Retail Observer

RETAILOBSERVER.COM DECEMBER 2019 62 S tarting and growing a business is a challenging undertaking. Our entrepreneurial spirit can all too easily be crushed by the hurdles. My wife Krystle and I decided to accept the challenge and set up a new market in a new state. Why? We had already achieved minor success running our company out of a small office in Orangevale, CA with eight vans servicing the Sacramento area. Ours is a large geographical area with minimal complications of traffic patterns or inclement weather. Over the years, we'd been asked by manufacturers and retailers, to "pop over the hill" to Reno and help there. First we had to answer questions about the supply and demand. Did the market truly need us? To find out, I contacted hundreds of appliance manufacturers, dealers, retailers, new and used, as well as industry colleagues and introduced myself. I felt that strong, healthy relationships with our competitors would be a must. I called service businesses including electricians, plumbers, HVAC, and every home service company I could identify. The response during most of the conversations was, "Yes, we need help. When are you starting." The next challenge was the tax man. There are so many rules. Learning the regulations and local laws is a must, and it takes time to sort through the government policies. The local highway patrol was my next call, and they, too, wanted their T's crossed and I's dotted. More time, more energy, and no money coming in. Next was the DMV, possibly the most confusing and time-consuming part of running multiple vehicles. The next piece was understanding and implementing health benefits. At the time, Obamacare had tied our hands from offering our Nevada employees the same type of coverage as in California. Labor laws are different from state to state; and understanding and adhering to the state and municipal rules is a must. Not setting yourself up correctly could cost you money and time, if you're investigated or sued for incorrect operation. Next up was advertising. We hit the yellow pages and built an online presence, starting with web directories and social media that "think local," including Yelp, Facebook, and Google. We rented a warehouse and added the location to the online maps. We joined the chamber of commerce and Rotary groups and sponsored Little League, high school football, and cheer teams. After six hard months, we were ready to begin running service calls and start bringing in revenue to pay for all the expenses. That's when we made the biggest mistake of all. We had our technicians commute over the mountain for two- and three-day stints, and I was one of them. This quickly burned them out, and I had complaints from staff and customers alike. A Nevada customer called, but at the time I didn't fully digest the free advice she offered. She said that our employee who came in was fantastic, but that he was likely going to quit as he was being overworked. I was much too absorbed in building the business, and I couldn't see that I was tearing away the foundations, and that good people are the foundations. I took the call with a grain of salt but never forgot what she had said. Three weeks later, Mike, a fantastic technician, quit with a text: "I'm done, come and get your van, the key is in the cup holder." What a kick in the teeth! He wouldn't answer my calls, and wouldn't speak to me for two years. I failed him and the others who worked so hard to build the area. I lost more people over the next few months, not to mention customers who probably received bad service due to fatigue. I realized I had to hire local. I managed to convince my brother-in- law Alex to move to Reno to help. Having a loyal and strong leader in a new market was an important key. Someone who shares your values is not only a benefit but a necessity. We've now hired more than 15 great people in Reno and Carson City, and we're able to service the entire Lake Tahoe area as far as Fallon and Fernley. Alex came to us in January and said, "Guess what, I'm moving to Hawaii, and we're doing it again!" We spent the next months laying the foundations, and he hit the ground on July 7. Within three days he had a full schedule. He is interviewing local candidates and hopes to build the market. As for Mike, he eventually accepted my apology and is now back with the company. I made a commitment to everyone that I would never take them for granted again. Mike is working close to home and is a happy camper. Scott McConnell Lake Appliance Repair, Sacramento, California S E R V I C E D E P A R T M E N T RO GROWTH IN A NEW MARKET

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