Is your company successful? For Douglas O. Kirberg, the answer to that question depends on your definition of success.
“When I started out of school, I thought if you make $24,000 a year and you had 20 guys working for you, you’ve got it made,” says the president of Kirberg Co., a roofing company founded by his grandfather in 1920. “So you’ve got to keep revising those as you go along.”
Kirberg’s constant revision of the company’s goals has helped propel 2008 sales past the $20 million mark.
Smart Business spoke with Kirberg about how to establish an impressive track record and how to become a better listener.
Q. How do you develop a vision?
You really have to have the desire to be in business or grow your business. Whatever branch of business you’re in, you have to have desire to do it and the willingness to really work hard. It’s not 40 hours a week. You’re going to live and breathe it for many years, seven days a week.
Here’s another key thing: You have to set goals. Years ago, I wrote a simple handwritten note. It read, ‘Where do you think you want to be in 10 years or five years?’ And you keep revising those goals because they change.
You might make your 10-year goal in five years. Then you might decide, ‘Well, do I really want to get bigger or not?’ There are pros and cons to each.
Q. How have you managed business growth?
As far as the managing of it, you’ve got to have a good CPA working with you, good insurance brokerage or firm, and your bank is really important — as people are finding out now.
The most challenging time for us was when (former President Jimmy) Carter was here and we had 21 percent interest rates. If you were not on good terms with your bank and weren’t considered a good account, you were in trouble, just like now, when people are not getting loans. If you have a good relationship with your bank, you’ll be able to get a loan. You’ve got to get a good track record.
If it weren’t for the bank, I wouldn’t be where I’m at today because we didn’t have that much cash coming in.
Q. How do you establish that track record?
Definitely get to know your banker. You’ve got to go in and meet them, talk to them. Let them know your whole business. Don’t try to hide stuff from them.
A lot of people are afraid of giving out financial statements. When you’re first starting out, you had better be prepared to do that. We have to do it today. You have to learn that’s the way it is. You have to be straight up with the bank and the insurance people and your advisers.
