Jim Zinkan believes in the power of introspection.
The president of Twinsburg-based Zinkan Enterprises Inc. says companies need to think big to be big.
“If they’re making a presentation to a big company to the right people, and they’ve done their homework, they may well establish themselves in a big company, and that will jumpstart their business elsewhere,” he says.
Zinkan Enterprises, a specialty chemical manufacturer, grew revenue nearly 43 percent from 2003 to 2005, and Zinkan expects 2006 revenue to reach $22 million.
Smart Business spoke with Zinkan about how he focuses his company’s strategy on relationships and revenue.
What is your sales strategy?
We penetrate the business level of each customer, and then we add on other branches from the customers. We start with one or two products initially, and we try to grow the business until we supply all the chemical products used by that customer.
Our annual program is devoted to analyzing the customers’ needs and making sure that we can fulfill their needs from a short-term and a long-term basis.
We try to enter into long-term agreements — three to five years — where there are certain price considerations provided and reliability of supply. The customer benefits by having a reliable, low-cost supplier, and we benefit by expanding our business within those companies.
It’s easier and less expensive if you’re growing the business within accounts than if you were striking out and constantly doing missionary sales work to develop new business.
How do you establish these kinds of relationships?
We sell from the bottom up and the top down. In any company, there are a number of people who can say no, but typically, there are only one or two people who can say yes and buy your products and services. Make sure that you’re doing your selling vertically as well as horizontally within each of the levels of the business.
When you prove your worth to them, then you sell at the highest levels to make sure that they recognize what you are supplying and providing in the way of cost-efficiencies, sales and service.
How do you build name recognition?
When we started as a very small company, we didn’t have the reputation. We really had to start from scratch. With that behind us now, we don’t have to worry about that.
We pick up the phone, call a customer and ask how we did for her. You’re constantly using references, and you establish yourself as a viable, universal supplier.
You promote your company through trade shows, literature and a Web site. We pick our trade shows very strictly to focus on a given segment of business. That’s really one of the keys: Don’t waste your time running around just putting on trade show support activities. That can be draining financially. Try to find things that really fit that particular market segment.
How do yo continue to grow your business?
You have to identify where you’re recognized as being an acceptable and satisfactory supplier, and then you have to define where you can be of service in a geographic area.
Focus on those things that you can do the best for the segment of business. Look for the big because big companies, generally speaking, are more receptive to new ideas, better service, better performance and better products.
You have to have the vision of where you want to ultimately be, and then work to get there. Use the cash you generate to grow the business. Hire as the income from the company allows you to hire, and hire quality people.
What one thing can keep a company from growing?
Lack of foresight to be recognized as an important supplier to your customers. If you don’t let your customers know what you’re doing, and they don’t appreciate what you are doing, you’re not going to get the recognition.
If somebody new comes along, you’re going to get pushed aside.
What has been your biggest growth challenge, and how do you manage it?
Making sure we always keep our eye on the ball as far as finances are concerned. If you don’t pay attention to the financial constraints placed upon your company and you’re growing too fast, you’ll outgrow your system of financing, and you’re going to get run over. If you stretch the supply line too far, that’s a problem.
You always want to have new business and new product technology coming to the forefront. If you don’t have 20 percent of your sales each year from new products, then you’re probably falling behind.
HOW TO REACH: Zinkan Enterprises Inc., (800) 229-6801 or www.zinkan.com