Going All In!

 

I realize it has been a long while since my last blog. Work and life got very busy and the last thing I wanted to do was sit in front of a computer. The wine will be a 2011 Cabernet Sauvignon from DAGLIA Canyon. The music will be Kenny Rogers “The Gambler”. A little warning: This will be more documentarianish than sarcasm.

Well, I am buying a business. My last day of working for someone else was July 31st. The opportunity came up in May to buy the assets of a network cabling and network services business called “American Communications and Cabling” DBA AC&C. Since then I have been working through SBA financing, finding working capital and figuring how I am going to grow this business. The business has been around for 25 years and makes a very good bottom line. But it has not grown.

Why do I say All In? Because with a SBA loan you have everything tied up. They get the business, the house and even your life insurance tied up until the loan is paid off. So while others my age are starting to ease back and enjoy having the kids out of the house I am tying myself up for 10 years of debt. It is alright with me. I have always wanted to run my own show. My role has always been to help the owner or the CEO grow the business. With my recent job changes I realized it was going to be difficult for me to find a place I would be happy. You get spoiled with good bosses, partners and cultures. So now it will be me responsible for setting the tone.

So Why do it? Now you can say “Oh, he is just buying himself a job” which I might be. It hit me one day that as a CFO I would doing the exact same job if I left and went to another company. I would be worrying about inventory accuracy and cash flow with very little control of product direction or sales. I also looked around and see people older than me struggling to find finance and accounting jobs. So I want to control my destiny. This is not my first business I have looked at as I have reviewed over 20 companies in the past 5 years trying to find one to buy.

Why this One? Well, I helped buy it before. In 1999 when I was with NAVCO we bought AC&C. It was going to be a strategic move as the security world moved into the digital age. So I know the people, the product, the problems, etc. The owners of NAVCO are spinning it off so they can focus on security.

Am I the Right guy? Peter Lynch the investing guru once said “Buy a company an idiot can run because someday an idiot will be running it”. I am humble enough to know I might be that idiot. But I have helped companies grow. I know what a half body is in the middle of a state you need to be in because of your largest customer. I know sales cures all evils, you better watch your cash flow and you can’t cut expenses to grow. I like interacting with the customer. I am a collection of 30 years of working and life experience but I feel 35.

Is this the right Time? Well, after December I will be down to one kid in college. I was going to have to work to 70 anyway. At the same time, I could not have done this 5 years ago. I needed to work for the screaming, “passionate” aka angry, dishonest business owner. I needed to work for a dysfunctional run company with a hostile board. I needed to be unemployed so I was forced to go meet 500-1500 people.

So what is Next? Well, I am taking the same approach to job hunting I was taught to grow this company. Every day instead of “Who knows Jeff Kane” it is “Who knows AC&C Network Services?” and for “Who knows I am looking for a job?” is it “Who knows AC&C Network Services is looking for work or for an introduction?”

So what is my 90 second elevator speech? “AC&C Network Services has three main product lines. 1) Being the outsourced IT MAC (moves, adds and changes) department for large multi-site national customers. 2) Pulling cable for California based businesses that are moving or realigning their networks. 3) Providing IP phone systems and network consulting.”

Our tag line: “We Keep Your Lights Blinking”

How can You help? Well we need introductions to people that are connected with companies that are moving or upgrading their computer network or phone system. These would include:

CIOs
CFOs
Director of IT
Facilities managers
Commercial real estate brokers
Interior designers
Architecture firms
Construction Companies
Audio visual or Security companies in need of sub contractors

Thank you.