We've all heard the saying, "bigger is better," and lately, we've all witnessed, "the bigger they are the harder they fall." However, the wisdom of "it's easy to grow a company big and very hard to make it small" has stuck to me like Akemi glue through the years.
These words of wisdom can only be defined as simple genius. It is part of a formula for success, and from what I've seen lately, a part that's been forgotten by many. Those who over ravaged and under-managed their fab-shops during the bubble are now paying the price. Many stone shops have fallen by the wayside and many small ones will take their place. Starting small is a great way to start any business; the benefits are many with well earned profits and growth being the bi-product of your hard work, but it's flexibility that is the key to long-term success.
Fourteen years ago I visited a fab-shop in Traverse City, Michigan; it consisted of three work benches, a CNC, a radial arm polisher and a bridge- saw all within reach of a small jibcrane. At the time it was staffed by five fabricators, but could be fully functional by only one person if need be. When I asked the owner why that was important, he told me that the Michigan economy was very dependent on the auto industry and if it ever failed (what were the chances of this fourteen years ago), the shop could still produce with only him.
Me thinks he had flexibility on his mind with two prudent forethoughts: "Setup is the most important thing," and "hope for the best and plan for the worst." It is this kind of wisdom that has kept his shop and other businesses flexible enough to withstand any downturn in the economy including the "Great Recession" that we've all been experiencing.
Today's modern technology is amazing; the shaping machines available today aren't your father's CNC. They are very sophisticated high-tech robots that can produce amazing results. They are much easier to operate than in the old days and much more reliable, but be warned: take a good hard look at investment, tooling and maintenance costs. Ask yourself, will this machine fit into the type and level of production that my shop is comfortable with, and yield a profit over the life of the machine?
A CNC may look cool and impress many, but I've seen electric routers produce gobs of quality work for years at a fraction of the cost of a CNC. Also, "you don't need no fancy bridgesaw either." Basic up and down, forward and back with a tilting head for miter will get the job done. A tilt table is nice if you don't have a crane and a laser can increase a saw's production by about 1/3. If you can't afford something, be resourceful and do without it until you can afford exactly what you want, or design and build it yourself.
When tooling up for production, keep it simple and efficient. Do your homework and only buy what you need. When you do purchase something, buy the best you can afford. I have never been disappointed by quality equipment that is built to last, but remember: the more complicated the equipment, the more it's going to cost to fix. When purchasing a building, equipment, slabs, etc., pay with as much cash as possible. Credit may look tasty, but it can be poison. Trust me on this; you'll sleep better... K.I.S.S.
So you ask, is this writer done filling me up with quotes and wisdom? Not yet, but all most. Here are just a few more:
1. When building your work staff, don't settle for just a warm body to fill a position. Instead, hire motivated people you know you can trust and will want to grow with you and your company. Treat everyone fairly, ethically and with respect. And remember, they have dreams too.
2. Don't look at what is, instead, look at what can be. Focus on the present, with your thoughts two or three years into the future. Stay organized and be ready for changes. There is usually a better way of doing something, you just haven't thought of it yet. Listen to yourself, and to other people.
3. All businesses make money by offering a service or a product as good as or better than the next company. If your sales people believe that their company has a great product, they will have the confidence to excel and have great success with their clients. Good sales should generate a good margin and a good margin equals prosperity for all.
So you see, it's all about production and production is all about control. How well you do it, is what separates the men from the boys. Good luck.
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