Crain's Detroit Business - 25th Anniversary Issue, May 3, 2010 - (Page 4)

Page 4 CRAIN’S DETROIT BUSINESS May 3, 2010 EPSON Business Projector A flexible solution for any auditorium, classroom or boardroom. 4000 lumens of color light, XGA resolution, it’s a superb network-ready performer with up to 3000 hrs lamp life. Model G5000 StageTwoStrategies A weekly look at problem-solving by second-stage companies. StageTwoStrategies is a weekly feature that analyzes a recent business decision by a second-stage company. For more second-stage coverage, go to crainsdetroit.com/secondstage. To sign up for the twice-monthly e-newsletter, go to crainsdetroit.com/getemail. The Second Stage print section will appear in Crain’s on the third Monday of each month. ELITE White Board/Projector Screen Cutting-edge design combines a projection screen and dry erase white board into a space-saving economical product. StarBright4 screen with 4.0 gain projection surface and a transparent dry-erase finish. White Erase Board/ Projector Screen FORTE BELANGER Location: Troy Description: Forte Belanger is a family-owned catering company. Events catered include the Hob Nobble Gobble at the Michigan State Fairgrounds, the Automation Alley Awards Gala and the General Motors Style Event. President: John Forte Founded: 1986 Employees: 28 full time and more than 80 part time Revenue: $2.2 million in 2009, with $2.7 million projected for 2010 Problem to be solved: When the economy took a nosedive, the catering business slowed dramatically. Forte Belanger went Forte from catering 400 events in 2008 to 290 in 2009. The loss forced the company to reduce staff, requiring management to take a more hands-on role. “We went back to working in the business and not on the business,” said John Forte, president. “When our core management team reverted back to working events, we weren’t training and managing our core staff as we should.” And because management was handling everyday duties, the company could book only a limited number of events, Forte said. “Our growth is only limited to the number of events we can take on,” he said. “We need a solid core group that can execute as many events as possible.” Solution: Forte began weighing options to expand the business and free up management to lead. In March, it took out a $300,000 loan to hire six new office positions by the end of the year. The first was a staffing manager that would work with the company’s part-time and on-call staff. Forte next plans to hire an office manager and several other middle-management positions. Beginning this week, Forte’s management team will begin meeting with Ann Arbor-based business consultant Dave Haviland of Phimation Strategy Group to address leadership skills and succession planning. Risks and considerations: Bringing in a consultant to possibly shuffle its management team and change its management style has left leadership a little worried, Forte said. “Change is always scary for people,” he said. But “we really just need to change our way of thinking about the business.” Plus, taking out a sizable loan in a down market presents its own risk. “As an entrepreneur, one of my roles is to have a sense of the market,” he said. “I’ve got a gut feeling this thing is turning around, and we hope to be ahead of the curve.” Forte said the company is excited to make big changes. “It’s like we’re opening a new business again and taking a leap,” he said. “It’s a major investment, but we’re making that commitment to growth.” Expert opinion: Melissa Wilson, principal at Chicago-based food industry consulting firm Technomic Inc., said day-to-day demands often leave little time for management to think long term. “It’s very valuable for catering companies to work on scenario planning,” she said. “We don’t know how long the market will be down, but what if it powers back dramatically?” She said companies that haven’t plotted a number of possible scenarios may be caught off guard when the economy rebounds. Reputation is important in the catering business, and if your quality suffers because of poor planning, then so does your image, she said. Wilson commended Forte for accessing capital, but recommends that it draw up plans to repay the loan in the current corporate-event drought. Wilson also recommends that growing caterers look to hire the sales and marketing talent laid off from fine-dining restaurants during the recession. “There are real opportunities for strategic hiring,” she said. “Concentrate on growing the business while you’re restructuring.” — Dustin Walsh Paulson’s…for your commercial networking, audio and video, sales and installation needs! AVAILABLE SIZES 60”, 80” & 96” 37670 W. 12 Mile Rd. Farmington Hills NW Corner of 12 & Halsted 248.553.4100 Since 1993 If your second-stage company has recently made a tough business decision, contact Michelle Darwish, entrepreneurship editor at Crain’s Detroit Business, at mdarwish@crain.com. Area’s top leaders to question governor hopefuls BY NANCY KAFFER CRAIN’S DETROIT BUSINESS Michigan’s next governor will play a key part in the future of the metro Detroit area — and on Friday, Detroit’s Big 4 will have a chance to quiz candidates personally. In an average year, the Eight Mile Boulevard Association’s annual leadership luncheon features an appearance by the Big 4 — currently Detroit Mayor Dave Bing, Wayne County Executive Robert Ficano, Oakland County Executive L. Brooks Patterson and Paul Gieleghem, chairman of the Macomb County Board of Commissioners — but in gubernatorial election years, the game plan changes, said Tami Salisbury, executive director of the association. “We invited everyone who has filed,” she said — that includes a pending invitation to Southfield attorney Geoffrey Fieger. “If he files in time, he has been notified that we would desire his attendance.” The filing deadline is May 11. Confirmed Democrat attendees are Lansing Mayor Virg Bernero, Michigan House of Representatives Speaker Andy Dillon, state Rep. Alma Wheeler Smith and Re- publican candidates Oakland County Sheriff Mike Bouchard, state Rep. Tom George, Huron County emergency medical technician Tim Rujan and Ann Arbor businessman Rick Snyder. State Attorney General Mike Cox and U.S. Rep. Peter Hoekstra, both Republicans, are invited but haven’t confirmed, Salisbury said. Each of the Big 4 will choose gubernatorial candidates to question at random, she said, to avoid the appearance of political favoritism — Patterson, for example, has endorsed Bouchard. “We wanted to do it in a fair way,” Salisbury said. Following the Big 4 questionand-answer session, Crain’s Publisher Mary Kramer will pose further questions to the candidates. Bill Ballenger, editor of the newsletter Inside Michigan Politics, said the question-and-answer concept has potential. “It sounds like an intriguing concept — it’s something a little different, and anything a little different in these question-and-answer formats and/or debates is to be welcomed,” he said. “Too often, you get these static debates with time limitations and canned answers and no follow-up by anybody … particularly if you get the right match-ups … like let’s say you’ve got Patterson asking Andy Dillon or Virgil Bernero something, it’s obviously a lot more interesting than Brooks Patterson asking Mike Bouchard something.” Ballenger said the Big 4 have a vested interest in Michigan’s next governor, and may ask pointed questions about what candidates will do for metro Detroit. Salisbury is counting on the format to draw attendees. The annual event, held at the Detroit Marriott Renaissance Center, is a major fundraiser for the association, bringing in about 25 percent of the organization’s annual operating budget, she said. “It’s also a ‘friend raiser,’ ” Salisbury said. “Eight Mile’s had a notorious reputation for decades, and part of our job is to break down the stigma associated with Eight Mile Road. We like to put on a first-class, top-notch event so people are left with the impression that Eight Mile may be worthwhile.” For more information about the event, visit www.eightmile.org. Nancy Kaffer: (313) 446-0412, nkaffer@crain.com  http://www.crainsdetroit.com/getemail http://www.crainsdetroit.com/secondstage http://www.cheltenbenefitsgroup.com http://www.catherinelarive.com http://www.eightmile.org http://www.tracylund.com

Table of Contents for the Digital Edition of Crain's Detroit Business - 25th Anniversary Issue, May 3, 2010

Crain's Detroit Business 25th Anniversary
Looking Forward
25 Companies to Watch
25 Mainstays
25 People Then and Now
25 Scandals and Dubious Deeds.
25 Philanthropic Gifts
25 Newsmakers of the Year
25 Big Stories
25 Innovations
25 Gone But Not Forgotten
Health Care
Defense
Suppliers
The Internet and Communication
Energy
Finance
Signs of the Times

Crain's Detroit Business - 25th Anniversary Issue, May 3, 2010

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