… 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.
Wednesday, February 25, 2009
Tuesday, February 3, 2009
Words on Wall Street
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!
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!
Wednesday, January 28, 2009
Snow Day
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.
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.
Wednesday, December 17, 2008
The Old vs. The New
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.
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.
Tuesday, November 25, 2008
Strategic Planning
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 …
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 …
Wednesday, November 19, 2008
Now What
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…
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…
Tuesday, September 30, 2008
Bailout Response
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 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!
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