Louisiana has always derived advantage from its multiculturalism. Our State’s history began as a main trading area, with a steady flow of nationalities and cultures. From food, to music and the arts, festivals, our own peculiar legal system, and our worldwide standing, this state stood out from the “get go”. Other states have only recently, say in the last 50 years or so, leapt onto the world stage and become cultural centers in their own right.
Minority businesses are a part of this rich fabric called Louisiana. Let’s look at two who, with a little help and a lot of personal character, have succeeded. Even in today’s economy. Yasuko Makishi and her husband, Kevin Shuppert, own and operate Fortuna Productions LLC d/b/a Craters & Freighters, of Shreveport, LA. Huntington Oilfield Services LLC, of Lafayette, LA, is owned and operated by Roslin and Lamont Growe. Their stories are fascinating because of the people behind the businesses and their efforts to overcome the odds of small business.
The People behind the Companies
Craters & Freighters (C & F).
Yasuko Makishi was born and grew up in Okinawa, Japan. How she set down in Shreveport, approximately 7550 miles from home, is a circuitous story in itself. She lived in Hawaii, Chicago, New York and Atlanta before finally settling in Shreveport. Along the way, she earned an economics degree and began to apply that knowledge in the accounting and finance department of a metals company, then in real estate, and finally in the futures market (commodities market). By then she had developed an eye for business opportunities and economic trends, besides knowing how to work the numbers. Couple that with her husband’s long experience in the railroad industry, the husband-and-wife team focused on buying a business in the transportation sector.
They were by then in Shreveport where they identified a flailing packaging and shipping franchise, bought it, and turned it around within the first year. “We were looking for a deal and paying attention to the stock market signals at the same time. We immediately recognized the C & F franchise as that deal,” says Yasuko.
Huntington Oilfield Services (Huntington).
Lamont Growe worked himself up from the bottom at Huntington, a filtration company that services oilfield drilling operations. Lamont went from maintenance functions when he started there in 1989 to operating equipment both on- and off-shore, learning about fluids and sales, and then supervising labor by 2000. He left to work for the competition, having the opportunity to monitor drilling operations, fluid engineering and well completion jobs, which took him to 2003, the year opportunity knocked on his door.
That opportunity led Lamont back to Huntington in 2003. The company’s owner wanted to retire from the business, and his sons were not interested in taking over. So, Lamont was invited back as “general manager and prospective owner,” as he explains it. When he was comfortable with being at the top rung of the management ladder, he and his wife, Roslin, bought the company. An inspiring story, especially given that Huntington is now THE minority, African-American, company in its field within its territory, Texas to Alabama, on- and off-shore.
Operating Successful Businesses
Craters & Freighters.
Yasuko Makishi and Kevin Shuppert started Fortuna Productions LLC in 2003 as the parent firm which would acquire other businesses, such as C & F. They assumed ownership of C & F in March of 2005. In 2006 they doubled C & F 2005 sales. In 2007 they more than doubled 2006 sales. Now at the end of the first quarter of 2008, they have already surpassed 2007 sales. Not bad, you might say, especially for a company growing in the aftermath of hurricanes and a difficult economy.
How did that happen? It takes hard work, sound thinking and preparation. Not much room for luck in this equation. Let’s think about this a minute. First, Yasuko and Kevin have complementary roles. As president, Yasuko does the business analyses, identifies new markets and controls the finance and accounting aspects. As general manager, Kevin controls operations, develops and maintains customer relations, draws up quotes, and oversees personnel. Another full-time staffer builds the crates to order and prepares shipments. And several part-timers assist as needed.
Second, they have continued to expand the company’s markets. As the U.S. dollar has lost value, they turned to overseas markets where American goods (and services) are now more accessible to overseas buyers than before. It’s cheaper to buy American goods, and foreign buyers are showing up at our doorstep in record numbers. C & F has exported to over a dozen countries at this point. Amongst other goods, they have shipped, including air freighting: medical supplies and equipment, defense items, industrial equipment, IT assets, auction items (such as industrial ovens and incinerators), and antiques and memorabilia (including high end automobiles). The decision to become involved in exporting/international trade has been good. 2008 sales were particularly boosted by exporting.
Thirdly, the couple sets goals for the future. As Peggy Connor, of the Louisiana Small Business Development Center at Shreveport (LSBDC – Shreveport) says, “Yasuko thinks globally and always plans ahead.” Given Yasuko’s background, a focus on Southeast Asia makes sense. The couple wants to develop “a presence” there, as Yasuko explains. What that means is to work through various stages that roughly involve: developing an alliance relationship with agents, and then investing in the partnerships. Taking an equity position in a partnership will allow the couple to have more control and increase profits. What follows is a physical footprint that would include warehousing and distribution centers and in-house freight forwarding/custom house brokering.
Huntington.
Lamont and Roslin Growe are also an appropriate management team. As president, Roslin tends to “the overall administration, such as the planning and budgeting functions,” she explains. Roslin is Dr. Roslin Growe, with a Ph.D. in Education. She has been a full professor of education for the last 21 years at the University of Louisiana at Lafayette (ULL). She not only teaches but also heads up the Education Foundation & Leadership Department at the College of Education. So the functions of planning and budgeting are not new to her by any means.
As VP and operations manager, Lamont oversees all aspects of operations (the technical areas), where he has extensive experience and knowledge. Armed with a degree in music, he nonetheless worked his way into the oil business. That happens in life, but he knew how to take advantage of the opportunities that emerged. What is so compelling is the leap he made from employee to owner. That should be empowering for anyone looking to enter the business world, minority or not.
Phillip Williams, a family member, recently joined Huntington as business manager. He manages the day-to-day business activities. With his degree in business management, he completes the administrative needs of the company. There are also several workers at Huntington, and those numbers vary depending on the job.
Another point in their favor is the company’s attention to safety. There is ongoing safety training for company workers. Courses are conducted by SEOT (Safety, Environmental and Operational Training). In addition, Huntington is registered with ISNetworld, a widely used contractor database where it has an “A” rating. Both situations make Huntington a better risk for oil companies. Indeed, the company already has a long standing contractual relationship with Chevron.
However, developments in the competitive environment challenge Huntington’s growth. Large oil services companies have bought out filtration firms and added them to their mix of services. By vertically integrating, these ever larger companies are posing a huge threat to small firms like Huntington. The names are recognizable even outside their industry: Schlumberger (bought MI); Halliburton (bought Baroid); and, BJ (bought OSCA), to name a few.
What is Huntington doing to manage the threat? As their mission statement on their website says, they “…offer to the oilfield industry, both land and offshore, quality, safe, and environmentally friendly filtration services at or below competitive prices. The management of Huntington Oilfield services believes that there is a market for smaller companies that provide this kind of service while being more personally attentive.”
In other words, they promise competitive pricing without sacrificing quality or safety, or customer care. It’s a formula for success: high quality, low prices, and superior customer service. Just look around for other examples of local businesses that exist alongside the giants: Ace’s Hardware vs. Home Depot or Lowe’s; CC’s (Community Coffee) vs. Starbuck’s; Langenstein’s vs. Whole Foods; etc., etc. It is possible.
In addition, the company is working on expanding to other areas of drilling services, drawing on Lamont’s experience. These are mud shack, tank and fluid rentals. And, the management team is studying the risks and benefits of foreign contracts. Five years from now they hope to have doubled the number of employees and also their net income.
The LSBDC lends support
Every society wants to draw advantage from its many different parts, such as its small and minority business base. It’s a great ideal that most people embrace, but the reality is that small and minority businesses need help. “Leveling the playing field, opening up the doors of opportunity” is what’s needed, amongst other services, says Nathan Thornton, Director of Micro Business Development for the LSBDC - Lafayette. That’s one of the things the LSBDC does for small business around the State. And there are particular tools available for minority business.
Nathan encouraged Huntington to qualify with the Louisiana Minority Business Council (and the Texas arm as well) and the Women Business Enterprise National Council. In addition, the company applied for certification with the Small & Emerging Business Development Program. Of course, the Growes also attended training, such as Quick Books. And they sought Nathan’s assistance in crafting the purchase offer and securing financing when the Growes bought Huntington. Since then, they have repeatedly tapped into the LSBDC-ULL for advice on how to diversify and meet other business challenges.
Yasuko Makishi and Kevin Shuppert also tapped into the LSBDC services. Though they came to business ownership with plenty of preparation, they wanted to get it right. They self-financed the purchase of their C & F. However, they felt they needed other kinds of support. They requested assistance for business planning and marketing strategies, took numerous workshops and seminars, and worked through certifications. In addition, they, like the Growes, continue to access counseling support.
Continuous business counseling is important to the businesses and the LSBDC. As both Nathan Thornton and Peggy Connor will tell you, it’s critically important to assist before decisions are made and then help execute those decisions plus offer trouble shooting.
It doesn’t get any better than this: full service at the LSBDC with hardly any cost to the business.
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Craters & Freighters
Yasuko Makishi and Kevin Shuppert
3070 Baird Road
Shreveport, LA 71118
Office (318) 688-4410
Fax: (318) 688-4465
shipquote@yahoo.com
www.cratersandfreighters.com
Huntington Oilfield Services
Roslin and Lamont Growe
200 Midway St.
Lafayette, LA 70506
Office (337) 235-5274
Fax (337) 234-4044
huntrola@bellsouth.net
www.huntingtonoilfieldservices.com
LSBDC Lafayette
Nathan Thornton, Director
Micro Business Development –
University of Louisiana at Lafayette
220 E. St. Mary Blvd.
Lafayette, LA 70503
Office (337) 262-5344
lsbdc.ull@lsbdc.org
LSBDC Shreveport
Peggy Connor, Business Consultant
Louisiana State University at Shreveport
Business Education Building
One University Place
Shreveport, LA 71115
Office (318) 797-5144
lsbdc.lsus@lsbdc.org
The Louisiana Small Business Development Center (LSBDC) is a partnership among the U.S. Small Business Administration, Louisiana universities, and Louisiana Economic Development. Visit www.lsbdc.org for information on services to small business: seminars, training, events, and one-on-one counseling.
