From employee to entrepreneur is just one step
Without question the most terrifying decision for all entrepreneurs is the first step when they announce to the world, I am moving from employee to entrepreneur!
Can’t you hear the gasps followed by the questions? What will you do if it doesn’t work out? How can you afford to take such a risk? What does (insert name) think? I don’t think that’s a good idea. That’s not something I would do. And so it goes on.
On Tuesday May 28 I was delighted to have as a guest on my radio show Kasey Cotulla who is a partner in three printing businesses. My conversation with Kasey was able to explore his thought processes and eventual decision to become a business owner. From my perspective, as I help business owners every day with the service I provide, Kasey’s move into entrepreneurship is unique with his journey but his thought processes and conclusions are typical.
As Kasey likes to say, he’s a forklift driver from Galt that is now a partner in a business. However that’s not where Kasey started. Kasey’s first job was that of the janitor at a printing business when he left school. Kasey then moved up through the company to driving a forklift and eventually found himself in the role as the General Manager. However, after being an employee for twenty five years Kasey had an itch and the itch became a question that he had to answer – Am I good enough to own and operate my own business?
The question seems simple enough. Am I good enough to own and operate my own business but the question has so many complexities. What does “good enough” mean? What does “own and operate” mean? What happens if I get it wrong? In Kasey’s case as is the case with many other “wanna be entrepreneurs,” the outcome of Kasey’s decision would not only affect him personally but also that of his family.
After 25 years Kasey decided it was time to see if he was right, that is, was he good enough to own and operate his own business. He therefore put his strategy together and took action. What separates a “wanna be entrepreneur” from an entrepreneur? The answer is real simple and it’s doing something or taking action.
So Kasey decided to tackle his entrepreneurial ambitions with a partner, Jim Davis. A key ingredient for Kasey in the decision to choose Jim was trust and this is an issue I see plague many business owners. A partnership is a great way to test your entrepreneurial skills and drive as you get to do it with someone who can share the work, responsibilities and decision making processes. One of the questions I asked of Kasey during my conversation with him was if he had a buy/sell agreement and I was pleased to hear that he does. A partnership is like any situation where two or more people come together with common ideas and goals. However, like many things in life, may start with good intentions but things can and do change. If you are thinking of testing your entrepreneurial skills and spirit and do it with a partner, make sure it includes a good buy/sell agreement.
For Kasey and Jim to get into business, it required they have some “skin in the game” or a down payment to buy their business. For Kasey it was a decision to use the equity in his house. With this equity, Kasey was able to add to it by getting an SBA loan and so with this money was able to buy his first business which was Delta Web Printing in West Sacramento. Delta Web Printing is a black and white book printing service that produces college schedules and catalogs etc. and this deal was closed in early 2010.
Due to the strength of their management and the success they were experiencing at Delta Web Printing, a new opportunity came along within 12 months and this was to buy a second printing business as an asset sale which had a different focus in Rancho Cordova called River City Printers. River City Printers had a different customer focus to Delta Web Printing and so this was a way for Kasey and Jim to diversify their risk.
As if that wasn’t enough, Kasey and Jim made a third acquisition that closed in April 2013 with the purchase of Paul Baker Printing in Roseville, this time as a stock sale.
When you speak to Kasey he’s a very quiet and unassuming person. As he says, he hates to talk about printing as it’s so boring but he loves to talk about owning and operating a business as there are so many parts to it. However, if you do want some printing give Kasey a call at River City Printers on 916 638-8400.
Are you thinking about owning and operating your own business and not sure where to start? Kasey provides a great example and shows how simple it is. That is, learn some skills, realize that if you stay and work as an employee your helping to build someone else’s fortune, take an educated risk by borrowing some money, work hard and make it happen. This fits in with one of Kasey’s favorite observations. “There is a risk in staying where you are at – even when you are successful as an employee or manager.” As they say on TV “it’s not that complicated.”
If you are ready to buy or sell your business, let me help you. Simply give me a call on 916 570-2674 or send an email to info@RogersonBusinessServices.com
