each family its own brand and identity. 

🤝 They Employed Passionate People 

The Families' success depended on the deeply committed underbosses and soldiers who did their bidding. Blood oaths > employee discounts.

When The Families expanded their payrolls, they wanted people who would live by the code Omertà – meaning loyalty, solidarity, and silence. Did this mean they occasionally lied to Congress and spent years in federal prison? Yes. A confidentiality clause is a confidentiality clause, amiright?

While some might argue that this created a toxic work environment, the notion that successful hires fit the corporate culture is generally true. 

And while we don’t recommend hiring staff who express their passion in blood, you cannot build a strong business without a supportive team. The demands of brick-and-mortar mean that you must be able to count on your right-hand person. 

👨‍👩‍👧‍👦 It Was a Family Business 

And finally…family. You’ve heard us say it before, but running a small business impacts your entire life. Your hours are insane, you’re planning for Christmas when normal people are planning July 4th, and the business is always, always, always taking up space in your mind. 

Like being the daughter of a mob boss or a small business owner – there is no real separation between work life and home life. All small businesses are family businesses, and the Five Families weren't wrong that: 

1. Succession planning is key. The only way to get out of the game is to plan (just take a look at what happened to Joe Profici’s family tree).
2. Establishing firm boundaries is a requirement. It's not always possible, but ideally there are some guardrails around when and how work comes home.  

The Five Families were responsible for indefensible pain and suffering. Also though, underneath the crime and blood, it’s hard not to see some retailing best-practices…at least it’s not hard for me. Growing up, one of the members of the Colombo crime family would regularly shop at my parents’ store in upstate New York to buy red, white, and green candles (these guys were seriously Italian). They’d pay in cash (because, duh), and would never be caught without their bodyguards and federally monitored ankle bracelets (remember the RICO Act?) No one can say my parents didn’t teach me that the customer is always right! 

*don’t get all worked up. We’re not really suggesting anyone should adopt mob tactics. We’re just making observations, people.