Meet the Boss

In 1986, Paul Downs started Paul Downs Cabinetmakers, a company crafting tailor-made conference tables in Bridgeport, Pennsylvania. At first, it was all about design, woodworking, and selling. But as the business grew, so did its complexity. In 1987, he began hiring employees, and suddenly he had to pick up skills in HR, finance, and operations on the fly. He confesses, œI™m no business genius. While he managed to keep the company growing steadily for twenty years, the 2008 recession hit hard. By 2009, the business was on the brink of collapse.

In 2010, Downs began with $16,239 in the bank, just enough to keep the business running for three days. However, things turned around as new orders poured in. Downs was able to rehire laid-off workers and restore their salaries. By the end of 2011, the company had its highest cash reserves ever and a backlog of orders lasting two months. Hoping to replicate this success in 2012, Downs faced new hurdles. One major concern was a sudden slowdown in customer inquiries. Without understanding the cause, he feared he wouldn't be able to develop a plan to address it.

First Quarter, 2012

At the beginning of 2012, Paul Downs Cabinetmakers had $137,154.32 in the bank and a team of 13 workers. Among them were nine craft workers, an administrative assistant, two salespeople, an engineer, a part-time bookkeeper, and one temporary worker. However, without any new orders, the company struggled to cover its day-to-day expenses. Paul Downs estimated that just running the shop costs around $9,000 a day.

In 2010, Downs gave Nick Rothman, one of his craft workers, a shot at sales. The next year, he brought in Dan Smolen as another salesman. Downs set a target: of $200,000 in contracts and orders monthly to keep the business afloat in 2012. Nick did well, but Dan struggled. By the end of the first month, they were close, with $193,602 in new orders, mostly from Nick. They had to keep this up in February, but the firm only had cash for 16 more days.

Back then, most people who visited Downs™s website found it through Google searches. Since 2004, Downs has been using Google AdWords alongside Google™s regular search results. He purchased search terms like "boardroom tables" or "modular tables." Whenever someone searched for those terms, an ad for Downs™s shop would pop up at the top of the results. He was investing $450 every day in AdWords to make it happen.

Expand Business Horizons

Downs mainly sold products to customers in the United States and Canada. When he got a message from a furniture seller in Kuwait, his assistant, Emma Watson, had a bright idea. She suggested reaching out to representatives of the US Department of Commerce in Kuwait to explore new business opportunities in the Middle East. Following Emma's advice, Downs enrolled in a Commerce Department initiative that would link him with merchants in cities across the Middle East.

Downs also sought to establish a partnership with European, a German furniture manufacturer looking to expand into the United States. The German company placed several orders, and its representative, Nigel, indicated that the orders could total around $250,000 in 2012 and potentially reach $1 million in 2013. He also requested that Downs design a table for Eurofurn's showroom in New York.

Downs pursued a variety of strategic objectives, such as boosting sales, negotiating deals, and addressing customer needs. As the boss, he dealt with every unexpected issue, big or small. This included tasks like hiring and firing employees, chasing payments from customers, and progressing through the complexities of taxes and health insurance.

Dealing with Employee Misconduct

Firing is tough for Downs. He once confronted an employee cheating on timesheets, ending in tears and pleas for forgiveness. Despite wanting to give it another chance, Downs couldn't overlook theft's message. Discussing with foreman Steve, he learned Maturin knew but did nothing. Tough decisions uphold integrity, even when it's difficult. Downs faced issues with Maturin over time. Maturin was skilled at his job but not very talkative. He didn't take the lead in making things better.

Downs found it tough to reward his top employees. His company didn't offer many chances for advancement, which led to a lack of motivation among workers. They rarely shared ideas for solving problems or improving work. Downs felt especially annoyed because he couldn't promote an excellent worker named Will Krieger. Will had great ideas to make operations smoother, but the boss needed someone to guide him.

Second Quarter, 2012

Downs realized he lacked mentors to guide him in his business journey. In late 2011, he joined a group of business peers hoping to find support. One member, a staircase manufacturer, recommended consulting a specialist who had successfully doubled his sales. Downs, struggling with his own sales figures, decided to explore this option. Unfortunately, by the second quarter of 2012, Downs faced a significant slump. Inquiries about his products became sporadic in April and completely dried up by May. Although Google data indicated high interest in his products with thousands of searches, these inquiries didn't translate into actual sales. Determined to understand the discrepancy, Downs delved into analyzing Google's data.

Downs consulted with Bob Waks, a specialist, who suggested that Downs and his two salesmen, Rothman and Smolen, undergo aptitude tests to assess their sales skills. The results were disappointing. Rothman and Smolen made errors in closing deals, and Downs was ineffective as a sales manager. Waks visited the shop to observe the sales team in action. He informed Downs that they had "made just about every mistake in the book."

Enhance  Customer Interaction

At the end of every interaction with a customer, they decided to make sure they set up a plan to meet again. Downs and his team were surprised they hadn't thought of this before. So, Downs, Rothman, and Smolen decided to take a 10-week sales course. Watson also joined them for consulting sessions twice a month.

The Commerce Department hooked Downs up with contacts in the Middle East. In June, he jetted off to Dubai and Kuwait City to meet with local business folks. In Kuwait City, he landed a potential gig: making a big table for an oil company's fancy meeting room.

In April, Downs visited Eurofurn's HQ in Germany, aiming to finalize a deal. Despite challenges, Eurofurn requested a custom table design for their New York showroom. In May, Downs crafted sketches and a 3D model, approved by Nigel. The table was built in June, but Nigel halted shipment, demanding a redo. Despite frustration, Downs agreed to ensure the deal's success.

Break Through the Drought

As the drought in inquiries persisted, the company's finances began to dwindle. Downs, the head of the business, shared with his team the grim reality: without a turnaround, they might not survive. To boost their chances, he decided to increase the daily AdWords budget. Google responded by providing more visibility, yet the inquiries remained elusive.

Then, in July, a breakthrough occurred. For the first time since February, the team managed to meet their sales target.

Third Quarter, 2012

In the third quarter of 2012, Downs thought he had finally cracked the Google mystery. When he tried searching for himself, he noticed something interesting. Every time he searched for "modular tables," an ad for Paul Downs' modular tables popped up. But when he searched for "boardroom tables," he only saw the boardroom ad in the morning, not in the afternoon. It turns out, that decision-makers, like executives, tend to use the term "boardroom table" more often, especially in the afternoon.

Despite high interest in "modular tables," the lack of clicks disappointed Downs but benefited Google due to increased ad exposure. To adapt, Downs revised his ad strategy, allocating separate budgets for crucial search terms. Consequently, less popular ads were replaced with those garnering more attention, albeit consuming Downs's daily ad budget. This adjustment ensured better control over ad spending and maintained visibility until individual budgets were exhausted.

The sales team started going to sales classes. Each class taught them about a different thing they needed to know to sell better. They learned various concepts during these sessions.

• Customer's Requirements: Customers buy things to solve their problems or satisfy their needs, also known as their "pain." It's crucial to figure out what each customer's specific pain points are. Different people within a company have different concerns. For example, the boss might be worried about closing deals, while an assistant might want to impress the boss.
• Persistence Pays Off: Successful salespeople need to be tough and keep going even when they face rejection. One trick is to stay motivated by picturing things you want, like cars or vacations. But if those things don't motivate you, find what does “ like not worrying about money.
• œUnpaid Consulting: It's essential not to give away all your best ideas for free. Sometimes clients can use this information against you or give it to your competitors. Downs, Rothman, and Smolen learned this lesson the hard way.
• The œUp-Front Contract: Before diving into your sales pitch, explain to clients what you plan to cover in the meeting. Ask if they're okay with your plan or if they want to talk about something else. This helps you refine your pitch and get to the point quickly, addressing any concerns the client might have.
• œBonding and Rapport: Make a œhuman connection  with your clients by engaging in small talk and bonding. While Downs preferred to let his work speak for itself, building rapport helps both the client and the seller focus on getting the deal done.

In September, the interior designer for the Kuwait City oil company project reached out for info and pricing on a conference table. They also asked for a "finish sample" of the wood. Making and sending the sample was a bit of a hassle, but Downs figured it was worth it. He sent over images and a price quote. During that month, the sales team scored $220,361 in new orders, boosting their year-to-date total to $1,431,583.

When Krieger asked for a raise, Downs made him operations manager. Now, Krieger's in charge of Maturin, the foreman. Downs hopes this move will help fix Maturin's issues.

Fourth Quarter, 2012

In October of 2012, Downs suddenly realized he had forgotten to send the sample to Dubai. He quickly emailed to check if the company still needed it. Unfortunately, he never got a response.

Sales were strong in the autumn. In November, Downs received an order from Eurofurn, a company that hadn't placed an order since June. Downs figured out that Eurofurn's orders for the entire year added up to only $47,846. He estimated that his company had spent more than 100 hours building the relationship with Eurofurn, but hadn't gained much from it. Although sales typically slowed down during Thanksgiving week, the team managed to bring in $38,953 in new orders. By the end of the year, the company had made total sales of $2,102,261, enough to give modest bonuses to the team.

Downs and Krieger started an "Operations Committee," bringing together reps from all departments, like sales and shipping, to talk about problems and find solutions for the whole business process. In 2013, Paul Downs Cabinetmakers began with $178,948 in cash “ nearly $42,000 more than the previous January.