Case Studies
Supporting Mid-Sized Business Growth
Strategy and Growth Services
Dear Mid-size Business Owner: The purpose of this document is to introduce you to areas of our advisory practice and share with you real-world case studies of our work on behalf of mid-size (10 – 200 employees) firms. First, our areas of practice include: • Full-Potential Strategy • Transition & Transaction Support • Leadership Supply Each of these practice areas supports the other in an integrated manner to produce practical, long-lasting results. This grounded approach ensures that clients are able to allocate their limited resources to achieve real growth. We offer affordable professional support to CEOs of mid-sized firms on a project basis. Our approach is to offer a customized project proposal that specifically addresses each client’s unique situation. Selected projects are completed with the engagement of the CEO and with the full involvement of management and staff as appropriate. Projects are completed in a timeframe that works for the CEO. The following case studies will show you how we help our clients discover and develop informed outlooks on the problems and opportunities challenging their business. In the end, our approach helps client companies think and do. Cases presented in this document reflect the type of projects we work on every day. They include: • Refining the Core Business and Creating its Future — Appalachian Lumber • Maximizing Efficiency and Preparing for Growth — R.R. Equipment Co • Never Too Old to Grow and Prosper — Steele Rubber Products • To Grow or Exit — Maintenance & Inspection Services (MIS) • Sold — Brushy Mountain Bee Farm For each engagement, we select a team of professionals from the SBTDC with the most appropriate experience and expertise. The outcomes we aim for affect all aspects of our client’s enterprise – helping them achieve their biggest goals. We would like to discuss your business needs in confidence, and explore ways in which we can help. Give us a call. With regards, Kevin V. McConnaghy SBTDC State Program Director Strategy & Growth Services
kmcconnaghy@sbtdc.org | 919-600-6097 | www.sbtdc.org/growthservices
Appalachian Lumber Refining the Core Business and Creating its Future
Founded in 1982, Appalachian Lumber, a third-generation wood products company operates a modern 64,000 sq/ft plant in Wilkesboro, NC. The company is a mid-size manufacturer of random-width hardwood plank flooring, hardwood paneling, custom millwork, radius moulding, kiln-dried cabinet lumber, stair parts, dimensional furniture parts and specialty moulding. In early 2014, the company retained the Small Business & Technology Development Center (SBTDC) to assist in the development of a strategic plan to position the company by finding ways to refine the core business and develop a growth path — moving forward toward a fourth-generation of continuous operations. Now — less than two years later — major elements of the plan are in place. Implementation has led to real impacts including profitable growth, new hires; and, as a result of moving elements of the IT system to the cloud, reduced costs and increased productivity. Further efficiencies and margin improvements have been accomplished through the addition of new capital equipment and plant-layout modification. Finally, the customer experience has been enhanced by the development and introduction of new products and a realignment of sales and service organization. Reflecting on the engagement with SBTDC’s Strategy & Growth Services (SGS), William Church, CEO/ Owner comments:
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“Kevin and the SBTDC team came highly recommended to us from another local businessman. I am thankful to say they lived up to the recommendation. One giant step came out of one of our first meetings and soon began to pay big dividends for us in the area of production. I would certainly recommend the SBTDC Strategy & Growth services to my business acquaintances.”
And, Banks Church, Production Manager, adds:
“Our time with Kevin and the SBTDC staff was well worth it. Many changes have come as a result of our employees’ time spent with the SBTDC team. The days that our management team spent with the SBTDC were eye opening and key to the changes our company has made. It was great to see the entire management team around a table discussing problems and finding solutions that work for everyone.”
Strategy and Growth Services
R.R. Equipment Co Maximizing Efficiency and Preparing for Growth
R.R. Equipment Company is a manufacturer of heavy equipment products including REBEL CRUSHER, CRUSH-ALL, SWINGSCREEN, CRUSHKING, and SCREENKING in the Charlotte, NC area. They have served the aggregate industry for over 50 years. This midsize firm distinguishes itself in the industry by offering patented products of their own design, which operate at extraordinary production rates and provide high value to their customers — reducing transportation and disposal costs by producing crushed materials that are easily recycled on-site or repackaged and resold as raw construction commodities. In the fall of 2015, R.R. Equipment Company engaged the Small Business and Technology Development Center (SBTDC)’s Strategy and Growth Services (SGS) to assist in preparing the company for rapid growth. In this context, SGS worked with the company’s leadership team to restructure both operations and human resources.
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Reflecting on SGS’s contribution over the 3-month process, Bob Rossi, CEO of R.R. Equipment, says,
“We greatly appreciate all of the effort put forth by Mr. McConnaghy and the team at SBTDC. Their experienced team brings a wealth of knowledge that spans a wide variety of industries. It was enlightening to get a third-party perspective that not only reinforced our existing strategies but also guided us to follow new techniques in order to accomplish our goals. SBTDC outlined an employee structure that allows for expansion while further defining specific roles and responsibilities for each employee. In addition, SBTDC was able to assist in overall plant operations that included flow of materials and plant layout concepts. The SBTDC’s work has been invaluable in our efforts to maximize efficiency in all aspects of our business. We would highly recommend them!”
Strategy and Growth Services
Steele Rubber Products Never too Old to Grow and Prosper
Steele Rubber Products, a Denver, NC-based manufacturer and retailer of rubber parts to fit classic cars, trucks, and hot rods, has been in business since 1958. After nearly 60 years, this mid-size company (60+ employees) is still delivering hard to find rubber parts that fit a wide range of American makes and models of restoration vehicles. In the fall of 2014, Steele Rubber Products engaged SBTDC’s Strategy and Growth Services to assist in the development of a strategic plan to boost the company’s performance. Seeing some early and promising results for the strategic planning process, Steele Rubber Products reengaged with the SBTDC in the summer of 2015 to conduct a marketing assessment and make recommendations. Reflecting on both engagements with the SBTDC’s Strategy and Growth Services, Matt Agosta, CEO of Steele Rubber Products, says:
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“When we engaged the SBTDC for our strategic planning meeting, we were looking for a facilitator with a fresh approach. We weren’t disappointed. The SBTDC was able to bring a wealth of resources to help us better understand our market size, our competitors, and our customers. They brought experts to establish out financial fitness, and were able to help us benchmark against similar hobby industries. They helped us face the reality of our mature business cycle and weigh the pros and cons of stay the course or making the decision to grow and build a strategy around that. Earlier this year we had a sudden loss of our Marketing VP. From our positive experience with the SBTDC we decided to ask their help by doing a marketing and sales assessment/audit. Their help was invaluable in giving direction to the new manager and department personnel. With their help, we were able to see what worked, what didn’t, and where we should focus our energy and resources. We estimate that the marketing budget can be cut by 33% to be more in line with industry benchmarks by using funds in a much more effective manner.”
Strategy and Growth Services
MIS To Grow or Exit In the fall of 2014, MIS — a mid-size (50+ employees) manufacturer and service firm with operations in NC, VA and CA — engaged SBTDC’s Strategy & Growth Services (SGS) to assist them with development of a strategy to either grow the business at a faster, more profitable rate or sell the business. Following intensive study and discussions, SGS found a third option that addresses growth opportunities, maximizes valuation and meets the client’s exit interest.
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David Mugrage, MIS Founder and CEO reports,
“The engagement is going well. SGS continues to add real value to the process. With SGS on my team, as I move forward, I feel a sense of greater confidence. For anyone looking to get a first-person reference on SGS, give me a call … I’m always happy to make a referral to this resource.”
David Mugrage
Strategy and Growth Services
Brushy Mountain Bee Farm Sold
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“With the SBTDC’s guidance, we were able to put forth a professional approach to the very complicated process of selling our business.”
Beginning in the spring of 2014, SBTDC’s Strategy & Growth Service (SGS) assisted the founders/ owners of Brushy Mountain Bee Farm (BMBF), Steve & Sandy Forrest, to develop and implement an exit strategy. From offering concept to valuation, targeted marketing, negotiations and closing, SGS provided ongoing support. Result: The company, a mid-size (60+ employees) manufacturer and distributor of beekeeping equipment and supplies was sold to a private equity firm in the fall of 2014. BMBF After six-months, we asked Steve & Sandy to reflect on the transaction and SGS’s role. Here is what they said,
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“I don’t know what we would have done without the help of Kevin McConnaghy and the SBTDC. With his guidance, we were able to put forth a professional approach to the very complicated process of selling our business. Without his help and guidance we would have received much less for our business and the 37 years we had invested in it … and we’re always open to serving as a reference for SGS.”
Strategy and Growth Services
Here to serve North Carolina’s mid-size businesses We get results.
Strategy and Growth Services (SGS) delivers custom solutions that get results and build momentum. With a focus on strategy, organization, leadership supply and performance, transitions and transactions, we transfer skills that make change stick.
We’re in it for the long haul.
On a project specific basis, SGS brings resources to accelerate businesses toward their goals. SGS provides advisory services in the areas of strategy & growth, leadership & performance, transitions & transactions, and succession planning. – cost recovery fees may apply. SBTDC’s Regional Service Centers stand ready to provide ongoing general business counseling for pre- and/or post-project specific engagements — without fee.
About the SBTDC
The Small Business and Technology Development Center (SBTDC) is a business advisory service of The University of North Carolina System administered by NC State University. Its offices across the state are hosted by the campuses of The University and provide business counseling and educational services for thousands of small and mid-size businesses each year.
Kevin McConnaghy State Program Director Strategy and Growth Services 919.600.6097 kmcconnaghy@sbtdc.org www.sbtdc.org/growthservices Strategy and Growth Services