Forums: Discussions for entrepreneurs and small business.

I am writing for my father`s company today.  We have had a family business for around 13 years called Universal Sports Lighting Mfg., Inc.  Until 9/11 we were very succesfull and were ready to take on anything, however for the next two years or so, the government backed off of funding for schools and other government contract jobs which really hurt us, due to most of our jobs are for schools or city complex type fields.  We have never been able to get back to where we need to be financially because throughout this time we had to borrow more money and seek whatever our banks could do for us.  This has been a huge problem because now we are usually trying to play catch up most of the time.

My question for everyone here is, where do you look for individuals to invest in your company when your amount of jobs and business hasn`t changed, but you can`t get back to even to start over.  We have a full job list and we are a worldwide company that is not going anywhere, we only have a couple of competitors who split about as many jobs as we do.  Our website is www.uslnet.com.  We have done parks such as US Cellular Field(Whitesox), Tropicana Field (formerly Enron Field, Astros), all lighting for the winter Olympics when they were in the states, and we have recently in the last ear developed our own Universal Sports Lighting light fixture for sports fields and it is taking the industry by storm.

We just need some help to get caught up, we are not looking for any long term investors, only those interested in being paid back quickly.  Thanks everyone in advance.

-------------------------

Trent Rousey
President - 3R Products, Inc.

Wouldn`t it be better to temporarily reduce your costs, work hard to increase your sales, and use the added revenues to get caught up? Rather than give away equity in a family-owned business?

Here`s what I`m seeing generally: Let`s say that you have a corner on the market, selling Things. For years and years, nobody`s been able to replicate that Thing. (Sort of like oil.)

Then, at last, one day someone comes along and either synthesizes that Thing, or invents a different Thing. From that point forward, your company starts losing profits (sales). BUT!!...Are you really losing.....profits?

Just because computers used to sell for $2,000 a box, and now sell for $500, does that mean those original companies are losing profits? Are they trying to go back in time and get caught up, hoping upon hope that someday people will go back to spending $2,000 a crack? If they are, they soon go out of business.

Business strategy should always be forward looking, starting with the present. Not based on the past. Strategies *evolve.* they don`t stay static (unless they`re government spending strategies).

A Thing is only worth what that market will pay for it. So back when schools had lots of free money, never having to finance themselves, they spent some of it on your product. But if you hold that ONLY schools (gov`t funded ones) are your buyers, then you`re saying, "We are a government subsidized business."

In that light, your proposed plan of action is to continue in business as a government-subsidized operation, hoping the Benevolent Government will some day return to the level of spending of the past.

Instead, why not start trying to build customers out of *privately* funded schools? If you have a true product, that actually provides real value, I think you should try to get out from under your shield of government subsidies (i.e., contracts).

Well said, Craig. 

I would add that a "proactive" and "well thought out" SWOT analysis would have predicted those external threats that were on the horizon back then but now have placed the business in a "reactive" state. 

Thanks for the compliment. :-) But....what`s a SWOT analysis?

SWOT Strengths, weaknesses, opportunities and threats.

Strengths and weaknesses are "internal" or about the company.  AND a strength is something that a competitor can not duplicate very easily.

Opportunties and threats are "external" to the company.  What`s happening to the economy, the industry we`re in, etc.  Threat would have been the story above.  Opportunites are new ways to overcome, new markets to venture into to make up for lost market share, etc.

Great....thanks. :-)

I just read a great quote from long ago (noting your Roosevelt):

Trent,

Sorry for not responding sooner - but I just read your post. 

Maybe I mis-read your post, but I got some mixed messages from it.

1.  Do you want to restructure the company finances?
2. Are you moving in a new direction with your light fixture and need funds to exploit the initial momentum?
3. Do you need to "restart" the business and get back on a growth pattern?

 I think any of these directions are possible.

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Yea I did not understand what you were asking either.

-------------------------

china business card / Wall Street Journal Reader

HI all,

I`m working on getting my invention turned into a prototype (patent pending). My product is geared towards the youth market and compliments an already popular product in the market. So I`m wondering should I get a few prototypes made and do a tradeshow where potential retail buyers attend so i can potentially get orders to offset the manufacturing cost or should I just launch. I`m thinking of opening a kiosk at our local mall and online. Has anyone done this?

Any advice will be much appreciated.

:)