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I n 1989, George Carson began making cabinets for friends in his basement.

Riverside Manufacturing. I n 1989, George Carson began making cabinets for friends in his basement. H is costs were low. So were his prices. There was no overhead . W ord spread. Business flooded in . G eorge dropped his day job to make Riverside Manufacturing a real business.

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I n 1989, George Carson began making cabinets for friends in his basement.

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  1. Riverside Manufacturing In 1989, George Carson began making cabinets for friends in his basement. His costs were low.So were his prices. There was no overhead. Word spread. Business flooded in. George dropped his day job to make Riverside Manufacturing a real business. He hired a helper and moved to rented space. George had a micro business!

  2. Riverside Manufacturing The employees: • Produced & installed the cabinets • Made sales calls • Resolved customer issues • Shipped product • Handled administrative tasks Overhead remained low– there were no managers. “We have good people. We just get it done.” -George Carson Before George knew it, Riverside Manufacturing grew to 40 employees!

  3. Riverside Manufacturing George was a “hands on” owner. He: • Made every important decision. • Managed all employees. • Knew the intricate details of the business. • Didn’t need metrics, reports or documented processes. But, with all the work, George was stretched thin.

  4. Riverside Manufacturing Vacations were scarce and time off was at a premium. George worked 75 hours per week and didn’t see much of his family. Worse, business began to stagnate: George was at a loss. What happened to his growing business? • Sales growth stopped • Profits evaporated • The shop and inventory became unorganized • Work was always behind • The lack of processes led to constant fire drills • There were never enough hours in the day or days in the week!

  5. What Happened? Riverside was growing. Profits were good. Then… Things began to go wrong. George wouldn’t let go. He was drowning. He couldn’t keep up with the work. The business was suffering. Without knowing it, George was the constraint to growth!

  6. What we learned … Micro Business Do the primary work Make tactical decisions Develop strategy

  7. What we learned … Small Business Do the primary work Make tactical decisions Get the right workers in the right jobs Develop strategy Manage the workers

  8. What we learned … Midsize Business Make tactical decisions Get the right managers Develop strategy Get the right workers in the right jobs Documented process Manage the workers Robust metrics

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