Will Sampson talks about the challenge of investing in your business and discusses a new report from Wurth Baer that explores how woodworking businesses invest in machinery. John Geraghty, CEO at Wurth Baer Supply, Mark Craig, National Machinery Division Director at Wurth Baer Supply, and Taylor Shafer, Search Engine Optimization & Digital Advertising Manager at Wurth Baer Supply. Wurth Baer is a major distributor of machinery and supplies to the woodworking industry in North America.
This episode of the Woodworking Network podcast was sponsored by FDMC magazine. FDMC magazine is your vital source of information to improve your woodworking business. Whether it is keeping you apprised of the latest advances in manufacturing, helping you solve your wood technology problems with Gene Wengert, or inspiring you with case histories about successful businesses and best practices, FDMC magazine is there to be the sharpest business tool in your shop. Learn more and subscribe for free at woodworkingnetwork.com/fdmc.
Woodworking Network is a home for professional woodworkers, presenting technology, supplies, education, inspiration, and community, from small business entrepreneurs to corporate managers at large automated plants.
You can find all of our podcasts at WoodworkingNetwork.com/podcasts and in popular podcast channels. Be sure to subscribe so you don’t miss an episode. Thanks again to today’s sponsor, FDMC. If you have a comment or topic you’d like us to explore, contact me at will.sampson@woodworkingnetwork.com. And we would really appreciate it if you fill out the survey at woodworking network.com/podcast-survey. Thanks for listening.
Intro music courtesy of Anthony Monson.
Intro:
Welcome to this episode of the Woodworking Network Podcast. Join us as we explore the business of woodworking big and small and what it takes to succeed. I’m Will Sampson.
Today’s episode is sponsored by FDMC magazine. Today my guests are John Geraghty, CEO at Wurth Baer Supply, Mark Craig, National Machinery Division Director at Wurth Baer Supply, and Taylor Shafer, Search Engine Optimization & Digital Advertising Manager at Wurth Baer Supply. They have information from a fascinating study of trends in woodworking industry investment and equipment budgets. But first I want to talk about:
Risks vs. rewards
In almost every financial or investment report there is the standard Securities and Exchange Commission disclaimer that typically goes, “Past performance is no guarantee of future results." Said another way, you can’t expect success by doing what might have worked in the past. Or more simply, “There’s no guarantee of success in business.”
No truer words were spoken.
Business is always a gamble, and the odds often are not in your favor. But those of us who have started more than one business usually keep doing it. Each new venture offers new challenges and opportunities, as well as new ways that things could go sideways. It takes a certain appetite for risk to even try.
So, it’s no surprise that when the economy sours or is overcome with mixed messages, business people frequently slow their efforts. As conservative as the woodworking industry tends to be, lots of companies, in good times and bad, stick to what they think are tried and true methods that worked in the past. “It’s the way we’ve always done it,” they say. But what if that is not working anymore?
The typical response is to rein in new efforts and focus on cutting costs to shore up the bottom line. Weather the storm and save investments for a better day. But I’ve never heard of any company that succeeded by cutting its way to the top. In fact, if they can stomach the risk, a downturn might be exactly the right time to get ahead.
Some of the greatest business success stories of all time started that way. General Electric, General Motors, IBM, Hewlett-Packard, and Microsoft all started in recessions or depressions. More recently, Airbnb, Slack, Venmo, and Uber all started in the Great Recession of 2007-2009.
From a purely tactical standpoint, downturns are a great opportunity to capture more market share from your competitors. While they are slowing down, you speed up and pass them, or at the very least, you tool up in the downturn to be ready to step on the gas as soon as things begin to improve.
Of course, that’s easier said than done. Financing is tougher to get in a downturn. You have to be creative and driven, and you need to be ruthless in examining the potential risks and rewards. You need to build a team that is not focused on the rearview mirror and is open to learning new ways. You need to focus on finding products you can make profitably that customers really want.
And you need to ask yourself what you are really willing to do to break out of the pack for success. It won’t come looking for you while you are standing still.
I want to get to our interview with the folks from Wurth Baer, but first a word from our sponsor.
FDMC magazine is your vital source of information to improve your woodworking business. Whether it is keeping you apprised of the latest advances in manufacturing, helping you improve efficiency with lean manufacturing guru Brad Cairns, or inspiring you with case histories about successful businesses and best practices, FDMC magazine is there to be the sharpest business tool in your shop. Learn more and subscribe for free at woodworkingnetwork.com/fdmc.
Now, let’s talk equipment investing.
Today, my guests are John Geraghty, CEO at Wurth Baer Supply, Mark Craig, National Machinery Division Director at Wurth Baer Supply, and Taylor Shafer, Search Engine Optimization & Digital Advertising Manager at Wurth Baer Supply. They have information from a fascinating study of trends in woodworking industry investment and equipment budgets, that I want to discuss with them.