New Venture Lab: Equipping Christian Entrepreneurs

Former IT Manager Acquired Business After He Was Laid Off

This profile features a mid-career information technology manager that was laid off due to a merger and faithfully followed God's leading into independent business ownership.

Name:

Family Description:

Wife, two daughters and two sons, all help with the business

Business Name:

Business Description:

A specialty medical supply company.  Every family member has a role in business activities.  In addition, we employ one part-time employee.

Location:

Texas

Formal education/training:

Degree:  Bachelor Business Administration

Prior work experience:

• 13 years of Information Technology services including computer programming, project management, systems training and quality management services at 3 different Fortune 500 companies
• 8 years in a supervisor role over from 1 to 12 employees

Forming the Idea:

In 1998 I was laid off due to a corporate merger and the elimination of my position, which was an answer to prayer due to growing discontent with my work and the travel demands, which were affecting my relationship with God, wife and children.  It was a blessing in disguise as it forced me to do some things that I probably would not have done otherwise and to put my whole dependence and faith in the Lord.

How you got started:

After getting laid off, I began a search for a new job that fit more with my values and less demands to travel.  The idea of a home business was in the back of my mind as this had been a desire for sometime, but not much of a realistic thought.  I had interviews for IT jobs, but God wasn’t opening any doors in that field.  I was looking into home-based businesses when a friend let us know of this company being for sale.  The thought of operating a medical supply company did not appeal as first, but we began the process of investigating the company and the market in which it operated.  The Lord allowed us to see the potential growth for the company as well as the opportunity for our family to work together in a home-based business.  Our offer for the company was accepted and we began a God-ordained journey of owning and operating a home-based business.

What was it like in the beginning:

In the beginning, our business had about 25 regular customers and only sold a few products; monthly revenue was $2-$3K/month; income was $200-$300 per month.  We began to grow the business by calling on customers to expand our product line.  In the first year, a day would consist of processing an average of 3 orders per day and calling on potential customers.  Word of mouth spread through the industry and after the first year, due to growth, our telemarketing efforts ceased.

What stage the business is at now:

Today, we have nearly 1,000 customers.  On an average day, we process 20 orders.  Our product line has increased 4-5 times what we initially started with.  Each family member has their own responsibility to fulfill the demands of the company.  In addition, an employee outside our family works part-time to assist with the work load.  We are now the second largest provider of medical supplies in our industry in the United States.  We continue to market new customers through our web site as well as attending 3-4 trade shows each year.

The biggest challenge you’ve faced:

As a family, the chemistry of the home was turned upside down when I was home all the time and not away at work for 10 hours a day.  It was an adjustment for all of us, but one that we all desired to make and have successfully made with God's hand doing all of the work.

 

Slow Sales Growth - from the beginning, net income was very low to support a family of 6, so I had to balance investing time in growing the business and spending time do other odd jobs to support the family.  This required changes in spending habits, schedule adjustments and a clear vision of where we wanted to go as a family and the understanding that struggles and challenges would definitely lie in our path. 

Key steps that made the difference:

• Dedicating my career to the Lord (this happened more than one year prior to being laid off from my IT job)
• Kept my business results accountable to other men
• Grew at a steady pace, so as not to get in over my head
• Bought business with cash
• Consulted wife for cautions
• Focused on the customer

Lessons Learned:

• Keep your name in front of your customer
• Advertising and marketing works
• Lowest prices and great customer service are a rare combination and customers love it
• Customers aren't always right, but you need to make them think that they are
• Don't allow the business to consume you.  Keep things in perspective and balance between God, Family and Work.  Owning a small business can consume you, if you allow it to.  It is more than necessary to take time off to recharge your battery.
• Intuit QuickBooks is a great tool for small businesses.

The best advice you received:

Stay out of debt.  Debt is a boat anchor around the neck of any small business.  The Lord taught me 18 years ago the importance of staying out of debt.  I have tried to be faithful to this command in all areas of my life.  Our business has never been in debt and God has been faithful to provide for us and grow our business in ways that we could have never imagined.

What your work and family life was like before:

For 13 years, I worked for major corporations in the IT departments.  I was successful by the corporate measure, but very unsuccessful in God's eyes.  I was gone from home more than I was home.  I was seeking the approval of men and not the approval of God.  I was literally stuck in a rut that I probably didn't have the self-motivation to get myself out of, God had to have a clear hand in our family vision, and He did.

What your work and family life is like now:

I never travel out of town without a family member with me.  I only travel 3-4 times per year.  I work from home.  Each member of the family has a role in the family business.  I am training my 2 boys each day in the workplace.  My schedule is very flexible which provides me with opportunities to serve my family, church and others.