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Do IT this week: Layering
Area man finds second career by opening up a new business
By Jim Mackinnon
Beacon Journal business writer
Published on Monday, May 19, 2008
Jerry Van Vlack, at age 61, decided to start over and open a new business.
He is all about keeping his customers cool with the niche he settled upon: Selling vehicle radiators, air conditioner compressors and other specialized parts primarily to Akron- and Canton-area repair shops.
It can be a sweet deal for those customers — but more on that a bit later.
Van Vlack, who for decades had been an executive in the Akron-area rubber industry, decided to become a franchise owner with 1-800-Radiator, a California-based business that has spread throughout the U.S. and is moving into Canada. In telling his story, he had tips to pass on to other prospective small business startups.
Van Vlack, a Hudson resident, had been president of a small rubber company division that was put on the sales block. Van Vlack said he considered buying the company, but soon decided to look elsewhere. It helped that besides his background managing an automotive-related rubber company, he likes cars: He has owned a 1966 Triumph TR4A sports car since 1969 that he still takes on long trips.
''I looked at various franchises,'' Van Vlack said. ''I enjoy automotive.''
He did a lot of homework and ended up with 1-800 Radiator almost by accident.
In 2006, he went shopping for a radiator for his son's car.
''I talked with the gentleman who had the Cleveland (1-800 Radiator) franchise,'' Van Vlack said. ''One thing led to another.''
The end result: Last year he bought what became franchise number 183, setting up in a building at 1242 Brittain Road; 1-800-Radiator now has more than 300 franchises in the United States.
''It's a rapidly growing organization,'' Van Vlack said. While the store does a little bit of retail, most of the business goes to fulfilling orders from body shops, repair shops and dealerships in the franchise territory. It helps that people are delaying new car purchases and instead opting to repair their current vehicles.
''I service almost all of Northeast Ohio with the exception of Cleveland,'' Van Vlack said.
His particular warehouse holds about 800 radiators, 400
air conditioner condensers and a variety of other parts from numerous vendors, including major automotive suppliers Visteon, Delphi, Koyo and Valeo.
The intent is to get a part delivered in two hours or less, and back the part with a good warranty and genuine customer support, he said.
He does not install the parts.
Developing a plan
Van Vlack's homework involved more than just talking with the owner of the Cleveland franchise, however.
He developed a business plan using a $100 software program called Business Plan Pro. The money spent on the program was well worth it, he said. He also ran the plan by counselors at the Akron chapter of SCORE (Service Corps of Retired Executives).
A SCORE counselor told him that he was as well prepared as anybody who had come in for advice, Van Vlack said.
''We're ahead of the business plan that I put together,'' he said.
The company is breaking even financially and growing monthly, he said. He has invested more than $200,000 in the business using a combination of finances and his own funds.
His competition includes other automotive parts stores, parts suppliers and radiator shops.
''We fill a niche,'' Van Vlack said. ''I'm not here to put anybody out of business. I'm here to provide a service.''
He likes how the corporate parent provided support for its franchisers via a sophisticated point-of-sales computer system and backup service for telephone orders.
Besides marketing and advertising support, the company sent in a ''blitz'' team that contacted potential customers throughout Northeast Ohio the first month he opened.
Some surprises
Even with his careful planning and help from the parent company, Van Vlack said he has been surprised on some issues.
He overestimated some expenses and underestimated others, he found.
He recommends that prospective franchise owners thoroughly understand and stay on top of all of the employee and employer filing requirements for federal, state and local governments.
Potential franchise owners also need good legal and financial advice before they take the plunge, he said.
''I had good guidance from an accountant friend,'' Van Vlack said.
Franchise owners should not be afraid to negotiate with the franchiser, and the small business owner needs to make sure the franchiser lives up to its obligations, he said.
He had several minor issues with the parent company that were immediately and amicably resolved, he said.
A personal touch
Hiring the right people for a small business is also crucial, he said. His wife, Linda, works with him. He also brought in the husband and wife team of Jeff and Mary Albaugh — Jeff is his sales person, and Mary delivers the parts to customers.
Small business owners need to pay attention to big and small details in providing customer service, Van Vlack said.
He'll keep the business open late or make deliveries after regular hours to accommodate customers' needs, he said.
Businesses can find big and small ways to stand out from competitors, he said.
1-800 Radiator has its own little marketing gimmick — it includes a package of candy with each delivery. As a result, repeat customers now look forward to the treat as well as the main product, Van Vlack said.
''They go, thank you for the candy. Did you bring me a radiator, too?'' Mary Albaugh said. ''It's a wonderful marketing idea.''
Providing great customer service, quality products and a good price are all requirements for a small business, Van Vlack said.
''You need to focus on all three to have success,'' he said. ''You will always have competition.''
Money matters
Make sure you have the funds to succeed, too, he said.
''You have to have sufficient reserves,'' he said. That includes having three years' worth of assets so you can pay your own personal bills, he said.
''Don't expect to get wealthy immediately off the business,'' Van Vlack said.
Also be prepared to spend a lot of time involved in the business, he said.
''I think I'm working more hours than I ever was before. That doesn't bother me,'' Van Vlack, 62, said. ''Retirement was not in my planning. I like to work.''
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.
Jerry Van Vlack, at age 61, decided to start over and open a new business.
Get the full article here.
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