Entrepreneur Corner

Ohio Sports … Lessons to be Learned

2011-06-02T07:43:00.000-07:00

So … as a lifetime Ohio sports fan, it has been a tough year. The Browns are rebuilding again, LeBron took his talents elsewhere, and now Ohio State football is in shambles. What can we take away for our businesses and our own character?

OK, OK, I am used to it … the kidding about the long drought of championships in Cleveland. The Drive, The Fumble … the Decision … locals are so used to being beat up, we feel like Jake LaMotta in Raging Bull. It is kind of like a group depression. The pain, the disappointment, the endless and hopeless optimism. They define the life of any Northern Ohio sports fan.

The games and personalities have taken a decidedly dark tone in the last few months. LeBron’s arrogance is indicative of today’s spoiled athletes. Jim Tressel (Ohio State’s former football coach) led us to believe that he was above the temptations to skirt the rules. His fall from grace has hit hard in Buckeye Nation.

These examples can teach us some lessons for business. Taking shortcuts around hard work and integrity is very common. Everyone seems to want to get the results without the effort. The pressure that today’s athletes and coaches feel is similar to what business owners feel. Investors, bankers, customers, and vendors can be WAY more demanding than a casual fan munching on a hot dog. The “game” of business impacts lives and people in a much more direct way than results on the court or field of play.

All of us have felt the pressures recently. All of us have cut back on expenses and people. All of us have to keep grinding away. Most of us are doing it the right way. Some are cutting corners on jobs, playing games with labor and materials, and manipulating schedules. Don’t be one of the corner cutters - you will pay sooner or later.

The rewards for doing it right can be huge. Just look at the Cleveland Indians. They have one of the lowest payrolls in baseball, but have the best record in the Majors. All of this without Charlie Sheen (fans of the movie Major League will get it). They built this team by grooming young talent, setting aside egos and working together. Sound like any glazing operation you know? If not, you might need a new game plan.

Predicting The Future During Tough Market Conditions

2011-04-13T08:51:00.000-07:00

As many of us have been battered about by the market, we know all too well the demands and pitfalls of recession – falling margins, layoffs, financial concerns, collection challenges, and on and on and on. So, when is the right time to fire back up the growth engine?

The swings of economic cycles are a mystery. As the saying goes “if I could predict the market, I would be on a yacht in the Caribbean." Of course, I can’t, and either can you or all the talking heads on CNBC, MSNBC, etc. Another expression is that “people buy on greed and sell on fear." Now is the time to take on that fear.

The signs are pointing toward recovery. So, what are you doing to get ready to thrive? You still hunkered down ready to do all the same old things again? Good luck! You better get used to the new normal – tight margins, sketchy labor supply/quality, demanding schedules and more headaches.

I suggest that now is the time to pursue aggressively different ways to attack the market. Find new products to sell, new customer niches, new sales tactics, dust off old prospects and call, and rethink every portion of your operation. Have you evaluated your suppliers? Analyzed your employees to be sure they are ready to perform? Improved your estimating accuracy? Looked for partners?

Just don’t expect things to go back to the “good old days.” Those days are long gone. However, good days are soon coming. You just need to be better, faster and more competitive than before. Only you can know what works best for your business – just do something.

Next blog, I will share some of the things we are doing at FabTech to be ready. I welcome your comments.

The Regional Trade Show – A Dying Breed?

2010-04-23T06:49:00.000-07:00

Last week FabTech exhibited at the Mid Atlantic Glass Expo. We had a fantastic show. We met many good people and companies. We got solid leads for our services. I also heard that TEXpo was well attended. So, why aren’t there more of this type show around the country?

The regional show/seminar/meeting used to be a regular staple of many state and regional glass associations. It was a time to visit with old friends, suppliers, and customers. Unlike the big national shows, you had time to actually engage in long and meaningful conversations. Usually very social events, everyone seemed to have a good time as well.

So, why are the shows a dying breed? I think many of the forces that impact the viability of state associations are also at work here.

The first factor is the pace of modern living. The poor economy, increasing demands on all businesses and managers, two income households and other factors are all making our lives more demanding.

In addition, I believe many of us don’t want to take the time to be involved in associations or see enough value to commit our time and energy. It takes involved people to make an association go. The Mid Atlantic Glass Association has those folks in spades. There were more than 700 people there last week. That doesn’t happen by accident. The staff and volunteers make it happen.

So, think about your involvement in your local or state glass association. Think about what NGA, GANA, AAMA, and other groups do for our industry. (Full disclosure here for me - I am part of the architectural glazing committee of the NGA so I am a “fan” of association involvement).

Get involved. Attend the events. Join a committee. Heck, even attend a golf outing. You won’t be sorry and might even find some new business and/or some new friends.

Like many things in life, you get out what you put in.

If you want to do something today, visit the following links for an association in your area. NGA, GANA, AAMA or USGlass Magazine event schedule.

Quarter End Thoughts

2010-04-07T05:13:00.000-07:00

As the first quarter of 2010 comes to a close, we all face a chance to take stock. Where are we now versus January versus last year versus last week?

I am constantly amazed at the differences in people’s perception of time in this industry. Try this experiment – ask 5 different people “how has business been” or “how does it look going forward?” The answers will inevitably contain a wide variety of time frames. Some will reference last year, some last month, some last week. Time horizon is very personal.

Like many business owners, I find planning and strategy to be the most important thing I do – when I take the time to do it. The everyday demands always seem to find a way to demand my time. The next truckload, the next phone call, the next quote are selfish taskmasters. They will take all your time if you let them. As Steven Covey said, try to focus on the things that are essential to your long term success and not get caught up in the everyday. His term is “important but not urgent.”

It is easier said than done. Especially in today’s tough environment, nobody can afford to ignore that customer call, that quote opportunity, that problem. So how do we step back? Here is one idea about finding a balance between PLANNING, MANAGING, AND DOING.

Good stuff – if you have the time….

Enjoy the improving weather and (hopefully) improving business conditions for all.

The Time is Right to Change the Game

2010-02-12T08:03:00.000-08:00

As the ancient proverb says “it is darkest before the dawn.” Right now, the commercial glazing market sure looks bleak. However, don’t miss the chance to evaluate new ideas and markets. Who knows, you might just head out to a new profitable tomorrow morning …

At FabTech, we are grinding away like everyone else in the tough marketplace. We are seeing crazy low bids, Chapter 11 filings, insane banking decisions and delayed projects. Like all of you, we have cut back some resources and spending. We are doing all the proper blocking and tackling to handle a downturn. But, don’t make the usual classic recession mistakes.

In the last few weeks, we made a decision to put a tremendous amount of energy into evaluating game-changing initiatives. There are several FANTASTIC long-term opportunities that will change the future of our business forever.

It is scary. It is unnerving. It is stressful. However, it is very energizing to channel your efforts into areas that will position your company for long-term differentiation.

Think about it – there is no better time to look at what holds you back. No better time to see the holes in the market that need some entrepreneur to take the plunge. You have a workforce that is very motivated to try anything to keep the work flowing. They are more open to new ideas and new ways to do things. These ideas don’t have to be expensive – just innovative.

Of course, I will not share exact strategies that we are evaluating. You need to get your own game-changing “aha moment.” You will know when you find it because you have been thinking about it in the back of your mind all along. That racing heart rate is excitement. It is why we all got in the game in the first place. Embrace it and try it. Get in the new game!

New Year, New Decade, New Ideas

2010-01-06T05:50:00.000-08:00

As we get started on 2010, it is a good time to look back and to look forward.

Can you believe we are 20 full years past Y2K? Do you remember where you were on the evening of December 31, 1999? I do. My wife and I were at home with two young boys - six and four years old. We fooled them with a “fake” New Year at 9:30 pm so they could get a good night sleep. Our oldest is now driving and we have four total children. How fast times move.

The last decade brought us a lot of new things – the iPod, hanging chads, texting, September 11th, reality TV, Katrina, GM bankruptcy, LeBron and Bernie Madoff. Here is an interesting timeline of U.S. events over the last decade. This one is for the sports fan.

So, what have you learned in your business? I have learned much more about many things – private equity, curtainwall, acquisition financing, customer service mistakes and triumphs, draw bill cash flow, lawyers, speed kills, change orders, profit sharing, China and many other things.

What has remained the same? Customer service is key, quality is an assumed, speed is demanded, owning a problem and communicating right away is the only way to handle mistakes, people are generally fair, profit must be the focus, good people are what drive profit, and it is always tough to make time for long term thinking. And, my biggest lesson – trying to balance work and family.

Anybody who wants to share their lessons/triumphs/challenges/funny stories from the last 10 years please post a comment for us.

I wish everyone a good New Year, a good New Decade, and a good New Energy to attack the market.

Hey, if the Cleveland Browns can win 4 in a row, anything is possible! Have a good one.

Time For Thanks

2009-11-24T04:54:00.000-08:00

After two years in the commercial glazing industry, I have a lot of reasons to give thanks… Thank you to:

My wife Jean and family for putting up with my long hours and elevated stress levels.
All the Associates at FabTech. Without you, there is no business.
Our customers – both long-term and new. I appreciate the patience and understanding you have shown as we strive to improve our operations and communications every day.
My business partners who know the balance of being supportive and letting us do what we think is right for the business and customers.
The Associations that speak for us – GANA, NGA, and AAMA. They all have a role in ensuring our future and protecting us against “well meaning” politicians and lobbyists.
Supplier and other partners. I have found a shared motivation to serve the customer among our main vendor partners. It certainly helps to solve the inevitable crises.

Last, but not least, I want to give a huge thanks to our troops. Especially during the Holiday times, please keep them in mind as they work every day to keep us free.

Enjoy the turkey and football. As a Notre Dame and Cleveland Browns fan, I will try to watch without getting indigestion. Here is an old but good football video to enjoy over the long weekend.

GlassBuild Show Follow-Up Thoughts

2009-10-13T05:38:00.000-07:00

As we all get back into the swing of things after going (or not going) to the show, I thought I would share some general observations and thoughts about the events in Atlanta and the state of the commercial glazing industry. In a word … unclear.

Ah, another year, another GlassBuild show. I got to see a lot of old acquaintances and made a few new ones. It seemed like there was a lot of conflicting input:

The Glazing Executive Forum was a great way to kick off the week. More than 125 professionals gathered to discuss issues surrounding contract glazing. Having this session off the show floor gave focus to our shared issues. The mood was cautious to pessimistic. However, all who attended agreed that taking action was the right approach. You can’t just sit back and hope. Thanks to Matt Rumbaugh and the rest of the NGA staff for putting on a great program.
As fabricators, we got to have some good deep discussions with glazing contractors about what they need. The forum of the show puts people in the mindset of looking for ways to improve their businesses—during good times and bad. So, it is easier to explore alternative solutions to problems.
As for the show floor, it was disappointing that all major system extruders were absent from the floor (except EFCO). I understand cutting back marketing expenses during tough times, but I think it is a mistake to have no presence at all. Just one guy’s opinion.
On the floor there was the usual machinery, software and other booths. I didn’t see anything that knocked my socks off. I do think it was nice to see the major commercial equipment companies there with sizable booths. We did look at a lot of nice CNC systems. Now … what to do?
Thanks to those who mentioned this blog when they saw me at the show. It is nice to see that somebody actually reads this stuff.

As everyone is going into strategic planning mode for 2010, I would be interested in comments about what you see coming. Commercial activity—how far will it sink in 2010? How about in your region? How about sub-segments? Education, healthcare, multi-family, institutional/government?

We are seeing strong activity in publicly funded projects—especially around D.C. and in the Heartland. Guess all that government money must be doing some good. Although, you might want to check out this to put the large federal spending into perspective.

Please post a comment and/or thoughts on my opinions.

Coach Pete's Advice for This Season

2009-09-16T05:02:00.000-07:00

Football Season is in full swing – and I had a rough weekend. All my teams lost and made some major mistakes. So, what lessons can we learn in the glazing business???

Those of you who might have followed this blog for awhile might remember that I am a Cleveland Browns fan. Yes, I am one of the abused. You remember the Browns? Years of history and tradition then had the team ripped away by our “pal” Art Modell. Drew Carey put our feelings about old Art very well here. Then, the team comes back and goes through 5 coaches and 13 starting quarterbacks in 10 years.

The Brownies did not have a stellar first game last week. As we grasp at hopeful straws, the dreaded Steelers just keep on winning. My fellow blogger and Steelers fan Max Perilstein is happy, but I am ticked off. The Browns are a good symbol for all that can go wrong running a business.

1) Change just to change. The Browns keep changing players, philosophies, offenses/defenses, coaches and on and on and on. Meanwhile, the Steelers draft the meat and potatoes players who fit their culture and system. Have you ever gone out to get a “superstar” employee or purchased a new machine just to find out that you haven’t done the homework to ensure that your system is really ready?

2) Alienating your customers. The Browns have repeatedly driven away the fans of Northeast Ohio. Here is a great piece on what we really want. All the while, Steelers fans are rewarded with loyal players, coaches and owners. Are you REALLY serving your customers or just paying lip service?

3) Lack of discipline and execution. Bottom line, the Browns have not done the job they are being paid to do. Last year, they spent too much time reading their press clippings and not enough learning plays. Are you working in your business to improve every day? Look for better processes, better sales tactics, better training. It comes down to doing the right thing every day.
OK. In the end, I am still a fan of the Browns. I just wish they could learn a few things from their rivals down the turnpike.

Oh … if you think I am tortured as a Browns fan, did I also mention that I am also a fan of Notre Dame and follow Ohio State. Even worse, my kids are following in my fan footsteps – God help them!

On another note, as you might be getting ready for the GlassBuild show in Atlanta, you really should plan on attending the Glazing Executive Forum put on by the NGA. I went last year and found it very valuable and worth the time. More can be found here. I look forward to seeing some of you there.

The Dangers of Stumbling on Your Lean Journey

2009-08-11T07:52:00.000-07:00

As we all try to squeeze more out with less time and resources, the pitfalls of going lean become more and more apparent. In other words, as you pick up speed to get more done, each known and unknown obstacle can be more dangerous …

In his landmark book, Lean Thinking, author James Womack talks about the classic example of rocks in a pond. As you lower the water level (less people, less buffer, less time), you expose previously unknown challenges or rocks.

For example, you might reduce a dedicated material handling person in your operation. Once they are gone, you will probably see the challenges of how you organize, retrieve and distribute materials throughout your shop. When the “extra water” of the material handling person is gone, your production personnel are challenged to do more with less.

The solution? It is not to “tough it out until the economy gets better.” Instead, look at how you can improve your storage and distribution methods. With fresh eyes on the challenges of keeping material flowing, you will get improvement suggestions. Implement them in SMALL phases. This will show results to the floor associates and keep them suggesting more ways to improve.

Obviously, this is one example and does not apply to every business. However, it serves to illustrate the problem-chaos-pain-solution-implementation-modification-cycle that is common to everyone. Be sure you are the one driving the chaos and it is not driving you.

Keep on doing more things and do them better and faster and less expensive than your competition. This is everyone’s new reality … and that won’t change anytime soon.

Summertime

2009-06-09T11:39:00.000-07:00

Cookouts, the beach and sunshine – it’s summertime … and the living isn’t easy…

As George Gershwin put it in Porgy and Bess, the Classic song Summertime says: the fish are jumpin’ and the cotton is high. Your Daddy’s rich and your Momma’s good lookin’.

Now, I am not going to get into a discussion about anyone’s “Momma” and her looks. I will let the stand-up comedians do that. However, most of us Daddy’s don’t feel rich at all right now. If you listen to the news, you will continue to be discouraged. From the economy and the auto industry mess to the Middle East, it is ugly everywhere. Or is it?

At FabTech, we are doing well. We are working full crews and looking at a strong backlog. As I talk to customers and prospects, many are encouraged that they have made it through some tight times and the wheels haven’t fallen off. As one contract glazier told me, we have chosen not to participate in this recession.

Now, don’t get me wrong. Business is tougher these days. Many jobs have been delayed or cancelled altogether. Others have so many glaziers bidding that the jobs are going out at break even margins. There are many who are foolishly happy to trade money with the bank. Let’s all hope those guys are weeded out by their stupidity.

So, dig in and know your business strengths and weaknesses. Exploit the strengths to get leaner and meaner. Work on the weaknesses so you will be better positioned when things light up again.
As the song says,

Hush, little baby don't you cry
don't cry, don't cry, don't cry
no no no no
don't cry, don't cry – Summertime

So take a break and listen to some of my favorite versions of this classic tune and enjoy your summertime. Versions by Billy Holiday, Ella and Stachmo, and a wild one by Janice Joplin.

Positive Opportunities

2009-04-21T08:26:00.001-07:00

In today’s media-driven world, too often the dialog is defined by negativity. Words like “crisis,” “bailout,” “unemployment,” “fraud” and “war” take the headlines. When thinking about opportunity, you must remember that it cannot be given, but must be earned …

Whatever your political leaning, most businesspeople look at the current culture of giveaways and spending with concern. Billions in bailouts, trillions in national debt, thousands of earmarks. It seems like everyone is waiting for the government to come in and solve their problems. Trust me, it won’t work!

Recently, my father, a retired business executive, shared some thoughts on opportunity. He noted that if you try to GIVE opportunity it is no longer opportunity. Opportunity must be earned.

Like education, opportunity can't be given. It must be earned. As a parent you can show your children the way to an education but they must study. You can give a book, a computer, a classroom. The school can give a degree—but only the child can achieve an education.

The same is true for opportunity. We can show our children and our fellow man the way to opportunity but it can't be given, it must be striven for, achieved … secured.

Whether it is the current global economic situation or your own business, remember that you must make your own opportunities. If you wait in line for a bailout or stimulus windfall, it will be a long year.

Thanks Dad.

Hope Springs …

2009-03-18T04:52:00.000-07:00

As the weather in Northeast Ohio turns warmer this week, we are all trying to think positive. After a very harsh winter—bad weather, bad news and bad tempers—I think everyone is poised for a warm up.

Often, I believe that businesspeople act like coldblooded animals. No, I don’t mean in the heartless sense of the typical metaphor regarding management. I mean that we are all changed with the cold weather. The lack of sunlight combined with the snow/rain/sleet puts people in a foul mood. This winter, the mood has been made far worse with the economic conditions.

So, now is the time for renewal and hope. We are all hunkered down but need to rise up and get moving. The marketplace won’t be kind to everyone. We all need to grab whatever advantage we have and improve it. Take our shortcomings and improve. The victory will go to the strong. When the market was booming, everyone was making money and growing. Now, each of us must be more diligent and disciplined.

As the grass starts to green up and the trees are budding, take time to plan and renew your efforts. Maybe the sunshine can put us all in a better mood and improve our operations at the same time.

Off topic note to readers in the Midwest—I recently was able to visit a great art exhibit. The Canton Museum of Art in Canton Ohio is showing a fantastic display of decorative kimonos. This show is great. My wife and I took our four children to see it. I will confess that I was worried about the kids’ reactions to having to give up a Sunday to look at “a bunch of painted clothes.” But, they all loved the exhibit. They are now really excited to go back to see the sumo wrestling match that is being put on in conjunction with the overall theme. I encourage everyone who is in the area to visit. The show goes through the end of April. If you need additional motivation for the kids, you can also tie in a visit to the Pro Football Hall of Fame on the same trip.

General Thoughts …

2009-02-25T05:50:00.000-08:00

… On the stimulus package, on the economy, on burdens placed on businesses and individuals who make a profit and on Vegas…

The news these days can be especially depressing. Everyone from the president on down keeps using phrases like “crisis,” “deeply troubled” and “emergency.” I believe we are in a very, very tough economy with many challenges. However, I do believe some of the condition is the result of the media coverage and how we are all talking to each other.

One media story that captures the differing opinions on how to deal with the economy is Rick Santelli’s rant. I think he has some great points. As a business that makes a profit, I am worried that the payback for all the stimulus programs will be on the shoulders of companies that are doing the right things—hiring workers, sharing profits, investing in equipment and other technologies and paying our fair share of taxes. Let’s hope I am wrong

Last week, several of us from FabTech attended GANA’s BEC conference in Las Vegas. The show was very productive and informing. We met many new contacts and possible business partners. However, the thing that intrigued me was the fact that almost every conversation came around to the state of the economy and prospects for business. I heard again and again “we are hanging in there” and “well, at least we aren’t in the residential market” and “I am worried for next (month, quarter, year).” Obviously, anyone who isn’t paying attention to the market conditions is foolish. But, I am vowing to try to be more positive in conversations. Maybe we can all contribute to ending this crisis of perception and confidence.

It was great to be at BEC for a second year. It was a little easier to navigate knowing the lay of the land. We met a lot of new folks. Even met the blog master Max. Had a lot of fun also. From the Tropical Oasis’s to Venice to Paris to Munich, Vegas has it all. If you have never been to the Hofbrau Haus in Germany, the replica in Vegas can be a lot of fun also. Just ask the King - Mike R.

Words on Wall Street

2009-02-03T15:16:00.000-08:00

We should all be incensed by the behavior of Wall Street executives. They are giving capitalism a bad name.

I will be brief in this entry. As we are all following the TARP, Bailout, Stimulus Packages, etc., I am getting increasingly frustrated with the attitude of entitlement.We should all be incensed by the behavior of Wall Street executives. They are giving capitalism a bad name.

I realize many today in America and around the globe are innocent victims of the economic downturn. Thousands have lost jobs in wide waves of layoffs and they are struggling to survive and provide for their families. I feel for them and hope they can pick themselves up and find a good job soon.

However, I have no kind thoughts for those executives on Wall Street who continue to feel that they are “owed” bonuses as they have driven their companies into the ground. They are holding their hands out for tax dollars to “survive.” Then, they turn around and pay a bonus pool in the BILLIONS! That is a THOUSAND MILLION DOLLARS!

Here is an article that best sums up the situation and gives a very cogent argument combating the widely held beliefs that “it is just the way Wall Street works.” Might be up until today, but it should stop – NOW!

Snow Day

2009-01-28T06:26:00.001-08:00

In most of the U.S., it has been a cold January. We are all bundled up against the weather, the employment news, and the general malaise. Everyone seems to be down in the dumps -everyone except the kids.

Think back to that joyous feeling of a snow day. You wake up late then start to make plans to go out with your friends to sled, skate, or snowball fight. It always amused me that the school thought it was too severe for the kids to wait at the bus stop on these days. Then, the kids all spend 8 hours outside playing. Ah, the innocence of youth.

So, what lessons can we learn for our businesses from the snow day? It seems like businesses these days are acting like the parents on snow days. We are all worrying about how to deal with the unexpected. Instead of daycare, hot chocolate supplies and “Mom where are my mittens,” we are worrying about backlog, quoting activity and cash flows. Sure, every responsible manager needs to be conservative these days. Activity is slowing and the global slowdown is catching up to North American commercial glazing. We do need to think like the snow day parents.

However, I propose we need a little of that kid attitude.

Call your friends to see who can play. That can translate to more outbound phone and email outreach to current and prospective prospects and partners. Can your business provide more value by linking your skills and experience with another company possessing complementary abilities? Like the successful snowball team has fort builders and strong throwers, your glazing business might benefit from partnering with different subcontractors to present a united front to a GC. The first step is calling someone.

Trying a new game. Never tried to ice skate? Kids just get out there and fall on their butts laughing the whole time. It is scary and might hurt a little, but stretching your product offering can be liberating and profitable. You might try to expand into some interior applications, panel, solar or decorative.

Warm up back at home by the fire. Some snow days it is a luxury to sit around the house and just enjoy being with your family. In business, these times provide the chance to look around your operation and see what might need to be improved and changed. Does your shop scheduling need some tweaking? Are all the players in your operation the best available (especially given the number of good people out of work)?

After all, you might get a runny nose, cold toes, or a sore butt from those snow day games, but it sure is exciting.

The Old vs. The New

2008-12-17T05:34:00.000-08:00

FabTech is undergoing many changes. We have been in business more than 15 years. The company has grown steadily using few systems and formal processes. We are at the tipping point where the “old way” is giving way to the “new way.” Now which way?

Like many start-ups, our company developed many habits over time to deal with the challenges of serving customers while controlling costs. Communications are never a challenge when there are only 5 or 6 people in a business. Everyone knows what everyone else is doing. Forms, process flow, quality checks, lean manufacturing and other tools are just built in. The challenge comes with success. When you go beyond 10 people in any venture, you need to put some formal processes and tools in place.

FabTech has tripled in size over the last few years. We have added staff on the plant floor and in the office. We have grown market share and our capabilities. The challenge is making the transition from “seat of the pants” to “organized and accommodating.” The market is demanding ever more speed, quality and flexibility from us. Glaziers are getting that pressure from general contractors who are getting it from architects and owners and so on and so on and so on.

Fortunately, we have a good crew of old hands and new blood. The veterans have been pretty open to the new ideas. Sure, there has been some gnashing of teeth when some of the old ways get tweaked. This has been minimized with the launching of profit sharing for all associates. Funny how a little cash for success can get everyone rowing in the same direction.

The price of putting some formal processes and tools in place is well worth it. In the chaotic world of commercial construction, those who are better, faster and less expensive win. Others better watch out!

Do you have any stories about transition stages in your business? If you are willing to share challenges, solutions or anecdotes, let me know. I am sure others would enjoy reading some war stories.

A quick shout out to Paul Bieber. He is another blogger for USGNN. I had the pleasure of meeting Paul at the Glass Expo Midwest. We had a great discussion about the industry and our backgrounds. It was very enjoyable to get to know Paul a little better. He really knows the market and how to run a glass business. Thanks Paul for the lunch and the company. You can check out his blog here.

I hope everyone has a great Holiday Season. Stay safe and enjoy the time with friends and family.

Strategic Planning

2008-11-25T06:21:00.000-08:00

It is that time of year. Every business owner and manager is faced with the daunting task of planning for the following year. This year, the stakes are especially high and the risks are lurking everywhere. So, where is an entrepreneur to begin?

We (entrepreneurs) are “shoot from the hip” types as a breed. Howe ever, the annual planning process is an area where random firing will miss your target. You must be willing to be flexible, but having a firm plan in place is essential.

Sure, virtually every business has a sales target and/or profit target going into next year. Or, do you? Does your planning include a firm goal of sales and profit by month? Do you have specific people in your company assigned to be accountable for each expense item? If you do, you are among the few leaders who have full accountability, responsibility and authority alignment.

Sure, virtually every business has a sales target and/or profit target going into next year. Or, do you? Does your planning include a firm goal of sales and profit by month? Do you have specific people in your company assigned to be accountable for each expense item? If you do, you are among the few leaders who have full accountability, responsibility and authority alignment.

There are many systems and tools that can be used as a structure for your planning process. I have used several. Among those I have used are: the lean thinking system from the Toyota Production System, the MBO method and the “seat of the pants” method.

At FabTech, we recently embarked on the planning process. We started with a teambuilding exercise that included blowing off some steam with the ownership and top management. It was not quite like the AIG spa boondoggle, but did help us get in the right frame of mind. The next day, we worked through a robust process that helped us identify, in detail, the strengths and weaknesses of our company. And, MOST IMPORTANTLY, the detailed steps to address weaknesses and build on strengths to meet the needs of our customers.

The real work comes at the start of the year when your plan must be a living system not just a document in your drawer or a sign on the wall. Whatever system you use, use it!

On a personal note, I am very thankful for the support of many people that have made my first year in the architectural fenestration market so rewarding and fun. Props to the team at FabTech, our valued supplier partners and customers for their support and patience teaching a blond, Polish guy the ropes.

Most of all, I am grateful for the love and support of my wife Jean and 4 children. They have been incredible in their patience and understanding. Can’t wait to sit down to the turkey dinner …

Now What

2008-11-19T05:23:00.000-08:00

The election is over, the Dow is still crazy, the Middle East is a mess and businesses are still innovating and investing. Am I alone in my confidence with our country and small business as the engine of growth?

Sure, we have problems—plenty of problems. From mortgage and bank failures to threats from China and India, the landscape is rocky. However, the entrepreneurs I talk to are still doing what they do best. They are tightening their belts and going back to basics: managing cash, raising productivity, keeping a sharp eye on collections and talking to customers to get a pulse on the market. We all need to keep an eye on what brought us here in the first place.

By our nature, entrepreneurs are optimists. The glass isn’t half empty. In fact, when 75 percent is gone, most of us see it as a 25 percent opportunity to improve and adjust. However, they aren’t outrageously confident.

The winning companies are those who aren’t afraid to adjust when real market conditions demand downsizing. Sometimes, winning strategies aren’t related to huge top line growth, but maintaining bottom line profit in the face of difficult conditions.

Commercial glazing contractors, suppliers and partners have a unique chance to work on the tough plans while still enjoying a backlog. We all need to be aware that the tide may be retreating and start working on our contingency plans BEFORE crisis stage.

If anyone has suggestions, tips, or tools that might help, please contact me or post a comment below.

Now, for a break in the election coverage. What are we all going to watch to replace coverage like this or that? At least, we can get a preview of our future Wall Street executives…

Bailout Response

2008-09-30T06:37:00.000-07:00

Bailout? Rescue? Investment? What we call it is not as important as how it may impact all businesses and consumers. But don’t worry; the politicians will solve all our problems …

As I write this, it is early in the morning of September 30th—the morning after the 777-point fall in the Dow. The talking heads are all buzzing—from both sides of the aisle.

I am interested in the opinions of the folks who stop by this blog. I have my thoughts that I will share with a summary in my next entry, but want to open it up for comments and insights from the readers.

As this is posted, the market will have reacted to yesterday. Where will the Dow end up the year?
Has the “credit crunch” impacted your business? If so, how? Tighter line of credits? Pullback on expansion capital? Freeze on hiring? Or none of the above?
As a business owner, how do you feel the presidential campaign is addressing your concerns? Do you think either candidate will help or hurt your profits?
What are your thoughts on the government’s plan? Should there be a cap on compensation for Wall Street executives who get “bailed out?” Should the free market reign and let those who got too highly leveraged fail? Is it too little? Too much?
Lastly, I would love to get predictions on the commercial glazing prospects for 2009 and beyond.

I think the glazing market will continue provide opportunity for businesses that add value and service their customers. Sure, it will get harder—fewer projects, tighter financing and more competitors. However, partners who can help their customers increase their bottom line will always find a way to survive.

Your thoughts? Post them here or email me at pchojnacki@yourfabech.com. Please let me know if you are willing to share your comments publically. I will post them here soon.

Take care and hold on tight—it will be a wild ride!

Time to Go to Vegas

2008-09-17T04:48:00.000-07:00

Sin city. Where everything is bigger—the swimming pools, casinos, hotels, restaurants and other things we can’t mention in this forum. Oh by the way, there is a trade show too…

As a veteran of many shows in several industries, I thought I might give some thoughts on getting the most out of attending trade shows. For many years, I have been on the “other side” of the show booth. Like many marketing folks, I have done my share of show set-up and organizing. Their goal is to get qualified leads and network with other industry professionals.

Now, I am one of the target attendees. Yes, you all know who you are. You have the badges that are the right color—the one that all the exhibitors flock to for the scripted lines. However, don’t get turned off by the forum. You can get a lot out of the show if you have the right plan.

You need to do a little homework prior to getting on the plane. Look at the website or show guide to set your top 5 things you want to accomplish. This list can include things on the show floor, classes or seminars, networking dinners/drinks/lunches or a combination of the above. Many times, people come to shows with no plan and get caught up in things that are time wasters. How many times have you found that on the last day of the show you are frustrated by how busy you were but feel like you didn’t get done what you want?

However, don’t get too programmed. Don’t be one of those people who follows their checklist and plow through 3 days with every minute planned. You will see new things and meet new people. Leave time to explore and wander. Leave time to arrange an impromptu meeting or meal with a new prospect or vendor. Keep an open mind.

Finally, have fun. It is a good time to get away from the daily grind and blow off some steam. But remember, this is Vegas, so pace yourself; don’t end up like this guy …

See you on the Strip.

Busy, Busy, Busy

2008-08-13T04:35:00.000-07:00

It is that time of year again—the summer season of short lead times. For most of North America, the hot weather turns up the temperatures and the tempers. How do you deal with it?

Every business faces cycles of busy and slow times. However, the construction business can bring those swings to extreme highs and lows. Everyone in the business is challenged with balancing the ability to serve customers with the costs of doing business. Those who succeed in the long run are willing to look at new ways to squeeze the rat through the snake.

We are in the middle of the first summer of our tenure at FabTech. We are very busy with both current work and backlog. Our customers all want product faster and faster. I noticed that Wausau featured a new program offering shorter lead times. Their announcement specifically called out the shortening build cycle. While Wausau specifically calls out their strategy, all of us are trying to squeeze timelines while still putting out quality work.

So, what can you do? Bottom line, the time to attack the busy season is during the slower times. If you talk to your people and customers about pain points ahead of time, you will have time to implement some solutions in small steps (think lean manufacturing or Kaizen).

OK we are all too busy to spend any more time now. GET BACK TO WORK – YOUR CUSTOMERS ARE WAITING!

PS – With the Olympics in the news, I have seen some of the chatter on the blog boards about China. I traveled to China last year on business. It is a fascinating place. It is a land of contrasts. I saw very modern factories with huge investments in automation and technology. Really world-class stuff. Then, across the street is an ox cart or even corn drying in the middle of a 4-lane highway.

I saw raw sewage in the gutters of Guangzhou. This is a city of 9 million plus. Massive advances and wealth alongside ancient sites and immense poverty. Contrast, contrast, contrast.

My take is that the central government of China is still very controlling and doesn’t care about the health and safety of workers. Also, the wealth being created by the West’s appetite for cheap goods is not being used to improve infrastructure beyond the large cities.

That being said, they will host a hell of an Olympic games. When "the man” controls everything, the big things will run smoothly. Just don’t look behind the scenes—the backstage is very messy.

Time to Reflect

2008-06-25T08:57:00.000-07:00

As Charles Dickens said, “Reflect upon your present blessings, of which every man has plenty; not on your past misfortunes of which all men have some.”

Or maybe Freddie Mercury of Queen said it better …

“Is this the real life? Is this just fantasy?
Caught in a landslide, No escape from reality.
Open your eyes, Look up to the skies and see,
I'm just a poor boy, I need no sympathy,
Because I'm easy come, easy go, Little high, little low,
Any way the wind blows doesn't really matter to me, to me…”

Whether it comes from Merry Old England or the rock and roll of my youth, I have a lot going through my head these days. As I get ready for a little vacation, it is time for me to look back over the last year and take a breath.

A little less than a year ago, I was getting back from the beach and looking for a business to buy. Then, along came the poker game. That started the adventure that is FabTech.

I have learned a lot about the business, the people here, the culture, the products and myself. I know some of you are now groaning about another top 10 list, but here it goes.

The top 7 things I have learned in my first 7 months at FabTech:

7. Customer interaction is the most important thing you can do with your time. Customers are not a “hassle” and they don’t “interrupt your day.” They are the ones who pay the bills.

6. Financial statements can be fun. Well, maybe not fun, but getting a real handle on how your business is doing can be very clear when you look at the numbers. The exercise of looking at the numbers weekly and monthly gives me a chance to be sure we are doing the right things.

5. Take time for yourself and your family. It is very easy as a business owner to get wrapped up in the issues 24x7. I am still learning how to balance the work and family time. This is not just about the time spent in the office and on the phone, but the mental break away from thinking about it. It is tough but necessary.

4. Cleveland sports teams make me crazy. Ok, not about the entrepreneur, but I am sick and tired of my favorite teams watching others have parades. The Tribe and Cavs both showed promise going into their seasons, but both disappointed. Maybe it is the year of the Browns??? Only my days living near Wrigley Field make me feel that someone knows our pain.

3. The commercial glazing market is all about managing chaos. No project seems to go as planned. Speed and flexibility is the key for everyone throughout the channel—from the architect to the glazing contractor. Sometimes the projects can feel like a big game.

2. We live in the greatest nation in the world. Whether McCain or Obama win, consider yourself blessed. It just takes a quick look at the situation in Zimbabwe to see how bad it can be for others. My father lives outside the United States and recently told me that he has grown in his appreciation for the USA from afar. In fact, he is now looking to move back to the U.S. Sometimes the grass is not greener.

Although sometimes you just have to laugh at what other voters do.

1. Customer is king. Right or wrong, the customer is always right. Whatever you do for a living, this is always number one.

Enjoy the summer and thanks for reading. Now, where did I put my flip flops?

Culture 101

2008-05-28T11:59:00.000-07:00

The heartbeat of any organization is the mythical culture. It is stronger than the rumor mill. It is what new associates feel most when they come on board. It is critical.

Then why do most managers and owners ignore it?

I have been guilty of ignoring culture on various occasions in the past. Sometimes it doesn’t matter in the short run. Sales targets can continue to be met. Customers can be serviced and products can be put out on time and with good quality. But, beware. Culture, specifically corporate/company culture, WILL impact every organization. It may take a while, but it will not be ignored.

As we started to get a rhythm at FabTech, I found myself detecting the underlying culture. It was not said out loud. It was not put up on signs or posters. It was not talked about at the lunchroom table. But make no mistake, it was there.

I would summarize FabTech’s culture as very customer focused, but scattered. In other words, the overall goal of doing right by customers was very evident, but not intentional.

Sixty days after our ownership change I made a very conscious choice to define and actively manage the culture at FabTech. We would make a choice to develop our culture and grow as individuals. To start with, we would present a theme of the month at each meeting. Themes such as Character, Intention, Teamwork, Honesty, Respect, Love and Trust would be part of every day.

Yes, you read it right. We talk about respect, trust and love. Now, you can imagine the looks on the faces of our associates. They thought this was more executive BS. They were resistant. However, they saw the possibilities. They saw owners who were willing to share profits and financial data in open meetings. Privately, they talked to each other that it just might work.

Sure, the fact that we instituted profit sharing and pay quarterly checks makes everyone more willing. But, isn’t that the point of profit sharing—to make everyone think like an owner and welcome change? Like Bambi on the ice, our cultural momentum can stumble. However, now FabTech has a defined and intentional path to improve customer service, product quality and profits. Most importantly, it is not by management decree, but by consensus.

Day One

2008-04-29T05:28:00.000-07:00

So we all breathed a long sigh of relief. The deal had closed. The due diligence process had not been too bad. We had a great seller in Rick who had poured his heart and soul into the business.

Then came Day One. We had a meeting on Monday morning where Rick announced the deal and introduced the new owners. I felt like the new kid in school moving into town. Rick had done a good job of keeping his intention to sell quiet.

The announcement meeting went pretty well. Rick said his piece and I introduced myself and the other owners. We each had experience with these types of announcements in different contexts (mergers, acquisitions, plant shutdowns, etc). The stress on the face of the plant floor associates is always the same. The first thing anyone worries about is their job: “Will I have one?” “Do the new guys know what they are doing?”

One thing that helped with establishing our culture of open communication is that we handed out a FAQ document that told everyone that no job cuts were planned, there were no changes to pay rates, healthcare, 401(k) etc. Bottom line, it was a strong business that had an owner that wanted to move onto other things and a new ownership group that knew that the associates of the business were the only assets that really mattered.

If you ever have a situation like Adobe’s (see example by Adobe) that will result in job cuts, I highly encourage you to be up front with the FAQ and tell everyone how and when it will be done. You will never get over the loss of credibility if you get up on Day One and tell everyone “everyone’s job is safe” then lay people off. Don’t do it despite how tempting it might be.

I spent the first day getting to know the guys in a very casual way and answering all kinds of questions one-on-one. An end of the day follow-up meeting showed the deeply rooted feelings that people at FabTech had for the business, the quality of work and the strong relationships with our customers. The strong vibe was that the associates didn’t want us to “screw it up.”

I was very conscious of listening extra hard on Day One. I wanted the associates to know that we valued their contribution to the past success of FabTech and needed their expertise and enthusiasm to reach our goals for the new FabTech.

Next week, the outline for our new culture.

On the lighter side, as I watched the NFL draft last weekend, I couldn’t help but think about how much these kids are making and how much training they do to impress scouts. My favorite coach has made a draft training video, check it out here.

The Deal

2008-04-09T09:38:00.000-07:00

So, I went to a poker fundraiser tournament. While there, I met a friend of a friend. It turned out that he ran an interior contracting business and had done the finish work on the office of GED. Mike Ritenour, owner of Lou Ritenour Decorators and Landmark Stone, sat at my table and we chatted a little about commercial construction and the trends in green building for interiors and exteriors. No, I didn’t win the tournament, but did make the final table and had a good time.

About two months later, I got an email from Mike and his partners wanting to discuss a business they were looking to purchase. Mike Ritenour had partnered with Mike Orazen, former owner of EPG gaskets and Mike Boehringer, owner of several businesses in the document management and software industries. The three “Mikes” has pooled together some capital to form a boutique private equity fund specifically focused on the building products industry.

The e-mail mentioned a value-added fabricator of architectural door, storefront and curtainwall systems. Long story short, we hooked up and partnered to purchase FabTech in November 2007.

FabTech Inc. was founded 13 years ago by Rick Herrilko and a team of his fellow fabricators from the old PPG/Pittco operation in Cleveland. Rick had built an excellent customer-focused company that thrived on quality, speed and flexibility.

We had found a gem of a company in a market that was strong and growing stronger. We did our financial, legal, environmental and cultural due diligence.

So, I quit my job and became part owner and president of FabTech LLC. I am blessed with a great team of partners. Each of the “Mikes” brings a wealth of experience in management, business ownership, mergers and acquisitions, and product development. We each have our strengths and weaknesses and complement each other with support and challenge each other to be better every day.

We inherited a strong team of nine fabricators and an excellent estimator. Rick has stayed on as a consultant. There is a cumulative 150+ years experience in fabrication and customer service. We had an excellent team and a very strongly embedded culture. However, while the customer came first, we had some improvements to make in the culture and teamwork at FabTech. We did not get into a cultural mess, but wanted to redefine the approach to business and expectations of success and long term growth.

Next week stay tuned for the challenges of getting to know the business on paper versus what happens post closing in the real world. Also, how youth sports coaching and mentoring can help your business.

The Hunt

2008-03-21T04:14:00.001-07:00

So, I decided to take the plunge to look for a business to purchase. I was looking for an existing business that had a strong core of customer service and product/service quality. With some background in lean manufacturing and product development, I thought I could add value to a business that was on "auto pilot."

I looked at a lot of sketchy businesses. Just like buying a house, you have to balance the asking price of a business with the value and future prospects. Instead of concentrating on the quality of local schools, neighborhood safety, and the kitchen, I spent a lot of time looking at product line depth, workforce, competition, and that intangible "gut feel."

Dealing with business brokers was an educational experience. I found out that, like most things in life, there are good ones and bad. The bad ones will tout a "piece of crap" as the best thing since Dean Kamen and the personal transporter that would save the world. The good ones end up matching qualified buyers with quality companies priced at reasonable levels.

After looking at over 15 companies, I hadn't found the right one. Then, I went to play poker and everything changed. Stay tuned for what happened next...

After my first post, I got a call from Paul Bieber. He is another blogger for USGlass. He shared many good insights with me about blogging, the industry and how the two can mix with family and personal observations.

So, on a personal note, I am very luck to a fantastic wife. Jean and I have been married for almost 18 years. Jean has always trusted me in my career moves and risks. She rides the highs and lows with me. I have never been one of those macho guys who feel like they have to be the king of the house. Jean is definitly the boss of the house. We have four great kids - Matthew 14, David 12, Katie 9, and Michael 6. She manages our "happy chaos".

Thanks Paul for encouraging me to share a little about myself and my family.

Now What? A Residential Guy Goes Commercial

2008-03-19T06:17:00.000-07:00

Hi there. I’m the new guy to the USGlass blog lineup. So, what makes me worthy of reading? Well, here is the “back story” on why I’m posting.

Over the last eight years, I was with GED Integrated Solutions (formerly Glass Equipment Development). They manufacture machinery for the door and window business. As the head of marketing and information technology, I learned a lot about the construction business and what customers wanted and needed. I enjoyed my time at GED and in the residential world. I met a lot of great folks and think we did some good things. I am sure many of you have their equipment.

So, why did I leave? Like many of you, I did pretty well working for a series of companies in several industries. I have been able to support my family and have some fun along the way, but (here comes the “BIG BUT”) I have always wanted to run my own business. I had many of the known American entrepreneurial traits – desire to build something, impatience with corporate cultures and customer-driven thoughts.

For a long time, I had tried to think of the “next big thing” that would propel me into a start up venture. I thought the path for me was to become the next Bill Gates, Thomas Edison or at least Richard James or Stan Honey.

About a year ago, finally came to the realization that I was not an inventor, but better suited to growing an existing business with new products, new markets and improved operations. So, I started to hunt for a business where I could use my background and door and window experience.

CLICK HERE to share your stories about becoming an entrepreneur or post your comments below.