October 15-17, 2024 at Orange County Convention Center in Orlando, Florida
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Expo Hours

Tuesday Oct 15 9 AM — 5 PM
Wednesday Oct 16 9 AM — 5 PM
Thursday Oct 17 9 AM — 4 PM

Venue

Orange County Convention Center

9800 International Drive
Orlando, Florida 32819

About the Expo

North America's largest metal forming, fabricating, welding and finishing event heads to Orange County Convention Center in October 2024. FABTECH provides a convenient "one stop shop" venue where you can meet with world-class suppliers, see the latest industry products and developments, and find the tools to improve productivity, increase profits and discover new solutions to all of your metal forming, fabricating, welding and finishing needs.

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North America's Largest Metal Forming, Fabricating, Welding and Finishing Event

From the Blog

Tips for Small Businesses

By Jennifer Dallos on on
Recent winners of the AWS Image of Welding Small Business Award offer their advice Reprinted with permission: The AWS Welding Journal By Annik Babinski, assistant editor of the Welding Journal Let’s face it, running a small business is a real challenge when everything seems like it’s being supersized. According to a 2011 Business Insider report, there are 28 million small businesses in the United States, which outnumber corporations 1162 to 1. These small businesses employ 57% of the country’s private workforce, and pay 44% of U.S. payroll .So we salute all of you small business owners, and, because only 50% of these businesses survive five years, we’d like to help you out. Winners of the 2010–2014 Image of Welding (now Excellence in Welding) Small Business Awards were asked for their tips and tricks for running a small business in today’s economy. WEMCO, an AWS standing committee made up of welding equipment manufacturers, sponsors the awards. The industry leaders we spoke with were:
  • 2014 Winner George (Joe) Wernette III, co-owner, vice president, professional development, Tri Tool, Inc., Rancho Cordova, Calif.
  • 2013 Winner Rick McCartney, president, Bay State Industrial Welding & Fabrication, Inc., Hudson, N.H.
  • 2012 Winner Don Schwemmer, president, Advanced Manufacturing Engineering Technologies, Rexburg, Idaho
  • 2011 Winner Douglas S. Phillips, director of product management, equipment, Nelson Stud Welding, Inc., Elyria, Ohio
  • 2010 Winner Joe Fazzari, vice president, Colmac Coil Manufacturing, Inc., Colville, Wash.
Here is what they had to say. What is the toughest challenge for small businesses and how do you deal with it at your company? Our respondents each identified different challenges when asked, but at their core, the issue was the same — strategic focus. This challenge seems to stem from the issue pointed to by Phillips, “too often, resources are wasted trying to be everything to every customer. Know your core competencies, and be singular in your efforts.” With this strategic focus, one can ensure that the company has, as Schwemmer said, “sufficient talented personnel, and available funds,” in order to engage with those projects that will forward your business interests and help you grow. Wernette suggested that strategic focus will also enable your company to meet your customer’s needs and “offer them solutions that empower your customers to do their work safer, faster, and better,” thus establishing “a trusted, strong brand identity within your market segment.” These business leaders suggested a company that knows what it does best, and sticks to that product or service, at the same time as it is looks for chances to innovate, will create lasting bonds with satisfied customers and never feel a lull in project opportunities. Biggest Takeaways Beware the allure of being everything to everyone. Learn what your company excels at, and provide only those products or services. This will allow you to avoid another common pitfall — not having the clients to grow your company. See the following question for more on how to build a strong brand and enjoy a lifetime of client support. How do you stand out, generate value, and find customers? In response to this question, our leaders pointed to innovation. As Phillips noted, “If you solve customers’ problems, you don’t have to explain your value to them. This kind of success sells itself.” Fazzari elaborated on this, suggesting that companies should aim to offer a unique product or service, and McCartney agreed. If this is not possible, Fazzari continued, then the company must offer its service at a faster lead time than the competitors. “Oftentimes, the supplier with the best lead time gets the order, regardless of price. The reason for this is because most customers wait too long to place orders and then are behind schedule from the start. Offering the fastest lead time is a great way to have a competitive advantage in your market.” Wernette enforced this idea, “A product’s value is the ongoing value it represents to our customers as they save time and money with dependable, long-lasting tools.” For Schwemmer, that means providing the latest technology in your product offering. He argued staying on top of innovation is the key to differentiating yourself from the competitor, especially in the United States. Biggest Takeaways Make sure your product is the best in its field, and if it can’t be the best, make sure it reaches your customer the fastest. Solve problems your customers face daily, and they will reward you with loyalty. Make yourself invaluable to customers by allowing them to save time and money. What are some lessons in branding you’ve learned over the years? Our respondents each had a different take on this question. Wernette pointed to long-term customer relationships as the most important factor in differentiation of one’s brand. “No amount of advertising or marketing effort could be effective within the industries we serve if we did not have a reputation for delivering outstanding results whenever our customers needed us to,” Wernette said. Fazzari had a different angle. “Stand behind your product and fix your mistakes regardless of the financial impact. Help your customer define the problem, or it will end up getting defined for you. Always dollarize the benefits that you advertise for your products. Show your customers how your product will help them from a dollars-and-cents standpoint.” Like Fazzari, Phillips emphasized the importance of the product, encouraging new business owners to “make every product something the whole company can be proud of.” Finally, Schwemmer and McCartney suggested that the best way to stand out is to offer a singular product or service. “We really only have one brand of product,” Schwemmer said, “I believe this helps us keep a unique identity.” McCartney’s company found its niche by focusing on more difficult projects that the competition veered away from. Based on its specialized service, the company grew a trusting, satisfied customer foundation. “We created a name for ourselves that was built around customized and dependable service for especially “dirty” projects that most others did not want to do,” McCartney said. And that was their key to branding success. Biggest Takeaways Your brand is your reputation, and how your product or service comes across to the client will shape that reputation. Often, your brand is defined when problems arise. Ensure that you take responsibility for product or service deficits and fix them at any cost. Nothing is more expensive than a ruined brand. Build your brand by consistently providing quality service or products in a timely manner. How do you leverage social media? When asked, McCartney stated that social media helped his business survive economic ups and downs. “In our opinion, social media is a fantastic way to share information to a much larger audience than we could have ever imagined, but as a small business you need to make sure that you are targeting the RIGHT audience. All the information sharing in the world will not mean a thing or help your business succeed if the right people and potential customers aren’t seeing it.” McCartney’s company realized social media helps his potential welding and fabrication customers see photos of the company’s work, and thus understand what kinds of projects and work quality the company could achieve. “It is also a great way to boost your marketing and advertising efforts without incurring expensive additional costs.” Schwemmer and Wernette both emphasized the importance of a strong website, and Wernette found his company’s “implementation of social media has resulted in increased communication with existing end users and potential customers.” Wernette suggested diversifying one’s company’s website and social media presence by engaging customers with emails, blog posts, and quarterly newsletters to inform them about product developments and to provide tech tips. When in doubt, follow Phillips’ advice, “Tweet early, tweet often.” Biggest Takeaways Ensure you are not tweeting to a void. Understand your customers and how they use the Internet, and make sure you tailor your social media strategy to their habits. If your customers need to be able to type your name into a search engine and have a comprehensive website pop up as the first result, make sure you look into adwords. If your customers connect through professional networks on Facebook or LinkedIn, make sure you start a profile and engage with them. In order to pull in potential customers, leverage photography to highlight the quality of your work and to give shoppers an idea of what they can expect. What financial tips can you offer new business owners? To begin, Schwemmer counsels finding a capable accountant and a bank with which you feel comfortable. Stable, close relationships with these specialists will help your company handle financial growths and downturns, Schwemmer said. Fazzari suggests having a plan for covering the financial gap between when you purchase materials and when customers pay you. This is “one of the most difficult things to plan out for new business owners who want to grow their company quickly,” he said. Perhaps the answer is, as McCartney suggested, good partners and a reasonable business loan. Ensure you can afford to pay the loan back in a timely manner, McCartney warned, or be prepared to reevaluate your business plan. “Are your costs too high? Are you charging enough to make a reasonable profit while still being competitive? Do you have too many or too little people to handle your workload?” According to McCartney, these are the questions new business owners need to ask themselves when they encounter financial issues that deviate from their business plan. Finally, remember Phillips’ advice, “Minimize your debt at every turn.” Biggest Takeaways Set yourself up for success by forging effective professional bonds with a banker and an accountant whose advice you can trust. Also, make sure that you have financial partners who are ready to support your business in its early stages with referrals, positive word of mouth, and cold hard cash. These elements, along with an affordable loan that fits into your business plan comfortably, will keep you solvent and successful, so long as you make sure you do not get mired in debt. What advice would you give to someone starting a small busines Where to start? Phillips implores you to “know your customers. Starting a small business is a terrible time to learn how to handle customer service.” Fazzari agreed. He stressed the importance of thoroughly understanding your customers’ needs before starting your business. He counseled business owners to “create relationships with your customers and listen to what they tell yo. Once you know your customers, follow Wernette’s advice to “plan ahead and develop a logical and thorough business plan. Things will not follow this path exactly, but you will be better prepared for whatever happens. Understand (ahead of time) the true depth of market demand for your proposed products or services, and be able to prove how your business can financially and materially satisfy these identified demands. Once committed, surround yourself with the best-qualified and most knowledgeable individuals who can form an efficient and dynamic team. Then stand back, empower and provide them the tools to succeed.” When you are on your way, McCartney urges you to “be up front and let your customers know that you are working and/or managing their project personally. Customers like to know  you personally are taking care of the project they have entrusted to you. If it is not hands-on, let them know that you are involved with the design and/or daily management of their project. Customers like the assurance that they are in good hands.” Finally, Schwemmer warns, “It is a roller coaster ride. Enjoy those highs and be prepared for the inevitable lows. Risks and rewards are both high. Some small businesses are able to start off with great success, but the majority require some sacrifice to get past the critical nucleus stage. It is important to keep a vision and take the risks.” Biggest Takeaways Before touching a business plan, make a deep study of your potential customers and strive always to meet their needs. Write a business plan and stick to the services or products you planned to offer. Surround yourself with a capable team, and endeavor always to be honest with your customers. Make customers feel that you are involved with and committed to their project, and when a mistake is made, correct it at all costs. You do not want to lose the customer’s trust. Buckle up and enjoy the ride!  

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