We're happy to present you with the seventh installment in our Next Level Leadership Series, where we speak with TAB members about the challenges small business owners face in today's world. Through this series of interviews, we discover how various small business owners have risen above and beyond to become our Next Level Leaders.

This week we present Rich Rossiello Sr., founder and owner of The Perfect Shift in Henryville, PA. For the Rossiellos, home is truly where the heart (of the business) is: the business began in the family's garage back in 1990, before growing to a separate shop that sells transmission parts, torque converters, overhaul kits and much more, both storefront and online. Rich Jr. would come home and help out at the shop after school, and more than 20 years later, continues his passion for the family business, working side by side with his father at The Perfect Shift.

When was The Perfect Shift founded? Did you start the business, or was it someone in your family?

1990. It was me that started it. I actually started it out of my garage, started buying torque converters from other manufacturers, and eventually we bought the equipment and started manufacturing our own.

Who in your family is involved at the shop? How long have they been part of your work team?

We’re a family business. My son works here, [laughs] since about 1990 also. He would work after school. He’s been with me the whole time.

What roles does he play?

My son [Rich Jr.] answers the telephones. People get us confused [on the phone]; they say we sound alike. We basically do everything. He works in the back with the guys, welds, and works in the rebuilding process. He’s hands-on with most of the things in the back.

What is one of the biggest challenges that you face when your family is working with you in your business?

Because you’re with each other all day, you tend to have less time together for family functions.

And he’s a good kid. If I need work done around the house, he’ll always help.

What are some of [is one] of the greatest benefits?

Just the fact that [Rich Jr. is] so hands-on, and so conscientious. When the phone rings, people want to talk to him because he’s so knowledgeable, so involved in the business. His concern is in the business: he’s always looking for something to improve, to make better.

Will you keep the business in the family when you retire?

I’m hoping that he takes it over, when the time comes. Right now, it seems that way but you never know what’s going to happen.

Does work come up at the kitchen table?

In some degree, it does come up. We do try to leave it out. I have a brother who is also in the automotive business, so in some way or another we wind up talking about cars.

What is your favorite part of being a member of The Alternative Board?

I like getting with other owners and discussing the problems together. Even though we may not be in the same field, we can still get ideas for our different problems.

We're happy to bring you the fifth interview in our Next Level Leadership Series, where we speak with industry leaders about different issues small businesses face. Here, we explore the ways various TAB members have risen to challenges to prove themselves as Next Level Leaders.

This week we present Ron Fischer, President of Redemption Processing Representatives, Inc. RPR uses its extensive knowledge of the coupon industry to enhance the effectiveness of the coupon process for its clients, providing manufacturing, retailer and consulting services. Ron generously shared his story, from how he came to serve such a niche market to how RPR has weathered changes and challenges over the last 17 years.

When was RPR (Redemption Processing Representatives, Inc.) founded?

June 1994.

Did you set out with a clear definition of what your market would be?

Well, I came from a manufacturing background, working for Unilever. [Unilever] went through a reorganization. . . While I had a new management position, I really enjoyed managing the coupon operations, and I thought, “I could do this myself.” I was saving them millions of dollars.

When I walked away, I had a few things in my pocket. A few of my colleagues knew I was leaving. But I had never been an entrepreneur before. I was 48 when I walked away.

I rolled with the punches – I knew I could do this in the industry, and carved out the business as I went along.

You provide manufacturer, retailer and consulting services. Did you begin serving all of these markets, or did you begin with just one?

I started with the manufacturers. One of the things I was very successful with at Unilever was coupon deduction. (Large retailers will deduct non payment back from  the retailer invoice). So I introduced that Coupon Deduction Mangagement services. My plan was to build my clientele, then sell the business to a collection company.

One of the major manufacturer vendors didn’t like my approach and I got black balled. They revised their third party agreement which would not allow me compete with the industry.

I started this service with Ocean Spray in 1996. They left in 2000 to try another vendor and came back to RPR in 2004. We picked up Kimberley Clark in 2000 and worked with them for seven years. Once Kimberley Clark changed management, we lost the agreement.

Then we started in consulting primarily to introduce electronic processing. In 1999 I started with Cunningham Electronics which ended in early 2001. In 2002 with a start up company that didn’t make it, then in 2004 with First Data Corp. The coupon industry is regulated by voluntary recommended guidelines. Long-standing vendors would lose business if electronic processing were put in place. While the First Data test successful and approved by several major CPG companies, they were not able to introduce it as a revenue producing department. In 2006, we got into the retail industry by provide coupon processing.

Where does RPR focus the majority of its services?

Majority is in the retailers. We have thousands of retailers, from Mom and Pop places to chains with up to 300 stores. Sometimes a chain will submit under the corporate chain, sometimes under the store.

I was very proud to set up a very ethical process. [We’re] not trying to milk the industry, not passing any  fees back to retailers. Just be straightforward. [We’re] trying to grow, to be successful, but it’s a very small revenue stream we work off of.

How have you developed your clientele in this rather niche market? (Networking, advertising, marketing, etc.)

I guess it’s mostly through networking. We belong to state associations. Three states recommend their retailers use our program. We work nation-wide.

I do selling. [Some of our business] is based on the Web site. It’s been slow growth. We’re working on bringing in larger retailers.

Anything else special you would like to share on working in a niche market?

Because I started when I was so young [laughs], when I worked with Unilever, the manufacturers really controlled the industry.

I’m a sole survivor, I really have extensive knowledge of the industry. I was an expert witness in a lawsuit case. I really enjoy what I do; really enjoy the process. I’d like to shake up the industry. I think the industry really needs some rules and regulations. I’m Chairman of the Guidelines Committee [of the Association of Coupon Professionals].

I was a dyslexic child, went to five high schools in four years, and learned to overcome failure. I have good common sense. I enjoy what I do; it’s so important – you spend so much of your time at work. I have a small, nice group of people working for me. We’re trying to improve the mousetrap so that everybody is successful.

What do you like most about The Alternative Board and/or personal coaching you get?

They’re a great way to get some guidance. Sometimes there are things that you should be doing, but you forget to do them.

[I like] the overall structure: sharing your ideas with others, getting guidance from non-competitors. I get overwhelmed with personal life and business . . . [TAB is] a good way to set goals, move along and carve out areas you’d like to work on.

Welcome to the second installment of our Next Level Leadership series! Here, we interview small to mid-size business leaders about certain areas in which they have proven themselves to be exceptionally successful.

Next in our series is TAB member Mark Beck, founder of The Boulevard Group. Mark was kind enough to spend time to share some of his experiences in local relationship building. The Boulevard Group is a firm that provides Web site design, development and marketing services.

When was The Boulevard Group founded?

My wife and I founded the company in 2000. We’ve been in business for 11 years, with the vast majority of our clients from the New York City/Philadelphia geographic area.

We started pairing with local businesses back in 2003. I’m a programmer, not a designer. We brought in a graphic designer on an outsource basis. The graphic designer had the exact opposite problem I did: he did design work, not programming. From then on we would refer business to each other.

From that relationship, the graphic designer has referred The Boulevard Group to other companies over the years. Close to 30 percent of our business comes from partner referrals.

How do you approach other local businesses? Has building relationships with them been a natural part of doing business, or have you actively worked to build a strong local network?

When I go to networking events, I look for people, like local printers and PC repair companies, who have the same client base, but not those who provide competing services.

In Long Valley, I partner with Eric Frenchman, an online marketing guru. It’s a good example of how we both target the same types of companies, but our businesses are not competitive at all. We refer potential partners to each other.

What do you consider the most important aspect of developing relationships with other businesses?

Primarily, I look at a person’s experience and examples of work that they’ve done. Whenever possible I would like to be the person referring another to a potential partner first, instead of being the one to ask for business.

When we have work referred to us, we have to keep two important things in mind:

First, we have to make the referring partner look as good as possible. Second, we have to keep the partner in the loop. Always let them know what’s going on: whether it’s good or bad, whether it’s something we’re doing or something the client is doing, we want to make sure there are no surprises on their end.

I noticed you have a page on your Web site dedicated to “Business Resources”. Is this part of building relationships with other local businesses?

Companies listed on the page are a combination of partners with whom we do work and others who are part of my local BNI networking group.

How has working with other local businesses benefited The Boulevard Group, outside of the financial reward?

In addition to the financial reward, having good relationships with other local businesses makes the sales cycle a whole lot shorter. Partner clients have already been sold on a Web site, and are now looking to put the pieces together to get the project going.

In some cases, when we’re doing work with a partner, The Boulevard Group works in the background and the client doesn’t know we exist. Sometimes we work face to face with the end client. We can get out, meet new people, and see who they use as resources. We see if The Boulevard Group can help them work with other businesses.

What is your favorite aspect of being a member of The Alternative Board?

It’s tremendously beneficial to have a new set of eyes looking in on the business. We can be so engulfed in the day-to-day operations that we don’t take the time to look at the big picture.  It’s so helpful to have board members coming in with a different set of eyes – new perspectives have helped the business get along, keep it going.

Welcome to the first installment of our Next Level Leadership series, where we highlight small to mid-size business leaders and the areas in which they have proven themselves to be exceptionally successful.

 

We recently spoke with TAB member Barbara Alves, Senior Director at Emilcott, who graciously shared her experiences in building a great corporate culture at the company. Emilcott is a consulting and training firm that provides industrial hygiene, health, safety and environmental support to companies and institutions facing compliance issues.

When was Emilcott founded? Do you have any employees that have been with the company since the beginning?

Emilcott was founded in 1986; we’re now in our 25^th year.

 

Bruce Groves, of course, President of Emilcott still owns and runs the company. Dawn Quinn, our Office Manager, has been with the company for 17 years. Most of upper management has been with Emilcott for a long time, between 10 and 15 years.

 

For the first 10 years, we had the natural attrition you might expect with a start up. As a consulting firm, hiring was focused on the specific projects that were in the hopper at the time. Many of the staff was young and inexperienced. After the first decade, Bruce understood that the employees who helped start the business would not necessarily be the ones to help us take it to the next level.

 

I came in at the 10-year mark. Because I had a more corporate background and had been involved with hiring before, I understood that you actually need to focus on hiring people with the intent on keeping them to help the company grow. Our turnover rate for the past seven years or so has been very low.

 

How big is Emilcott: how many employees do you have, and how big of a geographic area do you span?

Emilcott has around 30 employees. While there is a core group of employees that work in our office, the majority of staff is out on job sites. Some assignments are short, lasting a day or even a half-day, while other assignments are long-term. Employees may be on-site for a year or more.  We generally service the NJ - NY area, but employees have traveled all over the world to service our clients.

We’ve had to learn how to manage remote employees and create opportunities for people to get together. For instance, every other week we hold senior staff meetings. We also have parties throughout the year where employees can bring in their families.

 

How would you describe Emilcott’s corporate culture?

At that 10-year mark, when Emilcott decided to actively build our corporate culture, we made a conscious decision to figure out what attracts good people. We’re a small company where everybody counts, where everybody makes a difference, and where our employees’ contributions are noticed.

 

We’re very family-oriented, and we stress the importance of our employees’ personal lives. We have an open door policy: people can come to their supervisor, or to Bruce, if they have an issue. I never feel like I can’t take time for my family because of work.

 

Our support for our employees and their family life is helped in part by our use of technology such as a web-based CRM and remote access to the company network.  Emilcott became technology-friendly almost 10 years ago; we made a decision to invest in the latest technologies so that employees could work remotely. This let us tap into a specific labor pool – women in our industry who were trying to raise a family and wanted to work part-time.

 

How did the culture develop – has it been a natural extension of Bruce’s personality, or did he have a distinct vision of how he wanted his workspace and interaction with customers to be like?

The culture was first based on Bruce’s personality and management style. Now, it still is a natural extension, but with more focus and organization.

 

Which came first: the chicken or the egg? Does Emilcott hire those who fit into the culture, or do people with different personalities and work styles adapt to fit the culture?

Emilcott does a lot of pre-qualification. We use a pre-hire company, with an online program that vets people out at a certain level.

 

Once someone has reached the first interview level, I speak with him or her directly. I ask only behavior-based questions over the phone. I figure that education and experience has gotten him or her this far, and now I want to know more about the person.

 

I ask people who their mentors are, and why. I have a question I love to ask: “If you woke up tomorrow and had carte blanche to do whatever you wanted, go wherever you wanted, what would you do?” I want to know if a person is working to live, not living to work. Emilcott looks for those people who will be contributors beyond giving technical expertise. I find that behavioral questions can tell you a lot about a person.

 

Would you share any special stories that exemplify Emilcott’s culture?

We bring our employees together throughout the year with various celebrations. We have annual fishing trips, summer picnics and holiday parties.

 

Recently, we’ve had a cash crunch and have needed to scale back spending. Last July we combined business with pleasure by hosting a company barbecue. It was an opportunity for the different business units to do a mini-trade show, complete with booths where everyone shared what was going on in their units. Bruce shared his vision of the company. And everyone got to enjoy some great food and a little reconnection.

 

We also had a Mardi Gras party not too long ago. One employee spent a lot of time at a job site down in Baton Rouge, and she had the idea of throwing a Mardi Gras celebration. She brought different foods she enjoyed while working in Louisiana and shared it with everyone.

 

Emilcott has a corporate blog where staff describes their on-the-job experiences. Can you elaborate a bit more on the blog, and why Emilcott has encouraged its employees to participate in the company’s social media efforts?

Well, the blog is mandatory. Emilcott gives people a choice of either posting on the blog or posting a YouTube video. People can be given a subject, or can choose a subject of their own, related to our business, of course.

 

Facebook participation, though, is voluntary. Employees share pictures, or post about experiences with charity work, or send updates about job progress.

[For a great illustration of the corporate culture at Emilcott, check out this YouTube video. Peter Borbas is a client of Emilcott, whose daughter suffered from Lyme disease. Peter is on a mission to educate people about the disease. During training classes, Emilcott shows his video or Peter speaks directly to students. This YouTube clip shows Bruce, the company President, presenting Peter with "The Borbie" award for his contribution toward education about Lyme disease. Barbara says, "It took a handful of our employees to put this together, but everyone was happy to do it."]

 

Any last thoughts on what good corporate culture means?

 

Companies need to have a vision of their culture. Companies need to believe in it, otherwise employees will be confused about who they work for. Small business owners, in particular, need to decide what kind of people they want working for them, what kind of company they would work for. Otherwise it’s a bunch of people in the office working next to each other, and not with each other.

What is your favorite aspect about being a member of The Alternative Board?

 

It’s a twofold answer: first, you have accountability for goals that you might not otherwise keep. Second, over the years, being on a board is kind of like mini-therapy. What happens in TAB stays in TAB. I get lots of good advice from other people. Sometimes the answer is in yourself, but it takes someone else to say something that brings the answer to light.

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Ah, spring. You bring bright green grass and blooming flowers, graced by the gentle buzzing of bees and chirping of birds. There is much we can learn from you, apart from the fact that we need a new motor for our lawnmower.

The concept of cross-pollination in nature is simple: animals, be they bees or birds, travel from one flower or tree to the next, carrying pollen and seeds to new plants as they go along. The receiving plants are able to reproduce with greater variety, meeting environmental challenges more successfully thanks to the benefits of genetic diversity.

Cross-pollination in the business world can be equally beneficial. By blending in seemingly unconnected ideas into your business, you develop and grow. Your business will be better able to weather the challenges that all businesses must face, and adapt to, to survive.

Cross-pollination comes in many forms. A Bank of America inside your local grocery store is an example of two businesses expanding their markets through a non-traditional collaboration. When a company posts something on its corporate blog, and then posts links to the blog on Facebook and Twitter, it’s participating in social media marketing cross-pollination. When members of TAB meet for their monthly board meetings, they explore creative solutions to difficulties that confront all small businesses.

The first step to cross-pollination is to keep your eyes open to new sources for ideas. Great ideas can be found where you least expect them. Read books, magazines, and blogs from outside your industry. Absorb the information and ask yourself how you can apply their strategies to your business.

Now we ask you: have you gathered ideas from all over and applied them to your business? Or have you seen some really great examples of cross-pollination at work? We would love to hear your stories!

I recently came across IBM's white paper describing key skills and competencies CEOs will need to lead their companies in the coming years.  The biggest drivers of these revised leadership skills were speed, information and complexity.  As more information becomes more available, more quickly, CEOs must adapt. The old adage of “being able to turn on a dime” becomes more critical for businesses as they must not only execute innovative offerings, but must do so more quickly and with less information than in previous business cycles.

Instilling innovation and risk taking can seem a lofty ideal.  However, if your employees were more creative in problem solving, in improving internal processes, developing new customer services & solutions, in negotiating with vendors & customers – what would the impact be?

Consider the dental industry.  Not the most exciting (well, maybe for those in the business it is), not one traditionally known to take risks.  But while looking for a new dentist due to an insurance plan change, I came across one that struck my interest, a dental office that uses Feng Shui as its design basis.  The facility is designed to be an oasis of relaxation.  There are babbling water walls, beautiful Zen stone pieces, wonderfully calming energy, complimentary refreshments and massages.  How did the owner come up with the concept?  By innovating and creatively addressing a market need.  By disrupting the status quo. 

So often the challenge for business owners is where and how to start embedding creativity. Fortunately there is help, and there are approaches and processes to developing creative muscles.

Some of my favorite techniques include:

• Removing yourself – get away from a problem or challenge you are trying to solve
• Pairing opposites.  Think about the dental spa example above.
• Spending time learning in areas unrelated to your field.
• Embracing diversity – of ideas, people and approaches (a key aspect of The Alternative Board!). 

There are many more techniques, tips and tools that can help and a great place to start is The Heart of Innovation.    In the meantime, we’d love to hear from you.  What are you doing to create a culture of innovation?  How do you look at change – locally, globally and within your markets?

.Thanks for sharing!

Our company recently hosted a Business Owner Summit entitled "Your Company's Future:  Transition, Exit & Succession Planning."  In attendance were more than 30 CEOs, Presidents and Business Owners.  Speakers led sessions on determining your future, developing your key executives, evaluating and grooming successors (planning yourself out of your job), business valuation techniques, and the legal, tax, financial and emotional impacts to consider when structuring handing over the reins.  Although the attendees were at many different places in their business lifecycle, it quickly became apparent that the questions our panel of experts were asking were critical for every owner at any stage of their business.  Listed below are the top questions Brad Kaplan, Partner at Schwartz, Simon, Edelstein, Celso & Zitomer and Larry Leaf and Peter Engel, Partners at Leaf, Saltzman, Manganelli, Pfeil & Tendler  walked attendees through.  They find all business owners must answer these questions to build the very best succession and exit plan strategy.  See how many you can answer.

1. Will my kids want to run the business and, do they have what it takes?
2. Can my employees or partners step up if I'm no longer here?  (And, can I trust them)?
3. Who else may want to buy my business?  Competitors?  Suppliers?  Customers?  Investors?
4. How do I retain and reward employees?  When do I give them an ownership interest?  And, what are the pros & cons?
5. What is my company worth?  How much do I need to retire?  Do I need my salary and business cash flow?
6. When do I want to exit my business?  And, what is my exit horizon?
7. Can my successors afford to buy my business?
8. Will my employees buy into my exit strategy?
9. How do I market trade secrets and private information and still keep them safe?
10. What advisors shall form my succession planning team?  And, who are the key players?

How did you fare?  Have any others we can add to our list?  If you do, please post them here - we love feedback!

We’ve all seen it and/or experienced it. The business owner who’s hit a wall, and who, despite the passion and desire he/she felt when they started the company is facing “burnout.”  At a recent TABBoard meeting, we discussed the reasons this happens, how to avoid it and how to get out of the burnout slump.  One of our members had a great analogy.  Any passion you have, just as in a marriage needs to be nurtured and kept fresh.  Some of the group's top tips to keep it fresh:

• Boredom can quickly turn to burnout. Challenge yourself and your company on a regular basis.
• Make sure you are making (and taking) time for those things in life that you love – your family, spouse, significant others, friends, hobbies.
• Exercise your mind, body and soul.  Take a course, get to the gym.   Get going.
• Determine if there is something in your business that causing the burnout – are you doing things you shouldn’t be because your staff aren’t doing their jobs?  If that’s the case, stop the enabling behaviors.

Decide what you what to be doing in your business and then set a plan in motion to make sure, if you are not spending time doing it now, you are working toward it every day.  As you enter into 2010, what are you doing to keep your passions alive?  Please share your thoughts and, if you'd like to join us for a live(ly) discussion on on Charting Your Success in 2010, please register for an upcoming virtual or live seminar by clicking on an upcoming event on our home page.  Till then - wishing you passion in all you do!