SEPTEMBER 2020
INSID E 17 ESSENTIALS FOR BUILDING STRONG BUSINESS RELATIONSHIPS P.8 FIXING THE LEAKS P.16 STREET SWEEPING BROOM: TUBE BROOM P.18
SUCCESSION PLANNING P.22
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SEPTEMBER 2020 | VOLUME 15 | ISSUE 9
CONTENTS
Introducing...
The Starfire S-4c Simply Adding to a Time-Proven Sweeper. Choose the S-4c for the following enhancements:
F E AT U R E S 8
17 Essentials for Building Strong Business Relationships
16 Fixing the Leaks: Patching Little Problems Can Make a Big Difference to Your Company 18 Street Sweeping Broom: Tube Broom 22 3 Steps Business Owners Should Take Prior to Succession Planning
• • • •
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26 Pacific Sweeping, Industry Leader in Southern California 34 Index of Advertisers/Classifieds CEO & PUBLISHER Gideon W. Smith
CREATIVE DIRECTOR Melissa Kennelly
SENIOR EDITOR Katherine Nolan
EDITORIAL MANAGER Heidi Karpinich
ADVERTISING Tracy Rodean
CIRCULATION Noah Aiden
Phoenix Global Media Inc. P.O. Box 235, Stockton New Jersey 08559 866-418-4400 phone 973-532-0319 fax sales@nasweeper.com North American Sweeper Magazine is published by Phoenix Global Media Inc. Copyright 2020 by Phoenix Global Media Inc. All rights reserved.
SUBSCRIPTIONS $15.00 per year, or by eligible request. POSTMASTER: Please send changes to North American Sweeper Magazine P.O. Box 235, Stockton New Jersey 08559
Opinions expressed in editorial submissions contributed to North American Sweeper Magazine are those of the individual authors exclusively and do not necessarily reflect the opinions of North American Sweeper Magazine, its staff, its advertisers, or its readership. North American Sweeper Magazine assumes no liability or responsibility toward independently contributed editorial submissions or any typographical errors, mistakes, misprints, or missing information within advertising copy.
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S E P T E M B E R 2 0 2 0 N O R T H A M E R I C AN SWEEPER 7
BUSINESS CORNER
17 ESSENTIALS FOR
I N D U S T RY N E W S
BUILDING STRONG
BUSINESS RELATIONSHIPS
A S S O C I AT I O N I N S I D E R
Having a network of strong business relationships is essential for a healthy, agile enterprise. Every business needs to build relationships with people across the whole
SPOTLIGHT
INDEX
range of prospective business contacts, including customers, workers, investors, vendors, peer operators, other kinds of companies in the community, government representatives, and others. Fortunately, for business leaders looking to build strong relationships, their power sweeping enterprises need, the necessary basic business relationship-building skills listed below can be learned.
I
f the importance of good business relationships
time. There are some recognizable characteristics
needs further emphasis, consider that research
of good, sustainable business relationships:
by Harvard University, in conjunction with the
n Mutual Respect — Both parties value each
Stanford Research Center and the Carnegie
other’s ideas, wisdom, and input. You can work
Foundation has concluded that around 85% of
together effectively to determine creative
success in business appears to be due to people
solutions based on your combined insights.
skills. (See the Additional Resources section
n Mutual Trust — You work together well
below for the research link.) So, let’s look at what
because you can communicate openly and
good business relationships look like, and how
honestly share your thoughts, and energy
to go about building those for your commercial
is not wasted worrying about the other’s
pavement sweeping company.
trustworthiness.
WHAT ARE THE SIGNS OF A GOOD BUSINESS RELATIONSHIP?
n Mutual Care — Both of you take responsibility for your actions and words. You’re both careful
A business relationship is an involvement that
with your comments and avoid letting negative
should be mutually beneficial to the parties over
emotions from impacting one another.
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n Mutual Openness — You communicate with each
you know that is most likely to be able and willing
other freely, and you prioritize building a stronger
to help them. Build your relationships with people
relationship by consistently offering each other
whom you can expect to do the same for you.
open and frank discussion.
2. DEVELOP YOUR EMOTIONAL
n Mutual Receptivity — You are both open to
INTELLIGENCE (EI).
opinions that differ from your own. You take time
Take time to do some reading on EI, the ability to
to listen to each other and carefully consider what
identify and understand what emotions (your own
the other says in making the relevant decisions.
and others’) are communicating to you. Increasing your EI enables you to recognize the emotional and
17 WAYS TO BUILD STRONG BUSINESS RELATIONSHIPS
other factors that shape their thinking, including their deeply held values, desires,
Fortunately, mere willingness to meet new people and engage in reciprocally helpful relationships with them is all you need to launch your process of business
and concerns, and it helps you
Especially for your
find common ground on which
employees, helping
to build relationships.
them feel supported is
In addition to understanding
essential for building
relationship building. Of
3. DEVELOP EMPATHY. the emotional drivers of other
mutually beneficial
people (as discussed above in
course, there are some
long-term working
#2 on EI), you need the ability
basic soft skills, listed
relationships.
to understand the challenges
below, which you’ll need
they face, to appreciate their
to help you successfully
positions and situations as
form and sustain lasting
you strive to develop mutually
relationships with your new contacts. Here are 17 ways to make the most of your
helpful relationships with them. Especially for your employees, helping them feel supported is essential
opportunities to establish and cultivate mutually
for building mutually beneficial long-term working
beneficial internal and external business relationships
relationships.
for your commercial power sweeping service:
4. RECOGNIZE YOUR NEEDS IN THE
1. FOSTER RECIPROCITY.
RELATIONSHIP.
All good relationships are balanced in give-and-take.
Clearly define your pavement maintenance company’s
Helping others get what they need and want nurtures
need(s) in the business relationship you want to
people’s will to be helpful too. So, nurture reciprocity
establish. Likewise, do you understand what the other
in information sharing, providing resources, and other
person needs from you? These needs should be as
kinds of help. For example, when someone tells you
well defined as possible, to build the most mutually
about a challenge they’re facing, try to think of who
productive and beneficial relationship possible. continued on page 10
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S E P T E M B E R 2 0 2 0 N O R T H A M E R I C AN SWEEPER 9
BUSINESS CORNER
5. ASK STRAIGHTFORWARDLY
mutually beneficial relationships. Be selective in
FOR WHAT YOU WANT.
choosing prospective relationships in which you and
Overcome shyness about asking clearly for what you
your new contact can add the most value to one
want, to avoid leaving people stuck guessing. For
another’s businesses.
I N D U S T RY N E W S
example, it may feel too difficult to ask for funding. But, obscuring your actual need makes communications
7. REACH OUT TO COLLABORATE ON A BIG SOLUTION TOGETHER.
even more awkward, especially if the response is insufficient and you find yourself having to ask again, more directly, to get what you need.
6. REVIEW AND RESHAPE YOUR BUSINESS CONTACTS S PNETWORK. OTLIGHT
Collaboration is an organic
Routinely evaluate relationship-builder. When A S S O C I AT I O N I N Semerge, I D E Rcall together challenges potential new business relationships that are important for the future success of your business
key people on your team to
collaborate on developing and aligning a set of objectives and then on brainstorming potential solutions. Leverage
INDEX
the experience and unique
Routinely evaluate potential new business relationships
perspectives of participants, and develop new
that are important for the future success of your
processes, new product ideas, new policies, or another
business, and create straightforward outreach plans
relevant new way of operating to benefit customers,
for establishing these new connections and building
workers, investors, and other stakeholders.
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8. NURTURE KEY RELATIONSHIPS. Spend sufficient time on your most important business relationships, including your best customers, highestperforming employees, local business operators, and other community leaders who can make the biggest positive impacts for your company. Don’t let yourself and others get stuck in irrelevant chit chat and ego-boosting.
It takes focus to listen at a deeper level and ask questions that reflect that greater level of interest in what someone else has to say
Focus largely on ways to cultivate mutually beneficial relationships.
9. EXPAND YOUR EXTERNAL NETWORK. Leave the office, and meet people you with whom you need to make new business connections. Introduce yourself. Offer to help when needed. This is the first step in building a relationship with each new customer, supplier, local competitor, remote peer sweeping business, and other relevant persons (perhaps in local government, media, etc.) whom you’ve contacted.
10. PRACTICE ACTIVE LISTENING. People respond best to someone who is truly listening to them. That’s why every business leadership article and
with other business leaders who share your social and/or environmental concerns by collaborating on initiatives brings opportunities to work together toward solutions and engages you and your collaborator(s) as co-advocates. It’s an ideal way to help your community and build important business relationships too.
13. DON’T EXPECT THINGS TO STAY THE SAME FOREVER.
Do not prioritize consistency over innovation, when a strong opportunity for the latter presents itself. If continued on page 12
formal course emphasizes active listening as one of the top requirements for success, even though they need to listen seems obvious enough. But, it’s not a natural skill. It takes focus to listen at a deeper level and ask questions that reflect that greater level of interest in what someone else has to say. So, work on your listening skills until you find you’re listening as much or more than you’re talking.
11. SPEAK IN POSITIVE TERMS. Being a positive person helps strengthen business relationships. People are not inspired by chronic negativity. For example, don’t engage in gossiping (saying negative things about other people). It causes people to mistrust you and damages your reputation. Instead, work to resolve conflicts directly, by speaking to the involved parties personally about issues.
12. LET YOUR BRAND STAND FOR SOMETHING MORE.
It’s great that your brand stands for commercial power sweeping service quality. But your good name can represent more in the world. Building relationships
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SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 11
BUSINESS CORNER
you discover a possibility that you believe could help
Iadvance NDUS T Rbusiness, Y N Ereach W Sout for discussion with your
16. APPRECIATE PEOPLE. Be grateful for the value of other people to your business
people in your company who are in a position to
— and show your appreciation for anyone who helps
contribute ideas and start collaborating. Encourage risk-
you. We all want to be acknowledged and appreciated.
taking, and use the opportunities it generates to foster
So, from your vendors to your lenders, it’s important
internal business relationships with your team members
to let people know that you recognize and appreciate
that can lead to innovations that advance your shared
their work to help your business. It’s essential in strong
goals.
relationships for each person to feel appreciated by the
A S S O C I AT I O N I N S I D E R other.
14. IDENTIFY YOUR COMMON GOALS OR MISSION WITH YOUR INVESTORS.
...maintain boundaries
Just delivering one after
Sanother P O T quarterly L I G H Tor annual presentation of your financial analysis can work against your goals of building
appropriately for
17. SET AND MANAGE PROFESSIONAL BOUNDARIES.
Occasionally, business
your internal Iand NDEX
relationships can drift off track
external business
and begin to compromise
relationships...
priorities. So, maintain boundaries appropriately for
strong relationships with
your internal and external
partners and investors
business relationships, to ensure
who are critical to the future of your business. It can
that productivity, quality, team cohesion, the business
be very impersonal, too formal, and take on an air of
mission, and recognition of distinct professional roles
“you/them” instead of “us.” Talking about your mutual
are all preserved. If necessary, assert formal boundaries,
goals and mission can help build a sense of team with
to manage limits on your business social interactions.
investment stakeholders that can inspire them to want
FURTHER, DEVELOP YOUR PEOPLE SKILLS.
to connect more to the business.
It’s a cliché that strong relationships of any kind
15. DO THE WORK TO MAINTAIN
begin with strong interpersonal skills. Evaluate your
YOUR RELATIONSHIPS.
people skills. How effective are you in communicating
Establishing new business connections is just the
information? Managing conflict? Obtaining agreement?
first step. Commit the necessary time and effort to
Inspiring people? In addition to the areas of focus listed
maintain the communications framework necessary to
above, there are other interpersonal skills that you
sustain those all-important business relationships. This
may find it helpful to work on. Abundant information
is the way to strengthen them into powerful generators
resources are available on the web to help you
of highly effective cooperation and help when needed.
strengthen your people skills in any areas needed.
Whether it’s two-minute stops to praise a worker for a
NOTE: Maintaining difficult relationships that may
job well done, or taking a peer business owner out to
require more specialized management involves the
lunch, or sending a text to thank a vendor, reaching out
development of additional skills that cannot be covered
is the core of relationship-building.
here. continued on page 14
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SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 13
BUSINESS CORNER
AT THE END OF THE DAY...
part of the business community, and make the most of
To succeed in business, it’s necessary to cultivate robust
your professional relationships inside and outside your
bonds with individuals and groups internal and external
company.
N Dpower U S Tsweeping business, R Y N E W S including employees, toIyour partners, investors, customers, vendors, government
Additional Resources
counterproductive. So, be sure to balance the demands
https://www.chicagotribune.com/suburbs/post-tribune/opinion/ct-ptbhoagland-smith-skills-st-0820-20170820-story.html https://www.inc.com/martin-zwilling/6-strategies-for-buildingrelationships-you-need-to-succeed-in-business.html https://tech.buzzfeed.com/building-great-products-by-buildinggreat-relationships-7d36d4027929 A S S O C I AT I O N I N S I D E R https://www.forbes.com/sites/samanthaharrington/2017/06/30/howto-build-strong-business-relationships/#466ebc8a356f
of operating your company to meet market demands and
Sources
fulfill all other parts of your larger business strategy with
https://www.chicagotribune.com/suburbs/post-tribune/opinion/ct-ptbhoagland-smith-skills-st-0820-20170820-story.html https://www.inc.com/martin-zwilling/6-strategies-for-buildingrelationships-you-need-to-succeed-in-business.html https://tech.buzzfeed.com/building-great-products-by-buildingINDEX great-relationships-7d36d4027929 https://www.forbes.com/sites/samanthaharrington/2017/06/30/ how-to-build-strong-business-relationships/#466ebc8a356f
representatives, and others. The above essentials can help you develop good relationships with people associated with your business. However, keep perspective. Excessive time investment in cultivating external business relationships can be
your need to spend a reasonably modest percentage of your total time on relationship building. That S P said, O T your L I Gbusiness H T relationships empower you to recover from setbacks and losses and to take new risks and innovate. Your business is not operating in a vacuum. It takes a community. So, embrace your role as
Mark Powell: Used Sales Manager
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SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 15 1/17/12 11:36 AM
FIXING THE LEAKS: Patching Little Problems Can Make a Big Difference to Your Company
According to the EPA, 1 trillion gallons of water are
by small, almost imperceptible leaks, like a dripping
lost every year due to household leaks; that’s enough
faucet or a broken sprinkler system. What may seem
water to supply over 11 million homes for an entire
like a small problem, if it gets noticed at all, can lead
year (EPA 2020). Apart from (hopefully) infrequent
to huge increases in cost over time.
plumbing disasters, most of this lost water is caused
Y
ou may be facing a similar situation in your
and procedures. When these events happen, are your
business. Does your organization have
people ready to adapt, or is there time lost due to
inefficiencies, areas of waste, or other problems that
relearning what was done before? Having well-defined
have persisted for too long? Are there projects that
processes for things like conducting inventory can
need your attention but
compensate for personnel
always get pushed aside by
changes, forgetfulness, and
the latest crisis? Too many of us are distracted by short term issues and we neglect those underlying problems, the ones that don’t seem urgent but actually decrease productivity and profits over time. Let’s talk about a few ways you can identify these inefficiencies
...are your people ready to adapt, or is there time lost due to relearning what was done before?
other problems that cost a tremendous amount of time. If you’ve just gone through one of these events or seasonal changes, take the time to sit down with your team, review how it went, and put records in place to ensure smoother transitions
and avoid wasted time,
next time around. “We’ll deal
energy, and resources.
with it next year” is a recipe
TIGHTEN UP PROCEDURE
for repeating the same problems over and over and
Think about the tasks your company does only once
recreating waste.
or twice a year, essential but infrequent functions like
DELEGATE PROPERLY
supply inventories, budget planning, and audits. You
One reason you may not have time for the detail work
might also go through seasonal changes in services or
is that you are not properly delegating. There are many
supply availability that require changes to equipment
reasons why we sometimes hesitate to share the work.
1 6 NORTH AMERIC AN S WE E P E R S EP T EM BER 2020
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Perhaps you believe your employees are already too busy,
For example, maybe one of your managers deals with
or maybe you’re worried they won’t do the job as well as
a lot of employee turnover and behavioral issues; you
you can. Make sure you are leaning on the team and taking
could implement a weekly check-in meeting where you
advantage of the skills and capabilities that caused you to
discuss how new employees are doing, identify potential
hire them in the first place. A little more time in your day
problems, and develop solutions together. If budgeting
means more attention for things left on the back burner.
season is always difficult, think about the financial
PUT IN “SENSORS”
processes that lead up to budgeting, and how you can
Facing a similar water loss problem to the United States,
improve the intermittent record keeping and reporting
water companies in England are seeking technological
that eventually informs a budget.
solutions to fix leaks. Over 100,000 sensors with an accuracy
Remember that small, conscientious adjustments like
rate of about 90% are rolling out across the country.
these will translate to less stress and higher profits in the
Accelerometers in the sensors, like the ones that detect
future. The crew at NiteHawk Sweepers wishes you the
movement in your cell phone, measure vibrations in pipes
best as work through these challenges and improve your
that could indicate leakages. Better identification of leak
business.
location enables them to address problems more precisely, minimizing employee time searching for leaks and tearing up long stretches of road or sidewalk (Baraniuk, 2020). In our businesses, proper controls, data management, and other procedures can act like “sensors” that help us detect small problems early. Think about where and how you can implement these things in your company.
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Works Cited Baraniuk, Chris. (18 Aug 2020). Tracking down three billion liters of lost water. BBC News. Available at https://www.bbc. com/news/business-53274914. The United States Environmental Protection Agency (EPA). (2020). Fix a leak week: Leaks can run, but they can’t hide. Available at https://www.epa.gov/watersense/fix-leak-week
SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 17
ADVERTORIAL
STREET SWEEPING BROOM: Tube Broom Since the early 1900s tube brooms have been the gold standard for street sweeping. Today most OEM sweeper manufacturers use the tube broom as the default option on their new sweepers.
T
he tube broom is made by wrapping bristle around a steel tube. The broom is then mounted to the
drive the broom. Tube brooms with end plates have holes that are
sweeper and rotates to either kick debris up into a
drilled and tapped so they can bolt up to the sweeper.
hopper or to push it off to the side of the road. There
These bolt patterns differ by sweeper models.
are a few different styles of tube brooms designed
The OD of the mechanical tube broom is generally 36".
for various types of sweepers and different sweeping
The most common lengths of the brooms are 56.5", 58",
applications.
60" and 66".
MECHANICAL TUBE BROOM
ROAD CONTRACTOR BROOMS
Mechanical sweepers are used to clean the roads we
Road construction sweepers use large tube brooms that
drive on every day; municipal roads and highways. The
push the debris and millings off the road. The size of the
mechanical tube broom or pick-up broom is generally in
contractor broom varies from 77" up to 96" in length
the center of the sweeper and rotates to kicks the debris
depending upon the sweeper.
up into the hopper of the sweeper. These brooms typically have an 8 3/8" core ID and can
There are two ID’s for contractor brooms, 8 5/8" and 10". The standard OD’s are 32" and 36". A typical spec for
be open-ended or have endplates depending on how
one of these brooms would be 10" x 32" x 89" (ID x OD x
the broom assembly is configured. Open-ended tubes
Length).
slide over an expansion shaft which grabs the tube to
1 8 NORTH AMERIC AN S WE E P E R S EP T EM BER 2020
The broom cores can be open-ended or have an end
Vi si t Us
and is used, on-air sweepers. Air sweepers have a vacuum
...it is important to know the model sweeper when ordering a replacement broom.
system that sucks the debris up from the road. The assist broom sits under the sweeper and helps aid the vacuum process by directing the debris towards the vacuum system. Not all air sweepers are built with assist brooms. Some have endplates and others are open-end. Each make and model air sweeper is different, and the brooms cannot be interchanged like some of the mechanical and
plate welded on the tube. The endplate allows the broom
contractor brooms, so it is important to know the model
to be directly mounted to the sweeper.
sweeper when ordering a replacement broom.
The open-ended brooms typically have keyways welded
BRISTLE TYPE
inside the tube. The keyway allows the sweeper to lock
The bristle used for tube brooms is made from
into the tube broom and spin it using the keyway to drive
polypropylene. The poly bristle has excellent durability
the broom. The placement of the keyway varies with the
and strong flicking action for high production sweeping.
make and model of the sweeper.
Tube brooms can have different poly diameters and
THE ASSIST BROOMS
different weights or density. Adding more material
The assist broom is the smallest tube broom in diameter
creates a heavier-duty tube broom that generally lasts continued on page 20
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SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 19
ADVERTORIAL
longer and is designed for heavy
shipped without boxes. No boxes means no skids so that
sweeping applications.
means more brooms can fit on a truck.
Most tube brooms are available in
As you can see, there are different options for different
a poly/wire mix for the sweeping
needs when it comes to tube brooms. Contact us at
jobs that require a more aggressive
Keystone anytime to learn more about these different
sweep. In this case, crimped wire
styles of tube brooms.
is combined with the standard polypropylene bristle to make a combo tube broom. The wire adds a
Mike Santos, Sales and Marketing Manager at
cutting action to help scrub debris
Keystone Plastics, Inc. | m.santos@kpbrush.com Link to video – https://youtu.be/dksAXU0R9u8 Resources page on website – https://www.kpbrush.com/ resources/
off the surface of the road. Wire also adds more material to the broom making it heavier and extending the life of the broom. PACKAGING
Tube brooms can be challenging to package and ship due
Tube Broom page on site – https://www.kpbrush.com/ products/tube-brooms/
to the size of the brooms. Most of these brooms are placed on a skid inside a corrugated box to protect them. If a full truck of brooms is being purchased, the brooms can be
Replacement Brooms You Can Rely On.
Quality. Performance. On-Time Delivery Keystone Plastics has been manufacturing the industry’s leading replacement brooms for street sweeping and road construction since 1954. At Keystone we believe in reliable quality and strive to make the heaviest, longest lasting brooms in the industry. We also believe the only good broom is the one that arrives to you as promised. Contact us to find a distributor near you.
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SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 21
3
STEPS BUSINESS OWNERS SHOULD TAKE PRIOR TO
SUCCESSION PLANNING BY MARK LEYDEN, CLU®, CEO & FOUNDER, MARK LEYDEN & ASSOCIATE
This is the second in a series of four ar ticles discussing considerations around succession and continuity planning for family businesses leading to how life insurance strategies are utilized
Professional EOS Implementor. Hutson routinely works with family-owned businesses to help them align operations to reach defined goals. “There are two components in any vision for the future – a business part and a family and personal piece. The owner must decide what they want to get out
to achieve many of the goals for such
of the business for themselves and consider how
planning. This ar ticle discusses the
this impacts the future of the business, which may
first 3 steps a business owner should
include other family members.” Check out Mark’s
under take when beginning the process.
previous article: Create a Formal Business Succession
M
any business owners today simply do not adequately plan their succession. Reasons
Plan in 7 Steps DEFINE THE VISION OF THE FUTURE OF THE COMPANY AND AN OWNER’S INVOLVEMENT
for procrastination vary and include not wanting
The process must begin with the owner having an
to leave or let go, not wishing to face their own
honest conversation with themselves. How long
mortality and an apprehension about creating
does the owner want to stay in the business, either
family disharmony with tough discussions and
running it or in some other capacity? By answering
decisions. In effect, most justifications for not
this question, the owner can first consider their
planning an exit are emotional, and a business
own needs and how long the business might satisfy
owner must set aside emotion and plan strategically.
those needs – financially and otherwise — as the
“The owner must have a clear vision of where they are going and how they are going to get
first building block in planning. A family business owner must honestly and
there,” says Mike Hutson, CPA, CEPA, the Founder
accurately answer these four questions to set the
of Edge Business Strategies in Indianapolis and a
rest of the foundation for a succession plan:
2 2 NORTH AMERIC AN S WE E P E R S EP T EM BER 2020
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4 4 4 4
Should the owner keep the business or sell it?
office of Mayer Brown, LLP. “Many business owners are
If the business is to remain within a family,
focused solely upon growing their business and they
who will lead it?
need to take steps to make sure the business will thrive
Will the selection of a new leader create
past their involvement. Selecting the next generation
interpersonal ill will and bitterness?
of leadership is a critical element of this process.”
If the business is to be sold, will that happen in the
In a situation where the succession plan calls for an eventual sale, identifying a successor can mean hiring
near future or in the long term? A family business owner does not have to consider the
a future potential buyer and grooming them just as
path set by answering these questions to be inflexible.
would be done for a family member. An outsider may
For instance, choosing to keep the business within the
also be chosen as the successor in situations where the business will remain within
family does not mean selecting a specific heir. It may mean choosing more than one and, through a development program, being able to eventually make the selection. Also, choosing the family succession path does not mean the business could not be sold someday if conditions warranted. Although there is flexibility in carrying out the succession plan, there are elements that cannot
“Many business owners are focused solely upon growing their business and they need to take steps to make sure the business will thrive past their involvement. ...”
wait. If the business is to be sold, there are vastly different goals to plan for depending on whether the sale is in the near future or not. Selling
the family but there are no family members interested or qualified to operate the company. For some family businesses, there are easily determined successors from within the family and the process for transition is clear. In many instances, though, there may be a need to ‘wait-and-see’, especially where members of the next generation are still in school or have other careers and have
not yet decided whether or not to join the business. “I find that the children of owners who have first
the business sooner rather than later calls for short-
worked elsewhere after college for at least a few years
term actions which would quickly enhance the value of
and gain experience outside of the family business
the business. Conversely, if the sale of the business is
make the best successors,” notes Luther. “In addition to
off in the future, the current operating strategy should
the obvious advantages of learning skills in a different
at least preserve shareholder value if not increase it.
environment, there are subjective benefits to not
IDENTIFY SUCCESSORS
joining the company right away such as the other
Unless the owner has chosen to sell the family business
employees in the family business having more respect
in the short-term, the next step is to identify one or
for a son or daughter who appears to have earned their
more successors. “The earlier the process for choosing
place in the company instead of just being dropped in.”
a successor is started, the better the outcome,” says Dan Luther, an attorney, and partner with the Chicago
Some businesses find themselves in the difficult position of where a family member who believes they continued on page 24
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should be the successor is not the right fit. This usually
held solely by the owner. This is problematic, especially
means a difficult conversation must take place. Luther
when an unexpected disaster includes the owner. While
finds these discussions do not happen as often as they
many contingencies can be mitigated with the purchase
should. “Who wants to tell their kid that they are not
of financial products and life insurance, the details
cutting the mustard and someone else is going to fill the
of how to handle contingencies should be recorded
role?” Conversely, those parents who have a child who
as formalized processes and procedures. Identified
is a clear successor are happy to have the succession
successors as well as family shareholders should be
conversation. Before making any decisions, potential successors should be objectively evaluated on these skills:
4 Competence and credibility to make strong, successful decisions
4 Team-building and coaching skills to support ongoing learning
4 Self-direction and willingness to take direction for optimal goal
familiar with these practices as well
Perhaps the greatest risk to most family businesses is that the institutional knowledge of the company is held solely by the owner.
achievement
4 Shared vision for the future viability of the company 4 Integrity and courage to build trust and ensure competitiveness in the marketplace
4 Flexibility to change direction and plans as industry
as know their location. Edge Business Strategies’ Hutson notes that most family businesses are not transferable or, at least not for anything near the value the owner has in mind. “The success of a lot of closely-held businesses are a result of the leadership and knowledge of one person, the owner, and this concentrated risk significantly impairs market value.” In these situations, it is critical
that the business take on a life of its own away from the owner by identifying what changes are needed to maintain successful operations in the absence of the owner.
demands change
4 Once successors have been identified, the process of
ABOUT THE AUTHOR
communicating the plan and grooming these future
Mark Leyden, CLU® is the CEO and founder of Mark Leyden
leaders should begin immediately.
& Associates, an Indianapolis-based firm specializing in
PLANNING FOR CONTINGENCIES
assisting businesses and families in the acquisition and
Family business owners will attribute some of their
management of life insurance assets. He specializes in
success to being prepared for unplanned events as
assisting business owners and families, including some
opposed to simply being lucky. This third step in the
members of the Forbes 400, in design and funding of wealth
family business succession planning process protects
transfer and business succession plans. This is accomplished
businesses from unexpected catastrophic events.
by working closely with clients and their advisors. The
Business owners can implement strategic planning for
objectives commonly achieved include tax-efficient
the unexpected. The degree or level of contingency
wealth transfer, business succession, asset protection, and
planning is the amount of risk exposure an owner is
management team retention plans. Subscribe to our AEM
willing to accept should the unexpected occur.
newsletters for more expert perspectives.
Perhaps the greatest risk to most family businesses is that the institutional knowledge of the company is
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INDEX
SPOTLIGHT
Pacific Sweeping, INDUSTRY LEADER IN SOUTHERN CALIFORNIA BY BOBBI JACKSON Pacific Sweeping provides power sweeping and power washing for more than 30 cities across five counties in southern California. The service cleans a staggering 350,000 miles of roadways and 15,000 parking lots per year. The company’s clients include Cal Trans, counties, utility companies, service providers for public events, and various government construction projects, and government agencies such as the City of San Diego, the State of California, the U.S. Navy Shipyards, and the U.S. Marine Corps.
L
ee Miller, President, and CEO of Pacific
For the 15 years before becoming an owner of
Sweeping, is currently a Board Member of
Pacific Sweeping, he had managed three local
NAPSA, and he has served as an Advisory Board
cities’ government public works operations for
Member for California State University (Dominguez
southern California’s public works department.
Hills), and Cal State Fullerton and he served
There, he had overseen public works maintenance
on the board of the local MSA (Maintenance
operations, which included contracting for all
Superintendent’s Association for many years.
facets of roadway cleaning, public facilities repair,
MOVE FROM PUBLIC WORKS MANAGEMENT
and related services.
TO PRIVATE SECTOR
When Lee was invited by Cannon’s owners
Founded 45 years ago in 1968, the company
to take a look at the business, he had been
started as Cannon Pacific Services. In 2013, Miller
contemplating an exit from the municipal world.
changed the name to Pacific Sweeping, to better
He agreed to come on board with Cannon as an
signify the kind of service the company provides.
equity partner and began running the company.
Lee came into the business in 2007 with a B.A. in
He bought out one of the other two partners in
Public Administration/Organizational Management
2009, and the other in 2011, making him the sole
and an MDE in entrepreneurial studies from UCLA.
owner.
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ORGANIC AND STRATEGIC GROWTH
In the broader view, today the company has nearly 50
Miller performed a major restructuring of Pacific’s
pieces of equipment servicing five counties, making
operations, leading to a growth of more than 300%.
Pacific Sweeping the largest privately owned and
When he came on board in 2007, the company
operated business of its kind in the region.
employed 16, most of whom were in one county and
Lee attributes Pacific’s continuously strong growth
still work for the company today. He reflects on the
over the past decade to his customers’ confidence in
company’s evolution, “Over the years, we’ve grown both
his team’s consistency in delivering quality work within
organically and by careful strategic design.”
their budgets.
Lee goes on to explain, “At our peak, we had 57
The company has made some small strategic
employees. Recently, we’ve scaled back to 46. Sales
acquisitions. Lee recounts his process, “We’ve ventured
are down about 15% due to the pandemic. Municipal
into new counties by gaining a beachhead in each one,
budgets have been shrinking due to lost sales taxes, and
winning a large contract and then building a volume
shopping centers are being closed. We’ve grown steadily
of accounts around those.” The company now has six
between 2% - 8% each year up to now. This is the first
satellite locations, complete with supervision on each of
year we’re experiencing zero growth.”
those sites.
continued on page 28
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INDEX
SPOTLIGHT
He notes that the company had done some weed abatement and landscaping tasks in the past, but found that that service market was “ultra-competitive,” so they decided not to pursue it. He said they also considered road and parking lot repair work as an additional revenue channel. But, Lee commented, “Everybody in Southern California is in pavement repair, so we just stay in our lane.” There are 40-50 service vehicle drivers in the field, on average, and the mobile team of six mechanics. An administrative team of six people handles all the
Each location is fully self-
The company’s
sufficient, with the main central facility handling
Business Development
all equipment repairs in
Manager, Rosio Vitela,
the mechanics’ shop. The 10,000-square-foot central facility maintains a full array of parts in its inventory center. There’s a mobile
makes cold calls and networks in the business community and trade
team of six repair mechanics,
associations.
PACIFIC SWEEPING BUSINESS MODEL
The company provides municipalities, construction project managers, HOAs, and commercial customers
functions of the company. Lee’s son, Hayden Miller, is Pacific Sweeping’s VP of Operations and Fleet. He is an expert in diesel mechanics and is professionally trained in management and supervision. He handles all operations. Lee says his role in the company
for on-site repairs when necessary.
management and business
these days is about half-time in the office and half in the field, doing primarily executive-level work, negotiating big contracts, and guiding the vision and culture of the company.
with contract pavement cleaning as well as on-call and
PACIFIC MARKETING, BRANDING, AND SALES
emergency services.
Lee provides a picture of the sales operation at Pacific,
Breaking down the business model, Lee explained,
“We have a dedicated business development manager
“About 80% of our work is municipal, 15% is private
who oversees the sales department. Her role is primarily
and HOA work and the remaining 5% is parking lots,
to seek out and network with potential large customers.
pressure washing, and construction sweeping.” The
We have a CSR (customer service representative) who
company has special equipment for construction,
takes all incoming calls that are urgent service requests.
primarily mechanical broom sweepers, and truck
He performs in the sales role on all of those calls. My
types especially suited for municipal street sweeping
role in the sales process is to review contracts and to
and parking lot sweeping, as well as power-washing
ensure that we can meet specifications and pricing
equipment.
commitments.”
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The company’s Business Development Manager, Rosio Vitela, makes cold calls and networks in the business community and trade associations. The company also subscribes to a couple of government contract bid services. She also reaches out and investigates and pursues those opportunities. Lee expressed, “Rosio has been with the company for nearly 15 years and does a fantastic job at promoting Pacific Sweeping and its brand.” He estimates that about 50% of the company’s revenues are generated from sales efforts, around 25% from repeat business, and about 25% from referrals. “We provide monthly service to about 450 active accounts, but have around 2,000 that we provide service as needed.” The sales and marketing team utilizes a database with outreach activities. Lee notes, “We outsource the online and the email campaign to Rick Brown at the continued on page 30
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SPOTLIGHT
INDEX
Karcher Group. They’re doing fantastic work and they
the advantage for Pacific is that city decision-
are continually updating our website and managing our
makers are inclined to prefer working with reputable
email campaign.”
established vendors. In keeping with that reputation,
He has rebranded the business in the last 10 years. It
he approaches contract bidding with an attitude of
was known as Cannon Pacific Services for many years.
helping cities devise their specifications for street
He explains that since the rebranding, the company has
sweeping services in ways that most appropriately
registered the new name, Pacific Sweeping, and has
reflect the realities of the industry.
registered and promoted its great tagline, “A cleaner road will follow.”
He is quoted in another interview (linked below) explaining that cities hire street sweeping based
Lee points out that an inherent marketing benefit of
on either the best price or best value. To obtain the
being in the municipal street sweeping industry is that
best value requires bidders to develop a meaningful
the large expensive equipment is present throughout
response to a municipality’s request for proposal (RFP).
the area, projecting the company’s professional image.
Lee’s RFP experience in public works oversight affords
Pacific Sweeping additionally utilizes the national
him a unique perspective from so much experience on
service alliance 1-800-Sweeper, to generate new
both sides of the proposition. His ability to think as an
revenue sources and participate in the 1-800-Sweeper
advocate for the city and to customize the bid for each
buying group where he saves thousands each year on
city’s particular needs has produced exceptional results
routine items they would be purchasing anyway.
for Pacific in the RFP arena.
PACIFIC SWEEPING DISTINGUISHED RFP
Some of the matters Pacific’s bidding process
RESPONSE
includes in discussion with city representatives are
On Lee’s practical view of his company’s position in
sweeping regulations, storm run-off guidelines, routing,
the regional market of municipal sweeping prospects,
equipment changes, service frequency, and air quality
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management. Pacific’s business development manager also lets’ decision-makers know what the company is doing in the surrounding municipalities and why they’re doing it. Lee finds that cities are very interested in such discussions because most want their cities to be current with industry standards and trends, and they want to be
Lee is proud of his company’s “Dirt Free Guarantee.” The
paying a fair price.
language of the guarantee is posted on the company’s
He points out that various levels of customer service
website. It simply assures customers that if they are
mean varying pricing levels. For customers who require
dissatisfied with their service for any reason, they
more rapid response times, the higher degrees of
can contact Pacific within a
reactiveness naturally must be reflected in pricing. CULTURE OF SERVICE AND ENVIRONMENTAL QUALITY MANAGEMENT
Pacific Sweeping was one of the first companies in the country to adopt the newly
reasonable timeframe and
The Pacific field services
receive a re-servicing of the
team reports on every
area until it meets with their
curb mile they sweep,
The guarantee emphasizes
providing critical data to
the company’s goal of bringing
help cities improve
customers to have confidence
comprised ANSI standards for
effectiveness...
the power sweeping industry.
...
As to be expected from a
business that has risen to such a challenge, Pacific’s team adheres to stringent internal quality requirements. “We have a Safety and Quality Control coordinator, who spot checks service calls to ensure quality control. He also serves as our safety coordinator. His role is to review dashcam footage and GPS data, and resolve issues in the field and ensure a safety culture.” Lee goes on to emphasize, Every employee is an inspector in this business, and everyone is selling. If we see something out of the ordinary, we have a very strong team of operators and support employees to manage it.” The Pacific field services team reports on every curb mile they sweep, providing critical data to help the cities they serve to improve the effectiveness of their street maintenance programs.
satisfaction.
that the quality and the value of the service they receive from Pacific Sweeping is superior to all competitors.
As a NAPSA Board Member, Lee Miller’s role is to provide his insights and direction to the national association and to collaborate with industry members to educate on excellence in power sweeping operations. So, it makes sense that he strives to maintain NAPSA’s high standards throughout his organization. Lee discusses Pacific’s historically very low turnover rates, in contrast to the current situation in 2020, “We have had problems since the onset of the pandemic finding people looking for work. We have had to hire three new people, and it took some time.” He attributes the company’s low turnover to, “our culture and the stability the business offers to employees. We call ourselves customer- and employeecentric.” He clarifies that that means the leadership team is not focused so much on the business as they are on continued on page 32
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SPOTLIGHT
federal environmental rules and regulations. In all functions of the business, the Pacific team takes pride in working with the community to help promote the health of the state’s waterways and the Pacific Ocean, after which the company takes its name. EMPHASIS ON TEAM BUILDING AND TRAINING
The exceptional extent of team-building and staff training at Pacific captured our attention. Scrolling through the company’s Facebook page reveals an elevated commitment to team development. The page is packed with images that would excite any talented business manager, pictures of one after another training session, team training meeting, team certification event, etc. For just one example, the colorful photos of the the needs of the customers and employees. They seem
company’s annual Division 1 meeting to discuss vehicle
to reason, and rightly so, that focus on those is the key
inspections, technology use, and work quality, and
to the success of the business.
to conduct safety training, portrays the company’s
ENVIRONMENTALLY CONSCIOUS BUSINESS
investment in robust training and information sharing
One thing that stands out about Pacific Sweeping leadership is
practices.
The company maintains
Lee Miller’s consistently
a fleet of modern,
expressed commitment
low-emissions commercial
to environmental conscientiousness throughout all facets of the business’s operations. The
and industrial sweeper trucks and half its fleet runs on alternative fuel.
company maintains a fleet of modern, low-emissions
...
The post also mentions milestones recognized by the division. Accomplishments depicted include pictures of the division’s Certified Sweeping Operator program graduates. The post also featured the group’s celebration of its lowest worker’s compensation incident rate in the past 15 years! And,
commercial and industrial sweeper trucks and half its
there was mention of the great barbeque the company
fleet runs on alternative fuel.
hosted for the Division 1 team.
The company also subscribes to management best
Posts on the Facebook page also announce Pacific’s
practices for the sweeper industry and promotes those
upcoming Division 2,3,4 and 5 annual meetings.
principles to all its customers. The Pacific team strives
The company additionally conducts two annual all-
to meet the state’s tough CARB regulations, NPDES
employee meetings, which the pandemic has affected.
requirements, and the gamut of other local, state, and
Since in-person meetings are not allowed under state continued on page 34
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INDEX
SPOTLIGHT
orders, Lee uses Zoom and short videos, emails, and
might still sound like the sweeper is going fast. So, our
text messaging to keep all employees informed of
policy is to hold truck speeds at whatever is best for
what is going on.
the efficiency of the vehicle. On the dust side, we just
Pacific’s winning formula for successful team-building and a healthy workplace culture further includes the
explain that sweeping is not a dustless process. Most customers are satisfied with that explanation, once you
practical fundamentals for
help them understand the
employee satisfaction — a
...our policy is
full package of benefits,
Pacific is carb emissions-
to hold truck
compliant under California
speeds at whatever
regulations. The company
including health 401K, and paid leave.
nature of this kind of service.”
KEY CHALLENGES FOR THE PACIFIC TEAM
is best for the
The two largest complaints
efficiency of
that the field services team
the vehicle.
has sold off all its older equipment over the past ten years so that every existing piece is in compliance. Lee
receive from customers are
reflects, “It cost us a small
about dust in the air and
fortune to replace expensive
the perceived speed of the vehicles. Lee said that it
equipment that California forced us to retire. Not
was complaints about sweepers going too fast that
all companies are compliant, but we’ve made the
motivated the development of Pacific’s “Dirt Free
investment so that our customers don’t have to
Guarantee.” He explained, “We could go 5 mph, but it
worry about us being compliant. Our customers are continued on page 36
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INDEX
SPOTLIGHT
responsible for hiring a compliant street sweeping
work when you have to be at home acting as your
company. If they hire non-compliant companies,
child’s teacher.”
they are at risk for fines themselves. So, it’s an
EQUIPMENT AND TECH SYSTEMS AT
important point for them to know that we are fully
PACIFIC SWEEPING
compliant.”
Pacific Sweeping’s fleet includes Tymco air sweepers,
Other challenges Lee discusses are that labor laws
Elgin Broom Badger Mechanical Broom Sweepers,
are ever-changing in California, and insurance rates
Schwarze M6 Avalanche CNG Powered Mechanical
continue to escalate. In fact, he says rates have
Broom Sweepers, and Hydrotek Steam Cleaners/
doubled each year in the past 3 years, despite their
Pressure Washers w/full recovery systems. These
solid safety history and relatively good loss ratio.
state-of-the-art models are
And, as auto insurance
powered by alternative fuels
and umbrella liability coverages are becoming increasingly expensive, the concern is that such costs can potentially squeeze profitability and will likely force many
“Focus on driver safety, employees’ safety, and customer satisfaction, and don’t try to be the cheapest guy on
businesses out of the
the block.”
market.
...
such as biodiesel, propane, and compressed natural gas (CNG). The company uses GPS tracking to monitor vehicles’ speed, locations, and other characteristics of their operations. Each field service truck is also
Lee expressed, “If all
equipped with Netrodyne
insurance companies are increasing rates, it can
cameras driven by artificial intelligence we have 24-
begin to put us at a disadvantage, considering we
hour access to all footage, and alerts when there is a
often cannot increase our pricing fast enough to
triggering event.
keep up with the insurance costs. This is something
ADVICE FOR INDUSTRY NEWCOMERS FROM
that the insurance companies do not understand.”
LEE MILLER, PACIFIC SWEEPING, SAN
Beyond those common industry issues, we asked Lee how the unique business challenges of 2020
MARCOS CA
Lee Miller’s advice to new entrants to the power
are affecting his operations. He replied simply
sweeping services market is very straightforward,
that, “With the pandemic, we have relaxed many
“Focus on driver safety, employees’ safety, and
of our policies a little bit, in order for employees
customer satisfaction, and don’t try to be the
to maintain their work status here. Some of it has
cheapest guy on the block.”
been directly related to COVID-testing. Fortunately,
Lee’s track record, in both his background in the
those instances were all negative results, false
public sector and in Pacific Sweeping leadership,
alarms. Some of it is now related to childcare during
is one of building successful teams, strong labor
distance learning for their children. It’s hard to be at
relations, enduring internal and external business
3 6 NORTH AMERIC AN S WE E P E R S EP T EM BER 2020
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The company uses GPS tracking to monitor relationships, and producing
vehicles’ speed, locations, and other characteristics
optimally successful outcomes
of their operations.
for southern California power sweeping customers and for the workers under his direction. For those inclined to follow the exceptional example of this industry leader, we would emphasize focusing not on finding ways to make more money from each municipal contract, or on submitting the lowest bid. Instead, adopt the sales model the Pacific Sweeping owner provides: think in terms of your prospects’ best interests, and help them see what is involved in delivering the best value.
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INDEX Bucher Municipal................................................................................ 5 704-658-1333 / buchermunicipal.com
Safety Vision........................................................................................ 6 800-851-4764 / safetyvision.com
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Pat’s Pump & Blower........................................................................11 800-359-7867 / patspump.com
United Rotary Brush Corporation....................................................25 800-851-5108 / united-rotary.com
Prince Motors....................................................................................29 951-681-6960/ princemotorsusa.com
Well Made Manufacturing................................................................35 609-323-2655 / wellmademfg.com
The ODB Co........................................................................................39 800-446-9823 / www.odbco.com
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Replacement Parts for all makes and models of street sweepers Johnston, Elgin®, Tymco®, Tennant®, Wayne, etc..
SE P T E M B E R 2 0 2 0 N O RT H A M E RI C A N SWEEPER 39 052419 TMT
the path is always clear High performance, durable products that offer customers a lower total cost of ownership.
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sentry a sweeper with standards as strong as your own the sentry regenerative air sweeper uncommonly high standards
Under CDL platform with over CDL performance. Incab control of gutter broom speed, pressure, and angle. Hopper and fan are made entirely of HardoxÂŽ 450 abrasion resistant steel designed to stand up to the abuse of debris. Crescent shaped pick up head funnels debris to the center of machine. On-screen diagnostics keep information at your finger tips and makes it easier to maintain your sweeper.
PHONE: 4 0 NORTH AMERIC AN(319) S WE 266-1721 E P E R S EP T EM BER 2020
701 PERFORMANCE DR. CEDAR FALLS, IA 50613
www.curbtendersweepers.com Vi si t Us
