Few people start out owning a business. The road to ownership is typically long but rewarding because the sum of an individual's business experience is translated into tangible profits that are kept for themselves. Adcom Worldwide’s long experience with independent owners indicates that some of our best owners started in sales and made the transition to owner. Here is the story of an owner who had a background in sales and became the successful owner of an Adcom station.
Our highlighted salesperson started their career in business with a background in purchasing and materials management and worked as a buyer for a company. Their introduction to freight forwarding came as the result of being a customer of a freight forwarder. A relationship was built and they eventually accepted a job in sales for the freight forwarder having no previous sales experience.
Starting in local sales our salesperson became a sponge absorbing and learning the freight forwarding industry during their first three years. The manager of the station was frequently away from the office and our salesperson got involved in operations by questioning the operations group on what was being done on different kinds of shipments. Sales success followed due to their efforts despite often being told that the business brought in was unprofitable by the station owner. A few moves were made over the years and they eventually came back to the initial freight forwarder they worked with as sales director managing a book of business totaling $6,000,000.
Life was good as our salesperson’s business was the most profitable in the system. The owner wanted him to sell even more but was not willing to compensate for any additional sales. The owner wanted to capitalize on proven sales ability but placed a "cap" on the agreed compensation plan. Our salesperson became unhappy and did not believe they were fairly compensated for what their business was worth.
Colleagues had been telling our salesperson that he should start his own business and our salesperson went on an exhaustive search of freight forwarding companies that operate with independent owners. A key question was, "Who would help him start and run his new business?"
Adcom Worldwide was the freight forwarder he chose because:
Adcom offered to help run the company and provide advice when needed
Corporate support staff was placed on site to help with the start up
Other Adcom owners volunteered to be mentors
Adcom felt comfortable
Adcom had a proven start up business plan model that could be followed
Adcom reviewed the initial business plan and provided suggestions
Adcom will review a P&L and provide suggestions to become better
Unless requested, Adcom leaves you alone
In the first year of operation the new station averaged gross sales of over $200,000 per month and sales grow every month. The primary obstacle in opening the station was the capital and financing required to pay the bills until the sales revenue stream caught up with the expenses. This was accomplished in the first four months of starting. From that point onward the station was cash positive.
The tips our new owner would give to other salespeople who would think about running their own business are:
Be inquisitive
You must have vision, drive, and confidence
Don't be afraid – take the plunge
Ask for assistance from contacts, customers, colleagues – people like to help new businesses
Some days you will ask, "What did I get my self into?"
The answer will be, "It is my company and I am not working for someone else."
Each day is better
"I'm not sure if you'll remember me or not. You helped me track down a pallet of material that was shipped to Spokane back in October, but took the scenic route to get there. You've been on my mind a lot lately."
