Past Winner Stories
Signcraft Industries
www.signcraftind.com
As a second-generation family business launched in 1958, Sign Craft had evolved from a sign-painting business to one that specialized in the fabrication and installation of electrical signs. But the firm relied on skilled craftsmen rather than technological innovation to produce its product. And until the late 1990s, the company had remained very profitable doing business the way they had always done.
But from 1998 to early 2001, the lack of technology began to have a significant impact on Sign Craft. Competition had invested heavily in new technology and was producing the same-quality signage faster and cheaper than Sign Craft could. To compete, Sign Craft had to produce product below cost and commit to delivery times it could not meet.
Compounding the problem, a single customer accounted for more than 40 percent of the company's business. Sign Craft would delay other customers' projects to meet the primary client's needs.
By February 2001, high pricing and late delivery had significantly diminished the customer base. Vendors were growing nervous and, most importantly, the skilled labor force was frustrated and thinking about leaving the company. Owner Steve McVicker enlisted the aid of his friend, Greg Beyerl, to conduct a due diligence review to determine if Sign Craft was still a viable business. If it were, Beyerl would plot a course for recovery.
Beyerl, corporate controller for 15 years for Bindley Western, knew that when that company was acquired in early 2001 his current position would eventually be eliminated. His friendship with the McVicker family and the chance to take on the challenge of turning the company around prompted him to join Sign Craft. After Beyerl and McVicker conducted a complete review of the financial, operational and competitive environment of Sign Craft, they knew the company's future was in question if they did not implement some drastic changes.
Beyerl, who eventually acquired Sign Craft, immediately took over running the business and developed a turn-around plan. During phase one, he provided capital and established key banking relationships. Through open communication with employees, management explained the company's current condition and its plan for recovery.
Internally, Beyerl noted, employees are regarded as "guardians," and each guardian's responsibility is to act in a manner that improves the company's chances for success. In return, they are treated with respect and are confident, he said, that through the company's success, they would benefit personally.
"Over the past year," Beyerl said, "our turnover ratio has been virtually nonexistent. As a CPA who came from a service and wholesaling background, without a doubt the best part of my job is the ability to work with a team that can create a vision from raw materials to a finished product that is installed on the customer's building. The skill of our team never ceases to amaze me."
The company then discussed the turnaround plan with key vendors. In all cases, they were able to work out terms and continue doing business.
In phase two, employees worked with management to analyze every aspect of the business. Concurrently, the technological needs of the company were evaluated. Purchases varied from computer hardware and software to fabrication and installation equipment.
Phase three focused on increasing sales. 2002 revenues were 67 percent greater than 2001 revenues, and through June 2003 revenues increased 100 percent over 2002.
"The best part of running the business has been the change in attitude of our guardians," said Beyerl. "Most of them have worked for companies that have made promises and not delivered. By providing the tools and support and soliciting their opinions, our guardians are fueling our turnaround. The work environment makes it fun to get up and come to work."
But from 1998 to early 2001, the lack of technology began to have a significant impact on Sign Craft. Competition had invested heavily in new technology and was producing the same-quality signage faster and cheaper than Sign Craft could. To compete, Sign Craft had to produce product below cost and commit to delivery times it could not meet.
Compounding the problem, a single customer accounted for more than 40 percent of the company's business. Sign Craft would delay other customers' projects to meet the primary client's needs.
By February 2001, high pricing and late delivery had significantly diminished the customer base. Vendors were growing nervous and, most importantly, the skilled labor force was frustrated and thinking about leaving the company. Owner Steve McVicker enlisted the aid of his friend, Greg Beyerl, to conduct a due diligence review to determine if Sign Craft was still a viable business. If it were, Beyerl would plot a course for recovery.
Beyerl, corporate controller for 15 years for Bindley Western, knew that when that company was acquired in early 2001 his current position would eventually be eliminated. His friendship with the McVicker family and the chance to take on the challenge of turning the company around prompted him to join Sign Craft. After Beyerl and McVicker conducted a complete review of the financial, operational and competitive environment of Sign Craft, they knew the company's future was in question if they did not implement some drastic changes.
Beyerl, who eventually acquired Sign Craft, immediately took over running the business and developed a turn-around plan. During phase one, he provided capital and established key banking relationships. Through open communication with employees, management explained the company's current condition and its plan for recovery.
Internally, Beyerl noted, employees are regarded as "guardians," and each guardian's responsibility is to act in a manner that improves the company's chances for success. In return, they are treated with respect and are confident, he said, that through the company's success, they would benefit personally.
"Over the past year," Beyerl said, "our turnover ratio has been virtually nonexistent. As a CPA who came from a service and wholesaling background, without a doubt the best part of my job is the ability to work with a team that can create a vision from raw materials to a finished product that is installed on the customer's building. The skill of our team never ceases to amaze me."
The company then discussed the turnaround plan with key vendors. In all cases, they were able to work out terms and continue doing business.
In phase two, employees worked with management to analyze every aspect of the business. Concurrently, the technological needs of the company were evaluated. Purchases varied from computer hardware and software to fabrication and installation equipment.
Phase three focused on increasing sales. 2002 revenues were 67 percent greater than 2001 revenues, and through June 2003 revenues increased 100 percent over 2002.
"The best part of running the business has been the change in attitude of our guardians," said Beyerl. "Most of them have worked for companies that have made promises and not delivered. By providing the tools and support and soliciting their opinions, our guardians are fueling our turnaround. The work environment makes it fun to get up and come to work."