Let Me Introduce Myself...
Please Watch My 4 Minute Intro Video
An Entrepreneur for 28 Years and Counting
It's been quite a ride since stepping into the waters of becoming an entrepreneur on a serious, full-time bases in the summer of 1989.
From then until now, having been an Entrepreneur for more than 28 years I have done many different things, and have been in just about every kind of business relationship there is; from a solo entrepreneur to a few partnerships. I have built companies with too many employees, and tried more ideas than you can imagine.
I should add, that even though my serious full-time effort as an entrepreneur started in 1989, I had in-fact tried several part-time businesses over the previous 6 or 7 years.
Many have failed... a few have succeeded!
Being independent has always been a part of my DNA. Such is the life of an entrepreneur. If you're one, then you know what I am talking about. Regardless of the business I have pursued over the years, I have thoroughly enjoyed the process and honestly can't imagine doing anything else!
So you may be asking, "What's up with the Business School of Hard Knocks?"
As, with my own experience, and the many experiences of entrepreneurs I have known over the years, you cannot and will not have the success you seek, without a few failures along the way.
In my opinion, the hard times are not talked about enough, and so those who are aspiring entrepreneurs tend to get blind-sided by the fact that they have challenges, set-backs, and even some failures that can cause really difficult times that will absolutely test their metal to the core.
As those who have been around the block a few times already know, it's all part of the experience.
From then until now, having been an Entrepreneur for more than 28 years I have done many different things, and have been in just about every kind of business relationship there is; from a solo entrepreneur to a few partnerships. I have built companies with too many employees, and tried more ideas than you can imagine.
I should add, that even though my serious full-time effort as an entrepreneur started in 1989, I had in-fact tried several part-time businesses over the previous 6 or 7 years.
Many have failed... a few have succeeded!
Being independent has always been a part of my DNA. Such is the life of an entrepreneur. If you're one, then you know what I am talking about. Regardless of the business I have pursued over the years, I have thoroughly enjoyed the process and honestly can't imagine doing anything else!
So you may be asking, "What's up with the Business School of Hard Knocks?"
As, with my own experience, and the many experiences of entrepreneurs I have known over the years, you cannot and will not have the success you seek, without a few failures along the way.
In my opinion, the hard times are not talked about enough, and so those who are aspiring entrepreneurs tend to get blind-sided by the fact that they have challenges, set-backs, and even some failures that can cause really difficult times that will absolutely test their metal to the core.
As those who have been around the block a few times already know, it's all part of the experience.
Fast Growing Business Model
The journey that started 1989 led to my largest revenue producing company to-date. By-the-way, that is the same year I married my sweetheart, who has stuck with me through thick and thin, and all the ups and downs.
Bizstrata, Inc., was at it's core a printing and marketing mail-order company serving the direct selling industry. (Incidentally, we operated most of the years in business as Business Specialties. The name was changed to Bizstrata, Inc. in 1999 with the influence of investors).
Our business model was pretty simple. We would approach direct selling companies at the corporate level, sign an agreement to license their logo, pay a royalty based on sales, in return for access to their thousands of Distributors spread all over North America. We would then market our personalized print products to their independent Distributors, and we would grow as our client's distributor base grew.
Because of our business model, and the clients we served, we grew at an average year-over-year rate of 93% annually for 8 years in a row. This blistering growth allowed us to appear on the Inc 500 List of America's Fastest Growing Companies in the October 2000 edition of Inc Magazine.
We were #369 of the fastest growing companies across this great land. Gracing the pages of the Inc 500 List was the realization of a dream that had been brewing in me for nearly 15 years - even before I launched my first company.
I had been an avid reader of Inc Magazine for many years, and in fact reading each issue became part of the driving force I needed to become an entrepreneur. Very early on - even before I launched my company - I wanted, desired and drove myself and my company to join the ranks of of the Inc 500 companies I so respected.
The glory and prestige of gracing the pages of the Inc 500 List was short lived, however. We found ourselves, just a matter of few months later, in serious financial trouble as a company. Frankly, I saw no possible way out. We were headed for bankruptcy court.
Bizstrata, Inc., was at it's core a printing and marketing mail-order company serving the direct selling industry. (Incidentally, we operated most of the years in business as Business Specialties. The name was changed to Bizstrata, Inc. in 1999 with the influence of investors).
Our business model was pretty simple. We would approach direct selling companies at the corporate level, sign an agreement to license their logo, pay a royalty based on sales, in return for access to their thousands of Distributors spread all over North America. We would then market our personalized print products to their independent Distributors, and we would grow as our client's distributor base grew.
Because of our business model, and the clients we served, we grew at an average year-over-year rate of 93% annually for 8 years in a row. This blistering growth allowed us to appear on the Inc 500 List of America's Fastest Growing Companies in the October 2000 edition of Inc Magazine.
We were #369 of the fastest growing companies across this great land. Gracing the pages of the Inc 500 List was the realization of a dream that had been brewing in me for nearly 15 years - even before I launched my first company.
I had been an avid reader of Inc Magazine for many years, and in fact reading each issue became part of the driving force I needed to become an entrepreneur. Very early on - even before I launched my company - I wanted, desired and drove myself and my company to join the ranks of of the Inc 500 companies I so respected.
The glory and prestige of gracing the pages of the Inc 500 List was short lived, however. We found ourselves, just a matter of few months later, in serious financial trouble as a company. Frankly, I saw no possible way out. We were headed for bankruptcy court.
Venture Capital and the Dot-Com Boom
Starting in 1998 we were having all of the challenges that go with that kind of blistering growth we had experienced over an extended period of time. Very honestly, one of the big mistakes I made was focusing too much on accelerating the growth rate, and not enough on profitability and stability of the business.
Cash flow was always a problem, and maintaining profitability was a very real and nagging challenge. There was always a need for more employees, more computers, more technology to help make our processes more efficient. This constant need of "more of everything" was a serious drain on our cash.
At the same time, it was exhilarating, and I loved the challenge... and a constant challenge it was.
In 1998, venture capital to fund tech companies who could take advantage of the new horizons created by advent of the internet was at a fever pitch. VC's were throwing billions of dollars at companies who even sniffed at having some potential to take advantage of these new horizons.
We started down the path of transitioning our order taking from what had been primarily mail and FAX orders, to the internet in late 1998. We were quite successful in this transition. Within little more than a year from the time we launched our first client website for order taking, we had about 90% of orders coming online. From 0 to 90% in a little over a year in 1999. That was truly amazing!
However I could also see the costs of putting together a more robust Internet strategy was going to be more than I felt like we could fund from cash flow. So, I made the decision that if we were going to take this next step we needed to find some outside funding and take advantage of the dot-com boom.
Given the massive amount of billions-ofdollars that were being thrown at Internet start-up companies, we felt like getting a few million to do what we wanted to do should be a piece of cake!
I started networking with a few business people I knew, and in a very short period of time we were able to grab the attention of a couple of Angel Investors who specialized in helping early stage companies get funded and go to the next level. We struck a deal to engage their assistance.
One of the things investors really liked about what we were doing is that, here we were a brick and mortor style business already producing real revenues - albeit marginally profitable - but with a substantial upside by transitioning our customer interaction and order taking to the internet.
They saw our current established business as the best of all worlds. Most internet start-up companies they were funding had virtually no revenues, and were just hoping to get to the point where they could generate some revenues, let alone be profitable in the process. Realistically, most internet start-up companies were little more than a pipe-dream at that time... and most didn't make it.
However, I should mention that power-houses like Amazon, Google and other household internet-based companies were luanched during this same time.
Cash flow was always a problem, and maintaining profitability was a very real and nagging challenge. There was always a need for more employees, more computers, more technology to help make our processes more efficient. This constant need of "more of everything" was a serious drain on our cash.
At the same time, it was exhilarating, and I loved the challenge... and a constant challenge it was.
In 1998, venture capital to fund tech companies who could take advantage of the new horizons created by advent of the internet was at a fever pitch. VC's were throwing billions of dollars at companies who even sniffed at having some potential to take advantage of these new horizons.
We started down the path of transitioning our order taking from what had been primarily mail and FAX orders, to the internet in late 1998. We were quite successful in this transition. Within little more than a year from the time we launched our first client website for order taking, we had about 90% of orders coming online. From 0 to 90% in a little over a year in 1999. That was truly amazing!
However I could also see the costs of putting together a more robust Internet strategy was going to be more than I felt like we could fund from cash flow. So, I made the decision that if we were going to take this next step we needed to find some outside funding and take advantage of the dot-com boom.
Given the massive amount of billions-ofdollars that were being thrown at Internet start-up companies, we felt like getting a few million to do what we wanted to do should be a piece of cake!
I started networking with a few business people I knew, and in a very short period of time we were able to grab the attention of a couple of Angel Investors who specialized in helping early stage companies get funded and go to the next level. We struck a deal to engage their assistance.
One of the things investors really liked about what we were doing is that, here we were a brick and mortor style business already producing real revenues - albeit marginally profitable - but with a substantial upside by transitioning our customer interaction and order taking to the internet.
They saw our current established business as the best of all worlds. Most internet start-up companies they were funding had virtually no revenues, and were just hoping to get to the point where they could generate some revenues, let alone be profitable in the process. Realistically, most internet start-up companies were little more than a pipe-dream at that time... and most didn't make it.
However, I should mention that power-houses like Amazon, Google and other household internet-based companies were luanched during this same time.
Down the Wrong Road?
We quickly learned the downside of bringing investors to the table. The one thing about investors is they ALWAYS want to see more. For example, one of the first things they asked us to do was identify a strategy we could work toward, that would be something we could take to our existing customer base that was purely a technology solution. This was a complete departure from what had been our core business to that point in time.
Somehow, even though we had seen dramatic growth over an extended period of time, and had successfully and very quickly transitioned our order taking to an online platform, they just didn't think that being "just a printing company" was going to be sexy enough to build a large and sustainable business going forward.
I could see their point, and at the time tended to agree with it. However, in hind-sight, looking at companies like VistaPrint.com, they have done pretty well being "just a printing company." Today VistaPrint is a house-hold name, and they do over $1 billion annually, and are very profitable.
So did we go down the wrong road? Maybe... maybe not. It's hard to say, but I do wonder at times.
We obviously bowed to the wishes of our investors, as if we really had a choice at the time, and went down the road of finding what we felt would be a great technology product that would appeal to our existing customer base.
Somehow, even though we had seen dramatic growth over an extended period of time, and had successfully and very quickly transitioned our order taking to an online platform, they just didn't think that being "just a printing company" was going to be sexy enough to build a large and sustainable business going forward.
I could see their point, and at the time tended to agree with it. However, in hind-sight, looking at companies like VistaPrint.com, they have done pretty well being "just a printing company." Today VistaPrint is a house-hold name, and they do over $1 billion annually, and are very profitable.
So did we go down the wrong road? Maybe... maybe not. It's hard to say, but I do wonder at times.
We obviously bowed to the wishes of our investors, as if we really had a choice at the time, and went down the road of finding what we felt would be a great technology product that would appeal to our existing customer base.
Expanding the Executive Team
and a Key Acquisition
As part of our new initiatives and looking for a solid direction going forward, I recruited Craig Case, a VP of Business Development from what was then Franklin Quest (now Franklin Covey), the day-planner and training company out of Salt Lake City, Utah.
Craig was a great addition to our team, and I was very excited to have him join us. As it turned out, Craig was largely responsible for helping us land on our new direction and technology product.
Craig introduced us to Tim Templeton, an author and entrepreneur who certainly has the ability to think out-of-the-box. Tim had written a book titled The Referral of a Lifetime, and wanted to develop a complete back-end technology support solution for the principles taught in his book.
Effectively, what Tim had in mind was a robust and online version of "Customer Relationship Management", which was a concept that was all the buzz with the advent of the Internet and what technology could do to help manage customer relationships.
With the approval of our outside Board of Directors, we acquired Tim's brand, intellectual properties, and his personal involvement and commitment, with a substantial down payment and a note of $1 Million to be paid out over time.
With Tim's brand, intellectual property and ideas, coupled with Craig's background in corporate training and international development, the investors were very excited about where we could take the company.
Craig was a great addition to our team, and I was very excited to have him join us. As it turned out, Craig was largely responsible for helping us land on our new direction and technology product.
Craig introduced us to Tim Templeton, an author and entrepreneur who certainly has the ability to think out-of-the-box. Tim had written a book titled The Referral of a Lifetime, and wanted to develop a complete back-end technology support solution for the principles taught in his book.
Effectively, what Tim had in mind was a robust and online version of "Customer Relationship Management", which was a concept that was all the buzz with the advent of the Internet and what technology could do to help manage customer relationships.
With the approval of our outside Board of Directors, we acquired Tim's brand, intellectual properties, and his personal involvement and commitment, with a substantial down payment and a note of $1 Million to be paid out over time.
With Tim's brand, intellectual property and ideas, coupled with Craig's background in corporate training and international development, the investors were very excited about where we could take the company.
A Fateful Day in April 2000
By the spring of 2000 we had put together a complete Angel Funding/Venture Capital fund raising strategy, and set a date for our first fund-raising presentations in front of investor groups and individuals.
That date was April 14, 2000. We had six funding presentations scheduled for that day, and was excited about our prospects.
As fate would have it, this very day was the beginning of the end of what is now known as the "dot-com bust."
The tech-heavy Nasdaq market -- including what, at the time was considered many promising Internet-based companies with massive stock values, but little to no revenue or profits -- dropped by 356 points, which represented over 10% of its index value on this very day. The DOW Industrial averaged dropped by 5.7% representing 618 points of it's value on the same day.
Even now this day, April 14, 2000, ranks as one of the 10 worst stock market declines in the history of the market. The effect for us on that day was that 3 of the 6 investor presentations we had scheduled cancelled.
However, it wasn't all bad, we still came out of the day with a respectable $200,000 in funding committed, and some very strong interest from others who subsequently did invest in us.
Timing is everything... right?
That date was April 14, 2000. We had six funding presentations scheduled for that day, and was excited about our prospects.
As fate would have it, this very day was the beginning of the end of what is now known as the "dot-com bust."
The tech-heavy Nasdaq market -- including what, at the time was considered many promising Internet-based companies with massive stock values, but little to no revenue or profits -- dropped by 356 points, which represented over 10% of its index value on this very day. The DOW Industrial averaged dropped by 5.7% representing 618 points of it's value on the same day.
Even now this day, April 14, 2000, ranks as one of the 10 worst stock market declines in the history of the market. The effect for us on that day was that 3 of the 6 investor presentations we had scheduled cancelled.
However, it wasn't all bad, we still came out of the day with a respectable $200,000 in funding committed, and some very strong interest from others who subsequently did invest in us.
Timing is everything... right?
$2 Million and a Key Partner
It was a rough start, but we still got quite a bit of positive feedback over our direction and strategy. Investors were certainly encouraging in their thoughts and comments about what we were doing.
Over the next six months or so, we continued to set and do funding presenta-tions primarily in the Portland, Oregon area, where we were based, in addition to the Seattle/Bellevue, Washington area with venture firms and angel investors.
Our Seattle area presentations included several "Microsoft Millionaires". We even made one trip down to "Silicon Valley" in the San Francisco Bay area to do a couple of presentations.
When it was all said and done we raised about $2 Million from approximately 12 to 15 individuals and groups over the course of a little more than 6 months time.
Additionally, Craig worked with contacts at his former employer, Franklin, to find out that they were also developing some "Customer Relationship Management" software solutions. As a matter of fact, we found that the technology they were developing would work very well with what we had in mind.
Craig soon worked his magic and got Franklin to agree to license their technology to us, and give us exclusive marketing rights for a period of time in the direct selling space where our customer base resided.
It was a HUGE win for us! Especially considering that Franklin agreed to invest $2 Million as part of the overall deal. With this very positive turn of events we felt like this would be the ticket we needed to get where we wanted to go.
We knew that with the partnership of Franklin, as they were a very well known international company at the time, would open some very significant doors with other investors and larger investment groups. Not to mention the additional customers we would be able to attract and do business with because of the ability to use the Franklin name as an investor and technology partner.
Over the next six months or so, we continued to set and do funding presenta-tions primarily in the Portland, Oregon area, where we were based, in addition to the Seattle/Bellevue, Washington area with venture firms and angel investors.
Our Seattle area presentations included several "Microsoft Millionaires". We even made one trip down to "Silicon Valley" in the San Francisco Bay area to do a couple of presentations.
When it was all said and done we raised about $2 Million from approximately 12 to 15 individuals and groups over the course of a little more than 6 months time.
Additionally, Craig worked with contacts at his former employer, Franklin, to find out that they were also developing some "Customer Relationship Management" software solutions. As a matter of fact, we found that the technology they were developing would work very well with what we had in mind.
Craig soon worked his magic and got Franklin to agree to license their technology to us, and give us exclusive marketing rights for a period of time in the direct selling space where our customer base resided.
It was a HUGE win for us! Especially considering that Franklin agreed to invest $2 Million as part of the overall deal. With this very positive turn of events we felt like this would be the ticket we needed to get where we wanted to go.
We knew that with the partnership of Franklin, as they were a very well known international company at the time, would open some very significant doors with other investors and larger investment groups. Not to mention the additional customers we would be able to attract and do business with because of the ability to use the Franklin name as an investor and technology partner.
The Entreprenuer's Dream...
I'm A Multi-Millionaire!
All of these positive events didn't hurt my company valuation, and in-turn my own net worth as well. After the Franklin deal was agreed to, the company was valued at approximately $11 million, and my personal net-worth, based on that valuation, was in excess of $7 Million. We felt that the company valuation would continue to rise upwards of $30 Million within the next year.
At this point in time, I still personally owned more than 60% of the company, and my Dad owned another roughly 20%, with the remaining interest now owned by our investors.
That was a great, except I remember the day that I knew we were in big trouble. I don't recall the exact date, but I remember the day like it was yesterday. I was driving from Portland over to Boise, Idaho to do a funding presentation with an investor group when my phone rang, it was Craig.
Craig informed me that Franklin had just pulled the plug on the deal we had structured with them. We never knew all of the reasons, but their actions were likely because they were concerned about their stock value and other factors related to the unwinding of the "dot-com bubble bust".
In my opinion, the bottomline was, they just didn't feel like they could complete the deal with what was at the time an unknown entity like my company, given the current market conditions.
My heart sank. I hung up the phone and simply said to myself "We're Dead!"
At this point in time, I still personally owned more than 60% of the company, and my Dad owned another roughly 20%, with the remaining interest now owned by our investors.
That was a great, except I remember the day that I knew we were in big trouble. I don't recall the exact date, but I remember the day like it was yesterday. I was driving from Portland over to Boise, Idaho to do a funding presentation with an investor group when my phone rang, it was Craig.
Craig informed me that Franklin had just pulled the plug on the deal we had structured with them. We never knew all of the reasons, but their actions were likely because they were concerned about their stock value and other factors related to the unwinding of the "dot-com bubble bust".
In my opinion, the bottomline was, they just didn't feel like they could complete the deal with what was at the time an unknown entity like my company, given the current market conditions.
My heart sank. I hung up the phone and simply said to myself "We're Dead!"
Damn the Torpedo's... Full Steam Ahead!
I knew in my heart of hearts that we were in big trouble. It was getting almost impossible to schedule funding presentations with investors as the "dot-com bust" continued to unfold over those months. Angel Investors and Venture Capital all but dried up by the end of 2000.
However, that didn't change what the investors who had already invested in the company expected of us. They pretty much dictated that we continue undeterred toward our goals and objectives. They were confident we'd be able to continue to raise the needed cash.
To this end, we were spending money at an amazingly fast pace, by having brought in several very expensive new executives and outside consultants who had certain expertise in a variety of arenas. For example, one tech consultant we were paying a whopping $10,000 a WEEK!!
Yes, $40,000 a month!
Several times during this period I said to our interim Chairman of the Board, who was also involved in guiding our day-to-day efforts, "This guy has to go!" And everytime I said it I was told, if we let him go it would look like we were getting desperate and running out of cash.
I recall our "burn rate" of invested funds topped out at around $300,000-plus per month. When you only have $2 Million to work with that simply didn't go very far, needless to say.
In actuality, we were getting desperate and we were definitely running out of cash!
However, that didn't change what the investors who had already invested in the company expected of us. They pretty much dictated that we continue undeterred toward our goals and objectives. They were confident we'd be able to continue to raise the needed cash.
To this end, we were spending money at an amazingly fast pace, by having brought in several very expensive new executives and outside consultants who had certain expertise in a variety of arenas. For example, one tech consultant we were paying a whopping $10,000 a WEEK!!
Yes, $40,000 a month!
Several times during this period I said to our interim Chairman of the Board, who was also involved in guiding our day-to-day efforts, "This guy has to go!" And everytime I said it I was told, if we let him go it would look like we were getting desperate and running out of cash.
I recall our "burn rate" of invested funds topped out at around $300,000-plus per month. When you only have $2 Million to work with that simply didn't go very far, needless to say.
In actuality, we were getting desperate and we were definitely running out of cash!
Triumph Turned to Tragedy
By November and December 2000, our cash was really getting lean, but we were still spending well over $100,000 per month more than revenues being generated through sales of our core business.
We were now being forced to scale back many of the things we were doing. We started laying off many of the expensive outside consultants and a couple of executives we had brought in, and I worked with my personal business attorney to take back full control of the Company by going through the formal process needed to fire the outside board of directors, who had been calling the shots with the investors money.
I was successful in these efforts by January 2001, and now we set about trying to find a way to reduce expenses to below revenues and see if we could save the Company. We hired a company that specialized in helping company's restructure their debt and negotiate with creditors as part of that process.
By February 2001, however, it became evident we could not possibly cut expenses enough to get to the point of profitability. We simply couldn't scale back enough to get there -- we had taken on too much overhead.
I was now desperate to find a plan B to salvage the company.
Both myself and my Dad, who was also our CFO started the process to file for personal bankruptcy. We had over $3 Million in debt, of which more than half had been acquired through the process of trying to take the company to the next level through the investor route. There was no choice but to file for bankruptcy.
Even though our situation was bleak and our downfall was very, very difficult to live through, amazingly the worst was yet to come.
We were now being forced to scale back many of the things we were doing. We started laying off many of the expensive outside consultants and a couple of executives we had brought in, and I worked with my personal business attorney to take back full control of the Company by going through the formal process needed to fire the outside board of directors, who had been calling the shots with the investors money.
I was successful in these efforts by January 2001, and now we set about trying to find a way to reduce expenses to below revenues and see if we could save the Company. We hired a company that specialized in helping company's restructure their debt and negotiate with creditors as part of that process.
By February 2001, however, it became evident we could not possibly cut expenses enough to get to the point of profitability. We simply couldn't scale back enough to get there -- we had taken on too much overhead.
I was now desperate to find a plan B to salvage the company.
Both myself and my Dad, who was also our CFO started the process to file for personal bankruptcy. We had over $3 Million in debt, of which more than half had been acquired through the process of trying to take the company to the next level through the investor route. There was no choice but to file for bankruptcy.
Even though our situation was bleak and our downfall was very, very difficult to live through, amazingly the worst was yet to come.
An Attempt to Salvage Anything
It was Valentines Day, February 14, 2001 I was working in my yard trying to let go of some stress and think through what could possibly be done, when I got a major brainstorm.
The restructuring company we had brought in suggested that if I could find somebody to sell the company assets to and take over ownership of a newly named and restructured company, while we went through our bankruptcy, then we might be able to make a side deal to ultimately gain some ownership back in the new restructured business when all of the dust settles. This would have to be at least a one to three year process.
It occurred to me that my COO might just be that right person.
NOTE: I am purposely withholding his name here, as it is not relevant nor
important to be known who he is, and there is no need reopening old wounds.
My wife and I had gone to a church sponsored Valentines Dance that evening, but I couldn't get my mind off of the possibility to salvage the company, as my brain-storm from earlier in the day was raging in my head.
We left the dance early and stopped by the home of my COO to discuss the possibilities with him and his wife.
I started the conversation by asking how risk-adverse he was, and then laid out the plan that I had envisioned. It was obvious that he was excited about the possibilities, but wanted the weekend to consider it.
We agreed we would meet on Monday and discuss it further and he would make a decision if it was some-thing he wanted to do or not.
We met first thing Monday morning, and he informed us that he was willing and excited to move forward with the restructuring plan.
I knew I needed somebody that I could trust implicitly, and he was the one I felt fit the bill, as nothing could be in writing about what would happen with ownership of the new restructured company in the future, because of our impending bankruptcy.
Thus, the best we could do is a verbal agreement about how things would transpire in the future, and roughly in what time frame.
I emphasized in our conversation that I had to be able to trust him to do the right thing because the potential for him to do the wrong thing and screw me in the process, was certainly there in spades.
He gave me every assurance that he was doing it for all the right reasons and that he would treat me and my Dad with the utmost respect and integrity.
The restructuring company we had brought in suggested that if I could find somebody to sell the company assets to and take over ownership of a newly named and restructured company, while we went through our bankruptcy, then we might be able to make a side deal to ultimately gain some ownership back in the new restructured business when all of the dust settles. This would have to be at least a one to three year process.
It occurred to me that my COO might just be that right person.
NOTE: I am purposely withholding his name here, as it is not relevant nor
important to be known who he is, and there is no need reopening old wounds.
My wife and I had gone to a church sponsored Valentines Dance that evening, but I couldn't get my mind off of the possibility to salvage the company, as my brain-storm from earlier in the day was raging in my head.
We left the dance early and stopped by the home of my COO to discuss the possibilities with him and his wife.
I started the conversation by asking how risk-adverse he was, and then laid out the plan that I had envisioned. It was obvious that he was excited about the possibilities, but wanted the weekend to consider it.
We agreed we would meet on Monday and discuss it further and he would make a decision if it was some-thing he wanted to do or not.
We met first thing Monday morning, and he informed us that he was willing and excited to move forward with the restructuring plan.
I knew I needed somebody that I could trust implicitly, and he was the one I felt fit the bill, as nothing could be in writing about what would happen with ownership of the new restructured company in the future, because of our impending bankruptcy.
Thus, the best we could do is a verbal agreement about how things would transpire in the future, and roughly in what time frame.
I emphasized in our conversation that I had to be able to trust him to do the right thing because the potential for him to do the wrong thing and screw me in the process, was certainly there in spades.
He gave me every assurance that he was doing it for all the right reasons and that he would treat me and my Dad with the utmost respect and integrity.
Would There Be Life After Bankruptcy?
The basic details of the verbal agreement we struck, was that he would buy the company assets and customer list by signing a note for $10,000, and would rename the company.
He would also bring at least $20,000 in working capital to the new company. He never came through with the working capital he had agreed to, but I did loan the new company another $10,000 by cashing out a long-term payment structure from a friend and former business partner.
He would have 100% ownership of the new Company, and would serve as President and CEO. I would join the restructure company as the new VP of Business Development, and my Dad as CFO.
Once all of our bankruptcy proceedings were completed we would put a formal written agreement in place that would ultimately allow both myself and my Dad to acquire a ownership in the new company after at least 12 to 24 months in business.
In the interim we agreed to run the company as if it were a partnership, jointly making all key decisions.
To cut expenses and because the current building the business was operated in was going to be tied up in our bankruptcy, we had to find a smaller facility to move the business to.
The real clincher was that all of this had to happen in a time frame of about 2 to 3 weeks, because we didn't have enough money to even pay our building rent on March 1, 2001. Our monthly lease payment was over $16,000 at the time.
Amazingly, we pulled it off, and the new restructured company was launched under its new owner the first week of March 2001.
He would also bring at least $20,000 in working capital to the new company. He never came through with the working capital he had agreed to, but I did loan the new company another $10,000 by cashing out a long-term payment structure from a friend and former business partner.
He would have 100% ownership of the new Company, and would serve as President and CEO. I would join the restructure company as the new VP of Business Development, and my Dad as CFO.
Once all of our bankruptcy proceedings were completed we would put a formal written agreement in place that would ultimately allow both myself and my Dad to acquire a ownership in the new company after at least 12 to 24 months in business.
In the interim we agreed to run the company as if it were a partnership, jointly making all key decisions.
To cut expenses and because the current building the business was operated in was going to be tied up in our bankruptcy, we had to find a smaller facility to move the business to.
The real clincher was that all of this had to happen in a time frame of about 2 to 3 weeks, because we didn't have enough money to even pay our building rent on March 1, 2001. Our monthly lease payment was over $16,000 at the time.
Amazingly, we pulled it off, and the new restructured company was launched under its new owner the first week of March 2001.
Just Weeks In... the First Sign of Trouble
I set off in my new role as VP of Business Development to meet with our clients all over the country, and let them know that we were effectively the same company, but with a different name and new ownership.
Honestly, I don't recall what I told them that precipitated the need for our name change, but because I had a great relationship with all of our clients they didn't even question it. After all, I had fostered and maintained the relationship with the Clients over many years at this point in time.
So the transition happened about as smoothly as it possibly could. Not without some hitches, but overall not too bad.
The "honeymoon" was very short lived, however. While I was out visiting clients over the course of that first month or two after the transition to the new company, I returned to the office one Monday morning to find that the new CEO decided unilaterally that our prices were too high, and went about lowering all of prices across the board, anywhere from 15% to 30%. His reasoning was that if we had lower prices then we would get more orders and our profits would be higher.
The problem with his reasoning was, even if we did increase revenues, we were not going to find anymore, or certainly very little increase in efficiency's that would impact the bottom line. Certainly not to the tune of 15% to 30%.
Clearly he didn't think that one all the way through, it was as though he took the tact of... "Let's start losing money again, but make it up on volume!"
I was livid, and of course he was dead wrong. Our orders did not increase at all. Our prices were already competitive and I knew that our customers were not that price sensitive anyway. So lowering prices just meant our customers got a better deal, but were not inclined to buy more because of the lower prices.
There was nothing I could say that would deter him, however, and he stayed the course. So much for making all key decisions together!
So, we went from being marginally profitable as a new restructure company, to suddenly losing money once again. Almost immediately cash flow starting being an issue again, even though the new company had virtually no debt other than a couple of equipment leases that the new company took over.
Still, he refused to raise prices back to where they were. Admittedly, he did have a built-in problem in raising prices. Instead of lowering prices on a "temporary" basis to see the impact, he announced that the new lower prices were permanent.
It was a huge mistake! Clearly he didn't understand "Marketing 101", and thus he painted himself into a corner with no way out. Very stupid!
Now we had to start finding ways to cut costs and expenses again. But, in the restructure of the new company, we had already cut just about anything and everything that could be cut, so there wasn't much that could be done to help.
To solve this problem he started looking at personnel cuts, even though we were already running pretty lean.
Then the next ball dropped!
Honestly, I don't recall what I told them that precipitated the need for our name change, but because I had a great relationship with all of our clients they didn't even question it. After all, I had fostered and maintained the relationship with the Clients over many years at this point in time.
So the transition happened about as smoothly as it possibly could. Not without some hitches, but overall not too bad.
The "honeymoon" was very short lived, however. While I was out visiting clients over the course of that first month or two after the transition to the new company, I returned to the office one Monday morning to find that the new CEO decided unilaterally that our prices were too high, and went about lowering all of prices across the board, anywhere from 15% to 30%. His reasoning was that if we had lower prices then we would get more orders and our profits would be higher.
The problem with his reasoning was, even if we did increase revenues, we were not going to find anymore, or certainly very little increase in efficiency's that would impact the bottom line. Certainly not to the tune of 15% to 30%.
Clearly he didn't think that one all the way through, it was as though he took the tact of... "Let's start losing money again, but make it up on volume!"
I was livid, and of course he was dead wrong. Our orders did not increase at all. Our prices were already competitive and I knew that our customers were not that price sensitive anyway. So lowering prices just meant our customers got a better deal, but were not inclined to buy more because of the lower prices.
There was nothing I could say that would deter him, however, and he stayed the course. So much for making all key decisions together!
So, we went from being marginally profitable as a new restructure company, to suddenly losing money once again. Almost immediately cash flow starting being an issue again, even though the new company had virtually no debt other than a couple of equipment leases that the new company took over.
Still, he refused to raise prices back to where they were. Admittedly, he did have a built-in problem in raising prices. Instead of lowering prices on a "temporary" basis to see the impact, he announced that the new lower prices were permanent.
It was a huge mistake! Clearly he didn't understand "Marketing 101", and thus he painted himself into a corner with no way out. Very stupid!
Now we had to start finding ways to cut costs and expenses again. But, in the restructure of the new company, we had already cut just about anything and everything that could be cut, so there wasn't much that could be done to help.
To solve this problem he started looking at personnel cuts, even though we were already running pretty lean.
Then the next ball dropped!
A Fate Worse Thank Bankruptcy...
You're Fired!!
He called me at home Sunday afternoon, August 25th, 2001 and asked if I could meet him at the office that evening. I told him no, but agreed to meet him early the next morning. When I arrived he had a friend, and the leader of his church congregation there with him - both my Dad and I knew his friend very well - which I thought was kind of odd. It wasn't long before I found out why he felt like he needed somebody there as a "witness".
He made it short and quick, he simply informed me that the services of both myself, and my Dad as CFO, would no longer be necessary. I asked him if he intended to speak with my Dad directly. He told me "No", that I could let him know.
At this point, my head was absolutely spinning! The only thing I could get out was something to the effect of, "You will not get away with this!"
Needless to say I was in complete shock! How could somebody I thought I could trust implicitely be willing to rip away everything I had built and worked for over the previous twelve years?
I understood that I was not the owner of the new restructured company anymore, and had absolutely no leg to stand on, but I never dreamed he'd have the audacity to actually fire me!
I had made it clear that I was willing to stick with it to either be successful with the new company, or go down with the ship if necessary. Apparently, he did not have the same commitment, and his loyalty to me and our situation was far less than I ever dreamed it would be.
What still amazes me to this day, is that he didn't have the guts to inform my Dad to his face that he had also been fired. He left that up to me to tell him. It was a cowardly act, and truly showed a lack of integrity and character at his core.
He made it short and quick, he simply informed me that the services of both myself, and my Dad as CFO, would no longer be necessary. I asked him if he intended to speak with my Dad directly. He told me "No", that I could let him know.
At this point, my head was absolutely spinning! The only thing I could get out was something to the effect of, "You will not get away with this!"
Needless to say I was in complete shock! How could somebody I thought I could trust implicitely be willing to rip away everything I had built and worked for over the previous twelve years?
I understood that I was not the owner of the new restructured company anymore, and had absolutely no leg to stand on, but I never dreamed he'd have the audacity to actually fire me!
I had made it clear that I was willing to stick with it to either be successful with the new company, or go down with the ship if necessary. Apparently, he did not have the same commitment, and his loyalty to me and our situation was far less than I ever dreamed it would be.
What still amazes me to this day, is that he didn't have the guts to inform my Dad to his face that he had also been fired. He left that up to me to tell him. It was a cowardly act, and truly showed a lack of integrity and character at his core.
Now... What the Heck Do I Do?
It took a day or two before everything sunk in. The next day, just to clear our heads, my wife and I took the kids and headed over to the Oregon Coast for the day. It was a needed break and get-away, even if only for a day.
I really had no idea what I was going to do.
The timing of this turn of events was interesting, because we were literally only a week or two away from being past all of our bankruptcy proceedings. When that was completed, the verbal agreement was that we would then put together a written agreement. So, he acted before anything could be in writing.
I was hanging out there a country-mile, with absolutely no legal leg to stand on, so there was absolutely no way to challenge his actions.
Now, I was really looking for a "Plan B", not for my company, but to figure out how I was going to provide for my family. It was a time when I was genuinely scared about the future for the first time in many years.
My gut was in knots! Indeed... this was worse than bankruptcy.
I really had no idea what I was going to do.
The timing of this turn of events was interesting, because we were literally only a week or two away from being past all of our bankruptcy proceedings. When that was completed, the verbal agreement was that we would then put together a written agreement. So, he acted before anything could be in writing.
I was hanging out there a country-mile, with absolutely no legal leg to stand on, so there was absolutely no way to challenge his actions.
Now, I was really looking for a "Plan B", not for my company, but to figure out how I was going to provide for my family. It was a time when I was genuinely scared about the future for the first time in many years.
My gut was in knots! Indeed... this was worse than bankruptcy.
The Long Detour Through Indiana
My firing happened on Monday morning, August 26, 2001. The following Saturday morning, September 1st at 4 AM, we received a phone call that my wife's mother had just passed away in Indiana.
Unfortunately, that phone call was one we had been expecting. My wife's mother had been diagnosed just before Christmas the previous year with an aggressive and inoperable brain tumor at the age of 58. My wife had been out to visit and help take care of her just a couple of weeks before, so she had an opportunity to say her proper good-byes.
Additionally, we had spent two weeks in Indiana with our kids earlier in the summer, so had had an opportunity to spend some good time with her while her symptoms were still relatively mild.
We immediately started packing and by 8 AM that morning we were on the road to drive from Portland, Oregon to Muncie, Indiana to be with, and support my wife's only Sister through this difficult time. We drove almost straight through, minus a six-hour nap in a hotel room in Council Bluffs, Iowa. We arrived in Muncie around 8 AM Monday morning.
We spent about eight days there taking care of all the final arrangements, and giving my wife and her sister time to go through their Mom's things. It was also a good time for me to unwind a bit and spend some quality time with my kids.
No business pressures at all for a change, but still concerned about the future needless to say.
Unfortunately, that phone call was one we had been expecting. My wife's mother had been diagnosed just before Christmas the previous year with an aggressive and inoperable brain tumor at the age of 58. My wife had been out to visit and help take care of her just a couple of weeks before, so she had an opportunity to say her proper good-byes.
Additionally, we had spent two weeks in Indiana with our kids earlier in the summer, so had had an opportunity to spend some good time with her while her symptoms were still relatively mild.
We immediately started packing and by 8 AM that morning we were on the road to drive from Portland, Oregon to Muncie, Indiana to be with, and support my wife's only Sister through this difficult time. We drove almost straight through, minus a six-hour nap in a hotel room in Council Bluffs, Iowa. We arrived in Muncie around 8 AM Monday morning.
We spent about eight days there taking care of all the final arrangements, and giving my wife and her sister time to go through their Mom's things. It was also a good time for me to unwind a bit and spend some quality time with my kids.
No business pressures at all for a change, but still concerned about the future needless to say.
A Plan Begins to Emerge
Being the competitive entrepreneur I am, and during the drive out to Muncie, Indiana, I did the one thing that any good entrepreneur would do -- I determined that I would compete with my former company. I wasn't completely sure what that meant yet, but that was the plan I settled on... details to come.
Although it was intriguing and interesting to look towards launching a brand new company to compete with my former nemesis, given the cost, complexity and time it would take to do so, I determined pretty quickly that that was not practical, at least at that time.
My former company's primary competitor at that time was Town and Country Printing, based in northwestern Indiana, and was owned by Bill Foster. I had respect for him and his company. They had been around for over 25 years - more than twice as long as my company had been in business, and had some pretty major clients, including Mary Kay Cosmetics and Avon Products.
We were friendly with each other as competitors, and had talked a number of times at various industry related events and conferences.
Once we were in Indiana, I called Bill Foster to see if I could set an appointment to meet with him. I believe I called him on Thursday, September 6th to see if we could meet the first part of the following week. He told me he had a conference he was attending, on Monday, September 10th in Washington DC.. We set a time to meet on the morning of September 12th. Thus, we determined to leave Muncie and head up to northwestern Indiana the afternoon of September 11, 2001.
Now, we know what a fateful day that was, with planes being flown into the twin-towers in New York City and Washington DC by terrorists, and of course the plane that crashed in a field in Pennsylvania. What an amazing and tragic day that was for our country.
I was so shaken by the events of that day that I did not sleep at all that night. I simply couldn't shut my mind off, and spent a good chunk of the night down in the hotel lobby we were staying at. I mostly watched the ongoing news of the events of the day, and spent a considerable amount of time thinking through what kind of conversation I would have the next day when I met with Bill.
Bill Foster was lucky he decided to return to Indiana on the evening of September 10th when the conference concluded, rather than stay over and fly out the next morning. He would have missed our appointment since all airline flights were canceled and grounded after the terrorist attacks.
Although it was intriguing and interesting to look towards launching a brand new company to compete with my former nemesis, given the cost, complexity and time it would take to do so, I determined pretty quickly that that was not practical, at least at that time.
My former company's primary competitor at that time was Town and Country Printing, based in northwestern Indiana, and was owned by Bill Foster. I had respect for him and his company. They had been around for over 25 years - more than twice as long as my company had been in business, and had some pretty major clients, including Mary Kay Cosmetics and Avon Products.
We were friendly with each other as competitors, and had talked a number of times at various industry related events and conferences.
Once we were in Indiana, I called Bill Foster to see if I could set an appointment to meet with him. I believe I called him on Thursday, September 6th to see if we could meet the first part of the following week. He told me he had a conference he was attending, on Monday, September 10th in Washington DC.. We set a time to meet on the morning of September 12th. Thus, we determined to leave Muncie and head up to northwestern Indiana the afternoon of September 11, 2001.
Now, we know what a fateful day that was, with planes being flown into the twin-towers in New York City and Washington DC by terrorists, and of course the plane that crashed in a field in Pennsylvania. What an amazing and tragic day that was for our country.
I was so shaken by the events of that day that I did not sleep at all that night. I simply couldn't shut my mind off, and spent a good chunk of the night down in the hotel lobby we were staying at. I mostly watched the ongoing news of the events of the day, and spent a considerable amount of time thinking through what kind of conversation I would have the next day when I met with Bill.
Bill Foster was lucky he decided to return to Indiana on the evening of September 10th when the conference concluded, rather than stay over and fly out the next morning. He would have missed our appointment since all airline flights were canceled and grounded after the terrorist attacks.
Rise to Live Another Day
I arrived at Bill's office around 9 AM, and of course we first talked in awe and amazement of the events of the previous day. He finally asked what brought me to Indiana, and of course why I wanted to meet with him.
After explaining the passing of my mother-in-law, I jumped right into explain what had happened to my business and then how I was fired. Bill was simply stunned by the whole situation. He also could not believe that I could be fired from the company that I had founded. Bill continued to express how much respect he had for me as a competitor.
I told him the feeling was mutual, and that maybe it's time for us to join forces in some manner. Then I told him that my intent was to compete with my former company, and that if he was willing to bring me on as an independent sales representative, I felt like I could successfully move the accounts I had the relationship with, to Town and Country Printing over a period of time.
Bill jumped at the opportunity almost immediately. He was very excited about the possibilities. What Bill did know was that I was the driving sales force behind my former company, and that we had become a formidable competitor within just a few short years. For that, I had gained his respect and confidence.
Over the next couple of hours, we came to terms for me to feel comfortable to join Town and Country Printing, not as an employee, but as an independent contractor. I would continue to work from my home office in Portland, Oregon. Town and Country would pay my travel expenses to go around and meet face-to-face with each of my accounts in an attempt to move them.
When Bill and I finished our meeting he invited me and the members of his management team to lunch, where he broke the news of how I was going to join their team, and what had happened with my Company.
For the most part, his management team were warm and seemed enthusiastic about the new relationship.
The next four days, we drove back across the country with the family to our home in Portland, Oregon. I had had a three week break... now, it was time to get back to work!
After explaining the passing of my mother-in-law, I jumped right into explain what had happened to my business and then how I was fired. Bill was simply stunned by the whole situation. He also could not believe that I could be fired from the company that I had founded. Bill continued to express how much respect he had for me as a competitor.
I told him the feeling was mutual, and that maybe it's time for us to join forces in some manner. Then I told him that my intent was to compete with my former company, and that if he was willing to bring me on as an independent sales representative, I felt like I could successfully move the accounts I had the relationship with, to Town and Country Printing over a period of time.
Bill jumped at the opportunity almost immediately. He was very excited about the possibilities. What Bill did know was that I was the driving sales force behind my former company, and that we had become a formidable competitor within just a few short years. For that, I had gained his respect and confidence.
Over the next couple of hours, we came to terms for me to feel comfortable to join Town and Country Printing, not as an employee, but as an independent contractor. I would continue to work from my home office in Portland, Oregon. Town and Country would pay my travel expenses to go around and meet face-to-face with each of my accounts in an attempt to move them.
When Bill and I finished our meeting he invited me and the members of his management team to lunch, where he broke the news of how I was going to join their team, and what had happened with my Company.
For the most part, his management team were warm and seemed enthusiastic about the new relationship.
The next four days, we drove back across the country with the family to our home in Portland, Oregon. I had had a three week break... now, it was time to get back to work!
The Hardest Sales Job in the World...
Selling Against Myself
The following week, and for the next several weeks, I was on the plane once again going out to meet with the clients from my former Company, this time with the intent to move the account.
That was a very interesting experience!
Amazingly, the CEO of my former Company had not even informed the client base that I had been terminated, so when I called for an appointment they didn't even question the need to meet with me. Thus, setting the appointments was easy.
However, when I actually went out and met with them, that was a completely different story.
I had always stayed in close communication with my clients, and we absolutely provided excellent customer service. So when I informed the clients that I was no longer with my former company, and was asking them to make a change and follow me to Town and Country Printing, they were surprised, but saw no driving reason to make a change. So far, at least from their perspective, nothing had changed.
Of course, I couldn't tell them the real reason, or whole story about why I was no longer there.
Much to my shock and surprise, I got NO commitments from any accounts to move after my first round of visits. They simply didn't see a need to make the move.
I really had done a great job of locking them in very well to my previous company, and now I just looked like a competitor trying to move their business. I really did feel as though I was selling against myself and my own reputation.
I had never been in that situation before, and don't ever want to be there again!
That was a very interesting experience!
Amazingly, the CEO of my former Company had not even informed the client base that I had been terminated, so when I called for an appointment they didn't even question the need to meet with me. Thus, setting the appointments was easy.
However, when I actually went out and met with them, that was a completely different story.
I had always stayed in close communication with my clients, and we absolutely provided excellent customer service. So when I informed the clients that I was no longer with my former company, and was asking them to make a change and follow me to Town and Country Printing, they were surprised, but saw no driving reason to make a change. So far, at least from their perspective, nothing had changed.
Of course, I couldn't tell them the real reason, or whole story about why I was no longer there.
Much to my shock and surprise, I got NO commitments from any accounts to move after my first round of visits. They simply didn't see a need to make the move.
I really had done a great job of locking them in very well to my previous company, and now I just looked like a competitor trying to move their business. I really did feel as though I was selling against myself and my own reputation.
I had never been in that situation before, and don't ever want to be there again!
Finally... Vindication!!
It took almost six months to get the first account to move, but I finally got it.
I had a very good friend who knew the CEO of that company personally, and called to let him know what had happened to me and my former company. I knew the CEO as well, so he empathized with my situation, and requested that the VP of Marketing take a serious look at what Town and Country had to offer. That made all the difference.
Additionally, that first account started seeing signs that maybe there were some problems with my former company. Customer service was slipping and they started receiving some complaints, which they had never had when I was running the company. So, they agreed to make the switch.
From that time forward it was like domino's, as I started picking the clients off one by one, the small ones at first. Until one day, I found out that the man who fired me was now trying to sell the accounts to yet another printing company in the Portland area.
How I I found that out was from a phone call from my former company's largest client, who called to tell me they were ready to make the switch. It was evident that hey were very frustrated, and were not going to stick with them, as the supplier who was now buying the business were a completely unproven entity.
After that development I was able to move all of the remaining clients I wanted. I had won!!
It was both gratifying and exhilarating that my determination to compete had paid the dividends I felt like I deserved! But, I had to pay my dues. It was not easy, and it took an extreme amount of both persistence and patience on my part to make it happen.
For me it really was the ultimate vindication!
I had a very good friend who knew the CEO of that company personally, and called to let him know what had happened to me and my former company. I knew the CEO as well, so he empathized with my situation, and requested that the VP of Marketing take a serious look at what Town and Country had to offer. That made all the difference.
Additionally, that first account started seeing signs that maybe there were some problems with my former company. Customer service was slipping and they started receiving some complaints, which they had never had when I was running the company. So, they agreed to make the switch.
From that time forward it was like domino's, as I started picking the clients off one by one, the small ones at first. Until one day, I found out that the man who fired me was now trying to sell the accounts to yet another printing company in the Portland area.
How I I found that out was from a phone call from my former company's largest client, who called to tell me they were ready to make the switch. It was evident that hey were very frustrated, and were not going to stick with them, as the supplier who was now buying the business were a completely unproven entity.
After that development I was able to move all of the remaining clients I wanted. I had won!!
It was both gratifying and exhilarating that my determination to compete had paid the dividends I felt like I deserved! But, I had to pay my dues. It was not easy, and it took an extreme amount of both persistence and patience on my part to make it happen.
For me it really was the ultimate vindication!
Five Years and I'm Done
I stayed with Town and Country printing for another 4 years or so, managing the accounts and bringing new accounts to the table. In the process, I had created a decent monthly residual income to provide for my family. It wasn't wealth but it was enough to pay the bills.
My agreement with Town and Country was that I would be paid a flat percentage of sales monthly. The first full year I was paid a guaranteed monthly minimum, giving me time to ramp up and build sales.
After five years of bringing and managing accounts for Town and Country, I was burned out. Another factor was that Bill Foster and I had serious differences in terms of both quality and customer service. I determined that it was time to move on and leave the printing business once and for all... or so I thought.
When I joined Town and C0untry, the one thing I told Bill I wanted was, that if I ever decided to leave, I wanted to be paid at the same commission rate for a full year following my departure. He agreed to that as the terms to buy-out the accounts I had brought to the table. Of course, I had a pretty stiff non-compete tied to that, which I was fine with.
So, I executed the one-year buy-out and began looking for what I was going to do next. In reality, I had already been pursuing some other ideas, but nothing had come together that was of any significance yet.
Incidentally, to this day I have nothing but good to say about my experience with Bill and Town and Country. Bill was there to help when I needed a hand-up the most, and he honored everything he said he would do, unlike the man at my former company.
My agreement with Town and Country was that I would be paid a flat percentage of sales monthly. The first full year I was paid a guaranteed monthly minimum, giving me time to ramp up and build sales.
After five years of bringing and managing accounts for Town and Country, I was burned out. Another factor was that Bill Foster and I had serious differences in terms of both quality and customer service. I determined that it was time to move on and leave the printing business once and for all... or so I thought.
When I joined Town and C0untry, the one thing I told Bill I wanted was, that if I ever decided to leave, I wanted to be paid at the same commission rate for a full year following my departure. He agreed to that as the terms to buy-out the accounts I had brought to the table. Of course, I had a pretty stiff non-compete tied to that, which I was fine with.
So, I executed the one-year buy-out and began looking for what I was going to do next. In reality, I had already been pursuing some other ideas, but nothing had come together that was of any significance yet.
Incidentally, to this day I have nothing but good to say about my experience with Bill and Town and Country. Bill was there to help when I needed a hand-up the most, and he honored everything he said he would do, unlike the man at my former company.
The Next Chapter... Out of My Comfort Zone
What developed next was unexpected, but has carried me through the past ten years.
I have a friend and colleague, Bob Hipple, who I had known for over ten years through our mutual association within the direct selling industry. At the time of my departure from Town and Country, Bob was doing a lot of consulting work at the corporate level, mostly with start-up companies, and he was buried in work.
By chance -- if you believe in coincidences -- I called him on the very day he was passing through my area on his way home from meeting with a client, and I suggested we get together for lunch, and he agreed.
The chances of that happening completely by accident are pretty slim. I believe in divine intervention, and feel strongly this was one of those things I was simply lead to do, and I followed the prompting I had received.
When Bob and I met, I made him aware that I was looking for a new direction and asked if he might need some help in the consulting business. He responded enthusiastically, and told me he really did need some help.
We quickly agreed to start working together starting immediately. As a matter of fact, he told me he had a potential client he was about ready to turn away because he didn't have time to take on another project. So that client became my first consulting project under the direction and tutelage of Bob.
There was a pretty steep learning curve initially, and I was definitely out of my comfort zone. But, with Bob's help and the ability to put me at ease, it wasn't long before I settled into the work, and I enjoyed it thoroughly.
My business relationship with Bob started in the summer of 2007, and has been a major source of income for me and my family during the intervening years. I have worked with more than 60 clients, several of which have gone on to be wildly successful in their own right. I am proud to have been a small part of their success.
I have a friend and colleague, Bob Hipple, who I had known for over ten years through our mutual association within the direct selling industry. At the time of my departure from Town and Country, Bob was doing a lot of consulting work at the corporate level, mostly with start-up companies, and he was buried in work.
By chance -- if you believe in coincidences -- I called him on the very day he was passing through my area on his way home from meeting with a client, and I suggested we get together for lunch, and he agreed.
The chances of that happening completely by accident are pretty slim. I believe in divine intervention, and feel strongly this was one of those things I was simply lead to do, and I followed the prompting I had received.
When Bob and I met, I made him aware that I was looking for a new direction and asked if he might need some help in the consulting business. He responded enthusiastically, and told me he really did need some help.
We quickly agreed to start working together starting immediately. As a matter of fact, he told me he had a potential client he was about ready to turn away because he didn't have time to take on another project. So that client became my first consulting project under the direction and tutelage of Bob.
There was a pretty steep learning curve initially, and I was definitely out of my comfort zone. But, with Bob's help and the ability to put me at ease, it wasn't long before I settled into the work, and I enjoyed it thoroughly.
My business relationship with Bob started in the summer of 2007, and has been a major source of income for me and my family during the intervening years. I have worked with more than 60 clients, several of which have gone on to be wildly successful in their own right. I am proud to have been a small part of their success.
The Entrepreneurial Spirit is Alive and Well!
Besides the Consulting work, I have also pursued a variety of other business ventures, none of which has borne much fruit. But, always the Entrepreneur in my heart and soul, I continue to look, watch, and try a variety of ideas.
I have also continued to keep my toe in the printing side of my experience, and have brokered tens of thousands of dollars of printing over the course of these years. To this day I have active printing clients who I personally handle their print needs, and that has continued to be a small source of my ongoing revenue.
All of these ventures have kept me in business as a solo entrepreneur and working from my home office or wherever I happen to be. The flexibility of my schedule has been a wonderful experience for me over the past 15 years.
Being an entrepreneur without the headaches and overhead of a significant number of employees has frankly been heaven for me. I will have to admit, when I had my big printing company with 65 employees and hundreds-of-thousands-of-dollars per month in overhead expenses, there were times I wondered if I was running a business, or an adult day care center. Some days it seemed like a toss-up.
Regarding the flexibility of schedule, the past three summers in a row my wife and I have traveled up to a month at a time, and I have still been able to easily keep up with my work load and clients regardless of where I have been.
As long as I have my laptop and an internet connection - thanks largely to the local neighborhood McDonald's restaurant - I am in business and can do what I need to do.
To a great extent I have been able to live what some call "the laptop lifestyle". This simply means that I have had the ability to work from anywhere, and I have certainly proven that point over the past decade, and that has been a joy!
I have also continued to keep my toe in the printing side of my experience, and have brokered tens of thousands of dollars of printing over the course of these years. To this day I have active printing clients who I personally handle their print needs, and that has continued to be a small source of my ongoing revenue.
All of these ventures have kept me in business as a solo entrepreneur and working from my home office or wherever I happen to be. The flexibility of my schedule has been a wonderful experience for me over the past 15 years.
Being an entrepreneur without the headaches and overhead of a significant number of employees has frankly been heaven for me. I will have to admit, when I had my big printing company with 65 employees and hundreds-of-thousands-of-dollars per month in overhead expenses, there were times I wondered if I was running a business, or an adult day care center. Some days it seemed like a toss-up.
Regarding the flexibility of schedule, the past three summers in a row my wife and I have traveled up to a month at a time, and I have still been able to easily keep up with my work load and clients regardless of where I have been.
As long as I have my laptop and an internet connection - thanks largely to the local neighborhood McDonald's restaurant - I am in business and can do what I need to do.
To a great extent I have been able to live what some call "the laptop lifestyle". This simply means that I have had the ability to work from anywhere, and I have certainly proven that point over the past decade, and that has been a joy!
Let's Celebrate Your Story
Now, I invite you to tell you story. You've heard mine, and you know that even through the depths of devastating failure you can pick yourself up and keep going in some way to get past the most difficult challenges you may be facing in your business and life today, or may have faced in the past.
Now, your story can be part of my story going forward, as this effort at the Business School of Hard Knocks is my new passion. I want to celebrate and honor Entrepreneurs of all stripes and from all walks of life.
To this end, I have learned that anybody who has been an Entrepreneur for any length of time, has a story to tell. Your story will be different than my story, and we'll honor and respect those differences.
Now, your story can be part of my story going forward, as this effort at the Business School of Hard Knocks is my new passion. I want to celebrate and honor Entrepreneurs of all stripes and from all walks of life.
To this end, I have learned that anybody who has been an Entrepreneur for any length of time, has a story to tell. Your story will be different than my story, and we'll honor and respect those differences.
|
|
|
You have more than likely already qualified to receive what I like to call
"the most expensive degree you've already earned". Why? Because, just like me, you have earned it through the Business School of Hard Knocks. 
|
We are just now introducing the
Honorary Degree Award, and if you qualify, you may purchase your's for only $197, plus S&H. |
