Scott Leiferman on why he bought Harmon Autoglass and how he’ll try to build it
When Scott Leiferman was living in Arizona and deciding whether to make the biggest move of his career, the acquisition of a $16-million division of Harmon AutoGlass back in Minneapolis, he looked hard at its profitability. “You don’t want to buy a dog and try to turn it,” says Leiferman, 33. “You want to buy a good business and make it better.”
After becoming president and owner in the spring, he immediately pumped half a million dollars into advertising and promotion and added a back-room operation. Mostly, he started convincing veteran employees that the young man with ideas that tumble out a mile a minute was focused on one thing: long-term growth.
“I’ve always been an entrepreneur at heart. I started working in the glass business for Novus. I was based out of their corporate office in Bloomington. I traveled extensively in sales.
I started my own business from scratch: Career Advisors. We helped people find careers. We grew that to a successful business in Edina. I still own it. I started a similar group in Scottsdale, Arizona, and I sold that group.
This opportunity presented itself. I wanted a challenge. I wanted something you could grab a hold of. This is a great group of employees. I can add energy to the table to really help this grow.
This brand is so well known. It’s been forgotten in the last 10 to 15 years. I think I can build it again. That excites me. I see the opportunity.
Not the first year. You can’t expect to change the world the first year. But starting in years two, three, four, I see significant growth.
I don’t disclose the cost of the acquisition. I put together funds from myself, then we have a lender. With the company’s assets and my financial backing it wasn’t difficult to attract a lender.
This division is No. 1, as far as the 24 stores I purchased. This division was making money. We have 120 to 125 employees. We do auto glass, home and business glass repair and sales. The less known, which will become more important, is the flat-glass business, like the storefront business.
Our annual revenue is $16 million today; of that, about $1.6 million is business glass. I plan to build this company in five to 10 years into a $25 million to $30 million company, with 60 percent coming from auto glass, 40 percent from flat glass.
You have to prioritize. We say, ‘What are our most important objectives?’ A, we want to make 18-to-40-year-olds aware of the brand. We promote and advertise to local consumers; we’re doing $400,000 to $500,000 on an annualized basis in this area. People say, ‘You’re spending a lot!’ But I say it’s smart. I say, ‘Let’s re-enter the market. Harmon’s back.’
B, you have to keep your good people in place. I implemented a new 401(k). I’m implementing a back-end bonus plan so every employee shares in the profitability.
Change is always difficult for everybody. Overall it’s been positive. I’ve been to each individual store — we have an open door policy. Communication is key. In building a business, if you have open communications, people can always come with ideas. They have to know they’re always going to be listened to, but not everything is going to be acted upon.
I found out about this opportunity by having contacts in the glass business. I was going against four or five other buyers.
Any competition is good. This is one of the most competitive businesses in the country. Competition — all it does is make me work harder. We want to do things the glass industry has never seen.
Our business cash flows very well. We net a lot of money. We’re a strong, very stable company. We’ll grow through internal growth.
It’s a different business, from Career Advisors, but some things are the same in all businesses. One, your relationship with your employees. Two, a similar vision, certain ideas work in both types of businessses. Advertising, brand pushing, associating with the University of Minnesota Gophers, etc.
This is bigger. There’s a lot on your plate. You think of the stress. Some people think of it and fold. My mind runs a million miles an hour. I’m this way 24/7. When people think I’m going to get stressed, I think, ‘How can we grow it?’ I look at life as long-term.
What has been confirmed for me, that I thought would happen when I decided to purchase the company? The employees here. First of all there were a lot of questions. They realized what we said we’d do, we are doing. The first day I took over I had a town hall meeting, to share vision, hear concerns. A lot of little things to you might be big to your employees. You have to think of all levels of employees.
I talk a lot so I think it’s important for people to talk back. It’s important for people to share. Otherwise they feel like you’re holding something out on them.
At first I think people thought I was a breath of fresh air. I don’t think I scared them. They wonder at first if you’re blowing smoke or is it for real and they think it’s for real.
Short-term, we’ll have bumps and bruises. Long-term, this is going to be a great place to work.
You’re going to have disagreements. I say, ‘Let’s bring them out on the table.’ For example, when someone comes to me with a hiring need, I need to have them clarify it, justify it. In any new hiring decision, or new purchasing decision, I want to have justification.
I don’t go a lot on gut. You can go on gut all day long and get lucky, but I’m not in business to get lucky. I’m in to make this a more profitable business for the long term.”
— Interview by Beth Ewen
[contact] Scott Leiferman, Harmon AutoGlass: 763.302.7301; scott.leif@harmonautoglass.com
