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The Power of Synergy

July 9, 2010 / by Leslie Hielema

Central Florida is a place that embraces “creating a bigger pie, rather than taking a bigger slice.”

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Growing up, my father was a real estate entrepreneur. When my brother was just a few months old, my dad posed him for a picture with “Think and Grow Rich” by Napolean Hill across his lap. This was a life-changing book for my dad and stimulus for growing a successful company. My mother was working on her degree in psychology and took me to participate in her class on transcendental meditation, which was intended to enable one to contact their field of creative intelligence, permitting one to realize the full potential of their lives.

This was heady information at a young age, so between Napoleon Hill and Transcendental Meditation, I had the basis for believing in the power of being your own boss and that your thoughts strongly influenced your life.

In “Think and Grow Rich,” I was attracted to the idea of forming a Mastermind group that served as a group of trusted advisors. Hill stated the human mind is a form of energy, and when the minds of two people are coordinated in the spirit of harmony, the spiritual units of energy of each mind form an affinity. Hill talked about great entrepreneurs such as Andrew Carnegie and Andy Grove of Intel, who had Mastermind groups.

Hill believed when a group of individual minds are coordinated and function in harmony, the increased energy created through the alliance becomes available to every individual in the group. This became a definition of synergy, which I first experienced at AT&T Bell Labs. I was energized by the power of brainstorming together, the lack of attachment to one’s own ideas and being part of creating something bigger. Great thinking came out of the world-renowned institution because of the synergy.

Throughout my career, I was always seeking this type of collaborative environment. I found it again when I arrived in Orlando, a place of connectedness, of coordination, of collaboration. It seems this is a place that embraces “creating a bigger pie, rather than taking a bigger slice.”

It is apparent that entrepreneurs all over Central Florida want to help one another succeed. I see this with the Board of Directors of Orlando Inc., with other successful entrepreneurs and with the entrepreneurial support organizations that exist to help others grow their business.

This commitment to our community was present at the Orlando Inc. event The Entrepreneurial Ecosystem, where we discussed resources available to entrepreneurs, such as the UCF Business Incubation Program, GrowFL, Rollins Center for Advanced Entrepreneurship, Florida Virtual Entrepreneur Center, Black Business Initiative Fund and the Disney Entrepreneur Center.

I saw this desire to connect and collaborate at our Cool Tech Showcase, where tech entrepreneurs helped businesses understand how to leverage technology for business advantage. We discussed social media success strategies, use of mobile marketing and iPhone apps, cloud computing, and websites for the international marketplace,  to name a few. So at this sold-out event, I donned my dork glasses, the horn-rimmed ones with the tape in the middle, in celebration of geeks everywhere. Growing up, I did not have tape to hold my glasses together, but a very large safety pin on the side.

The B.I.G. Summit* on Nov. 18, celebrating Business Innovation and Growth, is another example of entrepreneurial connectedness. The Summit focuses on learning from other entrepreneurs, people who have been there and done that. Last year, we had the opportunity to hear from Tony Hsieh, CEO of Zappos.com. His company was purchased by Amazon last year and valued at more than a $1 billion. We all listened intently as he told us how he built his company, selling shoes on the Internet, based on the philosophy of “Delivering Happiness.”  I know that everyone walked away with valuable nuggets they were able to use in their business.

This year, we have many great entrepreneurs scheduled to speak, and our keynote speaker is Bert Jacobs, Chief Executive Optimist of Life is Good. Bert and his brother have built a multimillion-dollar international business based on a philosophy of “Spreading the Power of Optimism.”

I know that, as a community, we are on the right path. We are cultivating the synergy needed to generate new ideas and foster innovation. We have leaders that believe we can only achieve greatness by putting our minds together. To have success, according to Kauffman Foundation, the world’s largest foundation devoted to Entrepreneurship, we need to have in place:

  • Pro-entrepreneurial policies, taxes and legal infrastructure
  • A culture that is open to new ideas
  • Entrepreneurial training, mentoring and networks
  • Strong educational and research systems
  • Great amenities
  • Infrastructure and transportation

With strong universities and colleges, committed entrepreneurial support organizations and specialists, sunshine and beaches, sport and art centers, SunRail and high-speed rail and, of course, a “Five Star” Chamber of Commerce, we are positioned to become a B.I.G.* entrepreneurial hot spot.


Editor's note: * Business Innovation and Growth.

 

Built From Scratch

July 9, 2010 / by Michael Candelaria

Cover3From software patents to patented sports bar fare, Andy Gross is taking the franchise restaurant business by the (Buffalo) horns.

No previous experience working in a restaurant, check. No previous ownership of a franchised business, check. Unfamiliar with new geographic region, check. Unaware of eventual natural disaster, check. Oh, and wife pregnant during relocation and startup, check.

If ever there were a list of when not to take the entrepreneurial leap, it was compiled by Andy Gross. That was six years ago. Now, Gross is working on another list — five Buffalo Wild Wings Grill & Bar locations up and running, and two more opening within a month, plus a recently completed expansion (adding 2,100 square feet to an existing 6,700). He has committed to a total of 12 locations, with the potential for 15 in a territory that stretches from Davenport to Daytona. In addition, he has signed on for a new concept, called Smashburger, intent on building up to 20 such restaurants in Central Florida. (The signature burger is smashed on a grill to seal in flavor.)

In the searing heat of the restaurant world, that's like jumping from the frying pan into the fire. Yet, for Gross, leaps of faith are becoming about as routine as whipping up an order of Grilled Chicken Buffalitos, one of the favorites on his menu.

And to think Gross was a software engineer whose life revolved around creating patents before all this craziness began. He began his original career 18 years ago in Arizona before moving in 1995 to Colorado, where he “worked lots of hours and did lots of traveling.” Mostly, he realized, he was doing all that work for somebody else.

No particular moment drove him to change — just the steady gnawing feeling that a brighter horizon beckoned than what he could see from his Denver office. So, with few preconceptions about what lay ahead, he began his search.

“We [he and wife, Laura] actually just started driving around and looking at things and going, ‘Would we want to do that?’”

Hitching his wagon to a casual-dining sports-themed eatery such as Buffalo Wild Wings was far from his initial thoughts. Although he certainly enjoyed a sports bar atmosphere well enough, smaller operations, like sub shops or ice cream parlors, seemed better fits. After he and Laura had looked around for a few weeks, though, his uncle, who had run several businesses, made the suggestion. Even better, he offered financial help. That prompted Gross to drive about 30 miles from his home, outside Denver, to see one of the restaurants firsthand. He left duly impressed: “I could hang out there, I thought. I could own this.”

The idea of (saucy) wings took flight.

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That was in 2001. The next three years weren't an easy ride. First, upon negotiating to open Buffalo Wild Wings sites in Denver and completing the requisite financials — including having a minimum of $800,000 total net worth per restaurant unit — Gross received word that the Minneapolis-based franchisor had decided to open corporate-owned restaurants there. “They kind of threw us for a loop,” he recalls. Gross could walk away or explore sites elsewhere. Since he was already qualified financially, he chose the latter.

Then there were the questions of where and when. Regarding where, no “aha” moment, again, occurred to seal his fate — just ample sunshine, inviting neighborhoods and the enticement of Central Florida's demographics, which matched the franchise's youthful customer profile. Not coincidentally, the name of his Longwood-based company is Sunshine Restaurant Group Inc.

As for when, wife Laura held all the cards. Pregnant, she simply demanded that any relocation happen before her final trimester. “As much as anything, that drove my timeline to get here,” says Gross, who had flown to Orlando about eight times, looking for housing and restaurant sites. “She wanted our son [Ryan] to be born in our new house.”

Such are the types of cloaked details behind any entrepreneur's startup story.

And there was still another chapter. Call it Summer 2004, authored by Charley, Frances and Jeanne. The first two hurricanes hit while the first Buffalo Wild Wings restaurant was under construction on International Drive. The third hit the week after it opened, promptly closing it down. “We definitely had our struggles in the early days,” he says.

Gross, still only 39, can smile a bit more easily these days. Since opening that first restaurant in September 2004, his Sunshine group has exceeded industry and Buffalo Wild Wings franchise standards on numerous financial metrics. In the five-year period from late 2004 through 2009, annual sales increased from $2.7 million (2005) to $14.2 million. The employee count grew tenfold, from about 40 to about 400. And the five restaurants served more than 3.3 million guests.

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Most notably, even in the deep recession of 2009, Sunshine showed sales growth of about 3 percent, compared to the Orlando-area chain restaurant store average of about minus-10 percent. Sunshine’s average unit volume was 16 percent higher than the chainwide average, with sales increasing during the year by 37 percent. Eighty employees were added, and construction commenced on the two new units, one in Kissimmee (10,500 square feet) and the other in Clermont (9,600 square feet). Also, during its third anniversary party last October, the Buffalo Wild Wings in Waterford Lakes had the seventh-highest daily sales ever for any restaurant in the 27-year history of the chain, which has 650-plus restaurants.

“My hat's off to him,” comments T. Michael Ansley, president and CEO of Diversified Restaurant Holdings Inc., which operates 16 Buffalo Wild Wings in the Tampa area and Michigan, with 22 more to build. “Everybody wants to retire and go open a franchise in Florida. He's been able to do it very successfully.”

Heady success, for sure. Yet, Gross isn't ready to anoint himself Mr. Restaurant. Instead, with his engineering roots, his recipe for success lies in analysis, assessment and execution. He isn't afraid to roll up his sleeves and dive into a batter of breaded wings — yes, he's done that during a Super Bowl. The preference, though, is to focus on employee procedures, the fine print (not necessarily on the menu) and other minute details.

At the same time, he acknowledges what he doesn't know and sees the benefits of having an open mind. That attitude, in fact, is what drew him to Buffalo Wild Wings. Upon his characteristic scrutiny, he became impressed with the backgrounds that the franchisor didn't have. “Basically, the entire executive team wasn’t restaurant people,” he says. “They knew they didn’t know restaurants. They understood their piece of it. They weren’t there to run a restaurant; they were there to run a restaurant business.”

What the franchisor did offer was support. And the eatery's lively concept didn't hurt, either.

Typical support encompasses everything from site selection and floor plans to preapproved suppliers and a restaurant-opening training package. Additionally, Buffalo Wild Wings’ startup and ongoing training programs teach franchisees and their staff about running a location, including the preparation of menu items; effective food service operations; hiring and personnel management; and marketing, promotions and public relations.

The restaurant concept, meanwhile, is all about casual dining, including finger foods, chicken dishes, salads, burgers and full-bar drinks, presented in an atmosphere that is highlighted by large-screen TVs and dozens of smaller monitors broadcasting sporting events, with a series of National Trivia Network consoles mixed in for entertainment. The alignment of tables and chairs allows customers to easily group together or isolate themselves as desired.

Picture a dressed-up college hangout with enough polish to attract patrons outside the typical male, ages 21 to 35, sports bar set. And the place is especially geared toward big sporting events. During February's Super Bowl, his five restaurants sold 75,000 wings (50,000 of which were bone-in), both dine in and take out.

“You can ride their success,” Gross says of good franchisors. “Obviously, put your own spin and your own flavor to your stores, and you can build the brand locally. But you have that large corporation, doing their job, helping you out.”

At a cost. Since the time when Gross needed $800,000 per unit, the price has edged upward. “They’re not cheap to do,” he concedes. “It’s not a little sub shop; it’s expensive.”

Money isn't the only consideration, advises Gross, ever the analyst, who graduated from Penn State in 1992 with a B.S. in computer engineering and first worked at IBM. “To me, being a franchise is just a piece of a whole big puzzle. You have to put your whole business plan together. If your business plan and what you’re trying to do makes sense to be part of a franchise, and your business plan is acceptable to [the franchisor], that’s when franchising makes sense. If your business plan makes more sense to do something on your own, then that’s the plan to follow.”

Gross has immersed himself in the franchise. He handles the day to day, as well as locating sites, negotiating leases, overseeing construction — and making “lots of wings.” “I like to be involved,” he offers. “I know what it’s like. I know what my people [his employees] go through; I respect it. It’s a lot of work.”

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Not only is Gross part of the franchise, but in some instances he's helping to drive it. He is chairman of the Buffalo Wild Wings National Franchise Association and a national director of the Coalition of Franchisee Associations, along with serving on the board of directors of the Central Florida chapter of the Florida Restaurant Association. “I haven't [seen] the passion and enthusiasm from anybody like him in a long time,” comments Christy Williams, executive director of the National Association Management Group, which manages the Buffalo Wild Wings National Franchise Association. “People want to participate but just don't have the commitment to put in the time because of their business obligations.”

There is more to come, too. The franchise agreement with Smashburger calls for him to develop and operate 20 Smashburger “better burger” restaurant locations in Central Florida over the next four years. Three of them could be open by year end. Turning promoter, he says, “Once you try a Smashburger, you’ll understand what everybody is raving about.” Sprinkled across the country, Smashburger is the newest retail concept funded from the private equity and concept development firm Consumer Capital Partners, based in Denver.

Clearly, Gross isn't planning to slow down — maybe just relax a bit. And this time, there was an epiphany.

Near the end of last year, Gross left town to attend a board meeting of the Coalition of Franchisee Associations. He recalled a year earlier, when he continually had to monitor his restaurants. “I don’t like being surprised,” he notes. Not this time. No such “check in” was necessary. “I now believed that my team could run this,” he says.

“You get the right people in place. You keep them and you keep them motivated. That’s how you build a business.”

That moment came on the heels of a successful opening, in early 2009, of his Casselberry restaurant, which finished the year among the chain's top locations nationwide in sales volume. The pieces, even if maybe on wings and a prayer, had fallen into place.

Not bad for a software guy who sought something new, building from scratch in an unlikely setting.

Still sounding very much like an engineer, he explains that the operations of the business are what excite him. And he makes this confession: “It was never my idea to work in a restaurant.”


5 Franchisee Musts

  1. Choose something to own that you are passionate about. As with any business, the franchise you choose will be a major portion of your life. It’s important to own a company you enjoy.
  2. Look at franchises that other successful franchisees are looking at as well. Successful franchisees are successful for a reason — they have picked winners in the past. Follow their lead.
  3. Examine detailed financials provided by both the franchisor and a few of the franchisees. A franchisor’s role is to sell franchises and thus will present the best possible situation. You can verify their pitch by examining a few of their franchisees.
  4. Choose a franchise that has shown a track record of success. This should be a given, but many times a potential franchise owner will buy into a good sales pitch or something that sounds like a good idea.
  5. Look at the assistance provided by the franchisor for training, marketing, operations and other items. A good franchise will have multiple programs to help its franchisees succeed.



 

Made in Central Florida

July 9, 2010 / by Michael Candelaria

Advanced manufacturing takes its rightful place among local industries making a big impact on the local economy.

InDepth1Adaptec Inc. provides storage-access solutions that reliably move, manage and protect critical data and digital content. .decimal Inc. is a manufacturer of patient-specific medical devices related to radiation oncology. Chip Supply Inc. creates semiconductor products and services for use in aerospace, military and medical applications, as well as commercial and industrial systems. Piezo Technology Inc. is a worldwide supplier of custom frequency control products.

There's a trend here.

With the production of high-performance components for computing, medical equipment, the military and more in a treasure trove of technology, Central Florida is emerging as a significant spot for an industry that is similarly on the ascent: advanced manufacturing. Crossing over many traditional industry sectors, companies throughout the region share a reliance on head-spinning research and space-age engineering for what can aptly be called anything but your parents' manufacturing.

Other examples: Ortheon Medical is a development stage medical technology company; Transpo Electronics makes premium quality automotive electronic components for charging, ignition and engine management systems; Crystal Photonics produces crystals for use in medical imaging and semiconductor applications; UroSolutions Inc. specializes in the manufacturing and marketing of urological products; and Sawtek provides surface acoustic wave (SAW) solutions for various wireless applications.

Of course, it's likely you already know about Lockheed Martin Missiles and Fire Control, which designs, develops and builds advanced combat systems; Northrop Grumman Corp., the creator of systems, products and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers; and  Mitsubishi Power Systems Inc., which encompasses power systems, shipbuilding, steel structures, air-conditioners, machinery for industrial and general use, and aerospace systems.

Whew. And the list goes on.

Such wizardry can be wondrous, too. Indeed, while Central Florida's economy continues a now-you-see-it/now-you-don't recovery, advanced manufacturing represents badly needed magic that won't disappear anytime soon. The circumference of its wand, in fact, is only growing larger.

Advanced manufacturing?

In simple terms — if that's possible, given the nature of the technology — think computers, robotics and the innovative power of the human mind.

“Now, it's not just people at assembly lines,” asserts Nancy Stephens, executive director of the Manufacturers Association of Florida. “More often, they are at computers, making sure that the computers are processing things properly in order to tell the machines what to do.”

Also, whereas manufacturing was once typically local, with occasional broader components, the norm today is global, she adds: “Manufacturers who never thought about exporting their products, now are either exporting or thinking about it. And those who already exported are thinking about expanding to more markets.” Manufactured goods, she cites, represent roughly 94 percent of all exports from Florida.

Stephens comments cover the entire state. Yet, drilling down into Central Florida, she uses words like “large” to describe the number of exporters and “great” in reference to their work. “The Central Florida area exhibits the diversity of manufacturing in the state,” she says.

Clearly, local advanced manufacturing has impact.

“Advanced manufacturing is the foundation; it's the base,” says Sherry Reeves, executive director of the Manufacturers Association of Central Florida. “As we build upon that, then we have the high-impact clusters of aviation/aerospace, clean energy, homeland security and defense, information technology, life sciences. … These clusters are merging together, and they always have been.”

All totaled, Central Florida's “knowledge-based” economy is loosely tabbed at more than $13 billion, employing more than 53,000 workers. Notably, most of those workers are highly educated (with college degrees) and well paid (with hourly wages of $35 and $60 for computer systems analyst and engineering managers, respectively).

Nationwide, nearly all manufacturing industries have become higher skilled (and higher paid), some by shedding lower-skilled workers while retaining or adding higher-skilled workers, and others by creating new jobs for higher-skilled workers. Locally, much of the same exists. While the employment of many industries is shrinking, projections call for growth in the “professional, scientific and technical services” industry, according to the Metro Orlando Economic Development Commission. That sector is expected to gain the third-most jobs in coming years, behind “administrative and support services” and “local government.”

The impact hasn't happened by accident. The sector enjoys general support and pro-business incentives from public and private organizations. The region's central location and transportation infrastructure provide multiple distribution options. In addition, respected educational institutions, led by the University of Central Florida, attract research dollars and consistently produce an impressive number of graduates, adding to the quality of the workforce.

Says Reeves, "Advanced manufacturing is definitely a leg [in the local economy]."

She makes the statement, though, with a laugh... plus some parting words. Reeves confesses that even she once neglected the stature of advanced manufacturing. She is a local native who worked in the travel business before "reinventing herself" and taking the helm at MACF four years ago. In that previous life, like many other people, she seldom thought much about the role of Adaptec, Ortheon Medical, et al.

"I didn't realze the amount of manufacturing we have here, " she concludes. "And there's so much more on the way."

 

A Different Kind of “Boss”

July 9, 2010 / by Joey Rosenberg

InPortraitWith a style one might not expect, Debbie Harvey surfs the wave of retail success.

Almost any Florida beachgoer is familiar with Ron Jon Surf Shop, one of the most recognized brands in surf- and skate-based products and apparel.

Yet, what comes to mind when you think of Ron Jon? Is it the laid-back beach lifestyle? Long-haired, tan-bodied surf enthusiasts catching some ocean waves? Lingo like “aloha,” “amped,” “bangin’” or “boss”? Or maybe even Ron Jon’s funky, casual 24-hour store in Cocoa Beach?

You might also think the person behind this business fits those profiles — but you would be wrong. In reality, the president and chief operating officer of Ron Jon Surf Shop is a middle-aged woman. Not only is Debbie Harvey head of the famous Ron Jon brand, but she's also riding the crest of her retail industry. Even more, she’s a leader in the community, volunteering for a variety of local organizations.

Though born in the Philippines, Harvey grew up in Fort Lauderdale and spent most of her life in Florida. She attended the University of Florida, where she earned two B.S. degrees, in business administration and marketing. At least that Florida background somewhat matches the company’s image. While Ron Jon’s ethos may reflect a mellow, relaxed style of living,  the person who runs the company does not. Instead, Harvey’s style is hard driving, straightforward and all business.

“I basically started my career in retail the Monday after I graduated from college,” she says.

Harvey joined the executive training program of what was then Maas Brothers Department Stores, which later consolidated and became Burdines. There, she worked her way up from area manager to assistant buyer and eventually to divisional merchandise manager.

Even after Harvey had made such notable advancements in her career, she continued pushing forward. She moved to Beall’s, becoming vice president of apparel, and then had a short stint with the Home Shopping Network before leaving Florida for Tennessee to work for Goody’s Department Store. In 2000, family issues compelled her to return home to Florida, and not long thereafter, she was recruited to work for Ron Jon as vice president of purchasing.

Today, Harvey has been with Ron Jon for almost 10 years and has been the company’s COO since 2008. There, her pervasive experience in retail has well equipped her to be the leading woman behind the surf shops.

“In business,” she contends, “every position that you have improves your experience bank and prepares you to deal with a variety of scenarios. Some of the most important lessons you can learn [teach you] how to deal with and manage different types of people."

Another lesson learned that Harvey has put into practice is understanding the importance of smart growth. “Overall, my goal as president of Ron Jon is just to make our stores as profitable and exciting as possible while growing in a smart, measured way. We want to enhance our business and brand while placing stores in sensible beach locations that reflect what our company represents.”

Above all else, she adds, business is business, regardless of niche or perceptual stereotypes. “Our business is knowing how to serve the customers, delight the customers and provide them with the merchandise they expect to find in our stores,” she asserts.

“When you’re a merchandise buyer, you learn to separate your personal taste from what the customer wants. If you’re good enough at it, you don’t need to be the type of person others expect you to be.”

Also, while one might expect the retail industry to be cutthroat and male dominated, Harvey claims just the opposite. “I believe that the retail industry was one that was at the forefront of having women in management positions. By its very nature, it tends to attract a lot of women into the buying positions, and it was just a matter of time before they started moving into the upper ranks of management positions. If you just take a look around the industry, you can see that the president of Beall’s is a female, the president of the Home Shopping Network is a female [and] there are a lot of women at the [helms] of retail [companies].”

Notably, Harvey’s commitment to community service is just as hard driving as her career in retail. Her mantra: “I am part of my community, and I believe in it.”

“I think that it is very important to challenge yourself to get out of the office and into the community and strive to make a difference,” she says. “Overall, I’m trying to make [Brevard County] a better area for business." Harvey is involved with numerous organizations, both professional and charitable; for example, she serves as chair of the board of directors for the Florida Retail Federation and as a board member of the Brevard Zoo.

Harvey not only lives that mindset, but she also encourages her fellow executives to do the same. Her head of operations is on the board of United Way, and her marketing director is on the board of Take Stock in Children, a nonprofit organization providing low-income, at-risk students with the opportunity to excel in their education through scholarships and mentoring programs.

Even with so much on her plate, Harvey is still able to excel in all she does. Like one of the county's many surfers poised to enter the water, she is both zealous and passionate about her work. She clearly loves what she does.

“I look forward to coming to work every day,” Harvey concludes, “and I don’t think it gets any better than that.”

 

Legacy Steward

July 9, 2010 /



PartingRoger Oxendale
CEO
Nemours Children’s Hospital

Roger Oxendale, former CEO of Children’s Hospital of Pittsburgh, has a tall task in Orlando: maintaining Nemours’ status as an elite brand in the global landscape of pediatric medicine. Having arrived in April, he will operate the integrated pediatric facility, scheduled to open in 2012 at the Lake Nona medical campus; he also will serve as a Nemours senior vice president.

Can Nemours Children’s Hospital in Orlando reach or exceed the levels of world-class excellence exhibited by Nemours hospitals elsewhere?

“Yes. … Nemours is creating something special in pediatric healthcare — a new family-centered model for the 21st century. By caring for the whole child through prevention and wellness programs, we can address health issues like childhood obesity before they become problematic.  Through research and education, we will foster excellence in patient care. The combination of these resources will culminate in a pediatric medical and academic hospital that can bring world-class care to children and families in Central Florida and beyond.”

What kind of person is Roger Oxendale?

“I have been happily married to my high school sweetheart for almost 35 years. A runner and cyclist, I also participate in ultramarathons [races that are longer than the standard marathon distance]. I would say that this translates into my propensity for building long-term relationships and tenacity in accomplishing any goal I set in front of myself, no matter how difficult it may be.”

 

Fresh Thinking

June 4, 2010 / by Jack Roth

Cover5With an innovative and never-be-complacent business philosophy, Tupperware continually evolves in the face of global change.

Over the years, many established companies have neglected to introduce change when their tried-and-true methods of doing business became ineffective. Failing to understand the need to evolve and instead sticking with obsolete strategies has led to unmitigated disaster for these organizations.

Think RCA or Montgomery Ward.

When Rick Goings became chair and CEO of Tupperware Brands Corp. in 1992, the company was headed down this slippery slope. Its headquarters in Orlando was up for sale and the year before had suffered $100 million in losses. The problems ran so deep he seriously questioned his judgment in taking over such a troubled operation. Goings asked himself how the mighty could have fallen so far. After all, Tupperware had been a direct-marketing and storage container giant for decades.

Starting in 1946 — when Earl Tupper introduced his innovative line of plastic home products and pioneered the direct-marketing strategy with the Tupperware Party — Tupperware grew to become a household name throughout America. With the onset of the post–World War II baby boom, women dedicated themselves to caring for their families. The “Tupperized” kitchen was born — a well-organized place that featured a variety of Tupper’s versatile, convenient containers.

Through the years, the company enjoyed great success because it had no competition and a built-in marketing force of stay-at-home moms who saw the party sales method as an appealing career. In the 1970s, though, things began to change. More typically, women got out of the house to work full time, and competitors like Rubbermaid started to cut into Tupperware’s market share by offering cheaper knockoff products.

That’s the challenge Goings faced upon his arrival.

“Every business model works until it stops working,” says Goings. “The old business model wasn’t working anymore, so we quickly had to change the corporate attitude from ‘Let’s pretend it’s still the 1950s’ to ‘Nothing lasts forever.’”


Global Approach

As a longtime global executive with Avon, Goings came to Tupperware with a keen understanding of why the world keeps changing and how external forces, such as new technologies and products along with the modernization of cultures, dictate that companies either evolve or die.

Tupperware needed a sustainable, competitive advantage to get itself back in the game. Goings realized the company could do this by differentiating its products, but it first had to contemporize them. Deciding that he wasn’t going to compete with Rubbermaid, he instead went upscale by introducing new product categories, including kitchen tools and gadgets, cookware, food-preparation items, cosmetics and microwave cooking technology.

“We also needed to create a new type of selling dynamic,” he adds. “The old Tupperware Party was designed in the 1950s, when the American family was a different entity. Today, our parties are more interactive and entertaining, but we’ve also expanded our direct-selling demographic to include emerging markets around the globe.”

More than anything else, this strategy has put Tupperware back on track.

Goings, a self-proclaimed globalist, began implementing this strategy in 1994. Today, 54 percent of the company’s sales come from places like China, Russia, India, Indonesia and South Africa. Sixteen years ago, Tupperware was an American company that limited its international reach to places such as Canada and Australia, because the people who lived there spoke English. Now, it’s a conglomerate that reaches nearly 100 markets across the world.

“Tupperware’s direct-selling business model allows it to expand into emerging markets with relative ease, and to update and refresh its product portfolio in developed markets on a regular basis to keep its distributor force energized,” says Douglas Lane, managing director of equity research for Jefferies & Co. in Boston. Lane has performed equity research coverage on Tupperware’s stock for the past seven years.

“Another unique feature is its ability to provide a healthy income opportunity to people in emerging markets, particularly women who may not otherwise have much of an opportunity to independently make a living,” he adds.

One of the reasons Tupperware was able to successfully integrate into these markets is the diversity of its management teams, whose members are similarly international. Having a diversified workforce gives the company the experience needed to decide which regions are best to target, Goings believes. The criteria: markets with limited retail infrastructure and limited earning opportunities for women. Calling it a “boots-on-the-ground approach,” Goings credits his management teams with knowing where to go.

On a recent trip to India, he learned that only 30 percent of women there are employed and that two-thirds of them are underemployed. “These women are looking for business [opportunity], and we’re providing it for them,” he says. “As she [the Indian woman] goes out and sells products, her confidence and influence grows. We’re not just selling products, but we’re changing lives one at a time.”

The strategy of taking an independent contractor who has no experience in direct marketing but who has a strong desire to establish a business, and providing that person with free training and the tools necessary to succeed, has enabled Tupperware to reach out to women around the world.

As Tupperware personnel interact with different cultures, they’re realizing that women, regardless of where they’re from, basically care about the same things. Friends, family and personal development all represent high priorities. Goings reflects on a speech he made in Mumbai, India about Tupperware’s mission, model and mindset: “It wasn’t rah-rah stuff. We were talking about the women they are and the women they want to become.”


Cover3Adapting to Cultures

One might ask how high-end products can sell well in emerging markets. Citizens of developing nations spend most of their money on food, clothing and shelter, explains Goings, so if the company can show people how to save money on food preservation, it becomes a logical priority for them.

Understanding cultures and adapting products to sell to those cultures is something Tupperware has mastered in recent years. In Latin America, for example, women spend 20 times more on beauty products than on any other Tupperware product line. As a result, the company expanded its product base to include a portfolio of beauty and cosmetics brands. Sales have been strong, driven by the continued strength of the Mexican, Central American and South American markets.

Cover1In India, a plastic container paired with a spoon has become a "masala keeper" for spices. In Korea, stain-resistant canisters are deemed perfect for kimchi fermentation. Larger boxes are promoted as safe, airtight "kimono keepers" in Japan. In Mexico, thermal “tortilla keepers” keep fresh flatbreads warm and moist. The company also diversified its product line to encompass cookbooks and baking products in France.

“We don’t change people’s eating habits,” says Goings. “We just create products that best complement cultural preferences.”

Not coincidentally, Tupperware now has more than 1.9 million independent consultants. And the company ranked No. 2 for the second consecutive year in the Household Products Category of Fortune’s recently released “World’s Most Admired Companies” list. Already boasting strong 2010 sales and profits, the company has been relatively untouched by the economic downturn, partly because most of its business comes from high-growth overseas markets while high unemployment has boosted its sales force, which is paid on commission.

“They’ve changed their corporate culture to reflect the environments in which they operate,” comments Ray Gilley, president of the Metro Orlando Economic Development Commission. “They’ve helped millions of people around the world become successful entrepreneurs; they’re a unique and fascinating company.”


Cover2Community Partner

The biggest piece of the puzzle for Tupperware over the past two decades has been its focus on people. The company mantra: “If we can recruit, develop and empower the best people, we will flourish as a company.” The idea is that together they can create the new strategies that give the company a sustainable competitive advantage and create a corporate culture that never allows a letup whether they have a good year or a bad one. “We have a warrior culture here,” acknowledges Goings. “We have a ‘Bring it on’ attitude. If the economy is bad, we’re committed to figuring out how we can work around it.”

This type of fighting spirit closely aligns with the company’s community service outlook. Big believers in civic involvement, Goings and other executives have developed a culture where people accomplish great things by their actions, not their words. Tupperware’s community is the world, so its community service is global.

“Tupperware is a very responsible corporate citizen,” says Gary Cain, president of Boys & Girls Clubs of Central Florida. “They’ve empowered women across the globe, and they take a real interest in a variety of women’s and children’s causes.”

Notably, while Tupperware has focused on the needs of children from less-advantaged circumstances, it has been involved locally with Boys & Girls Clubs. The company also conducts a vigorous United Way campaign and involves its employees in many issues of importance to the local community. “This dedication to community is based on the company’s commitment to personal growth and development,” adds Cain, “as well as a sincere interest in helping people achieve their dreams and aspirations.”

Tupperware’s reputation alone helps market the Central Florida region to other top businesses around the country, as well. “Tupperware has helped us with creativity and recruitment efforts,” says Gilley. “Company representatives relate their experiences in Orlando to others, and they talk about the opportunities that exist here. For them to be engaged like this helps us showcase the region as a global player, and we’re very appreciative of that.”

Indeed, just as Earl Tupper’s early plastic products revolutionized food storage and preparation, today’s Tupperware products continue to enhance lifestyles. And, while the world will continue to change, it’s apparent that Tupperware will continue to evolve right along with it, using a modern approach to marketing and global outreach to achieve company goals.

“Great businesses use successful formulas,” says Goings, “and they give people the tools they need to do well regardless of experience or education.” Or change.

 

SMART Leaders

June 4, 2010 / Photos by MacBeth Photography

InDepth IntroThe 2010 SMART Awards recognized middle-market companies for “raising the standard of excellence throughout Central Florida.”

They are middle market and leading edge. They are tech savvy, nimble, cohesive, strategic and successful. And they are winners.

A total of 25 companies were selected as finalists for the SMART Awards by the Association for Corporate Growth's Orlando chapter. Late last month, each was honored by ACG Orlando, along with presenting sponsor Lowndes Drosdick Doster Kantor & Reed, while seven received special recognition as champions in their categories.

The fourth annual event — part of a continuing commitment to facilitate relationships among middle-market companies, capital sources and professionals active in corporate finance throughout Central Florida — was designed to identify the best of the best. Companies, which range from $10 million to $1 billion in annual sales, were evaluated based on the value they bring to the region in terms of corporate culture, creativity, business acumen and economic contribution.

Not surprisingly, the common threads in all during the recent difficult economic times: adaptability and innovation.


The Finalists

(category winners in bold)

AA Metals

AGMUS Ventures

DEI Service Corp.

DiPasqua Enterprises

Engineering & Computer Simulation

Environmental Manufacturing Solutions

FARO

Florida Emergency Physicians

Florida Heart Group

Gatorland

Highwinds Capital

JHT

JVI Appraisal Division

La-Z-Boy Furniture Galleries

Leavitt Management Group

New Traditions National Bank

North American Substation Services

Physician Associates

Roger B. Kennedy

Sperry Van Ness Real Estate Advisors

Symetrics Industries

Tijuana Flats Burrito Co.

Williams Co.

ZeroChaos


The Winners

Healthcare

Leavitt Management Group

InDepth3Location: Maitland headquarters, several area locations

Description: affiliated companies include Advanced Dermatology & Cosmetic Surgery, reportedly the world's largest dermatology and plastic surgery practice

Pictured: Dr. Matt Leavitt, Founder, CEO and Medical Director

Building Business: “In our field, there are a lot of doctors who are very smart. But it's very hard to translate ideas into success. It's a matter of executing the vision and being able to adapt the vision. The one thing that I start with is that it's all about people. … It's all about the patients, and it's all about each other in the offices to create a situation where people enjoy and are passionate about what they're doing.”

Leadership: “I think, as a CEO. your job is to be a top-down leader. That means you're really going to define the psyche of the entire company. For me, that means being accessible and being visible. Even though we have a lot of different offices, I go around and spend time with each doctor and I see patients in each office. … I want everybody to know what our vision is.”


Information Technology

Highwinds Capital

InDepth7Location: Winter Park, with facilities in seven other states and in Amsterdam, Frankfurt, Paris, Brussels and London.

Description: provides software, hosting, and content-delivery solutions for Internet service providers, Usenet hosting businesses and individual Usenet subscribers.

Pictured: Steve Miller, President and CEO

Key to Success: "Highwinds offers lightning-fast delivery of the largest files and most graphically intense media and takes the Internet content-delivery initiative to the next level by providing breakthrough benefits for data center peering, realtime analytics, instant account provisioning, rapid content deployment, complete content control and massive scalability."

Service Advancement: "At least once a year, Highwinds Software conducts a multiday training event where Internet service providers go to learn about Usenet and the latest operational standards."


Manufacturing

Symetrics Industries

InDepth2Location: Melbourne

Description: manufacturer of defense-related equipment for the U.S. military, for use on aircraft

Pictured: Mitch Garner, President and CEO

Lesson Learned: “For me, the most important thing is to build the right team. If I've got the right people who are supporting me — people that I can trust and know are loyal, and they're smart — that's huge. As a head of a company, you can't possibly know everything and can't possibly do everything. So you have to surround yourself with the right people.”

Turning Point: “We were a public company and got acquired by a larger company, and this was all very new to us. … None of us really thought we could buy the business back from the company. But it was possible; it was doable. And we kind of bought back our freedom.”

Advice: “Just stick to your principles; stick to your morals.”


Real Estate

Williams Co.

InDepth5Location: Orlando

Description: employee-owned commercial construction company, focusing on public education, retail, industrial and healthcare markets (formerly family-owned)

Pictured: Bruce Williams, Chairman

Advice: “First, treat everybody with respect, not just the vice presidents in your own company but also the administrative assistants, receptionists, the laborers, everybody. Second, provide the client with a level of service that exceeds their expectations, which in our industry means getting it done on time. Third, be financially conservative. Certainly, in this recession, our financial conservatism has paid off in spades. Be careful of debt; make sure you have plenty of cash; don't take risks when you can't handle the consequences if you're wrong.”

Brand Strategy: “The thing we do that we think is better than our competitors is provide a level of service that exceeds our client's expectations consistently. So, 80 percent of our work is with people we've worked with before — repeat business.”


Services

ZeroChaos

InDepth4Location: Orlando

Description: a global workforce-solutions company (See FM's April 2010 cover story.)

Pictured: Harold Mills, CEO

Mistakes: “When I look back, there are tons of mistakes I've made. But the ones that probably hurt the most are the ones around people. It's the idea that if you bring someone on and they're not working out, particularly if they're in a leadership position, one of the things my head always tells me is to move fast to resolve those situations. And a lot of time I'm probably too slow. When someone leaves, 90 percent of the time it turns out better for both the organization and the person.”

Fear: “Don’t be afraid of your own success. We might get a little taste of what it’s like to succeed, and then we can fear making a decision that could double the company. Sometimes we’re our own enemy. Sometimes we have to jump off the cliff and grow our wings on the way down.”


Tourism and Hospitality

Gatorland

InDepth1Location: Orlando

Description: one of Central Florida's oldest attractions

Pictured: Mark McHugh, President and CEO

Success: “We have a family culture with our employees. Every employee has an opportunity to earn a bonus every month — from the people selling hotdogs to the folks keeping our restrooms clean. And all of their benchmarks are tied to the corporate goals. They know that what they're doing is contributing to the overall success of Gatorland.”

The Economy: “One thing that helped us get through this past year was lowering our ticket price by 60 percent for Florida residents. Other parks were raising their prices because of declining attendance; we lowered ours and ended up having a record year as a result of it. … The thought of devaluing the product by lowering the price has been the topic of a number of conversations internally. Coming out of this [economy], we'll be adding some new attractions. And those new attractions will allow us to bring those tickets prices back up.”


Tourism and Hospitality

Tijuana Flats Burrito Co.

InDepth6Location: Maitland headquarters, several area locations.

Description: 15-year-old Tex-Mex restaurant chain with 70 units and plans to add about 12 per year.

Pictured: Brian Wheeler, Founder and CEO

Smartest Decision: "I don't have a defining moment. ... It's been a long, long journey. I attribute my success with the company to two things. One is selection and two is luck. Selection-- being able to surround myself with incredible people. And luck in two ways: Those people were available at the time. And things just sort of fell into place. ... I think, to be successful, things just sort of have to play out."

Biggest Regret: "I have no regrets. I've made tons of mistakes, but I have no regrets. I'd rather do something and say, 'I'm sorry' than not do anything at all. I'm very spontaneous, and it's something I'll probably never change. But I don't have a regret at all.


 

End of an Arena

June 4, 2010 / Photo courtesy of Orlando Magic

PartingShot

Nightfall beckons at 600 W. Amelia St. in Orlando. With the $500 million Amway Center nearing completion just down the road, the final curtain is coming down on a facility that opened in January 1989 to an open house celebration featuring Magic Dancers and former Harlem Globetrotters great-turned-Magic promoter Curly Neal. Constructed at a cost of $110 million, it was initially named Orlando Arena and then TD Waterhouse Centre before becoming the current Amway Arena. Most affectionately, it's known by locals as the O-Rena.

Countless waves of applause later, Amway Arena awaits its fate, to be determined by city officials following a review of plans presented via request-for-proposal bid. Likely, the redeveloped site will serve as a component of a creative village — a place where creative companies locate and workers live, work and play. At press time, a selection committee was scheduled in late May to present a formal recommendation to Orlando City Council for consideration.

History, no doubt, will give way to progress. Memories, though, are sure to linger.

 

The Time is Now

June 4, 2010 / by Leila Jammal-Nodarse(P.E.) CEO, Nodarse & Associates Inc.

Perspectives

High-speed rail will soon become reality in Central Florida.

My first exposure to high-speed rail was in the mid 1980s, when Sam Tabuchi came to Orlando with the vision of a Maglev demonstration project from the Orlando International Airport to International Drive. At that time, my father, Jim Jammal, was Mr. Tabuchi’s geotechnical engineering consultant, and it was then I first learned about the importance of engineering design to a successful high-speed rail system. Unfortunately, the Maglev proposal was considered “ahead of it’s time” for Central Florida, and the project never came to be.

My next experience with high-speed rail was in 1999, when the BeeLine Monorail — a 55-mile corridor from Port Canaveral to International Drive — was studied but also failed to come to fruition.

Florida has a long history of planning for high-speed rail, which dates back to 1974 with the Cross Florida Transit Study. That study was followed by several additional studies that were initiated after 1981. Between 2001 and 2009, I had the honor of serving as a gubernatorial appointee on Florida’s High Speed Rail Authority (HSRA). It was then that I learned firsthand about the millions of dollars that have been invested analyzing the viability of high-speed rail in Florida. I also met many of the people in this state who have dedicated years of their lives working to turn the rail vision into reality.

During that time, the HSRA oversaw the completion of the Project Development & Evaluation (PD&E) study for the Orlando-to-Tampa high-speed rail route. Through that experience, I gained an appreciation for the significance of the Florida Department of Transportation’s decision to preserve the central corridor of Interstate 4 for potential future high-speed rail use. Looking back, it is clear to me that the preservation of that corridor was truly visionary and the single most advantageous element necessary to advance Florida’s rail future. And, although the Orlando-Tampa project stalled in 2008, that PD&E study was smartly “put on a shelf” until a future day when funds would come available to build it.

On April 16, 2009, that day came. Only a few months after being sworn into office, President Barack Obama officially announced a national policy directive and investment commitment to bring high-speed rail to our country. I attended that press conference in Washington D.C., as a representative of Florida, and I knew then the waiting was over. The time of high-speed rail in America had finally arrived.

The President spoke of his desire to see America have infrastructure and travel alternatives that are equal to, or better than, those that exist in other parts of the world. A meaningful $8 billion commitment was made to high-speed rail, and within a few months, various state proposals were submitted to the federal government for grant consideration. In January, President Obama and Vice President Joe Biden personally traveled to Tampa and delivered the news that Florida would receive $1.25 billion for Phase I of the Orlando-to-Tampa project. The grant was the largest for a single rail project in the nation. While many were talking about the “perfect storm” our economy was facing, high-speed rail seemed to be the “perfect solution” to create jobs quickly and simultaneously build the first leg of a world-class transportation system. Once completed, the link will connect two major regions (Orlando and Tampa), thus creating a combined economic region that is estimated to be the ninth largest in the nation. Up next will be Phase II (Orlando to Miami), which is currently under way with its own PD&E study.

I believe our “stars have aligned” and high-speed rail will be operational in Florida by 2015. The reasons are many, beginning with an early vision for a dedicated and state-owned right-of-way along I-4. Second was the leadership of our committed Congressman John L. Mica and Congresswoman Corrine Brown, who have worked as a bipartisan team to make this a reality for our community. Plus, from a geographic standpoint, Florida is long, narrow and flat, which makes constructing a true high-speed rail system economically feasible. Another benefit is that the Orlando-to-Tampa Phase I project is “shovel ready” and can create jobs immediately. When you add the fact that Central Florida will soon begin to reap the benefits of our first rail project, the 61-mile SunRail commuter train connecting our outlying communities through downtown Orlando, you begin to understand our community is on the verge of a real rail transportation alternative.

At a recent Central Florida Partnership meeting, I heard Jacob Stuart say “good things don’t just happen, they are brought about.” Thanks to many dedicated people in Florida, I believe high-speed rail will soon be “brought about.” As a Florida native and business person, I look forward to the day when our transportation choices in Florida will include high-speed trains.

 

Dare and Distribution

April 30, 2010 / by Jack Rot

CoverspreadDawn Gluskin gave birth to a baby girl. Seven months later, she founded SolTec Electronics. Today, clients rely on her to deliver what many competitors can't even find.

 

Dawn Gluskin has always been a focused, determined, career-minded individual. Yet, the truly defining moment in her professional life actually occurred two years ago, when at the age 31, she gave birth to her daughter, Calista, an experience that changed her perception of the way things ought to be. And out of that cathartic moment a wildly successful entrepreneur emerged.

With her maternity leave all planned out, Gluskin took a few weeks off from her job and then started working part time from home to take care of both her work and her parental responsibilities. She worked as much as she possibly could and delegated any extra tasks to some of her co-workers. Her employers, entrepreneurs in the semiconductor industry, were totally agreeable to this arrangement, they said, as long as she held up her end of the bargain. They were totally agreeable, that is, until the plan actually was put into place.

As timing would have it, Calista was born right at the start of the current economic downturn. As Gluskin’s employers started feeling the crunch and saw revenues declining, they put enormous pressure on Dawn to get back to work and produce out of the office. You couldn’t blame them: She was one of their top sales reps, and they needed her back to help their bottom line. She was uneasy, though, due to feelings stemming from her core instincts: She had just given birth to a tiny baby girl who needed her mother, and she was determined to spend time with her, knowing she wouldn’t be her little baby forever. She didn’t want to miss out on a cherished life experience “to go right back to making somebody else a bunch of money!”

On the other hand, she felt it could affect her career if she didn’t get back in the saddle as her bosses wanted. It was a classic dilemma, and she was torn.

In the end, she felt so inspired and motivated by the experience of becoming a mother that she immediately soured on the idea of working for others and playing by their rules. She became weary of being a gross-profit statistic on somebody else’s spreadsheet. Life, she now believed, was worth more than that.

Having dabbled in, and thoroughly enjoyed, some entrepreneurial music promotion and sales adventures earlier in her career, Gluskin knew what she wanted to do and immediately began writing a business plan to carve out her own niche in the electronics sector. Approximately seven months after Calista was born, her mother officially turned in her resignation and SolTec Electronics was born, in her living room, with the gracious help of her mother, who took on the role of nanny.

The rest, as they say, is history.

SolTec Electronics, headquartered in Melbourne, is an independent distributor of obsolete and hard-to-find electronic components. By definition, an electronic component is a basic electronic element usually packaged with two or more connecting leads or metallic pads. Components are normally connected by soldering them to a printed circuit board to create an electronic circuit with a particular function (e.g., an amplifier, radio receiver or oscillator). Components can be packaged singly (resistor, capacitor, transistor, diode, etc.) or in complex groups as integrated circuits.

In today’s fast-paced supply chain markets, original equipment manufacturers (OEMs) and electronic manufacturing services (EMSs) must keep their production lines up and running. This means that waiting long periods to get components and redesigning out obsolete components aren't valid options for them. Enter SolTec Electronics— an independent distributor that offers strategic procurement solutions to those electronic component issues.

Under Gluskin’s leadership, the company has a 2,500-square-foot office and warehouse facility, seven employees and a stellar reputation among clients and peers. The company is also on track to secure $1.5 million in revenue by the end of this year.

“I understood the need for these services,” says Gluskin, who has been in sales and marketing since she was age 18. “There are a lot of high-tech companies in this region, and they’re constantly looking for components. So this was a perfect place to start this type of operation.”

It may have been a good place to open shop, but the risks of starting a new business still loomed large, even for Gluskin and her unbridled entrepreneurial spirit. Although a successful sales rep in the industry, she had no clue how to open and run a business. Thus, learning the entire operation was imperative to her success.

Raising capital also represented a daunting challenge. It was impossible to get a bank loan, so she used her entire 401(k). Her husband, Dave, who is the company’s vice president of operations, also went for broke. Together, they used their entire savings and maxed out their credit cards to get the operation off the ground. “I guess I believe in the no-risk, no-reward axiom,” she says, “but the truth is it was very scary, especially with a newborn.”

It was a calculated risk, and one that Gluskin was willing to take because she recognized her strengths. She felt confident her sales background was a sufficient platform for moving forward and making SolTec a success. The unlimited supply of potential clients also was something that was too provocative to overlook. Reality dictates that components on circuit boards eventually become obsolete or defective, and when these parts need to be replaced, it’s often very difficult to find them. For the OEMs and EMSs, buying new replacement parts is not an option because redesigns are too time consuming, so unless the older parts are secured, entire production lines can go down and products don’t get to market.

Gluskin understands this, and she continues to work hard to establish strong relationships with vendors throughout the world to be able to find any component a client might need. With her global network of suppliers, she can find a part “as long as it exists.” If the part doesn’t exist, she offers alternate solutions. She also works with affiliate companies to offer value-added services to clients such as electrical testing, product programming, counterfeit detection and compliance testing.

To ensure delivery of a component, she often buys inventory of canceled product lines to stock in the warehouse in case a client needs a discontinued part. Indexed on Google, SolTec receives lists of everything various vendors have in stock, and those lists are uploaded and published on the SolTec Web site. If a buyer is looking for a part number, he or she can type it into this index and SolTec will come up.

“Our customers are usually repeat customers, which is good,” comments Gluskin. “We have competitors, but some don’t have the same quality standards or aren’t good with customer service. We try to set ourselves apart by being prompt and delivering what we say we’re going to deliver. This seems simple, but it’s so important for any business. Customer service is everything.”

Clients would agree.

“Dawn is the best in the business,” says Daryl Grimes, product manager for Smart Start Inc. in Irving, Tex. “She’s very open and upfront, and it’s easy to do business with her because you know what you’re getting is her very best effort.”

Smart Start produces ignition interlock products, which are essentially breath alcohol analyzers that keep drivers with DWIs/DUIs from operating vehicles if their breath alcohol level is over a preset level. The devices provide a cost-effective alternative to jail or license suspension and allow defenders to keep driving. “It’s a very unique product,” explains Grimes, “so we need to find very particular components in a timely manner in order to keep our product line going. We use many overseas distributors, and lead times with them tend to be very long. So we call on Dawn to go out and find the parts from alternative channels, and she always comes through.”

Smart Start is a midrange company competing with big boys like Motorola and Sony for these materials, and distributors tend to favor the bigger companies when it comes to putting their needs first. “Having a broker who can get you parts quickly and cheaply is imperative for us,” says Grimes. “She’s amazing, and if she can’t find it, she comes back with 12 other options for us.”

Integrity is an important trait in the electronic component arena as counterfeit parts are prevalent, and installing them can compromise a product. Quality is compromised and reputations sullied if it’s discovered that a manufacturer used lesser-quality components. “We depend on our vendors to tell us the truth about their parts, and Dawn would never supply counterfeit parts,” Grimes continues. “She’ll tell us if she doesn’t have a good feeling about an overseas source, and she’ll test the parts as an added service to make sure they’re genuine.”

Ultrablend LLC provides paint dispensers and mixers for companies like Home Depot and Benjamin Moore. They’re precise machines that require constant maintenance. Leslie Hoehne is an Ultrablend quality engineer who deals firsthand with the electronic components that make these machines work. “We need very specific parts, and sometimes these parts are hard to secure in a timely manner,” she says. “To add to this, some of our machines are 30 years old, which makes it hard to find parts at all sometimes.”

Hoehne met Gluskin years ago when she was a buyer for another company. She needed specific parts back then as well, so Gluskin would give her a list of vendors who had the parts at decent prices. They became fast friends and are still good friends. “Dawn is very detail-oriented, which is a must in this business,” says Hoehne. “She’s so thorough she even catches mistakes in my purchase orders, and the truth is, to this day, Dawn can find parts nobody else can find. She’s like a bloodhound, and she finds it cheap.”

As a testament to Gluskin’s hard work and dedication, SolTec Electronics was selected as one of 10 women-owned businesses that won the Make Mine a Million Dollar Business competition sponsored by Count Me In, a nonprofit organization that encourages and supports women entrepreneurs. The competition is for women who own companies that have the greatest potential of reaching $1 million in revenues for the year. Gluskin had to give a three-minute elevator pitch in front of 600 people at the most recent Women’s Business Summit in Houston as part of the final selection process. True to form, Gluskin nailed her pitch and was awarded a business/life coach for a year and a line of credit with American Express OPEN.

The future is bright for SolTec Electronics, which is music to the ears of Gluskin’s clients, all of whom depend mightily on her to get the job done. In light of her success, she’s an ardent believer that if you dig deep inside, believe in yourself and go for it, you will succeed.

“That precious little girl of mine has been such a source of inspiration and motivation,” she concludes. “I want to provide for her future but also want to be a positive role model as a woman who can do and be anything.”

Cover

Gluskin's 6 Musts:

  1. “What do most all successful businesses have in common? A well-thought out, written business plan. Especially when you are getting ready to start a new business, it is such a great exercise to do a formal business plan covering all aspects from finances to sales and marketing to daily operations. You will learn so much about your business going through this formal process. The Small Business Administration Web site, www.sba.gov, has some great resources on writing a business plan.”
  2. “Cash is the oxygen to a business. Make sure you don’t run out. It takes a while to start turning profits in a new business, so make sure you have enough money tucked away to pay your bills until the cash starts coming in. Some business owners don’t pay themselves at all the first year or even longer. Also, make sure you have a backup plan when capital starts running low. Most traditional banks won’t even consider lending to a business until [it is] at least three years old. In the meantime, turn to personal savings and retirement funds, credit cards, home equity loans, or friends and family to buy into your dream. And, when you are doing your budgeting, make sure you factor in some extra padding for any unforeseen expenses that might come up.”
  3. “You must have passion. Being the ‘boss’ is not all glitz and glamour. You must love what you do. There will be long hours, stressful circumstances that arise and all sorts of obstacles to hurdle while building your dream. When all else fails, this passion deep inside of you is the only thing that will get you through it. And, through it all, you might just even have a smile on your face.”
  4. “Think [outside] the box. A successful businessperson has to be able to think on [his or her] feet and be open to new ideas. Sometimes plan A or B might not turn out exactly as you planned, but don’t give up. The most successful businesses learn to adapt, even in the toughest times. Keep thinking creatively. Plan C or D might just be the ones that take you to the next level.”
  5. “Use social media. If you are not on Twitter and Facebook, you are missing out on many great networking opportunities as well as potential clients looking to buy from you. These are free marketing tools that, with a little creativity and some manpower, you can [use to] really generate some buzz for your business. Even if social media is not your cup of tea, you should at least look into hiring a college intern to help you get started. What do you have to lose?”
  6. “Have a great support group around you. Get your friends and family on board with what you are doing. They will be there to congratulate you when things are going great, or even to give you a shoulder to cry on if things are going a little rough. In addition to that, find groups of like-minded businesspeople that you can network and exchange ideas with. I think women really have an advantage in this realm because there are so many great organizations for women business owners out there. Count Me In [www.makemineamillion.org] is the nonprofit organization that sponsors the M3 program [from which I received an award]. And, Big Fish Nation [www.bigfishnation.com], which I am also a part of, is a yearlong business development [program] for women entrepreneurs who dare to soar. The advice, support and encouragement I have received from these groups has really helped push me along to where I am today. There are tons of other organizations out there as well. Get to Googling with your particular interests in mind to find the perfect one for you.”

 

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