Andrew Wilkerson, Jerod Bridwell, Jake Ziebell

Executive Group- Morning Session

Car detailing

Todd, Jonathan. “Best Places to Start a Business in Indiana.” ​NerdWallet​, NerdWallet, 13 Nov. 2015​,
www.nerdwallet.com/blog/small-business/best-places-start-business-indiana/​.

- This website ranks Southern Indiana cities and states that Jasper is one of the better cities
to have a small business. With that being said the article states that Evansville isn’t the best
place to start out due to competition. This would suggest that the company really needs to
get its footing before thinking about entering the more competitive environment of
Evansville. In addition, the article suggests that there is plenty of financial capital to do so.
With a thriving economy there is little to no incentive to relocate or expand.

Grant, Mike. “New Study Shows 8-County Southern Indiana Small Business Lags Rest of the State -
Indiana Economic Digest.” ​Indiana Economic Digest - Indiana​, 25 June 2017,
indianaeconomicdigest.com/main.asp?SectionID=31&SubSectionID=83&ArticleID=88512.

- This article states that most southern Indiana counties are struggling to adjust to new tech
and economic climate due to rural nature of the state. This is extremely troubling news for
the longevity of the company. A community and market that refuses to adapt to the times
ends up “drying” up and having no real capital to capitalize from. This would suggest that
not even Evansville would be a good place to expand to. With most of the southern part of
the state lagging behind. From this we should look at even broader markets to expand to.
And to keep an eye out for when the southern part of the state appears to start rebounding.

“The City of Jasper, Indiana.” ​City of Jasper, Indiana / VISIT​,

www.jasperindiana.gov/category/?categoryid=7​.

- The city of Jasper is currently undergoing fiber optic implementation to ensure that the city
continues to thrive in the current market. Additionally, the city of Jasper states that the
main source of jobs in Indiana and none in auto manufacturing, which means plenty of
capital and little competition. This article is directly from the city or state and could be
perhaps biased yet, an expansion in technology and investment from the state in healthcare
(which is an extremely lucrative investment) show that perhaps Jasper and the southern
part of the state are starting to become the market one would need to continue to succeed as
a business.

“Indiana Retirement Tax Friendliness.” ​SmartAsset,​ SmartAsset,

smartasset.com/retirement/indiana-retirement-taxes.

- With baby boomers retiring and that being a massive chunk of the market (especially for
auto detailing) this could be an unfortunate out come for the future. According to this
article Indiana is only moderately favorable to the upcoming baby boomer retirees. This
could lead to less discretionary income or even baby boomer choosing to live elsewhere after
retirement. Both would negatively impact the future plans for this company.
Good- Starting out in a growing town that has potential for sustained growth over the next decade is a
massive advantage in creating more than a job but an incredibly profitable company. With numerous car
collectors and car events in the Ohio river valley this is a great place to start a business. In addition, the
size of you company allows for a certain level of flexibility that you limited competition doesn’t have.

Bad- With no much competition and being on the cutting edge of certain car products sets you up for the
future in good standing. However: with no major capital and no work force sustained and continued
growth is a window that is rapidly closing. Time is always a factor and if your strengths aren’t capitalized
on soon other companies will swoop in and capitalize on them for you.

Ugly- This is a niche market with so many unknown variables. Unfortunately, clients are far and few. Not
having a sustained source of income, you are a product of your own successes. Due to the nature of the
job. The better job you do the longer the cleanliness and product on the car lasts and thus the less they
come to you to generate income. These are issues that are unavoidable and unknown.

Short term- Expand!!! On all fronts there needs to be more. Online presence is one thing and you do have
a good one at that, however, there needs to be more options for service, more employees and defiantly
more customers. Minor body mods and certain level of interior customization might attract new customers
and open a new source of revenue and growth.

Midterm- This would be an excellent time to determine how much further with the business you want to
go. If external factor continues and growth is steadily increasing and there is still a desire to cultivate the
business, then this would be the time to expand to an additional market. (Evansville, Indianapolis,
Louisville)

Long term- After entering in to additional market(s) this would be the time to further expand your product
line. And do additional market research to further discover what the customer wants. A further expansion
of the product line might be major paint touch ups or further levels of customization. What market you
enter into will dictate you decision.

Sloderback Heating and Air Conditioning

Sloderback’s Learning Environment- Generally, Sloderback informally teaches its employees to better
handle new assignments based off of previous installments. Although experience can prove to be
extremely imperative, sometimes this can be more of a reactionary response, rather than a preventative
response. However, one of Sloderback’s best attributes is the ability of their workers to perform on the
fly.

Sloderback’s Strategic Implementation- Right now, the owner is essentially a one man band when it
comes to not only strategic formulation, but also strategic implementation. Although the company is
small, it is possible he might benefit from a broader scope or perspective. It can be dangerous for one
person to run every aspect of the business. Implementing a cross functional team could prove to be
beneficial for the company. A cross functional team would give multiple employees the opportunity to
brainstorm ideas and contribute to the company in multiple facets.

Sloderback’s Evaluation and Control- There is very little monitoring by a supervisor/boss because each
individual is required to complete their own tasks. Obviously, this leads to a trial and error type system
that can provide good experience. However, this process is generally inefficient and learning the right
process before the employee is thrown out into the field would prove to be more efficient.

Sloderback’s Strengths and Weaknesses- Strengths: Customer Service, Transparency with the customer,
and time efficiency on jobs. Weaknesses: They do not offer financing, The company is heavily reliant on
the owner to complete multiple tasks, Employees mainly work out of their vehicles rather than a shop.

Sloderback’s Business Model- A multicomponent business model: It is a logical representation or map of

business components or "building blocks" and can be depicted on a single page. It can be used to analyze
the alignment of enterprise strategy with the organization's capabilities and , identify redundant or
overlapping business capabilities, analyze sourcing options for the different components (buy or build),
prioritizing transformation options and can be used to create a unified roadmap after mergers or .
Essintially, sloderback doesn’t make money of the products they sell until the install the product and
benefit from the labor that it requires.

Sloderback’s Business Model Elements- The company differentiates itself by never settling for a low cost
opportunity and always ensuring the best customer service available. This is one of the benefits of running
a business on such a small scale, the provider can ensure the customer a more hands on service than a big
wig company might be able to offer. Moreover, Sloderback provides their service on sight and on time,
providing customers with the insurance that their business will be conducted on time.

Sloderback Resources- One of sloderbacks most relevant resources is actually intangible in the form of
their reputation. Good standing with current customers and their desire to spread good experiences with
Sloderback proves to be their greatest competitive advantage. However, most of the actual resources
utilized by the company are tangible, describing their manpower and equipment.

Benchmarking for Sloderback

Internal:

57,354 of 99,190 HVAC companies have only 1-4 employees. (57.8%)

Sloderbeck having 4 employees fits into the national average. Census statistics show that although the
smaller businesses make up much of the industry, they still produce the least amount of revenue.
Expanding to 10-15 employees while maintaining customer service and quality is the best short-term
plan. This will increase revenue and work radius, allowing the company to work in multiple counties and
compete with other companies.

https://www.census.gov/epcd/susb/2008/us/US23822.HTM

Short-Term Recommendation:

Do not partner with a refrigeration company before expanding. While only having a few employees and
not generating a lot of income a partnership in a field that you are unqualified can be risky. In the
short-term I recommend expanding to 10-15 employees while increasing job load correspondingly. This
will increase revenues and get the company name to more people and locations.

Medium-Term Recommendation:

You stated that your medium-term goal was to find more reputable suppliers. One way to find suppliers is
to mail a letter to another small business located far enough out of your expanding radius, and ask if they
can give you names of quality suppliers. There is a chance the other companies will not want to give you
this information, but if they feel you are not a threat then the might give it to you. I am in agreeance that
finding more suppliers is an excellent goal because you always need a backup. Once you find the most
quality and cost-efficient supplier, the company should try to enter into a value-chain partnership. This
will give you closer bond with the supplier and the supplier may give a discount.

Long-Term:

My recommendation for the long-term is to keep expanding your company. An acquisition with another
company will not be as efficient as starting your own refrigeration with your brand. So, you having
continually expanded your company, revenue and employee number have dramatically increased. You do
not want to take in another company that has many employees who are not aculmated with your company
and policies. Hiring a crew of five refrigeration professionals and starting slow will be the best option.
Taking time to advertise and get your name out with the five employees. Then if the market picks up and
the five members cannot handle the work load, then expand on your team..

5 year Growth:

The national HVAC growth rate is 5.5% in revenues. Sloderbeck resides in Westfeild indiana which has a
population growth of almost 10% in the 35-50 age group. This is the age where you are most likely to turn
your attention to things like HVAC. So I am expecting a growth in revenues by 7.5%.

10 Year Growth:

After expanding heavily and going into the refrigeration market, I am expecting revenue growth of at least
20%.

Corrections and Variability

Technology:

According to , the greatest cost to your organization is in trust: 90 percent of consumers indicated they
might take their business elsewhere if they suspect an SMB is using outdated
technology.--- http://www.ansolutions.com/blog/true-cost-falling-behind/

This website states the importance of having newer technology (less than four years old). Multiple
statistics are listed on how much money and customers can be lost with outdated technology.

Permits--http://www.cslb.ca.gov/Media_Room/Press_Releases/2011/November_16.aspx

This website shows how important having permits to replace an HVAC system is. “Building permits
generate routine inspections to help assure that the system was installed properly, is functioning
efficiently, meets Home Energy Rating System (HERS) testing and verification requirements, and
complies with the State Building Energy Efficiency Standards.”.. If the contractor does not have a permit,
it can result in multiple fines and having to replace the new system.

Corrections for Powerpoint

PowerPoint Beginning with STEEP Analysis

Slide 3: “can cost the business customer and money”

Slide 3: “Threat actors”

Slide 8: “should purse”, another Purse in slide 8