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Ultracon Inc. Innovative Petroleum Equipment & Contracting Petroleum Equipment Construction Wildco Petroleum Equipment Four Star Petroleum Service |
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Gentlemen, prior to starting your companies,
each of you worked for someone else. What prompted you to take that
entrepreneurial leap?
Rick Lawson: Terry Kidman and I both worked for Omega. When
they went out of business, we opened Four Star Petroleum Service.
Larry Lyne: Maynard Upright and I also worked for Omega and purchased a branch when they began to sell off assets. We contacted several customers we were working closely with and they were very favorable to working with us, so we started Ultracon.
Thomas Dion: A few of us here rose out of the ashes of Omega when it went into bankruptcy and then out of business. Paul Russo and I saw an opportunity and started Wildco Petroleum Equipment.
Ben Bathke: I started Petroleum Equipment Construction with two other people; one has since retired and I bought out the other, Ron Cardoza, at the beginning of 2007. Ron and I also worked for Omega. Years ago, we had a petroleum equipment contractor business that we sold to Omega. When it was clear that the business was not succeeding, we took it back and started over.
David Stein: I'm not an Omega alumnus! I worked for a large independent oil dealer. Ten years ago, the company was sold, and the division I was running—tank installation, compliance, land development—was not part of the purchase. So I broke away and started Innovative Petroleum Equipment & Contracting.
What's been the biggest challenge running
your companies the past 10 years?
Thomas Dion: There have been a number of challenges, some
that changed weekly it seems. For us, the biggest issue has been
maintaining profit margin. We do zero construction. We have one
service van; the rest is pure distribution.
Rick Lawson: Finding qualified personnel. Five years ago, we opened a second branch in Greensboro, North Carolina, and while we have a low turnover rate, it's hard to find skilled workers to fill our growth areas, especially service and construction.
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How are you dealing with it?
Rick Lawson: We used to hire people off the street and train
them. Of course, we couldn't bill for them for the first three or
four months, which is about when they would tell us they didn't
want to do this work anymore. Now we look for technicians who are
relocating or are not happy with their current employer. They've
done the business, they've done the work, and they know what to
expect.
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Larry Lyne: He's right. It takes time to develop an employee. In the state of Pennsylvania, installers must be certified, and it takes several years before they can even take the test. Health insurance is also a very big challenge right now.
David Stein: Finding qualified employees has also been our challenge. Working with electronics as well as hydraulics is a mix many people don't want to do.
Ben Bathke: There really hasn't been a challenge. It's been good right out of the gate and we're always going forward.
Hindsight is always 20/20. Looking back,
what would you have done differently during your first few years
in business?
Larry Lyne: We rented for the first couple of years. I'd
have looked for a permanent location for Ultracon sooner. Three
years ago, we purchased a building.
Thomas Dion: When we started Wildco, we were willing to take risks to get the sale and we weren't selective with accounts. After we got a few little stings, we tightened up our credit policies.
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How is the business different today from
what you imagined it would be when you first started it?
Thomas Dion: I spend a lot more time today reviewing the
financials, whereas ten years ago, I devoted almost 100 percent
of my time to building sales.
When did that change?
Thomas Dion: About three or four years ago when we brought
on additional sales staff. We have six salespeople now.
Ben Bathke: Other than 500 percent sales growth, it hasn't changed.
David Stein: It was hard to get manufacturers to allow us to service their equipment, because they had long-time companies already in place. But over the years, we've convinced them that Innovative is here for the long haul, and we are willing to put forth the effort, money and time to support their product.
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How have you changed?
David Stein: I've become more understanding of the learning
curve of new employees. And I've been able to let loose of the reins
a little bit. There is so much liability in this industry that I
really have to trust the people out there working for me, that they're
doing the right thing.
What practice have you applied that has
had the greatest impact on your bottom line?
Larry Lyne: Maynard and I are both active, hands-on managers.
He is in the office keeping a close eye on the financials and managing
the service. I spend a lot of time out on jobs with customers and
working with employees. Customers like to see us; so do the employees.
Are you grooming future leadership in the
company?
Thomas Dion: This is a problem. Every Wildco employee is
between the ages of 40 and 50; we're all in our prime years, but
there's not a lot coming up behind us. If I don't have an opening
but can find a good person, I'll hire them and find a place.
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Rick Lawson: I think it's very tough to have someone from within lead the company, especially an employee working on the technical or construction side. They think in those terms, which is why they are successful, but often not in business terms. It's almost better to go outside and find someone with a good accounting background who understands business.
Rick, what is your background?
Rick Lawson: I came from the nuclear power industry, and
knew nothing about dispensers, tanks or pumps. I caught on pretty
quickly and I had business experience. As for leadership training?
Employees not out working are not billable. They have to spend time
each year attending certification, product and other classes, time
that isn't billable. This doesn't leave a lot of time and/or money
for in-house leadership training.
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There are some PEI companies almost 100
years old. What is the most important thing about your 10-year-old
company that will ensure its future growth and survival?
Ben Bathke: Petroleum Equipment Construction's markets are
diversified. We do retail, commercial, government, service and maintenance.
The employees we hired on day one ten years ago are still with us.
We go out. We do our job. We do it well. And we make sure the environment
is safe.
Larry Lyne: Ultracon's main focus is construction and service. We also do some distribution. Bottom line costs, quality of work and time frames are the three issues customers are concerned with, and we are very attentive to those needs.
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Rick Lawson: Four Star has real people answering the phone, and we talk to our customers a lot. Salespeople return to their customer's site on the day work begins to make sure our people understand what the customer wants them to do. Jobs are proposed months ahead of when they're actually signed, and the salesperson is there on that first day to check in with the customer. Customers get a lot of attention from Four Star. Also, we work hard to minimize overhead and stay competitively priced with larger companies.
Thomas Dion: Wildco will always, always outperform any other
company with customer service!
Everybody says that!
Thomas Dion: Everybody does say that, because it is the only
thing. We have to work harder than our competition and we have to
outperform every day.
David Stein: Innovative Petroleum Equipment makes sure that our service techs are updated, well-trained and certified. Also, customers have instant access to me, the owner of the company.
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Fun Factor...In our survey, only three
of you said you are having as much or more fun now that your company
is firmly established. Why?
David Stein: Regulations have become much more stringent.
The rules are constantly changing. There's more paperwork. I love
what I do, and I think I'm very good at what I do, but the regulators
have brought it to the point where it's just very frustrating.
Larry Lyne: We've had ups and downs like any business, but we're still enjoying ourselves.
Thomas Dion: It's less fun for me now because I really enjoyed going out and getting sales and building the company in those early years. Now there are a whole myriad of issues to deal with, things like banking relationships, insurance, employees, and so many others.
Rick Lawson: I think it's more fun now. I know a lot more people in the industry. I've had time to look at what my competitors are doing and hopefully improve on what I'm doing. Sure, there's a challenge now and again, but that's what makes it fun: Meeting it head on and moving forward.
Ben Bathke: Owning's fun as long as you make money and everybody's happy!
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