We Congratulate Max Sutherland for starting a new position as Board Director, Chairman Governance and Compliance Committee, Vice President of Corporate Development at World Trade Center Atlanta
On Coaching Independent Consultants
I don’t mind an early morning drive to Canton Georgia to meet with one of my coaching clients. Actually, I’m happy to make the trek. So, I made my obligatory visit to have breakfast with Tom on Friday morning. Of all the consultants I coach, Tom seems to struggle the most. This is the sixth time I’ve met with him in the past year and I must say that I am frustrated too.
Prior to our meeting, I gave considerable thought to my strategy for this coaching session. I have known Tom for almost 15 years, and I consider him a friend. I needed to find the proper mix of listening and inquiry to understand his problem and offer suggestions for possible solutions. I knew that active listening would occupy the bulk of our meeting.
Tom arrived and got right to get to the point. We hadn’t even ordered our breakfast when he told me that he needed to find a small group to ensure his success. Although I didn’t react to his comment, I recognized the irony as he is part of a small group. I pushed that thought into the back my mind for further consideration.
Naturally, given his opening salvo, I asked him for more clarification to better understand his thinking. Having had a lot of coaching experience, I know that the initial problem statement is seldom ever the real issue. It is usually a conversation starter, otherwise, he would’ve been a position to solve his own issues. To be fair, Tom’s opening statement was really one of the symptoms of the problem to be addressed. I knew it would take me a while to get to the actual problem.
He went on to say that through his work with his primary client he met a commercial real estate developer who engaged him in a conversation about doing business development work on their behalf. He also mentioned that he had received an inquiry about writing a training program for a restaurant company based in New York. That opportunity was as a referral from a friend. He then mentioned the need to have other contacts who could take on some of his workload so that he could become more productive and solicit other projects. It was at this point that Tom told me that his real strength and interest is project execution. The significance of that revelation was better understood later in our conversation.
When Tom finished his opening statement, I asked him for an update on his primary contract. He said that his client is having a banner year, on track to generate three times the revenue of 2017. Their recovery is creating stress, however as they are having difficulty finding reliable subcontractors to perform their work. Some of what he spoke about relates to the principal’s lack of executive skills, which we had previously discussed. This is a recurring theme in our discussions as there is a clear opportunity to expand his engagement into more strategic issues. Naturally, I inquired about his ability to expand the conversation in that direction.
I learned that Tom’s role with this client is a lot more tactical than strategic. I thought he was a project manager, with multiple projects under his supervision. I was surprised to learn that he is a site manager, one of many, reporting to a project manager. Reflecting on his earlier point about his strength in project execution, I began to gain clarity about the fundamental problem. Finally, we were closing in on the real issue. Tom is stuck in a situation where he has little influence and is underpaid compared to his potential. In some ways, this came as a surprise to me, but overall, not so much. His frustration is understandable.
Tom’s consulting project has turned into a low-level supervisory job. This is a bad place to be for an independent consultant. The question is how to recover? Clearly, the client doesn’t have enough confidence in Tom to work with him at a strategic level. We need to find a way to re-introduce Tom to the owners.
One possible solution is an indirect approach whereby he encourages the principal to engage in one of our networking groups. This would give him an opportunity to meet other professionals, gain exposure for his business, and identify ways to develop his professional skills. This might be a useful solution to help Tom develop greater strategic awareness as well.
Thank you for visiting our blog.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Jim Weber, Managing Partner
ITB PARTNERS
Jim.Weber@itbpartners.com
Covergence
Do you ever wonder why a series of related events seem to converge at about the same time? It is funny how life can unfold. I experienced one of those convergences this week.
I can’t remember the exact date when I last saw Tom. I know it’s been at least three years, maybe more. I remember that it was a networking event over scotch and cigars at Prohibition, a popular watering hole in Buckhead. As I’ve said before, my favorite way to conduct business is in a relaxed atmosphere, with a fine cigar and a cocktail. Indeed, Tom and I have that in common.
I first came to know Tom someplace around 2005. We were both members of the Marietta Chamber of Commerce and the Georgian Club. He owned a business that supported network systems and all things IT related. He’s always been an active net-worker, facilitating multiple groups, and participating in others.
Fortunately, I have remained on Tom‘s mailing list, following his activities even if I haven’t been able to participate. We are connected on LinkedIn, so it wasn’t much of a surprise when he reached out to me this week. I was delighted to hear from him as he was on my call list too. We agreed to meet on Thursday evening at Cigar City Club in Sandy Springs.
Cigar City is another of my favorite places because of its location and ambiance. Even though I visit Cigar City just a few times each year, I am never disappointed. On the other hand, Tom is a regular. In fact, he has his own perch. He knows everyone at the club and they know him. That comes as no surprise as Tom knows everyone in Atlanta. At least it seems that he does. He’s just that kinda guy, smart, affable, and very engaging.
We arrived at the same time, chose our cigars, ordered drinks, and planted ourselves in Tom‘s favorite spot on the patio. As one could imagine we had a lot of catching up to do, beginning with an update on our businesses. Tom said that business was good but could always be better. I said, “I can relate to that.” He went on to say that he’s concerned that he may lose his largest account due to its acquisition. That would be a big blow to his business. He told me about some personal issues which required him to dial back his networking activities and that his groups had run their course. Now he is motivated to re-engage. Well, I knew had the solution to his situation.
I thanked Tom for reaching out to me, as I had a lot of news for him as well. I began with the expansion of my business to support freelance consultants and that I was facilitating the Atlanta Chapter of the Business Executives Networking Group (BENG). It was about that time that Tom‘s girlfriend arrived, adding a whole new dynamic to the discussion.
She is also in the IT field, doing project management work for a large global manufacturer with offices in Atlanta. After she made her introduction, Tom told her that she needed to hear about ITB Partners. That led to a very productive and interesting exchange, so much so that it even peaked Tom‘s interest.
When the business updates were behind us, the evening turned to talk about personal interests and opportunities. Before I knew it, it was past 8 o’clock, time to make my exit. If I had any less discipline I could easily have fired up another cigar and ordered my third cocktail. If I had done so, I probably would have needed an Uber driver to take me home, resulting in a wasted Friday. As I had a 9:00 a.m. coffee meeting, which was rescheduled from the original meeting last week, self-control was required.
Thanks to my timely departure I was able to make Friday’s coffee meeting. My appointment was with a gentleman I met at the August BENG meeting. A Scrum Master with impeccable credentials, he has been in job search since the beginning of the year. As we talked about his career interests and how I might be helpful, I reflected on the prior evening with Tom and his girlfriend. Everything came together. They would be excellent contacts! Convergence.
The older I become, the less I believe in coincidences.
Thank you for visiting our blog.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Jim Weber, Managing Partner
ITB PARTNERS
Jim.Weber@itbpartners.com
Current Assignments
- COO- Northeast-based Casual Dining Restaurant Company – Completed
- VP Operations – Southeast-based Casual Dining Restaurant Company – New
- CEO- Northeast-based Casual Dining Restaurant Company – Completed
- Corporate R&D Chef, Atlanta-based Home Meal Replacement Company – Complete
- Area Supervisor – Legacy Pizza Chain, Carolinas – Completed
- Controller – Atlanta-based Consumer Products – Digital Company – Completed
- Sr. Staff Accountant – Atlanta-based Not-for-profit – Completed
Join Us for the September 11th BENG Meeting featuring Stan Stout
Join Us for the September Atlanta BENG Chapter Meeting at our NEW BENG MEETING LOCATION featuring Stan Stout who will present:
“Stupid Things We Encounter in Job Search”
Stan Stout: an Experienced leader with a unique blend of strategic focus / forward thinking, strategic focus and the ability to lead and manage execution. Linkedin
To Register click here…
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Surprise Delight! By Brad Taylor, ITB Partners
The Power of Surprise and Delight in Building Brand Love
We can all appreciate great surprises, right? Something that is given to us or happens to us that adds just a moment of excitement and delight that we were never expecting. Do you remember the last time you were genuinely and pleasantly surprised by someone? Did that surprise create a deeper bond with that person? Well, the same holds true in marketing. When brands surprise and delight us, we remember that event and it serves as a meaningful deposit into our emotional bank account with that brand. And we know how important creating emotional connections are with consumers in today’s connected economy. Consumers today want brands to not just tell them they care but show them! Surprising and delighting your consumers helps to create a strong emotional bond with your brand … and that’s key when it comes to building brand love!
I’ve had a couple of “surprise and delight” experiences lately that I’m happy to share (building positive word-of-mouth).
Surprise and Delight from the Unexpected
I have to admit that getting PLEASANTLY surprised and delighted by my cable company is something that I never, ever expected. But it happened, and I’m happy to share my experience. I had been having some connectivity issues and had a cable box remote control that went on the blink, so I called Comcast customer service. After getting through the typical question tree, I was connected with a very pleasant and helpful customer service representative who walked me through the process to resolve my immediate connectivity issues and, after completing her troubleshooting, she told me that I was due a complimentary service call to upgrade my main cable line which would not only keep future issues from occurring but improve our connection speed. After she asked me what the most convenient time FOR ME would be, she quickly scheduled the appointment for the very next morning. When I asked about how to go about replacing the remote control, she directed me to take it to a store very near my home and just exchange it for a new one at no charge. I hung up from that call pleasantly surprised and I remember telling my wife that Comcast has REALLY stepped up their customer service game. The next day, the technician showed up (on time) to upgrade my main cable line. He had read on the service ticket that one of our remotes wasn’t working and he proactively brought a new remote and paired it with our system! What a pleasant surprise … and delight. He not only completed the complimentary service call, he saved me a trip to the local store to swap out my remote!
You might be thinking, that’s not exactly the strongest surprise and delight example, but when you consider the industry and the low bar for customer service satisfaction that has been in place for so very long with that industry, I would argue that it is a game-changer.
Hat’s off to Comcast for stepping up their game in basic customer service, and for finding ways to surprise and delight its customers.
Putting Customer Experience Before Profit
Another recent example of a business surprising and delighting me came from a local restaurant, Peach and the Porkchop in Roswell, GA. I generally seek out restaurants who offer a corkage fee so that our party can enjoy great bottles of wine without breaking the bank. First of all, not all restaurants offer a corkage fee, which certainly creates a barrier for me to consider dining with them. My experience has been that the ones that do offer a corkage fee typically make you feel a little guilty about bringing in your own bottle of wine. But in the case of Peach and the Porkchop, nothing could be further from the case.
When we arrived at the restaurant with our bottle of wine in a nice leather tote, the owner approached us, welcomed us, and asked what special wine we had brought in. He looked at the bottle and complimented us on our selection and shared that he was aware of that wine but had never been able to offer it in his restaurant. He then took it from us and said he would take very special care of it until our table was ready. When we were seated at our table, our waiter immediately brought out our wine, a very nice decanter, and two appropriate wine glasses. He then proceeded to pour our wine into the decanter and invited us to enjoy. We were immediately impressed by this and were made to feel like VIPs versus cheapskates for bringing in our own bottle of wine.
After an incredible meal, we were prepared to pay our check which should have included the corkage fee. When we saw that there was NO corkage fee on our bill, we asked the waiter if he had forgotten to include it. He immediately explained, “oh no, our manager appreciated you bringing in such a nice bottle of wine and he’s waiving the corkage fee”! Wow, what a surprise and delight moment! The owner could have put profit before customer satisfaction and charged the corkage fee, or not even offered a corkage fee at all. But, he understood that exceeding customer expectations and surprising and delighting them can and will have a substantial impact on the emotional connection consumers have with his brand.
Clearly, the restaurant could have focused on the short-term and on maximizing profit from our visit that evening. But by not focusing on short-term profit, but rather making a deposit into our emotional bank account for the restaurant, the owner will end up making so much more money from us over the near term. We have already talked about our great experience and will gladly revisit this restaurant on many occasions to come.
Why These Stories Matter
While these examples might be considered small in the grand scheme of things, I would argue that it is the small things that companies can do that will have the biggest impact. These stories exemplify the idea that companies do not have to spend much time or money or sacrifice much profit, in order to create genuine surprise and delight moments. And when brands surprise and delight us, we remember that event and it serves as a meaningful deposit into our emotional bank account with that brand. When people surprise and delight us, our bond with them is strengthened and love begins to build. The same holds true for brands with consumers. Find ways to surprise and delight your consumers and the love, and incremental profits will follow!
ABOUT THE AUTHOR
Brad Taylor is a foodservice and CPG marketing veteran with over 34 years of
progressive experience in leadership roles at The Coca-Cola Company, Pizza Hut, Inc., and in the advertising agency industry. Brad has consistently led teams to achieve strong B2C results through a keen understanding of how to effectively position and activate brands directly with consumers and through deep collaboration with B2B partners including customers, franchisees, strategic alliances, and marketing services partners. Brad has direct experience solving marketing challenges with leading brands including Circle K, Coca-Cola, Disney, Domino’s Pizza, HMSHost, Pizza Hut, Sodexo, and others. Additionally, Brad is a skilled orator and facilitator and currently serves as a part-time marketing faculty member at the Goizueta Business School at Emory University and at the Coles College of Business at Kennesaw State University.
Thank you for visiting our blog.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Jim Weber, Managing Partner
ITB PARTNERS
Jim.Weber@itbpartners.com
Current Assignments
- COO- Northeast-based Casual Dining Restaurant Company – Completed
- VP Operations – Southeast-based Casual Dining Restaurant Company – New
- CEO- Northeast-based Casual Dining Restaurant Company – Completed
- Corporate R&D Chef, Atlanta-based Home Meal Replacement Company – Complete
- Area Supervisor – Legacy Pizza Chain, Carolinas – Completed
- Controller – Atlanta-based Consumer Products – Digital Company – Completed
- Sr. Staff Accountant – Atlanta-based Not-for-profit – Completed
Eric Norman Presents to The BENG Atlanta Chapter
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Eric is a Project/Program Management Professional with more than twenty-five years as a leadership consultant providing business transformation, change management, program management, business analysis/re-engineering, and operations management for national and global services firms. He has particular expertise in program design, strategic planning, business change management, decision support systems development and software systems implementation using waterfall and iterative methodologies.
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Every Game Is An Away Game! By John Tapley, ITB Partners
Ugh, walking into another meeting to advance your new business venture or propose a new idea and you know the audience is hostile. This is Corporate America. Not that they are inherently mean and vicious but the climb to success in a corporate environment can elevate single-mindedness over team play. Get noticed, show you’re smarter than that person at the podium and keep things as they are with the “if it ain’t broke” mentality, those are the daily challenges you face as a corporate entrepreneur.
So why? Why go through that? Because beneath the surface, you know this is the right thing to do and you know these are good people at heart and once you break through, they will support you and ride the wave to success together.
And that’s my story, building a new business from scratch inside a large global organization was my challenge. And one day, after a tough session and what felt like a beat down, one of my co-workers who’d been through similar experiences made the statement, around here it feels like “every game is an away game”. I connected instantly with those words and felt relief I wasn’t alone in the challenge. I concluded this was really just a rite of passage and conditioning for the stamina to make things happen. Don’t get me wrong, I’m really proud of my company and all the success over the years and the wonderful people that I’ve come to know as friends and co-workers. It’s been a blessing and I’m a better person for having worked there.
So, from that experience and many others like it, I have advice for my fellow corporate entrepreneurs and those aspiring to make a change inside a complex matrix organization:
- Challenge the status quo but know your boundaries; understand the degree of assertiveness to apply based on who is impacted and strength of your reputation
- Make friends and network constantly, spread out and make friends regionally and globally, with the right people
- Understand what you’re up against, learn how things work; when systems and processes are a roadblock, study them and find ways you can navigate through or around them
- Get out and look around, be curious, show interest in others and what they do; build relationships and explore all functions of the organization
- Discover your mentor; be a mentor any chance you get
- Be genuine
- Be respectful
- Be kind
In summary, take action, be resourceful, welcome change and embrace the challenge. And by the way, I’m proud to say we were successful, the new business is off and running.
My thoughts…
The thesis of this article, “Every Game is an Away Game,” is a metaphor for the challenges faced by athletic teams who must travel to play on their opponent’s home turf. Playing in unfamiliar territory is a disadvantage which requires work to overcome.
In his first paragraph, John speaks to the need to understand one’s audience so as to craft a message that will be received most favorably. To embellish on his primary point, John mentions the need to understand the company culture and management style, the importance of building a team to ensure success; to be a team player; and to build consensus. Stated another way, one must know their company’s management style, its culture, to be successful.
There’s no question that a corporate environment is very competitive, both externally and internally. Although new models speak to the benefits of collaboration and teamwork, corporations are still hierarchical organizations with intense competition to move up the ladder. As with any product, competition is ultimately a positive force. It makes one work harder and smarter, to become better prepared to find solutions to vexing issues.
At the same time, corporations are social organizations. People are not only expected to do their best work through healthy competition, they are expected to be friendly and to get along with one another. After all, people want to work with other people who are enjoyable to be around. A toxic, dysfunctional work environment is not optimal for maximum effectiveness.
John packed a lot of wisdom into this article. My overall takeaway is that the modern corporation is a crucible to sharpen one’s skills. I couldn’t agree more!
Thank you for visiting our blog.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Jim Weber, Managing Partner
ITB PARTNERS
Jim.Weber@itbpartners.com
Current Assignments
- COO- Northeast-based Casual Dining Restaurant Company – Completed
- VP Operations – Southeast-based Casual Dining Restaurant Company – New
- CEO- Northeast-based Casual Dining Restaurant Company – Completed
- Corporate R&D Chef, Atlanta-based Home Meal Replacement Company – Complete
- Area Supervisor – Legacy Pizza Chain, Carolinas – Completed
- Operating Partners – Legacy Pizza Chain – New
- Controller – Atlanta-based Consumer Products – Digital Company – Completed
- Sr. Staff Accountant – Atlanta-based Not-for-profit – Completed
Jerry Heilpern Assumes CEO Role at Sage Personal Chef
We are pleased to announce that Jerry Heilpern has been named CEO for our Client, Saige Personal Chef. Jerry Heilpern brings over 30 years of restaurant and hospitality experience with major Casual Dining Brands. After completing a Chef’s Apprentice program and a BA in Finance and Economics from Wayne State University, Jerry worked in the national chain, franchise, and emerging brand environments. Eventually returning to school, Jerry received a Masters Degree in Business Administration and is currently working on a Doctorate in Business Administration with a marketing specialization. Jerry serves on the Georgia Restaurant Association, the American Marketing Association, and the Foodservice Consultants Society International.
Saige Chefs delivers fresh, clean, chef-prepared meals directly to the doors of customers across the Greater Atlanta area. We cater to a variety of diet types, with offerings for vegetarians, vegans, pescatarians, and meat-lovers with a changing menu of 30+ meals weekly. Adult meals start at $11.99, and kid’s meals are always $6.99. You can learn more about Saige Chefs at www.heysaige.com!
Saige Chefs believes that in today’s world, a balanced dinner has become more of a hassle for most than it ever should be. Between the planning, shopping, cooking, and cleaning, preparing meals throughout the week takes more time and mental energy than we often have. The alternative, grabbing the nearest convenience food or frozen meal, often doesn’t fuel us the way we should be fueled, nor does it provide the balance of flavor and satiety that a freshly cooked meal might. It’s the 21st century. Shouldn’t dinner be “better”?
Saige exists to make lives better, taking care of the basics so that people have time to focus on what matters most to them. We do this by taking care of the “dinner problem” for you in its entirety, by delivering a wide variety of clean, chef-made meals directly to the doors customers across Atlanta.
For more information about ITB Partners and how we can help you, contact -Jim Weber at (770) 649-7051 or Jim.Weber@itbpartners.com
Adapt Your Recruiting And Selection Program To The Economy!
This past Friday, the Commerce Department reported the second quarter Gross Domestic Product, GDP. As anticipated economic activity was robust, increasing by 4.1%. This compares favorably to an adjusted 2.2% increase for the first quarter. The principal drivers of this growth were consumer expenditures up 4.0%, business investment up 7.3%, exports up 9.3%, and federal expenditures up 3.5%. This is the strongest activity we’ve seen in about four years. Hiring for factory jobs is reported to be brisk. Concurrently, the unemployment rate is 4.0%.The economy is awesome! Companies that haven’t considered expanding for a while, are investing in their businesses. Expansion requires them to hire more employees. However, the economy is at full employment. With respect to the labor market, it is no longer a buyers market. Now, it’s a seller’s market. Finding the ideal candidate is becoming more difficult. In fact, the tight labor market in the restaurant and foodservice industry has increased the demand for automated equipment.
The improved economy and the increased demand for labor is forcing employers to develop competitive employment offerings. When hiring full-time equivalents employers have three options: recruit those currently employed in a similar job, looking for a better situation; hire people who don’t have the full set of skills necessary to do the job but can succeed with training and development; or take a risk by hiring from the pool of partially or long-term unemployed. Of course, another option is to find temporary workers or freelancers who are ready to go to work for a single employer.
An employer trying to recruit from the pool of the gainfully employed should understand why employees leave their jobs. They will leave their job if they feel unappreciated and under-utilized. They may be motivated to leave their current situation if it does not provide opportunities for professional development or advancement. Employers seeking to attract candidates currently employed must give these issues careful consideration as they craft their job specifications. To compete in a full employment environment, employers must offer a compelling alternative to compensate for the risk and uncertainty of leaving one’s job. Those employed understand that the market is volatile, given mergers and acquisitions, re-organizations, and the effect of systems and automation that reduces the need for some jobs.
Employers with budget constraints who cannot offer a competitive salary may consider hiring someone with the potential to grow into the requirements of the job. This is a viable strategy, however, it requires a commitment to training and development for the recruit. This is similar to a Promote From Within Strategy, although these employers will likely focus on hiring entry-level employees. Employers will not be successful with this strategy if they don’t invest in training programs.
Considering applicants with a lot of job changes, or those who have a been sidelined for significant periods of time should be your last consideration. There may be people in that pool who have faced circumstances beyond their control, not reflective of their work ethic or job skills. To identify viable candidates from this pool requires extra time and effort. In this case, the use of diagnostics is warranted.
Other alternatives to hiring full-time equivalents, either for short-term or long-term situations, are temporary workers or freelancers. These people choose not to work for one employer exclusively due to lifestyle considerations or personal issues. Their hourly rate may be higher than that of a full-time equivalent, but they don’t require benefits, and the additional cost might be worth the flexibility available to the employer.
From what I’ve observed, many employers are lagging in their ability to adapt to the current labor market. Whereas they became creative during the last administration, finding solutions around the regulations created by Obamacare, such as job sharing between employers, many employers have been slow to respond to the challenges resulting from the current economy. If they are serious about expanding their businesses, they will eventually adapt and become competitive recruiters. To do so requires that employers understand the nature of the market, then consider all options to arrive at the most effective recruiting and selection strategy.
Thank you for visiting our blog.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Jim Weber, Managing Partner
ITB PARTNERS
Jim.Weber@itbpartners.com
Current Assignments
- COO- Northeast-based Casual Dining Restaurant Company – Completed
2. VP Operations – Southeast-based Casual Dining Restaurant Company – New - CEO- Northeast-based Casual Dining Restaurant Company – Completed
- Corporate R&D Chef, Atlanta-based Home Meal Replacement Company – Complete
- Area Supervisor – Legacy Pizza Chain, Carolinas – Completed
- Operating Partners – Legacy Pizza Chain – New
- Controller – Atlanta-based Consumer Products – Digital Company – Completed
- Sr. Staff Accountant – Atlanta-based Not-for-profit – New
Closing a New Client
Debbie, a recent networking contact introduced me to John last month. When Debbie made the introductions, she said that John needed accounting support possibly requiring a search. John and I traded a few emails and phone calls but did not connect until this week.
When I talked with John he was very animated and emotional to the point of desperation. He was clearly having a bad day and unloaded on me. He wanted me to have as much background information as possible. John is a commercial contractor who has been in business for over 15 years. Although he can generate new business the gist of the conversation was about his current debt service. I inferred that he is on the verge of bankruptcy.
I had the opportunity to give him an overview of my background. I told him that had a 22-year corporate career managing retail stores and restaurants. During that time, I was responsible for the development and construction of new stores. Additionally, I told him that I serve as the business manager for my wife’s residential construction business. He took this as welcome news as he thought I could relate to his situation and positioned to help him. We agreed to meet Thursday afternoon to further explore a business arrangement.
I shared that conversation with my wife to get her perspective which was useful. The recession that began in the fall of 2008 hit the Atlanta market very hard. The following years were difficult for people engaged in the construction sector. We are well aware of the toll it has taken on the industry. We also understand what’s required to dig out of a bad situation to make a healthy recovery.
I had lunch with my attorney on Thursday and gave her the top line of John’s situation. I didn’t share any names, so the conversation was completely confidential. Although she is not bankruptcy attorney she has keen business insight. She told me that in today’s environment one cannot be forced into bankruptcy by one’s creditors. They understand that it is better to work with their debtors to minimize their loss. They know that if they don’t work with their debtors they risk losing their entire investment. She also suggested that this prospective client probably has one or more bad habits contributing to his problems. I had come to the same conclusion.
I continued to do my research on John prior to our meeting. I found that he was well-educated with two undergraduate degrees, including a degree in construction management and a master’s degree in construction management from a major university. Additionally, he had about 10 years of corporate experience working for major construction companies. His father was an architect and his grandfather was an engineer. He has the background to be a successful contractor.
John and I met Thursday evening over a couple of margaritas and chips at a local Mexican restaurant. We spent about two hours getting to know one another during which time he provided further clarification on his situation. The good news is that he is effectively managing his creditors, keeping them at bay. He has an issue with an accountant that unfortunately has control of all his financial information and an attorney who sued him to recover payment. He has paid the attorney most of what he owes so that debt is not much of a burden. His overhead seems high, with over 30% dedicated to insurance. He said he’s looking into a more reasonable alternative, as he should.
As we talked it became clear that John’s real issue is the need to generate more top-line revenue. Sure, he could raise more funds by increasing his prices to increase his margin, but the easiest solution to his situation is to generate more business. His concern is that he doesn’t have the personnel to support that growth. He needs someone to help him manage the financial side of the business particularly managing cash flow. He also needs a sounding-board to ensure that he is making the best decisions for his business.
By the end of our meeting, John asked me to consider working as his business manager. It’s an intriguing thought as it falls right in my wheelhouse. I suggested that we continue the dialogue and set up a ride-along next week. That will give us an opportunity to understand one another to determine if we can work together. This could become interesting.
Thank you for visiting my blog.
I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Jim Weber, Managing Partner
ITB PARTNERS
Jim.Weber@itbpartners.com
Current Assignments
- COO- Northeast-based Casual Dining Restaurant Company – Completed
2. VP Operations – Southeast-based Casual Dining Restaurant Company – New - CEO- Northeast-based Casual Dining Restaurant Company – Completed
- Corporate R&D Chef, Atlanta-based Home Meal Replacement Company – Complete
- Area Supervisor – Legacy Pizza Chain, Carolinas – Completed
- Operating Partners – Legacy Pizza Chain – New
- Controller – Atlanta-based Consumer Products – Digital Company – Completed
- Sr. Staff Accountant – Atlanta-based Not-for-profit – New