By most measures, Gail Adinamis' start-up company is experiencing the kind of
growth that almost any entrepreneur would envy.
Clinical Resource Network Inc., which provides in-home care to facilitate
clinical trials for biopharmaceutical companies, has doubled in size during each
of the past two years. The Vernon Hills-based company has sales of several
million dollars, generates a profit and likely will double in size again this
year, said Adinamis, a former clinical researcher in the pharmaceutical
industry.
Still, Adinamis knows that the company's future success depends on how well it
evolves from start-up to the next level.
"I realized I was running out of hours in the day to do what needed to be done,"
she said. "I needed to develop the infrastructure to continue to grow."
It's a situation that many start-ups face, though not all entrepreneurs
recognize what is missing, experts say. How effectively they bridge the gap
often determines the success of the business, said Mark Rittmanic, founder of
Northbrook-based ForteCEO, a specialty consulting firm for privately held
companies.
"They want to get from where they are to somewhere else and need a bridge to get
there," Rittmanic said.
From her previous experience, Adinamis understood what her clients needed. But
she was accustomed to having support in place, from an accounting department to
human resources, she said. She started Clinical Resource Network as a wholly
owned subsidiary of a home infusion company, but it foundered in the
"bureaucracy maze" and wasn't profitable, she said. So she bought it in 2004 and
spun it off.
She started with two employees and had four by the end of the first year, when
the company outgrew its initial office space. By the end of 2006, it had nine
employees and a new headquarters in Vernon Hills, she said. But Adinamis feared
the company was growing too rapidly. She didn't want to turn away business but
needed help to expand.
"As a business owner just starting out, you do everything," she said. "Then you
reach a size where you can't continue to do everything, and you need to bring in
people. I didn't have the experience in knowing how to do that."
It takes courage for an entrepreneur to step back, size up the situation and
look for ways to supplement their weaknesses, experts say. Often they feel
overwhelmed and isolated, said Guy Arvia, a ForteCEO consultant working with
Adinamis.
"Over and over, I see this," agreed Michael Gerber, author of "The E-Myth
Revisited: Why Most Small Businesses Don't Work and What to Do About It."
Entrepreneurs get so busy building and keeping up with demand that they often
don't get around to putting systems in place, he said.
Although Adinamis appears to be off to a better start than many entrepreneurs,
Gerber said, "now what she needs to do is separate herself from that business
and think of it as though she were going to franchise it."
She needs to develop a turnkey system, then hire people to carry it out, he
said.
"She has a brand in the making that will self-destruct unless she does this,"
Gerber said.
With no formal business education, Adinamis turned to ForteCEO for help.
"The idea of having a mentor is something most business owners can't conceive to
be available. When they find it, it changes their life," said Rittmanic, who
launched ForteCEO in 2000 after building and running several companies himself.
An outsider's view
ForteCEO has a network of about 240 seasoned executives with first-hand
experience in running a company, he said.
Often, it takes an outsider's perspective to help an entrepreneur identify what
the company needs to manage its growth, keep up with changing times or allow for
the current ownership to exit the business, Rittmanic said. Leadership skills
are critical at all three stages, he noted.
"Ninety percent of the time we are working alongside the business owner in a
hands-on capacity to help them through these issues," Rittmanic said.
ForteCEO's Arvia is helping Adinamis hire a management team.
"As the leader, you've got to get the right people, put them in the right places
and manage them correctly," said Arvia, who founded Comtech Group and Computer
Technologies Leasing, later selling the companies to Meridian Group.
Besides helping Adinamis put in place an infrastructure for growth, Arvia helped
her identify her personal goals, which include eventually exiting through a sale
of the business.
For now, Adinamis said, "The main thing is laying out what the organization will
look like. I'm now at the point where I'm going to start building this ideal
organization. I have the confidence to make decisions in the business that I
didn't have before."
A hand to get back on track
Experienced mentors also can help established businesses overcome the challenges
of a changing environment, Rittmanic said. When his manufacturing operation was
struggling due to inefficiencies and higher material costs a few years ago, Paul
Mills, president of family-owned Tote Cart, a family-owned Rockford manufacturer
of shopping carts, needed help returning the business to profitability.
"I said to myself, there's got to be more we can do than what I'm able to
identify," Mills said.
Working with several different consultants from ForteCEO, Mills refocused his
management team.
"We made changes within all ranks of the organization," he said.
Tote Cart, which has annual revenue of about $19 million and 150 employees, also
improved its manufacturing processes with help from a ForteCEO executive with a
background in industrial engineering, who has since joined Tote Cart full time.
With new management and new procedures in place, production climbed from 600
units a day to 995 units a day the first week, Mills said.
Now the company consistently produces 1,100 units a day and can go up to 1,600
if necessary, he said. The company is profitable again, and morale has improved.
"By all means, there's good enthusiasm," he said. "We've made some good
strides."
Copyright © 2007, Chicago
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