Patricia Granum is the President and CEO of Co-Operations, Inc. Along with her husband and two friends, Pat founded Co-Operations in 1993. Co-Operations provides third-party logistics and full-service outsourcing services to a large array of local and national accounts. The company warehouses, assembles products, builds web stores, provides call center services for its customers and on a daily basis ships literature and products for their customers to end-users around the globe. Pat tells us how she got into the business:
What inspired you to start your business?
My situation is rather unique. I did not have the entrepreneurial bug or anything remotely close. However; I was an investor is a small business that was having significant financial problems. As I watched this company spiral out of control; I realized that personal guarantees existed on leases which would obligate my husband and I long after the company was dissolved. It was no longer possible to be a spectator but rather one of us had to commit to run the company. That honor was mine which I reluctantly accepted in November, 1999 - with the understanding I would run the company for three years - period. Those three years are long past. Since then we have built our own building and are committed to enjoying the many years of positive growth and enjoyment this company can provide.
What steps do you think are necessary for an entrepreneur who wants to move her business to the next level?
I think it is critical to understand why you want to move it to the next level. Possible reasons include: driving more revenue; looking more favorable to investors; taking your product line in a different direction; opening up more locations, attracting a different type of client, etc. All are valid reasons of taking it to the next level; however the manner in which you implement change to drive these results can be significantly different. As an example; acquisition of another company could be a perfect way to expand your geographic presence. Restructuring your pricing model could be a great way to drive revenue, etc. It is critical to have clarity of what a company is trying to achieve before a company should talk about taking a company to the next level. Once that is done; then it is all about the people you hire. They will be able to execute on the vision.
Since starting your business, what changes have you seen in your industry?
My company is in the 3PL business which involves managing other people's inventory and shipping products globally based on orders we receive from the customers. We are also located on the West coast. We have many more customers today that are bringing in product from Asia and leaving it on the west coast where it gets broken down and shipped to client warehouses as they need it. Clients are aware of the high cost of shipping and they would rather minimize those costs by touching it a little as possible. Many more companies are carrying less inventory and as a result have gotten rid of their warehouses. Many of our customers are ordering from the China factories only what is presold. Using an outsourced solution like my industry allows clients to incur the warehousing costs as they need the services; rather than year around. As well; customers want to have as few employees as possible; so we have begun to complement their needs with call center support; accounting (issues invoices); and other very specific business services. All this is certainly more than just shipping boxes.
If applicable, what is it like to run a woman-owned business in a predominately male industry? Challenges? Advice?
Well you don't find a more male dominate industry than warehousing and logistics. I frankly don't think about the challenges. My advice to anyone is to really know the space/industry you are in. If you are able to garner respect because others know you know what you are talking about and you deal fairly and ethically with others; this should serve you well. Remember we all have choices as to who we want to do business with. We have fired clients and once done; we never look back.
What techniques do you use to keep employees motivated?
Frankly it has been tough to stay motivated in this economic climate but communication is key. We share financial information and other key information with our employees. By seeing where we have been and where we are going; this helps to put the big picture into perspective. We are very open with our employees. Building trust with employees is critical toward everyone working to the same goal.
What were your main sources of startup capital?
Our own personal assets and borrowing against assets that were in the company.
Co-Operations Inc is a Member of the Women Presidents' Organization. The WPO is the global peer advisory organization connecting top women entrepreneurs who own multi-million dollar companies.