Garrett Transfer And Storage, INC.
Dba Conlee-Garrett Moving & Storage
Donna Garrett, CPA
Bryan, Texas
Conlee-Garrett Moving & Storage is a full-service moving and storage company located in Bryan, Texas. It is owned and operated by CPA, Donna Garrett, and her husband Phillip. The Garretts have been in the moving business since 1999. In 2002, they expanded the moving business by purchasing their largest competitor, Conlee Moving and Storage, which had been operating in the Brazos Valley since 1946. In 2005, they added the Budget Truck Rental agency to their operations. In 2007, the Garretts diversified by purchasing 7F Lodge & Spa, a special event center with six bed and breakfast cabins and an antique wedding chapel.
TSCPA: What was your biggest problem when starting your business and how did you overcome it?
Garrett: Once the initial purchases of equipment were made, the biggest ongoing problem was maintaining cash flow. A financial support base was required, which included financial institutions and friends/family willing to provide operating capital. In taking over an ongoing business, two things had to occur immediately: 1) We had to obtain a line of credit from a local bank, collateralized by receivables, and 2) We had to isolate all inefficiencies and cut excess costs from day one.
TSCPA: How did you know you were ready to upgrade your business (i.e. add more employees, take on more clients, move to a bigger business space or any additional upgrades)?
Garrett: Several factors played into an upgrade. There was a need for growth due to underutilized staff and equipment. Within three years of being in the moving business, we were given the opportunity to purchase our largest competitor. This seemed to be a natural progression for us. With this purchase, we now had the customer base to better utilize our combined staff, facilities, and equipment. The next step was to upgrade our facilities and equipment and remove the inefficiencies. Safety was a driving factor in the upgrade process. Better/safer equipment and facilities translated into attracting better employees and boosting the morale of existing employees.
TSCPA: Any clever/creative media tactics for those with little to no budget? Please share examples of how you personally promoted your business through word of mouth?
Garrett: The best advice for someone with little to no advertising budget is to donate your time and services in order to promote your business within your community. Join the Chamber of Commerce, attend meetings, and participate in its events. Join charitable organizations. Seize opportunities that will promote your business while helping your community. For example, we provide our moving trucks to local food and toy drives. Our employees (in uniform) help pack and deliver toys to the underprivileged during the holidays. Also, join associations and organizations that are designed for your industry or relate to your industry. The more that other business persons and consumers know you and what you do, the more opportunities for referrals you create.
TSCPA: How much of your own finances (i.e. savings, retirement money, etc.) should you invest into your business? How much should you seek from a lender?
Garrett: We believe there should be some comfort zone in your personal finances. We never intend to dip into retirement monies. The decision as to how much of your own finances (savings) to use is dependent upon how much you want to commit to your venture. There are no guarantees your savings will come back to you once they are put into the business.
TSCPA: Any things to watch out for? Loopholes? Bumps in the road?
Garrett: Don’t underestimate cash flow needs. Even the most profitable jobs can create cash flow difficulties if the receivables aren’t collected timely. The status of the economy directly affects your business throughout the year. Receivables management is critical.
Also, in a service industry, don’t underestimate the value of your employees. Crew members are as critical to sales as a salesperson. They spend more time with the customer, and their attitude and attention to customer needs is crucial to the success of a business. Employees should be treated fairly at all times and offered incentives for a job well done. Happy employees make for happy customers!
TSCPA: What is the BEST piece of advice you can pass on to those just starting/looking to start their business?
Garrett: Select a business that you enjoy and that complements your lifestyle. You must be involved in your business to make your mark. Even the best staff needs your attention, whether it be to offer constructive criticism or praise. Don’t isolate yourself from your employees or customers.
When we started, we were “warned” that most businesses fail within the first seven years. We faced many difficult tests within the first seven years – cash flow issues, capital needs, downturns in the business cycle, personnel issues. The best advice is to “stick with it.” A business plan is great, but be prepared to revise it continuously. There WILL be bumps in the road. Your experience in business and in your particular industry grows with each day. And, what happens around you can change daily. You have to draw upon these things in order to work through the bumps in the road. There is a sigh of relief once you hit the seven-year mark.
Another moving company passed on these tidbits to us and they played right into what we believe: Establish core values – be honest and fair, give back to the community, take care of your customers and employees, and have fun. Remember the “Grandma Rule” – treat everyone the way you would want your grandmother to be treated.
Pharmacy Unlimited
Kara Skaggs, CPA
Odessa, Texas
Pharmacy Unlimited is a closed-door, long-term care pharmacy. It began in 1999 as a joint venture between Danny Skaggs, who is a pharmacist, and a local home health agency. At that time, the pharmacy served primarily patients of the home health agency. In January of 2001, the home health agency withdrew from the joint venture, making this the real beginning of business for the Skaggs. They had to determine whether to proceed as well as how to proceed to make the business self-supporting. The Skaggs changed the focus of the business to serve nursing home and hospice patients.
Note: A closed-door pharmacy is not open to the public. Instead it can only serve “closed” groups. (A closed group is just a group defined so that its membership is limited and identifiable.)
TSCPA: What was your biggest problem when starting your business and how did you overcome it?
Skaggs: Our biggest problems were defining the direction of the business and understanding the impact of marketing. Since the prospective client base of our chosen business focus is relatively limited, we used borrowed money to hire a proven marketer to personally market to nursing homes. Some lessons we learned is that success does not depend on the product but rather on effective marketing. Borrowing more money than you think you’re going to need and, spending more to get effective marketing is better than saving money on ineffective marketing.
TSCPA: How did you know you were ready to upgrade your business (i.e. add more employees, take on more clients, move to a bigger business space or any additional upgrades)?
Skaggs: Upgrades to the business are necessary to have a viable business and to get the work done as the business grows.
Whenever we see that the two essentials of marketing and revenue management are being neglected, we know that it is time to upgrade technology or hire personnel, regardless of whether we feel that we can “afford” it.
Mindsets to Overcome:
- I can do it myself rather than hire expensive personnel to do it for me. (Am I really getting all the essentials done? Just because I’m good at something doesn’t necessarily mean that I should do it!)
- Status quo is good. (The business must always be growing. Stagnancy cannot be allowed. Without growth you are really losing ground due to rising costs!)
- Failure is my enemy. (Be able to change directions if needed. Failure of an idea does not mean that you are a failure. Learn from your failures.)
TSCPA: Any clever/creative media tactics for those with little to no budget? Please share examples of how you personally promoted your business through word of mouth?
Skaggs: Our only “media tactic” is to carefully build and maintain relationships with the clients that we serve. We have found that employees of those clients tend to change jobs, and their new employers are often prospective clients for us. Relationships coupled with a good service history are invaluable.
TSCPA: How much of your own finances (i.e. savings, retirement money, etc.) should you invest into your business? How much should you seek from a lender?
Skaggs: How much of your own finances to invest depends on how much you believe in your business. Holding back anything could cause your business to fail. (You quickly learn what it means to “burn your ships.”) How much should you seek from a lender? More than you think you’re going to need!
TSCPA: Any things to watch out for? Loopholes? Bumps in the road?
Skaggs: The primary thing to watch out for is which people you choose to trust. You’ve got to know when it is time to “bench” or terminate some of your players.
TSCPA: What is the BEST piece of advice you can pass on to those just starting/looking to start their business?
Skaggs: Best piece of advice to those starting a business:
Maintain integrity. Pray diligently. Be willing to listen. Your real strength is not in man, but in God.
