Story of a Start-Up

Tweet

After securing the start-up loan in September 1999 and attending the CEDIA meeting that same month, Sasser finally took the plunge and quit his job. "It was hard to do," he recalls, especially since Heather wasn't working at the time.

From October through December 1999, Sasser settled on his " custom" business model and also began creating a marketing message for his business. He felt that a quality presentation would help give his fledgling business credibility, so he invested in quality stationery, marketing collateral, and a Web site. He also had his service van nicely decaled with the DHI logo and ordered "nice knit shirts" with the logo for all installers.

Sales were slow for the first couple of months, but they eventually began to pick up.

Hiring also turned out to be challenging, especially at the beginning, before DHI had enough work to keep an installer busy. Sasser looked for his first full-time technician by placing ads in local newspapers, but, "it was hard to find someone well versed in many disciplines." The first person they hired was released after about six months in favor of someone more skilled and versatile.

Their second hire, who was coaxed over from a competitor, was easier. "One of our suppliers was raving about a technician from a security business, and so we called him up and made him an offer," says Sasser. " We offered him comparable salary and benefits, but mostly what attracted him was the promise of manufacturer training and an opportunity to work with advanced systems and programming."

Hiring has subsequently become easier, according to Sasser, in part because "techs know other techs and bring them along."

The Showroom

A major milestone for DHI was moving into its first office suite in February 2000. It was 1,300 square feet in a new building and included a showroom.

Having a showroom, which displays more than $20,000 worth of product, has made a huge difference, according to Sasser. First, it allowed him and his salespeople to " show, not just tell" what DHI could do for homeowners. The showroom even impressed out-of-town customers who didn't come in to see it. " The fact that we have a showroom makes them feel more comfortable and trusting of our services," Sasser notes.

The showroom also impressed two other important groups of people: potential employees and suppliers. It made it easier to attract new staff, and it impressed the vendor sales reps who came to call. "It lets them know that we will show their products in a good light," says Sasser.

In this way, the showroom also helped DHI meet yet another major, and somewhat unanticipated, challenge: signing on with manufacturers. "It was difficult to get manufacturers, especially the AV manufacturers, to accept us as resellers. They're very careful about who they sell their products to. Their first question is always, 'What other lines do you carry?' If your answer is 'none,' they're not too interested."

Sasser eventually worked past that barrier by signing on as a dealer for products that lacked a local dealer. Their product line includes:

Structured Wiring - FutureSmart Networks

Integration/Automation - HAI, Smart Systems Technology, Crestron Electronics

Audio/Video - PSB Speakers, Parasound, Dream Vision, and Stewart Filmscreen

Plans for the Future

DHI now employs six people, including one full-time salesperson, two full-time installers, and one part-time installer. Jamie Sasser works primarily on system design and project management, while Heather Sasser handles marketing, public relations, and some sales.

Sasser's plans are for continued growth. " In the next two months, we'll hire another salesperson. That will be great, because then we can assign each salesperson a geographic territory." He feels that the timing is right because he is " just starting to break through" in terms of name recognition among local builders and receive customer referrals.

His other emphasis will be on research and development. " We would like to continue doing challenging work. We don't want to be stagnant." Over the next few months, he will be investigating lighting products and signing on with a lighting control company such as LiteTouch or Vantage. "Lighting hasn't been done very well in this area, and we would like to be known for it."

A major, short-term challenge will be going back to the bank to restructure the debt, and perhaps secure additional financing. Also, Sasser says he needs to upgrade his business operations. " We're having growing pains, now that we have steady work. We've also just landed our first six-figure contract and need to make sure our operating systems are in place to handle it profitably." He's planning to hire an operations manager and is also implementing processes to ensure better coordination and communications between his salespeople and his installers.

Considering all the progress the Sassers have made in just a year, it's exciting to imagine where they'll be this time next year!

All contents © 1999, 2000 Technocopia Inc. All rights reserved. Do not reproduce without written permission.

 PREV  1 | 2