Small Start, Big Impact
One Midwest distributor brings new meaning to "small business."
By Laura Thill
About 10 years ago, Paul Holt thought he’d like to start
a small mail order catalog business. He planned to focus on a localized territory in Wisconsin and hire absolutely
no salespeople.
After years of experience as a sales rep with a large corporate player, Sullivan Dental (Milwaukee, Wis.), he was ready for a change of pace. "I always liked the idea of [owning] a small, independent company," he says.
The timing appeared to be right. Bob Sullivan, a founding partner at Sullivan Dental, was preparing to merge his company with Henry Schein (Melville, N.Y.). Holt’s father, Wayne — also an original partner at Sullivan — was planning his retirement. Holt was motivated to make his own move.
So was Terry Fitzsimmons, an equipment salesperson at Sullivan Dental. "Terry wanted to open an equipment service company," says Holt. The more they considered their respective goals, the more sense it made for Holt and Fitzsimmons to join forces. When Sullivan Dental merged with Henry Schein, forming Sullivan-Schein Dental,
the two entrepreneurs recognized an opening in the dental market. "[The merger] opened up an opportunity for us, and we were very well received [in the industry]," says Holt. In August 1998, Milwaukee, Wis.-based Holt Dental was founded.
Then and now
Holt’s longtime history with Sullivan Dental paved the way for a healthy beginning for his new company. He was familiar
with the market and had a following of loyal customers. He originally hired two sales reps and a couple of service technicians. The company served customers in Milwaukee and Madison, Wis. Soon after opening its doors, Holt Dental expanded into northern Illinois, and Holt added a third sales rep. The two original salespeople, Don Derivan and Tom Pigot, later became partners with Holt and Fitzsimmons.
From the beginning, Holt Dental’s mission has been to offer local dentists "a reliable, easy-to-use" distributor, with competitive pricing and a strong emphasis on quality. Over the past decade, the company has focused on building relationships, and its "local" customers are now located as far north as Superior, Wis., and parts of upper Michigan. It also serves customers to the south in parts of Indiana and Illinois, including the metro Chicago and Rockford areas.
"Today, we have over 1,200 active customers, and we are currently adding more sales territories in Wisconsin and Illinois," Holt says.
Reaching customers
Over the past decade, dental customers have become more technologically savvy, notes Holt. "The dental office is more reliant on technology than ever before," he says. At the same time, dental distributors need to train their sales reps to be more involved with their customers.
"In many cases, I have noticed a decline in the quality of sales people throughout the industry," he says. "It is our goal to train our sales professionals in all aspects of the dental practice, including dental products, planning, technology and ideas for managing productive dental practices. This involvement [reflects] the [mindset] most dental dealers subscribed to in the 1960s."
Today, it is harder than ever for young dental distributors to penetrate the dental market, he explains. "The barriers to entry are much higher today, even compared to when Holt Dental started." Reps require a better understanding of new technology, for one. They also must be more aware of compliance guidelines, drug pedigrees and more health requirements, he adds. In fact, one of the greatest hurdles Holt Dental has encountered over the years has been securing manufacturers’ product lines and setting up current systems that keep pace with technology.
These obstacles shouldn’t deter anyone from starting his own dental distributorship, says Holt. However, without substantial monetary backing and a smart financial game plan, success can be close to impossible.
In retrospect, Holt says that he wishes his own company had engineered different financial plans over the years. That said, he plans to continue investing in, and growing, Holt Dental. Even as he sees his company competing with national distributors, Holt anticipates doubling his company’s sales over the next five years. "Our first year [in business], we had sales [totaling] just under $700,000," he says. "Today, we anticipate sales will exceed $20,000,000."
"We are easy to deal with and we make our customers feel important", he says. "[We compete] by building unrivaled relationships through honorable principles and actions."
As Holt Dental continues to grow, Holt anticipates
the additional challenge of managing sales reps stationed farther away. But he is confident this can be handled "through strategic placement and proper management of new sales territories."
Landmark anniversary
As Holt Dental approaches its upcoming 10-year anniversary, Holt contemplates the event. "We’ll do a number of things," he says. "Of course, we’ll have a celebration. [Also], there are some key individuals who have helped the company grow, both internally and externally. These are the employees who have helped formulate policies and procedures. They have been involved in forecasting to ensure the continued success and growth of the company. They also are responsible for increasing products and services to the customer."
Indeed, Holt Dental’s success has evolved out of a team effort. "We have an excellent group of employees," he says. "We have spent a lot of time finding these people and training them, so, it’s a reward to see them — as well as the company — grow."
"Holt Dental has consistently gotten better every
year," he continues. "Our culture has improved quite a bit. Sales profitability and overall operations [have also
become stronger]."
"We have grown from having a couple of people to over 50 employees," he says. Now, when he walks through Holt Dental, there are a lot more people to see, but it’s much harder to visit with everyone. So much for owning a small company with no salespeople. [FI]
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