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The Finished Line

Year’s end reckoning yields The Clear Path ahead

By Rebecca Trela

Woosh. That was the sound of a year whizzing by, 12 action-packed months of selling and closing and printing and learning, a whirlwind of growth for D.C.-area distributor Tim McClellan, owner of Strategic Print Solutions. Last spring, Print Solutions began following McClellan, a former commercial printer’s rep who started out as an independent in 2002. He articulated a few goals—get organized, add clients, disperse revenue over the client base, and have a more flexible schedule. We enlisted a few business and printing industry experts to help him with his goals and McClellan was off to a running start.

At the halfway point, McClellan realized he needed to change course slightly. His wife, who previously considered working with him selling promotional products, got pregnant with their second child. A few earnest attempts to hire a CSR were unsuccessful. He lost his biggest client.

During the same time, though, Tim also incorporated web-to-print software, pitched a VDP program, added new high-end products, reworked his marketing strategy, and become a proud father for the second time. Oh, and he won back his biggest client, too.

Tim’s setbacks are just as important as his many triumphs, especially to the distributors eagerly watching his progress. As he’s reflected over time what’s best for the business and his family, grappling with questions about product mix, marketing and networking that face the entire industry, he speaks to other small business owners. And when Tim looks to the years ahead, he knows that crossing the finish line hasn’t slowed his momentum one bit.

Gains and Losses
In Greenville, N.C., last month, PSDA members from the Southeast and regions nearby sat down to network, break bread, and participate in a good Southern pig roast. At that time, McClellan, who had to miss the Small Distributor Summit in March, got to catch up with Joe Webb, one of the SDS speakers. Webb remembered McClellan from previous magazine coverage. “He encouraged me to find that first office helper, who will be the key to my growth in the next year,” McClellan says. Initially, he wanted to form a legal partnership with an old friend, but was dissuaded from that kind of entanglement by the Print Solutions experts. He’s had discussions with other potential hires, including a neighbor who’s a graphic designer, but hasn’t found the right fit.

“When we started this process last year, I wasn’t even sure what the first step would be,” McClellan says, reflecting on the goal setting process. “I know what the right step is and I’m working toward that goal,” he says, while mindfully avoiding the mistakes other distributors have made while growing. “Someone told me last year that I need to have someone take care of the stuff in the business so I can work on the business, and that really stuck in my head,” McClellan says.

Until that happens, Tim has his hands completely full. His initial goal was to add 10 clients, but he’s picked up four new ones, expanded into his existing accounts and now realizes he’s very busy. He’s on track to bring in about $720,000, approximately a 17 percent increase from the last time we checked in.

Tech-Savvy
One of the best decisions McClellan made this year, he said, was to finally decide on an e-commerce system. He signed up for e-Quantum, attended the client conference in Savannah, and devoted nearly a semester’s worth of nights and weekends learning how to use his new investment, about $5,000 per year.

“It was like being immersed in a completely new language,” he says. “It’s a huge learning process and totally different from learning QuickBooks.” However, McClellan knew that he’d have to incorporate this kind of software at some point, and decided to dive in head-first. He’s put together a few demo websites for existing customers, showcasing his new capabilities. Last week, McClellan introduced the concept to a new prospect with 3,000 employees, showing them a straightforward business card and letterhead setup.

“I think the reason I am even being considered in this final round is because of the system,” he says, showing that’s he’s heeded the advice of his expert mentor panel. Many experienced web-to-print sellers have mentioned that the best way to get your foot in the door with one of these programs is to start with business cards and let the system efficiencies “sell” the rest.

Just before Christmas, McClellan pitched a highly specialized VDP and kitting project to a local firm doing government work. The packages would distribute information to wounded military men about their health care benefits. “My client is very enthused about it and we started working on the design, but it’s been put on hold,” he says, with the uncertain climate in Washington. “That’s one of the hazards of working in a government town—the government budget.” Still, he has the confidence that the team will be able to move forward on the project independent of politics. “I was really exited to jump into my first VDP project, so I’m hoping I’ll have good news about it soon,” he says.

One Man’s Trash (and Trinkets) Is Another’s Gold
In the past few years, print sellers have gone from navigating the nebulous sea of a mature industry to being firmly grounded in marketing-oriented solutions, multimedia campaigns and new ways of using print. McClellan, whose family has been associated with traditional print for three generations, has navigated this change at warp speed in the past year. It was a box of pocket folders that jump-started his business, but it was a box of jump drives that marked a big change for Strategic Print Solutions this year.

“A client really opened my eyes to the profit margins on these,” McClellan says. When the client asked for the promotional items with a video on them for an upcoming conference, he gave the classic distributor answer: “Sure, I do that,” and quickly realized that certain promotional items are a better fit than others. “You can spend hours on the web looking for the right pen only to make $110,” he says, one of the reasons he has waited on adding promotional items to the mix. “But it was a very straightforward job and I learned a lot.”

McClellan and a fellow distributor he met at the 2007 SDS, PSDA Regional Director Andy Rich, met in D.C. for a SAGE trial. The two were hoping to explore the world of promotional products, but after the initial 30-day trial, McClellan realized he was too busy to learn another system on top of work.

“Ultimately, I’m still hoping that my wife will want to work in the business with me and make promotional products her specialty,” he says. Previously, Kristen McClellan was a pharmaceutical sales rep. Although she’s expressed interest in getting back into the workforce, her commitment wavers as she mothers Josh, 3, and Maddie, 2 months.

Smart Marketing
McClellan stands out in a sea of small distributors as someone who’s willing to invest in marketing his distributorship. Last year, his budget was about $5,000, but much of that sum included a reworked website. (Check it out at strategicprintsolutions.com.) He also sent out about 250 attractive 4-color brochures, but only got a few phone calls and no new business. A lot of the investment was eaten up by postage, he says.

“This time, I’m taking a very narrow view of prospects,” he says. “Some of my fellow distributors suggested higher-end cookie boxes and it seems like that approach has a lot of ‘wow’ effect.” Further marketing efforts will wait, he says, until he’s got the staff to handle the work.

Free Time
“Two kids are not the same as one kid, not even close,” McClellan laughs, proud of being a new father once again but clearly tired, too. “At five o’clock sometimes Kristen will look at me and I know it’s time to be Dad.” While the business would occupy the position of “baby” if the couple were childless, he says, it’s important to keep things in perspective. “I’ve chosen family over business and that’s absolutely not something I regret, it’s the right priority,” he says. In time, the business will return to the forefront as the children will grow older.

With the advent of a web-to-print system, McClellan has eliminated some redundant tasks and the family has escaped on small trips to the beach or to visit family. “Maybe a one-year time horizon for these goals was appropriate for someone working 60 hours a week or who has part-time help,” he says. As things stand, the last few months have been very busy and he’s accomplished a lot.

“In a way my business is still moving forward like a kid taking one of those wobbly steps,” he reflects. “I know the challenges are right there in front of me, and I know what I need to do to get there. Now, all I have to do is do it.”

The Next Frontier
“The last few months have been crazy, and busy, and good,” McClellan says. “Even though the past year hasn’t been what I expected.” One of the best things about it has been the swift decision-making process—“the pressure to check in every once in a while has pushed me to move quicker in the marketplace than I would have otherwise. My focus would have been fuzzier.” Many of PSDA’s small distributors have helped him evaluate ideas and make decisions, a sentiment his peers share at industry conferences.

The next year will see Tim striding forward, he says, better equipped and just as eager. Although he’s gotten a few questions about retiring or selling his business when it gets to a certain size, that isn’t on the horizon yet. “I really am having fun. I feel for those who don’t like what they do, because this really is great for me.” He expresses gratitude for those who have helped him walk in the right direction. The answers and inspirations are available to those who seek their fortunes in the print industry.

The path to the top hasn’t been straight, and it hasn’t been simple, Tim reflects, “but it’s all been in an upward, positive direction.”

Rebecca Trela is assistant editor of Print Solutions magazine. Email comments to rtrela@psda.org.