
ClickStop, Successful Small Internet Retail Company
A sales representative by trade, Tim Guenther, 32, of Urbana started a small Internet retail company four years ago to help give him a competitive edge selling building products. Little did he know that his company, which had $14,000 in sales in the first year, would explode.
The once one-man company, ClickStop, now has 20 employees and continues to add more despite the recession. It made about $5 million in sales last year and expects to hit $10 million in sales this year.
“We’re going to need an economic tail wind to do it. We’ve had so much head wind. If we’re growing 50 to 60 percent while we’re being pushed down, imagine what we could do if the economy improves,” said Shaun Linderbaum, vice president and chief technology officer for ClickStop and Guenther’s right hand man.
Guenther, president and CEO of ClickStop, lured Linderbaum, 32, who had helped him start his Web site to the company from Deere Co. when business picked up.
“It’s a lot more exciting,” Linderbaum said of his new job. “Every day is an interesting challenge. I’m excited to get up and go to work every day.”
Expert Help From The Entrepreneurial Development Center
While they were able to take the company far, the two knew they needed some skilled help last spring. So they turned to The Entrepreneurial Development Center in Cedar Rapids.
“They’ve really pushed us to think about things we’re not thinking about,” Linderbaum said.
ClickStop’s “ability to build Internet sales engines is really good,” said Curt Nelson, president and CEO of The EDC. “They’ve really got their business scaling at a really fast rate.”
Nelson said The EDC tries to help ClickStop and other companies manage their growth.
“A business can easily grow right into bankruptcy,” he said.
They’ve really helped hold us accountable during that growth, Guenther said of The EDC.
Guenther attributes ClickStop’s success to simply capitalizing on a change in shopping habits that many companies have been slow to grasp — e-commerce. With Web optimization and Web advertising, ClickStop’s e-commerce sites have become the top search results in the products it sells, Guenther said.
“That’s our way of sneaking up on industries,” he said.
New Building For The Spring
The company is getting used to being in transition as it expands its warehouse and office space, but it hopes to start building a new $2 million, 35,000-square-foot building in Urbana’s new economic development park along Interstate 380 this spring.
The four-year-old company sells six e-commerce brands with products ranging from building materials to vitamins to cat furniture.
“We don’t manufacture it. We do private label it,” Guenther said.
That alone has allowed the company to expand rapidly.
The EDC has also helped ClickStop organize its inventory.
“We were carrying too much,” Linderbaum admits.
That’s a problem for a lot of companies, especially when credit is tight, said The EDC’s Nelson.
Too much inventory ties up too much cash that’s not available to reinvest. Companies need to make sure they have a good manufacturing resource planning system to track that, he said.
Most recently, the EDC has been helping the company with its organizational structure.
“When we were just six people we all just did everything,” Guenther said.
When they needed another employee they’d just post a job and told the person to come see that they did to see if it was what they’d like to do, he said.
“We didn’t want to put people into boxes. We wanted them to be able to contribute where they could,” Linderbaum said.
That’s all changed.
“We’re already seeing a value,” Linderbaum said.
“We know now that roles have to be defined,” Guenther said.
Jane Burroughs, vice president of operations at The EDC, said that clearly defined roles leads to reduced duplication, decreased errors and increased production.
“If you focus people in silos, they do the same work over time. That’s what makes them faster,” Burroughs said.
Right People In Right Position Is Key To Success
ClickStop also needed the right people in the right positions to keep growing and the recession has helped in that respect.
“We’ve been able to get a lot of good, really talented, loyal hardworking people. We’re scooping them up as fast as we can,” Linderbaum said.
Nelson said that convincing small start-ups that want to grow that they might need to get rid of or move a person who has been with the company since the start of the company is often a difficult thing for people to do.
“Sometimes you just don’t have all the right people.” Nelson said.
ClickStop hopes to keep their employees by providing a fun environment and competitive benefits.
“We’ve (Guenther and Linderbaum) both worked in larger companies. We’ve never done this before, but it feels good — satisfying — to make a profit and be able to do something nice for your employees,” Guenther said.
Working with the EDC has also given them even more confidence to grow.
Guenther admitted he was tentative about growing by acquiring companies, but consulting with the EDC showed him it was a good strategy, especially since companies can be purchased at a good value right now because of the economy.
“You can spot opportunities in this economy,” Guenther said.
The business:
ClickStop Inc.
2535 Bing Miller Lane
Urbana, IA 52345
www.clickstop.com
1-(800) 383-0592
The consultant:
Curt Nelson
President, CEO
The Entrepreneurial Development Center
230 Second St. SE, Suite 212
Cedar Rapids, IA 52401
www.edcinc.org
(319) 369-4955
By Janet Rorholm, via EdgeBusiness Magazine, kcrg.com