Looking For Solutions On The Verge Of Losing The Family Business
Construction
Looking for Solutions on the Verge of LOSING THE FAMILY BUSINESS CARNES CONTRACT FLOORS HAS SERVED THE ATLANTA FLOOR MARKET for three generations. With a sterling reputation for customer service, the future had always looked bright—until the 2008 recession struck. At that point,…
Looking for Solutions on the Verge of LOSING THE FAMILY BUSINESS
CARNES CONTRACT FLOORS HAS SERVED THE ATLANTA FLOOR MARKET for three generations. With a sterling reputation for customer service, the future had always looked bright—until the 2008 recession struck.
At that point, TAB Member Shane Carnes recalls, “We were on the verge of losing the family business.” Over the past thirty years, Shane and his brothers have built Carnes Contract Floors into one of the top commercial flooring companies in the U.S., with annual sales in excess of $10 million.
The firm has completed projects for a wide range of clients, including Coca Cola North Avenue, Bell South Tower and GA Pacific Tower. It continues to do all types of commercial flooring and tile projects, primarily in the fields of healthcare, government and office space. ESCAPING THE TRAP OF TUNNEL VISION
At the same time, Shane realized his insular business could benefit from the perspectives of other business leaders.
“When you have a family business that UNPREPARED goes back as far as Carnes Contract Floors, FOR THE DOWNTURN you tend to develop tunnel vision—always “Things were going very well for us for several years,” trying to solve problems the same way, Shane recalls, “but we were completely unprepared always doing things in a particular manner. for the economic downturn. In an effort to stay Part of what propelled me to join TAB afloat, we eventually depleted nearly all of our available cash reserves.” was the realization that what I was doing wasn’t working.” Carnes Contract Floors was at a point where its leaders relied on collections every week to maintain With the financials in place, Shane next set about cash flow—paying bills out of their receivables with cleaning house. With guidance and advice from his no cash reserves to fall back on. TAB Board, he focused on a range of activities to make the company more competitive. This included Further complicating matters, as a result of these a comprehensive upgrade of systems software, cash flow problems the commercial flooring modernizing warehouse operations and putting an company was severely hampered in its efforts to end to inefficient bookkeeping. generate new business opportunities. As a result, Carnes Contract Floors has quadrupled Shane looks back on this period as one of sales and invested in a youthful, high-energy “unrelenting pressure and stress,” fueled by fears he workforce. “We’ve gone from what I frankly admit might actually lose the cherished family business. was a mess to becoming a lean and profitable business,” he proudly concludes. TAKING A LEAP OF FAITH GIVING BACK TO OTHERS In 2011, he came in contact with TAB Facilitator Buddy Hull. Shane had heard about TAB in the These days, Shane welcomes the opportunity to past, but was skeptical about joining, doubtful the “give back” to other TAB Members. organization “could help us pull out of the position we were in.” “What I offer is empathy,” he says. “I know what it’s like to have a business that’s teetering on the edge But talking to Buddy “gave me hope,” he recalls. “I of insolvency and struggling to survive day after day. decided the time was right for taking a leap of faith.” I also know that if we could get through the tough times and emerge as a stronger business, others The most pressing initial challenge was coming up can do it, too.” with new ways of funding the family business. Shane strongly believes that there’s a need for TAB “Buddy and the TAB Board got us in front of for every stage in a company’s growth. “For me, the contacts offering alternate means of financing. We first priority was survival. Next up was getting rid signed an asset-based loan agreement, which was of inefficiencies and streamlining operations. After perfect for our business because the costs are so that, I could focus on growth.” heavy up-front.” There’s one more stage where TAB can help, he Soon the company got its line of credit re-established adds. “I have a clear personal vision about my and stabilized the cash flow situation. “After that, future, which before joining TAB I thought was we were free to pursue new business opportunities unattainable. Now I see that vision can happen and rather than just treading water all the time.” maybe sooner than I ever imagined.”
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Source: The Alternative Board