TEDA Vendor Advisory Meeting

Last month TEDA held their 22nd annual Vendor Advisory Meeting. This year it was held in Annapolis, MD. All nine TEDA members were in attendance, as were approximately 80-100 supplier teams.

I'm not going to review all their sales numbers, you can read some of that in the August issue of TechShop magazine. Instead, I want to share with you some of the comments that Rob Halbritter, Chairman of TEDA made to the assembly. He's an easy guy to listen to. He gets his point across easily. I think it's due to his many years as a teacher, in his LBMS (life before Mid-States). He talked about the changing dynamics of our industry, from the distributor's viewpoint, and focused on the manufacturer and the benefits of working together as a team to reach the aftermarket.

I'm going to paraphrase here, because I couldn't write fast enough to keep up with his talking. I also tend to interject my own comments, so don't take this as complete gospel from the TEDA meeting, it's more of a mix of Rob's speech, some of his comments, and my thinking about it:

The cost of windshield time and air travel is changing the way we do business, once again. E-mail is becoming a more frequent way of meeting with our customers. As a distributor of your tools and equipment, I want you to know that I feel we're all in this together. If we think that what we do today or did yesterday is ging to be sufficient fo rthe future, I think we're blindsiding ourselves. There are a lot of followers out ther in our market. We need to do some things differently - some people have some good ideas about how to change their future. But we have to get off our backsides and do something. Too many people in our industry still think they can continue doing business like we did 5, 10 or even 20 years ago. This is just not the case.

Our business is like a sharp knife - catch the knife by the handle and you can use it as a tool. But, you catch it by the blade and it can cut you to pieces.

We all have dreams - both personal and professional. The true business winner is a doer, not a dreamer. I would say the true business leader is one who can dream, and then make that dream a reality. I think you need a vision of what your business can be, or what you want it to be, before you can make it happen. Isn't there a phrase like, "I don't know where I'm going, but I'll know when I get there."? Well, that is no way to run a business in this tough economy, and during these tough market conditions. As a business leader, you have to have a dream, a plan, and develop the ways and means to achieve your dream.

The mom & pop business, that which was once our bread and butter, is going away very quickly. In some parts of the country, it is already gone, gone, gone. Our business used to be split pretty evenly between storefront and mobile jobbers. Now we need to add the internet into the mix. if we are to continue to grow, we need to develop new products, new markets, new customers. The members of TEDA are committed to 3-step distribution. If it runs on wheels, if it floats or flies - all these markets use your tools and equipment. We need to work together to capture the attention of the people who buy your products.

Planning to Retire - What happens to your business?

Many independent repair shops in the U.S. are family-owned and family-operated. Many are second-generation, and a small portion of third-generation shops that have successfully passed from the original owner to the next. But some of you own a great business, you might be in your late 40's or mid-50's, and you haven't given a thought to what might happen when you plan to move on. You're not unique. According to the Wall Street Journal, full half of public and private corporate boards do not have a formal CEO-succession plan in place. Even giant corporations like Merrill Lynch and others who spend millions of dollars recruiting and training employees, don't think about who might run the joint once the "big guy" leaves.

For some owners of small businesses, it's a simple process. You decide to retire, no one in the family wants to carry the business on, so you try to sell your shop as a viable operation or you simply close your doors and try to sell the property.

You might say to yourself, "I'm just trying to get through today, or this week. I don't have time to think about 5 or 10 years from now." But in reality, if your retirement is 5 to 10 years from now, NOW is the right time to begin thinking and planning. In order to build a successful business that will continue to thrive after you are gone, you need to groom the next leader of your business over a 3 - 10 year timeframe.

Succession planning isn't something you do on a Saturday or Sunday, and then consider it done. It is a process of filling a pipeline with talent. And believe me, I speak from experience, it can be difficult to groom the future leader of your company. Sometimes people fire people they are afraid might be "too good" for their current position, they may feel threatened by that person's expertise. You might be better off subordinating your fear, and instead, encouraging the professional growth and leadership abilities of that person. You might be pleasantly surprised.

You should consistently review the performance and talents of your people. Don't surround yourself with people who always agree with you - use other people to expand your own expertise. Be willing to share power with potential heirs, and give them the authority they need to grow. At the same time, give them the tools they need - this may include additional education. Help them handle a variety of challenges. As they grow into the position, you will probably grow as well. Focus on the future of your business, and not on last week's work. Our business models are changing more rapidly than in previous years, and you need to find or develop a leader with strengths and talents that are different from your own. Learn to share the load, embrace the change that will come with new leaders in your business, and eventually you will be able to retire with confidence that your business will thrive and grow well after you're gone.