Masonry Magazine September 2012 Page. 36
What It Takes
The best way to learn what it takes to keep a masonry construction business in the black is to go straight to the sources. Masonry consulted three of our industry's best, each with a unique perspective on successfully managing his masonry business.
We spoke to Steve Borman, CEO of Keystone Masonry in Yelm, Wash.; Don McCauley, VP of Hunt Country Masonry in Leesburg, Va.; and Jerry Painter, president of Painter Masonry in Gainesville, Fla. each of whom had a solid business philosophy to share with our readers. Following is what they had to say.
INTERVIEW BY JENNIFER MORRELL
Steve Borman
CEO of Keystone Masonry
Don McCauley -
VP of Hunt Country Masonry
Jerry Painter -
President of Painter Masonry
Masonry: Don, discuss forming and growing a new company during in a challenging and negative economic climate.
Don McCauley:
I had some health issues last year and, in May, they came to a crescendo. Between a car accident and Lyme's Disease, it was impossible to work, and I was going to have to take several months off in order to start the recovery period. I was informed that if I left my job, I would not be given my position back.
Then, what started as an unfortunate turn of events for me health-wise became an even greater event, when my wife was laid off from the same company after 20 years. So, we found ourselves at a crossroad. No one was hiring, even with our extensive qualifications, so we decided on the obvious start our own masonry company.
Since I do not believe in lying around and feeling sorry for myself, we persevered. Our first year in business has not been without obstacles and challenges. We were unable to obtain loans, because we didn't have any income, even though the government says that they have loans available for new small businesses. We couldn't get bonding, because we didn't have a line of credit or a proven track record - a Catch 22. We started with one employee and did anything that paid money, even if it wasn't masonry. We did plumbing, painting, installed carpet, excavation, electric repair work, and carpentry, and then graduated up to masonry and concrete work.
We made an offer with an estimator friend to work for compensation and bid everything we could. We have recently hired our 37th full-time employee, and with our backlog, we look to have revenue of $2.3 million in our first year of operation-of which $1.9 million is work completed to date.
We have, through the grace of God and amazing suppliers, paid for everything as we have gone, including material, equipment and labor. We have made a vow to never take on partners and to never owe anyone a dime.
Masonry: How did your company weather the economic storm that began in 2008? What did you learn from the challenges of the last four years?
Jerry Painter:
We weathered the storm by not taking on additional debt during the "boom" of 2005 to 2007. We have been able to downsize without financial problems. We also partnered (LLC) with another contractor in another area to expand our market. And we began doing more restoration work.
Steve Borman:
Since the Northwest traditionally lags the oscillation of economic swings on the East Coast by 12 months, we didn't experience the storm until the summer of 2009. The affects of that economic downturn are still with us here, and we