Focus on the Profitable
Tom Flaherty
Owner, Pro Cabinet Solutions, Inc. and Restoration Floorworks
www.procabinetsolutions.com
TAB member since 2006
On working with Blair Koch: "She takes an active role with her clients. She does a good job in a professional way of knowing about your business so that she can give you suggestions and ideas. She understands small business very well," says Flaherty.
The client: Tom Flaherty owns two small businesses in the Denver area – Pro Cabinet Solutions (updating cabinets in commercial properties) and Restoration Floorworks (refinishing hardwood floors). Flaherty's wife and son are involved in the businesses, he has five full-time employees, and uses subcontractors extensively.
The business challenge: Flaherty had several businesses when he first joined TAB. He wanted to consolidate and/or eliminate some business lines.
On considering TAB: Flaherty attended a TAB introductory workshop. "I was impressed with the people and the concept was good," says Flaherty. His only concerns were whether it made sense from a financial standpoint to join and whether he had the time to devote to the process. After about one year Flaherty says TAB pays for itself and that, "the time I've put in has definitely been worthwhile."
The TAB experience: Like many TAB members, Flaherty has found the diversity of business owners on his board to be very valuable. "When it comes down to it, as different as each business is, the challenges are the same," says Flaherty. He appreciates that the other board members can see his business from a fresh point of view. One example he refers to is that the advertising for his wood floor refinishing businesses used to tout that they applied water-based finishes. "I assumed customers would know what water-based finishes are," says Flaherty. After having this issue come up at a board meeting, Flaherty changed his marketing message to say that newly finished floors don't smell, dry in two hours, and are harder then oil-based finishes. "That was great," says Flaherty of a small change with the potential to make a big difference.
The results: The most significant change for Flaherty since joining TAB is that he closed one of his businesses. "I'd been struggling [with that business] for 5-6 years," he says. "TAB members were saying ‘you need to move on'. When I finally did that, it turned out to be a very good financial decision." Citing the 80/20 rule, Flaherty says he was spending way too much time on a business that wasn't doing well. Now, he can focus his energy on his two current companies.
In addition, Flaherty says that being in TAB has helped him pay attention to business details that he might not otherwise take time for such as budgeting, forecasting, and analyzing reports, "Key performance indicators, they call them," he says. "The benefit is that the health of the company becomes more evident. You start looking at things proactively rather than reactively." Flaherty also appreciates the TAB approach to setting goals in that the focus is on both business and personal goals and how the two are related.
