North American Sweeper - September 2020

SEPTEMBER 2020

INSID E 17 ESSENTIALS FOR BUILDING STRONG BUSINESS RELATIONSHIPS P.8 FIXING THE LEAKS P.16 STREET SWEEPING BROOM: TUBE BROOM P.18

SUCCESSION PLANNING P.22

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S E P T E M B E R 2 0 2 0 N O R T H A M E R I C AN SWEEPER 3

SEPTEMBER 2020 | VOLUME 15 | ISSUE 9

CONTENTS

Introducing...

The Starfire S-4c Simply Adding to a Time-Proven Sweeper.

Choose the S-4c for the following enhancements:

F E AT U R E S 8

17 Essentials for Building Strong Business Relationships

16 Fixing the Leaks: Patching Little Problems Can Make a Big Difference to Your Company 18 Street Sweeping Broom: Tube Broom 22 3 Steps Business Owners Should Take Prior to Succession Planning

• • • •

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26 Pacific Sweeping, Industry Leader in Southern California 34 Index of Advertisers/Classifieds CEO & PUBLISHER Gideon W. Smith

CREATIVE DIRECTOR Melissa Kennelly

SENIOR EDITOR Katherine Nolan

EDITORIAL MANAGER Heidi Karpinich

ADVERTISING Tracy Rodean

CIRCULATION Noah Aiden

Phoenix Global Media Inc. P.O. Box 235, Stockton New Jersey 08559 866-418-4400 phone 973-532-0319 fax sales@nasweeper.com North American Sweeper Magazine is published by Phoenix Global Media Inc. Copyright 2020 by Phoenix Global Media Inc. All rights reserved.

SUBSCRIPTIONS $15.00 per year, or by eligible request.

POSTMASTER: Please send changes to North American Sweeper Magazine P.O. Box 235, Stockton New Jersey 08559

Opinions expressed in editorial submissions contributed to North American Sweeper Magazine are those of the individual authors exclusively and do not necessarily reflect the opinions of North American Sweeper Magazine, its staff, its advertisers, or its readership. North American Sweeper Magazine assumes no liability or responsibility toward independently contributed editorial submissions or any typographical errors, mistakes, misprints, or missing information within advertising copy.

4 NO R TH AMERIC AN S WE E P E R S EP T EM BER 2020

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S E P T E M B E R 2 0 2 0 N O R T H A M E R I C AN SWEEPER 7

BUSINESS CORNER

17 ESSENTIALS FOR

I N D U S T RY N E W S

BUILDING STRONG

BUSINESS RELATIONSHIPS

A S S O C I AT I O N I N S I D E R

Having a network of strong business relationships is essential for a healthy, agile enterprise. Every business needs to build relationships with people across the whole

SPOTLIGHT

INDEX

range of prospective business contacts, including customers, workers, investors, vendors, peer operators, other kinds of companies in the community, government representatives, and others. Fortunately, for business leaders looking to build strong relationships, their power sweeping enterprises need, the necessary basic business relationship-building skills listed below can be learned.

I

f the importance of good business relationships

time. There are some recognizable characteristics

needs further emphasis, consider that research

of good, sustainable business relationships:

by Harvard University, in conjunction with the

n Mutual Respect — Both parties value each

Stanford Research Center and the Carnegie

other’s ideas, wisdom, and input. You can work

Foundation has concluded that around 85% of

together effectively to determine creative

success in business appears to be due to people

solutions based on your combined insights.

skills. (See the Additional Resources section

n Mutual Trust — You work together well

below for the research link.) So, let’s look at what

because you can communicate openly and

good business relationships look like, and how

honestly share your thoughts, and energy

to go about building those for your commercial

is not wasted worrying about the other’s

pavement sweeping company.

trustworthiness.

WHAT ARE THE SIGNS OF A GOOD BUSINESS RELATIONSHIP?

n Mutual Care — Both of you take responsibility for your actions and words. You’re both careful

A business relationship is an involvement that

with your comments and avoid letting negative

should be mutually beneficial to the parties over

emotions from impacting one another.

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n Mutual Openness — You communicate with each

you know that is most likely to be able and willing

other freely, and you prioritize building a stronger

to help them. Build your relationships with people

relationship by consistently offering each other

whom you can expect to do the same for you.

open and frank discussion.

2. DEVELOP YOUR EMOTIONAL

n Mutual Receptivity — You are both open to

INTELLIGENCE (EI).

opinions that differ from your own. You take time

Take time to do some reading on EI, the ability to

to listen to each other and carefully consider what

identify and understand what emotions (your own

the other says in making the relevant decisions.

and others’) are communicating to you. Increasing your EI enables you to recognize the emotional and

17 WAYS TO BUILD STRONG BUSINESS RELATIONSHIPS

other factors that shape their thinking, including their deeply held values, desires,

Fortunately, mere willingness to meet new people and engage in reciprocally helpful relationships with them is all you need to launch your process of business

and concerns, and it helps you

Especially for your

find common ground on which

employees, helping

to build relationships.

them feel supported is

In addition to understanding

essential for building

relationship building. Of

3. DEVELOP EMPATHY. the emotional drivers of other

mutually beneficial

people (as discussed above in

course, there are some

long-term working

#2 on EI), you need the ability

basic soft skills, listed

relationships.

to understand the challenges

below, which you’ll need

they face, to appreciate their

to help you successfully

positions and situations as

form and sustain lasting

you strive to develop mutually

relationships with your new contacts.

Here are 17 ways to make the most of your

helpful relationships with them. Especially for your employees, helping them feel supported is essential

opportunities to establish and cultivate mutually

for building mutually beneficial long-term working

beneficial internal and external business relationships

relationships.

for your commercial power sweeping service:

4. RECOGNIZE YOUR NEEDS IN THE

1. FOSTER RECIPROCITY.

RELATIONSHIP.

All good relationships are balanced in give-and-take.

Clearly define your pavement maintenance company’s

Helping others get what they need and want nurtures

need(s) in the business relationship you want to

people’s will to be helpful too. So, nurture reciprocity

establish. Likewise, do you understand what the other

in information sharing, providing resources, and other

person needs from you? These needs should be as

kinds of help. For example, when someone tells you

well defined as possible, to build the most mutually

about a challenge they’re facing, try to think of who

productive and beneficial relationship possible. continued on page 10

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S E P T E M B E R 2 0 2 0 N O R T H A M E R I C AN SWEEPER 9

BUSINESS CORNER

5. ASK STRAIGHTFORWARDLY

mutually beneficial relationships. Be selective in

FOR WHAT YOU WANT.

choosing prospective relationships in which you and

Overcome shyness about asking clearly for what you

your new contact can add the most value to one

want, to avoid leaving people stuck guessing. For

another’s businesses.

I N D U S T RY N E W S

example, it may feel too difficult to ask for funding. But, obscuring your actual need makes communications

7. REACH OUT TO COLLABORATE ON A BIG SOLUTION TOGETHER.

even more awkward, especially if the response is insufficient and you find yourself having to ask again, more directly, to get what you need.

6. REVIEW AND RESHAPE YOUR BUSINESS CONTACTS S PNETWORK. OTLIGHT

Collaboration is an organic

Routinely evaluate relationship-builder. When A S S O C I AT I O N I N Semerge, I D E Rcall together challenges potential new business relationships that are important for the future success of your business

key people on your team to

collaborate on developing and aligning a set of objectives and then on brainstorming potential solutions. Leverage

INDEX

the experience and unique

Routinely evaluate potential new business relationships

perspectives of participants, and develop new

that are important for the future success of your

processes, new product ideas, new policies, or another

business, and create straightforward outreach plans

relevant new way of operating to benefit customers,

for establishing these new connections and building

workers, investors, and other stakeholders.

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8. NURTURE KEY RELATIONSHIPS. Spend sufficient time on your most important business relationships, including your best customers, highestperforming employees, local business operators, and other community leaders who can make the biggest positive impacts for your company. Don’t let yourself and others get stuck in irrelevant chit chat and ego-boosting.

It takes focus to listen at a deeper level and ask questions that reflect that greater level of interest in what someone else has to say

Focus largely on ways to cultivate mutually beneficial relationships.

9. EXPAND YOUR EXTERNAL NETWORK. Leave the office, and meet people you with whom you need to make new business connections. Introduce yourself. Offer to help when needed. This is the first step in building a relationship with each new customer, supplier, local competitor, remote peer sweeping business, and other relevant persons (perhaps in local government, media, etc.) whom you’ve contacted.

10. PRACTICE ACTIVE LISTENING. People respond best to someone who is truly listening to them. That’s why every business leadership article and

with other business leaders who share your social and/or environmental concerns by collaborating on initiatives brings opportunities to work together toward solutions and engages you and your collaborator(s) as co-advocates. It’s an ideal way to help your community and build important business relationships too.

13. DON’T EXPECT THINGS TO STAY THE SAME FOREVER.

Do not prioritize consistency over innovation, when a strong opportunity for the latter presents itself. If continued on page 12

formal course emphasizes active listening as one of the top requirements for success, even though they need to listen seems obvious enough. But, it’s not a natural skill.

It takes focus to listen at a deeper level and ask questions that reflect that greater level of interest in what someone else has to say. So, work on your listening skills until you find you’re listening as much or more than you’re talking.

11. SPEAK IN POSITIVE TERMS. Being a positive person helps strengthen business relationships. People are not inspired by chronic negativity. For example, don’t engage in gossiping (saying negative things about other people). It causes people to mistrust you and damages your reputation. Instead, work to resolve conflicts directly, by speaking to the involved parties personally about issues.

12. LET YOUR BRAND STAND FOR SOMETHING MORE.

It’s great that your brand stands for commercial power sweeping service quality. But your good name can represent more in the world. Building relationships

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SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 11

BUSINESS CORNER

you discover a possibility that you believe could help

Iadvance NDUS T Rbusiness, Y N Ereach W Sout for discussion with your

16. APPRECIATE PEOPLE. Be grateful for the value of other people to your business

people in your company who are in a position to

— and show your appreciation for anyone who helps

contribute ideas and start collaborating. Encourage risk-

you. We all want to be acknowledged and appreciated.

taking, and use the opportunities it generates to foster

So, from your vendors to your lenders, it’s important

internal business relationships with your team members

to let people know that you recognize and appreciate

that can lead to innovations that advance your shared

their work to help your business. It’s essential in strong

goals.

relationships for each person to feel appreciated by the

A S S O C I AT I O N I N S I D E R other.

14. IDENTIFY YOUR COMMON GOALS OR MISSION WITH YOUR INVESTORS.

...maintain boundaries

Just delivering one after

Sanother P O T quarterly L I G H Tor annual presentation of your financial analysis can work against your goals of building

appropriately for

17. SET AND MANAGE PROFESSIONAL BOUNDARIES.

Occasionally, business

your internal Iand NDEX

relationships can drift off track

external business

and begin to compromise

relationships...

priorities. So, maintain boundaries appropriately for

strong relationships with

your internal and external

partners and investors

business relationships, to ensure

who are critical to the future of your business. It can

that productivity, quality, team cohesion, the business

be very impersonal, too formal, and take on an air of

mission, and recognition of distinct professional roles

“you/them” instead of “us.” Talking about your mutual

are all preserved. If necessary, assert formal boundaries,

goals and mission can help build a sense of team with

to manage limits on your business social interactions.

investment stakeholders that can inspire them to want

FURTHER, DEVELOP YOUR PEOPLE SKILLS.

to connect more to the business.

It’s a cliché that strong relationships of any kind

15. DO THE WORK TO MAINTAIN

begin with strong interpersonal skills. Evaluate your

YOUR RELATIONSHIPS.

people skills. How effective are you in communicating

Establishing new business connections is just the

information? Managing conflict? Obtaining agreement?

first step. Commit the necessary time and effort to

Inspiring people? In addition to the areas of focus listed

maintain the communications framework necessary to

above, there are other interpersonal skills that you

sustain those all-important business relationships. This

may find it helpful to work on. Abundant information

is the way to strengthen them into powerful generators

resources are available on the web to help you

of highly effective cooperation and help when needed.

strengthen your people skills in any areas needed.

Whether it’s two-minute stops to praise a worker for a

NOTE: Maintaining difficult relationships that may

job well done, or taking a peer business owner out to

require more specialized management involves the

lunch, or sending a text to thank a vendor, reaching out

development of additional skills that cannot be covered

is the core of relationship-building.

here. continued on page 14

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SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 13

BUSINESS CORNER

AT THE END OF THE DAY...

part of the business community, and make the most of

To succeed in business, it’s necessary to cultivate robust

your professional relationships inside and outside your

bonds with individuals and groups internal and external

company.

N Dpower U S Tsweeping business, R Y N E W S including employees, toIyour partners, investors, customers, vendors, government

Additional Resources

counterproductive. So, be sure to balance the demands

https://www.chicagotribune.com/suburbs/post-tribune/opinion/ct-ptbhoagland-smith-skills-st-0820-20170820-story.html https://www.inc.com/martin-zwilling/6-strategies-for-buildingrelationships-you-need-to-succeed-in-business.html https://tech.buzzfeed.com/building-great-products-by-buildinggreat-relationships-7d36d4027929 A S S O C I AT I O N I N S I D E R https://www.forbes.com/sites/samanthaharrington/2017/06/30/howto-build-strong-business-relationships/#466ebc8a356f

of operating your company to meet market demands and

Sources

fulfill all other parts of your larger business strategy with

https://www.chicagotribune.com/suburbs/post-tribune/opinion/ct-ptbhoagland-smith-skills-st-0820-20170820-story.html https://www.inc.com/martin-zwilling/6-strategies-for-buildingrelationships-you-need-to-succeed-in-business.html https://tech.buzzfeed.com/building-great-products-by-buildingINDEX great-relationships-7d36d4027929 https://www.forbes.com/sites/samanthaharrington/2017/06/30/ how-to-build-strong-business-relationships/#466ebc8a356f

representatives, and others. The above essentials can help you develop good relationships with people associated with your business.

However, keep perspective. Excessive time investment in cultivating external business relationships can be

your need to spend a reasonably modest percentage of your total time on relationship building.

That S P said, O T your L I Gbusiness H T relationships empower you to recover from setbacks and losses and to take new risks and innovate. Your business is not operating in a vacuum. It takes a community. So, embrace your role as

Mark Powell: Used Sales Manager

After Hours Phone: 336-689-4879 / Fax: 336-869-9979 www.cesrefuse.com

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SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 15 1/17/12 11:36 AM

FIXING THE LEAKS: Patching Little Problems Can Make a Big Difference to Your Company

According to the EPA, 1 trillion gallons of water are

by small, almost imperceptible leaks, like a dripping

lost every year due to household leaks; that’s enough

faucet or a broken sprinkler system. What may seem

water to supply over 11 million homes for an entire

like a small problem, if it gets noticed at all, can lead

year (EPA 2020). Apart from (hopefully) infrequent

to huge increases in cost over time.

plumbing disasters, most of this lost water is caused

Y

ou may be facing a similar situation in your

and procedures. When these events happen, are your

business. Does your organization have

people ready to adapt, or is there time lost due to

inefficiencies, areas of waste, or other problems that

relearning what was done before? Having well-defined

have persisted for too long? Are there projects that

processes for things like conducting inventory can

need your attention but

compensate for personnel

always get pushed aside by

changes, forgetfulness, and

the latest crisis? Too many of us are distracted by short term issues and we neglect those underlying problems, the ones that don’t seem urgent but actually decrease productivity and profits over time. Let’s talk about a few ways you can identify these inefficiencies

...are your people ready to adapt, or is there time lost due to relearning what was done before?

other problems that cost a tremendous amount of time. If you’ve just gone through one of these events or seasonal changes, take the time to sit down with your team, review how it went, and put records in place to ensure smoother transitions

and avoid wasted time,

next time around. “We’ll deal

energy, and resources.

with it next year” is a recipe

TIGHTEN UP PROCEDURE

for repeating the same problems over and over and

Think about the tasks your company does only once

recreating waste.

or twice a year, essential but infrequent functions like

DELEGATE PROPERLY

supply inventories, budget planning, and audits. You

One reason you may not have time for the detail work

might also go through seasonal changes in services or

is that you are not properly delegating. There are many

supply availability that require changes to equipment

reasons why we sometimes hesitate to share the work.

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Perhaps you believe your employees are already too busy,

For example, maybe one of your managers deals with

or maybe you’re worried they won’t do the job as well as

a lot of employee turnover and behavioral issues; you

you can. Make sure you are leaning on the team and taking

could implement a weekly check-in meeting where you

advantage of the skills and capabilities that caused you to

discuss how new employees are doing, identify potential

hire them in the first place. A little more time in your day

problems, and develop solutions together. If budgeting

means more attention for things left on the back burner.

season is always difficult, think about the financial

PUT IN “SENSORS”

processes that lead up to budgeting, and how you can

Facing a similar water loss problem to the United States,

improve the intermittent record keeping and reporting

water companies in England are seeking technological

that eventually informs a budget.

solutions to fix leaks. Over 100,000 sensors with an accuracy

Remember that small, conscientious adjustments like

rate of about 90% are rolling out across the country.

these will translate to less stress and higher profits in the

Accelerometers in the sensors, like the ones that detect

future. The crew at NiteHawk Sweepers wishes you the

movement in your cell phone, measure vibrations in pipes

best as work through these challenges and improve your

that could indicate leakages. Better identification of leak

business.

location enables them to address problems more precisely, minimizing employee time searching for leaks and tearing up long stretches of road or sidewalk (Baraniuk, 2020).

In our businesses, proper controls, data management, and other procedures can act like “sensors” that help us detect small problems early. Think about where and how you can implement these things in your company.

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Works Cited Baraniuk, Chris. (18 Aug 2020). Tracking down three billion liters of lost water. BBC News. Available at https://www.bbc. com/news/business-53274914.

The United States Environmental Protection Agency (EPA).

(2020). Fix a leak week: Leaks can run, but they can’t hide.

Available at https://www.epa.gov/watersense/fix-leak-week

SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 17

ADVERTORIAL

STREET SWEEPING BROOM: Tube Broom Since the early 1900s tube brooms have been the gold standard for street sweeping. Today most OEM sweeper manufacturers use the tube broom as the default option on their new sweepers.

T

he tube broom is made by wrapping bristle around a steel tube. The broom is then mounted to the

drive the broom.

Tube brooms with end plates have holes that are

sweeper and rotates to either kick debris up into a

drilled and tapped so they can bolt up to the sweeper.

hopper or to push it off to the side of the road. There

These bolt patterns differ by sweeper models.

are a few different styles of tube brooms designed

The OD of the mechanical tube broom is generally 36".

for various types of sweepers and different sweeping

The most common lengths of the brooms are 56.5", 58",

applications.

60" and 66".

MECHANICAL TUBE BROOM

ROAD CONTRACTOR BROOMS

Mechanical sweepers are used to clean the roads we

Road construction sweepers use large tube brooms that

drive on every day; municipal roads and highways. The

push the debris and millings off the road. The size of the

mechanical tube broom or pick-up broom is generally in

contractor broom varies from 77" up to 96" in length

the center of the sweeper and rotates to kicks the debris

depending upon the sweeper.

up into the hopper of the sweeper.

These brooms typically have an 8 3/8" core ID and can

There are two ID’s for contractor brooms, 8 5/8" and 10". The standard OD’s are 32" and 36". A typical spec for

be open-ended or have endplates depending on how

one of these brooms would be 10" x 32" x 89" (ID x OD x

the broom assembly is configured. Open-ended tubes

Length).

slide over an expansion shaft which grabs the tube to

1 8 NORTH AMERIC AN S WE E P E R S EP T EM BER 2020

The broom cores can be open-ended or have an end

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and is used, on-air sweepers. Air sweepers have a vacuum

...it is important to know the model sweeper when ordering a replacement broom.

system that sucks the debris up from the road. The assist broom sits under the sweeper and helps aid the vacuum process by directing the debris towards the vacuum system. Not all air sweepers are built with assist brooms.

Some have endplates and others are open-end. Each make and model air sweeper is different, and the brooms cannot be interchanged like some of the mechanical and

plate welded on the tube. The endplate allows the broom

contractor brooms, so it is important to know the model

to be directly mounted to the sweeper.

sweeper when ordering a replacement broom.

The open-ended brooms typically have keyways welded

BRISTLE TYPE

inside the tube. The keyway allows the sweeper to lock

The bristle used for tube brooms is made from

into the tube broom and spin it using the keyway to drive

polypropylene. The poly bristle has excellent durability

the broom. The placement of the keyway varies with the

and strong flicking action for high production sweeping.

make and model of the sweeper.

Tube brooms can have different poly diameters and

THE ASSIST BROOMS

different weights or density. Adding more material

The assist broom is the smallest tube broom in diameter

creates a heavier-duty tube broom that generally lasts continued on page 20

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SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 19

ADVERTORIAL

longer and is designed for heavy

shipped without boxes. No boxes means no skids so that

sweeping applications.

means more brooms can fit on a truck.

Most tube brooms are available in

As you can see, there are different options for different

a poly/wire mix for the sweeping

needs when it comes to tube brooms. Contact us at

jobs that require a more aggressive

Keystone anytime to learn more about these different

sweep. In this case, crimped wire

styles of tube brooms.

is combined with the standard polypropylene bristle to make a combo tube broom. The wire adds a

Mike Santos, Sales and Marketing Manager at

cutting action to help scrub debris

Keystone Plastics, Inc. | m.santos@kpbrush.com Link to video – https://youtu.be/dksAXU0R9u8 Resources page on website – https://www.kpbrush.com/ resources/

off the surface of the road. Wire also adds more material to the broom making it heavier and extending the life of the broom.

PACKAGING

Tube brooms can be challenging to package and ship due

Tube Broom page on site – https://www.kpbrush.com/ products/tube-brooms/

to the size of the brooms. Most of these brooms are placed on a skid inside a corrugated box to protect them. If a full truck of brooms is being purchased, the brooms can be

Replacement Brooms You Can Rely On.

Quality. Performance. On-Time Delivery Keystone Plastics has been manufacturing the industry’s leading replacement brooms for street sweeping and road construction since 1954. At Keystone we believe in reliable quality and strive to make the heaviest, longest lasting brooms in the industry. We also believe the only good broom is the one that arrives to you as promised. Contact us to find a distributor near you.

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SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 21

3

STEPS BUSINESS OWNERS SHOULD TAKE PRIOR TO

SUCCESSION PLANNING

BY MARK LEYDEN, CLU®, CEO & FOUNDER, MARK LEYDEN & ASSOCIATE

This is the second in a series of four ar ticles discussing considerations around succession and continuity planning for family businesses leading to how life insurance strategies are utilized

Professional EOS Implementor. Hutson routinely works with family-owned businesses to help them align operations to reach defined goals. “There are two components in any vision for the future – a business part and a family and personal piece.

The owner must decide what they want to get out

to achieve many of the goals for such

of the business for themselves and consider how

planning. This ar ticle discusses the

this impacts the future of the business, which may

first 3 steps a business owner should

include other family members.” Check out Mark’s

under take when beginning the process.

previous article: Create a Formal Business Succession

M

any business owners today simply do not adequately plan their succession. Reasons

Plan in 7 Steps DEFINE THE VISION OF THE FUTURE OF THE COMPANY AND AN OWNER’S INVOLVEMENT

for procrastination vary and include not wanting

The process must begin with the owner having an

to leave or let go, not wishing to face their own

honest conversation with themselves. How long

mortality and an apprehension about creating

does the owner want to stay in the business, either

family disharmony with tough discussions and

running it or in some other capacity? By answering

decisions. In effect, most justifications for not

this question, the owner can first consider their

planning an exit are emotional, and a business

own needs and how long the business might satisfy

owner must set aside emotion and plan strategically.

those needs – financially and otherwise — as the

“The owner must have a clear vision of where they are going and how they are going to get

first building block in planning.

A family business owner must honestly and

there,” says Mike Hutson, CPA, CEPA, the Founder

accurately answer these four questions to set the

of Edge Business Strategies in Indianapolis and a

rest of the foundation for a succession plan:

2 2 NORTH AMERIC AN S WE E P E R S EP T EM BER 2020

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4 4 4 4

Should the owner keep the business or sell it?

office of Mayer Brown, LLP. “Many business owners are

If the business is to remain within a family,

focused solely upon growing their business and they

who will lead it?

need to take steps to make sure the business will thrive

Will the selection of a new leader create

past their involvement. Selecting the next generation

interpersonal ill will and bitterness?

of leadership is a critical element of this process.”

If the business is to be sold, will that happen in the

In a situation where the succession plan calls for an eventual sale, identifying a successor can mean hiring

near future or in the long term?

A family business owner does not have to consider the

a future potential buyer and grooming them just as

path set by answering these questions to be inflexible.

would be done for a family member. An outsider may

For instance, choosing to keep the business within the

also be chosen as the successor in situations where the business will remain within

family does not mean selecting a specific heir. It may mean choosing more than one and, through a development program, being able to eventually make the selection. Also, choosing the family succession path does not mean the business could not be sold someday if conditions warranted.

Although there is flexibility in carrying out the succession plan, there are elements that cannot

“Many business owners are focused solely upon growing their business and they need to take steps to make sure the business will thrive past their involvement. ...”

wait. If the business is to be sold, there are vastly different goals to plan for depending on whether the sale is in the near future or not. Selling

the family but there are no family members interested or qualified to operate the company.

For some family businesses, there are easily determined successors from within the family and the process for transition is clear. In many instances, though, there may be a need to ‘wait-and-see’, especially where members of the next generation are still in school or have other careers and have

not yet decided whether or not to join the business.

“I find that the children of owners who have first

the business sooner rather than later calls for short-

worked elsewhere after college for at least a few years

term actions which would quickly enhance the value of

and gain experience outside of the family business

the business. Conversely, if the sale of the business is

make the best successors,” notes Luther. “In addition to

off in the future, the current operating strategy should

the obvious advantages of learning skills in a different

at least preserve shareholder value if not increase it.

environment, there are subjective benefits to not

IDENTIFY SUCCESSORS

joining the company right away such as the other

Unless the owner has chosen to sell the family business

employees in the family business having more respect

in the short-term, the next step is to identify one or

for a son or daughter who appears to have earned their

more successors. “The earlier the process for choosing

place in the company instead of just being dropped in.”

a successor is started, the better the outcome,” says Dan Luther, an attorney, and partner with the Chicago

Some businesses find themselves in the difficult position of where a family member who believes they continued on page 24

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SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 23

should be the successor is not the right fit. This usually

held solely by the owner. This is problematic, especially

means a difficult conversation must take place. Luther

when an unexpected disaster includes the owner. While

finds these discussions do not happen as often as they

many contingencies can be mitigated with the purchase

should. “Who wants to tell their kid that they are not

of financial products and life insurance, the details

cutting the mustard and someone else is going to fill the

of how to handle contingencies should be recorded

role?” Conversely, those parents who have a child who

as formalized processes and procedures. Identified

is a clear successor are happy to have the succession

successors as well as family shareholders should be

conversation.

Before making any decisions, potential successors should be objectively evaluated on these skills:

4 Competence and credibility to make strong, successful decisions

4 Team-building and coaching skills to support ongoing learning

4 Self-direction and willingness to take direction for optimal goal

familiar with these practices as well

Perhaps the greatest risk to most family businesses is that the institutional knowledge of the company is held solely by the owner.

achievement

4 Shared vision for the future viability of the company 4 Integrity and courage to build trust and ensure competitiveness in the marketplace

4 Flexibility to change direction and plans as industry

as know their location.

Edge Business Strategies’ Hutson notes that most family businesses are not transferable or, at least not for anything near the value the owner has in mind. “The success of a lot of closely-held businesses are a result of the leadership and knowledge of one person, the owner, and this concentrated risk significantly impairs market value.”

In these situations, it is critical

that the business take on a life of its own away from the owner by identifying what changes are needed to maintain successful operations in the absence of the owner.

demands change

4 Once successors have been identified, the process of

ABOUT THE AUTHOR

communicating the plan and grooming these future

Mark Leyden, CLU® is the CEO and founder of Mark Leyden

leaders should begin immediately.

& Associates, an Indianapolis-based firm specializing in

PLANNING FOR CONTINGENCIES

assisting businesses and families in the acquisition and

Family business owners will attribute some of their

management of life insurance assets. He specializes in

success to being prepared for unplanned events as

assisting business owners and families, including some

opposed to simply being lucky. This third step in the

members of the Forbes 400, in design and funding of wealth

family business succession planning process protects

transfer and business succession plans. This is accomplished

businesses from unexpected catastrophic events.

by working closely with clients and their advisors. The

Business owners can implement strategic planning for

objectives commonly achieved include tax-efficient

the unexpected. The degree or level of contingency

wealth transfer, business succession, asset protection, and

planning is the amount of risk exposure an owner is

management team retention plans. Subscribe to our AEM

willing to accept should the unexpected occur.

newsletters for more expert perspectives.

Perhaps the greatest risk to most family businesses is that the institutional knowledge of the company is

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INDEX

SPOTLIGHT

Pacific Sweeping, INDUSTRY LEADER IN SOUTHERN CALIFORNIA

BY BOBBI JACKSON Pacific Sweeping provides power sweeping and power washing for more than 30 cities across five counties in southern California.

The service cleans a staggering 350,000 miles of roadways and 15,000 parking lots per year. The company’s clients include Cal Trans, counties, utility companies, service providers for public events, and various government construction projects, and government agencies such as the City of San Diego, the State of California, the U.S. Navy Shipyards, and the U.S. Marine Corps.

L

ee Miller, President, and CEO of Pacific

For the 15 years before becoming an owner of

Sweeping, is currently a Board Member of

Pacific Sweeping, he had managed three local

NAPSA, and he has served as an Advisory Board

cities’ government public works operations for

Member for California State University (Dominguez

southern California’s public works department.

Hills), and Cal State Fullerton and he served

There, he had overseen public works maintenance

on the board of the local MSA (Maintenance

operations, which included contracting for all

Superintendent’s Association for many years.

facets of roadway cleaning, public facilities repair,

MOVE FROM PUBLIC WORKS MANAGEMENT

and related services.

TO PRIVATE SECTOR

When Lee was invited by Cannon’s owners

Founded 45 years ago in 1968, the company

to take a look at the business, he had been

started as Cannon Pacific Services. In 2013, Miller

contemplating an exit from the municipal world.

changed the name to Pacific Sweeping, to better

He agreed to come on board with Cannon as an

signify the kind of service the company provides.

equity partner and began running the company.

Lee came into the business in 2007 with a B.A. in

He bought out one of the other two partners in

Public Administration/Organizational Management

2009, and the other in 2011, making him the sole

and an MDE in entrepreneurial studies from UCLA.

owner.

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ORGANIC AND STRATEGIC GROWTH

In the broader view, today the company has nearly 50

Miller performed a major restructuring of Pacific’s

pieces of equipment servicing five counties, making

operations, leading to a growth of more than 300%.

Pacific Sweeping the largest privately owned and

When he came on board in 2007, the company

operated business of its kind in the region.

employed 16, most of whom were in one county and

Lee attributes Pacific’s continuously strong growth

still work for the company today. He reflects on the

over the past decade to his customers’ confidence in

company’s evolution, “Over the years, we’ve grown both

his team’s consistency in delivering quality work within

organically and by careful strategic design.”

their budgets.

Lee goes on to explain, “At our peak, we had 57

The company has made some small strategic

employees. Recently, we’ve scaled back to 46. Sales

acquisitions. Lee recounts his process, “We’ve ventured

are down about 15% due to the pandemic. Municipal

into new counties by gaining a beachhead in each one,

budgets have been shrinking due to lost sales taxes, and

winning a large contract and then building a volume

shopping centers are being closed. We’ve grown steadily

of accounts around those.” The company now has six

between 2% - 8% each year up to now. This is the first

satellite locations, complete with supervision on each of

year we’re experiencing zero growth.”

those sites.

continued on page 28

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INDEX

SPOTLIGHT

He notes that the company had done some weed abatement and landscaping tasks in the past, but found that that service market was “ultra-competitive,” so they decided not to pursue it. He said they also considered road and parking lot repair work as an additional revenue channel. But, Lee commented, “Everybody in Southern California is in pavement repair, so we just stay in our lane.”

There are 40-50 service vehicle drivers in the field, on average, and the mobile team of six mechanics.

An administrative team of six people handles all the

Each location is fully self-

The company’s

sufficient, with the main central facility handling

Business Development

all equipment repairs in

Manager, Rosio Vitela,

the mechanics’ shop. The 10,000-square-foot central facility maintains a full array of parts in its inventory center. There’s a mobile

makes cold calls and networks in the business community and trade

team of six repair mechanics,

associations.

PACIFIC SWEEPING BUSINESS MODEL

The company provides municipalities, construction project managers, HOAs, and commercial customers

functions of the company.

Lee’s son, Hayden Miller, is Pacific Sweeping’s VP of Operations and Fleet. He is an expert in diesel mechanics and is professionally trained in management and supervision.

He handles all operations. Lee says his role in the company

for on-site repairs when necessary.

management and business

these days is about half-time in the office and half in the field, doing primarily executive-level work, negotiating big contracts, and guiding the vision and culture of the company.

with contract pavement cleaning as well as on-call and

PACIFIC MARKETING, BRANDING, AND SALES

emergency services.

Lee provides a picture of the sales operation at Pacific,

Breaking down the business model, Lee explained,

“We have a dedicated business development manager

“About 80% of our work is municipal, 15% is private

who oversees the sales department. Her role is primarily

and HOA work and the remaining 5% is parking lots,

to seek out and network with potential large customers.

pressure washing, and construction sweeping.” The

We have a CSR (customer service representative) who

company has special equipment for construction,

takes all incoming calls that are urgent service requests.

primarily mechanical broom sweepers, and truck

He performs in the sales role on all of those calls. My

types especially suited for municipal street sweeping

role in the sales process is to review contracts and to

and parking lot sweeping, as well as power-washing

ensure that we can meet specifications and pricing

equipment.

commitments.”

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The company’s Business Development Manager, Rosio Vitela, makes cold calls and networks in the business community and trade associations. The company also subscribes to a couple of government contract bid services. She also reaches out and investigates and pursues those opportunities. Lee expressed, “Rosio has been with the company for nearly 15 years and does a fantastic job at promoting Pacific Sweeping and its brand.”

He estimates that about 50% of the company’s revenues are generated from sales efforts, around 25% from repeat business, and about 25% from referrals.

“We provide monthly service to about 450 active accounts, but have around 2,000 that we provide service as needed.”

The sales and marketing team utilizes a database with outreach activities. Lee notes, “We outsource the online and the email campaign to Rick Brown at the continued on page 30

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SPOTLIGHT

INDEX

Karcher Group. They’re doing fantastic work and they

the advantage for Pacific is that city decision-

are continually updating our website and managing our

makers are inclined to prefer working with reputable

email campaign.”

established vendors. In keeping with that reputation,

He has rebranded the business in the last 10 years. It

he approaches contract bidding with an attitude of

was known as Cannon Pacific Services for many years.

helping cities devise their specifications for street

He explains that since the rebranding, the company has

sweeping services in ways that most appropriately

registered the new name, Pacific Sweeping, and has

reflect the realities of the industry.

registered and promoted its great tagline, “A cleaner road will follow.”

He is quoted in another interview (linked below) explaining that cities hire street sweeping based

Lee points out that an inherent marketing benefit of

on either the best price or best value. To obtain the

being in the municipal street sweeping industry is that

best value requires bidders to develop a meaningful

the large expensive equipment is present throughout

response to a municipality’s request for proposal (RFP).

the area, projecting the company’s professional image.

Lee’s RFP experience in public works oversight affords

Pacific Sweeping additionally utilizes the national

him a unique perspective from so much experience on

service alliance 1-800-Sweeper, to generate new

both sides of the proposition. His ability to think as an

revenue sources and participate in the 1-800-Sweeper

advocate for the city and to customize the bid for each

buying group where he saves thousands each year on

city’s particular needs has produced exceptional results

routine items they would be purchasing anyway.

for Pacific in the RFP arena.

PACIFIC SWEEPING DISTINGUISHED RFP

Some of the matters Pacific’s bidding process

RESPONSE

includes in discussion with city representatives are

On Lee’s practical view of his company’s position in

sweeping regulations, storm run-off guidelines, routing,

the regional market of municipal sweeping prospects,

equipment changes, service frequency, and air quality

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management. Pacific’s business development manager also lets’ decision-makers know what the company is doing in the surrounding municipalities and why they’re doing it. Lee finds that cities are very interested in such discussions because most want their cities to be current with industry standards and trends, and they want to be

Lee is proud of his company’s “Dirt Free Guarantee.” The

paying a fair price.

language of the guarantee is posted on the company’s

He points out that various levels of customer service

website. It simply assures customers that if they are

mean varying pricing levels. For customers who require

dissatisfied with their service for any reason, they

more rapid response times, the higher degrees of

can contact Pacific within a

reactiveness naturally must be reflected in pricing.

CULTURE OF SERVICE AND ENVIRONMENTAL QUALITY MANAGEMENT

Pacific Sweeping was one of the first companies in the country to adopt the newly

reasonable timeframe and

The Pacific field services

receive a re-servicing of the

team reports on every

area until it meets with their

curb mile they sweep,

The guarantee emphasizes

providing critical data to

the company’s goal of bringing

help cities improve

customers to have confidence

comprised ANSI standards for

effectiveness...

the power sweeping industry.

...

As to be expected from a

business that has risen to such a challenge, Pacific’s team adheres to stringent internal quality requirements.

“We have a Safety and Quality Control coordinator, who spot checks service calls to ensure quality control. He also serves as our safety coordinator. His role is to review dashcam footage and GPS data, and resolve issues in the field and ensure a safety culture.” Lee goes on to emphasize, Every employee is an inspector in this business, and everyone is selling.

If we see something out of the ordinary, we have a very strong team of operators and support employees to manage it.”

The Pacific field services team reports on every curb mile they sweep, providing critical data to help the cities they serve to improve the effectiveness of their street maintenance programs.

satisfaction.

that the quality and the value of the service they receive from Pacific Sweeping is superior to all competitors.

As a NAPSA Board Member, Lee Miller’s role is to provide his insights and direction to the national association and to collaborate with industry members to educate on excellence in power sweeping operations. So, it makes sense that he strives to maintain NAPSA’s high standards throughout his organization.

Lee discusses Pacific’s historically very low turnover rates, in contrast to the current situation in 2020, “We have had problems since the onset of the pandemic finding people looking for work. We have had to hire three new people, and it took some time.”

He attributes the company’s low turnover to, “our culture and the stability the business offers to employees. We call ourselves customer- and employeecentric.” He clarifies that that means the leadership team is not focused so much on the business as they are on continued on page 32

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SPOTLIGHT

federal environmental rules and regulations.

In all functions of the business, the Pacific team takes pride in working with the community to help promote the health of the state’s waterways and the Pacific Ocean, after which the company takes its name.

EMPHASIS ON TEAM BUILDING AND TRAINING

The exceptional extent of team-building and staff training at Pacific captured our attention. Scrolling through the company’s Facebook page reveals an elevated commitment to team development. The page is packed with images that would excite any talented business manager, pictures of one after another training session, team training meeting, team certification event, etc.

For just one example, the colorful photos of the the needs of the customers and employees. They seem

company’s annual Division 1 meeting to discuss vehicle

to reason, and rightly so, that focus on those is the key

inspections, technology use, and work quality, and

to the success of the business.

to conduct safety training, portrays the company’s

ENVIRONMENTALLY CONSCIOUS BUSINESS

investment in robust training and information sharing

One thing that stands out about Pacific Sweeping leadership is

practices.

The company maintains

Lee Miller’s consistently

a fleet of modern,

expressed commitment

low-emissions commercial

to environmental conscientiousness throughout all facets of the business’s operations. The

and industrial sweeper trucks and half its fleet runs on alternative fuel.

company maintains a fleet of modern, low-emissions

...

The post also mentions milestones recognized by the division. Accomplishments depicted include pictures of the division’s Certified Sweeping Operator program graduates.

The post also featured the group’s celebration of its lowest worker’s compensation incident rate in the past 15 years! And,

commercial and industrial sweeper trucks and half its

there was mention of the great barbeque the company

fleet runs on alternative fuel.

hosted for the Division 1 team.

The company also subscribes to management best

Posts on the Facebook page also announce Pacific’s

practices for the sweeper industry and promotes those

upcoming Division 2,3,4 and 5 annual meetings.

principles to all its customers. The Pacific team strives

The company additionally conducts two annual all-

to meet the state’s tough CARB regulations, NPDES

employee meetings, which the pandemic has affected.

requirements, and the gamut of other local, state, and

Since in-person meetings are not allowed under state continued on page 34

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SPOTLIGHT

orders, Lee uses Zoom and short videos, emails, and

might still sound like the sweeper is going fast. So, our

text messaging to keep all employees informed of

policy is to hold truck speeds at whatever is best for

what is going on.

the efficiency of the vehicle. On the dust side, we just

Pacific’s winning formula for successful team-building and a healthy workplace culture further includes the

explain that sweeping is not a dustless process. Most customers are satisfied with that explanation, once you

practical fundamentals for

help them understand the

employee satisfaction — a

...our policy is

full package of benefits,

Pacific is carb emissions-

to hold truck

compliant under California

speeds at whatever

regulations. The company

including health 401K, and paid leave.

nature of this kind of service.”

KEY CHALLENGES FOR THE PACIFIC TEAM

is best for the

The two largest complaints

efficiency of

that the field services team

the vehicle.

has sold off all its older equipment over the past ten years so that every existing piece is in compliance. Lee

receive from customers are

reflects, “It cost us a small

about dust in the air and

fortune to replace expensive

the perceived speed of the vehicles. Lee said that it

equipment that California forced us to retire. Not

was complaints about sweepers going too fast that

all companies are compliant, but we’ve made the

motivated the development of Pacific’s “Dirt Free

investment so that our customers don’t have to

Guarantee.” He explained, “We could go 5 mph, but it

worry about us being compliant. Our customers are continued on page 36

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INDEX

SPOTLIGHT

responsible for hiring a compliant street sweeping

work when you have to be at home acting as your

company. If they hire non-compliant companies,

child’s teacher.”

they are at risk for fines themselves. So, it’s an

EQUIPMENT AND TECH SYSTEMS AT

important point for them to know that we are fully

PACIFIC SWEEPING

compliant.”

Pacific Sweeping’s fleet includes Tymco air sweepers,

Other challenges Lee discusses are that labor laws

Elgin Broom Badger Mechanical Broom Sweepers,

are ever-changing in California, and insurance rates

Schwarze M6 Avalanche CNG Powered Mechanical

continue to escalate. In fact, he says rates have

Broom Sweepers, and Hydrotek Steam Cleaners/

doubled each year in the past 3 years, despite their

Pressure Washers w/full recovery systems. These

solid safety history and relatively good loss ratio.

state-of-the-art models are

And, as auto insurance

powered by alternative fuels

and umbrella liability coverages are becoming increasingly expensive, the concern is that such costs can potentially squeeze profitability and will likely force many

“Focus on driver safety, employees’ safety, and customer satisfaction, and don’t try to be the cheapest guy on

businesses out of the

the block.”

market.

...

such as biodiesel, propane, and compressed natural gas (CNG).

The company uses GPS tracking to monitor vehicles’ speed, locations, and other characteristics of their operations. Each field service truck is also

Lee expressed, “If all

equipped with Netrodyne

insurance companies are increasing rates, it can

cameras driven by artificial intelligence we have 24-

begin to put us at a disadvantage, considering we

hour access to all footage, and alerts when there is a

often cannot increase our pricing fast enough to

triggering event.

keep up with the insurance costs. This is something

ADVICE FOR INDUSTRY NEWCOMERS FROM

that the insurance companies do not understand.”

LEE MILLER, PACIFIC SWEEPING, SAN

Beyond those common industry issues, we asked Lee how the unique business challenges of 2020

MARCOS CA

Lee Miller’s advice to new entrants to the power

are affecting his operations. He replied simply

sweeping services market is very straightforward,

that, “With the pandemic, we have relaxed many

“Focus on driver safety, employees’ safety, and

of our policies a little bit, in order for employees

customer satisfaction, and don’t try to be the

to maintain their work status here. Some of it has

cheapest guy on the block.”

been directly related to COVID-testing. Fortunately,

Lee’s track record, in both his background in the

those instances were all negative results, false

public sector and in Pacific Sweeping leadership,

alarms. Some of it is now related to childcare during

is one of building successful teams, strong labor

distance learning for their children. It’s hard to be at

relations, enduring internal and external business

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The company uses GPS tracking to monitor relationships, and producing

vehicles’ speed, locations, and other characteristics

optimally successful outcomes

of their operations.

for southern California power sweeping customers and for the workers under his direction.

For those inclined to follow the exceptional example of this industry leader, we would emphasize focusing not on finding ways to make more money from each municipal contract, or on submitting the lowest bid. Instead, adopt the sales model the Pacific Sweeping owner provides: think in terms of your prospects’ best interests, and help them see what is involved in delivering the best value.

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United Rotary Brush Corporation....................................................25 800-851-5108 / united-rotary.com

Prince Motors....................................................................................29 951-681-6960/ princemotorsusa.com

Well Made Manufacturing................................................................35 609-323-2655 / wellmademfg.com

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For ALL makes and models of street sweepers!

Tennant - Elgin - Sunvac Mobil -Wayne - VacAll Vanguard - NiteHawk Schwarze - Johnston - Tymco OLD DOMINION BRUSH COMPANY

COAST to COAST

BRUSHES, BROOMS & SWEEPER PARTS DEBRIS COLLECTION SYSTEMS

BROOMS Wafers Main Brooms Gutter Brooms

PARTS

Rollers

Conveyor Belts

Impellers

Rubber Runners

Splice Kits

Drive Sprockets

Skid plates

and much more...

COAST to COAST

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Replacement Parts for all makes and models of street sweepers Johnston, Elgin®, Tymco®, Tennant®, Wayne, etc..

SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 39 052419 TMT

the path is always clear High performance, durable products that offer customers a lower total cost of ownership.

the

sentry a sweeper with standards as strong as your own the sentry regenerative air sweeper uncommonly high standards

Under CDL platform with over CDL performance. Incab control of gutter broom speed, pressure, and angle.

Hopper and fan are made entirely of HardoxÂŽ 450 abrasion resistant steel designed to stand up to the abuse of debris.

Crescent shaped pick up head funnels debris to the center of machine. On-screen diagnostics keep information at your finger tips and makes it easier to maintain your sweeper.

PHONE: 4 0 NORTH AMERIC AN(319) S WE 266-1721 E P E R S EP T EM BER 2020

701 PERFORMANCE DR. CEDAR FALLS, IA 50613

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