This Story is how a Family Business Starts Grows Peaks and Declines. The Story Starts in 1948. The Business grew through the 1950’s and 1960’s. The Business would continue to grow and gain momentum like a snowball rolling down a Mountain. As the Business rolled through its 50th year the momentum slowed. By year 60 the melting and breakup was clearly evident. Many Family Businesses fail with the Second Generation, 90% will fail by the Third generation. This Story is how it happens.
Thursday, February 13, 2014
Snowthrower service
Tuesday, February 4, 2014
Start here
Introduction 1945 -1948
This is an introduction to a story about our family business. In 2010 I decided to take my notes and my Father's letters and start this project. At the time, the Business was on very shaky ground when most rental Businesses were thriving. The current management is my two sisters and a nephew. None of them understand the Business's history or how to operate Business. Without the knowledge contained in this story, they can't save it. They ignored my help and blamed everyone else for the declining business state.
My involvement started when I was 7. We moved
to a house behind the Business, and the store with its equipment was my playground.
By then, I was producing revenue in the mower shop; by 14, I was on the
payroll. As the oldest of four siblings, I grew up knowing the Business would
be passed on to me. College was never an option for me, and when I graduated
High School, I had a salary and a 50-hour week. At 67, the branch I bought from
my Father in 1995 is still strong. I was raised to do this, and there was
nothing else I ever wanted to do.
I did not write about how to grow a successful
business. There are plenty of good business books in the Library on that
topic. It is an interesting story that follows a very successful business
my Father never planned on starting. I started in the Business when I was 7. I
spent my life in the Business until purchasing a branch store from my Father in
1995.
This is a History of the Leiser Family
Business. My Father's Business started in 1948 and entered its 6th decade
in 2008 without its Founder. In my Father's estate planning, my Father provided
my mother with a steady income that would allow her to afford a comfortable life.
He set up a foundation to take care of his hunting trophies and restored a
one-room School House he owned. My Father enrolled his Farm in a farmland
preservation program and was very generous to his favorite charities. As his
health failed, everything seemed to be in order; however, a Business succession
plan was never found.
Why?
My best answer is that my Father never
expected the Business to survive after his involvement ended. Some of his
letters in the last years of his life would allude to this. To the best
of my ability, I will draw the Map that will take my Father's Business from
Dawn until Dusk. The Map that I drew will show it was not all smooth
sailing.
There will be potholes and dead ends along the
road to any successful business, and my Father's Business is no
exception.
This story of the Business would start with my
Father collecting bricks for the foundation long before the agreed-to 1948
starting date. During World War II, my Father was training to be a
fighter pilot in the Army Air Corps. When the war ended, my Father pursued
his love of flying. Using the GI Bill to attend Spartan School of Aeronautics,
my Father would complete a course in Airport management. He would return
home to Bethlehem, Pennsylvania, searching for a job.
Immediately after The war, few jobs were available in the Bethlehem area. Local industries were still retooling from War production while trying to absorb the thousands of newly discharged soldiers. My Father would take on some part-time jobs. He would work for my Grandfather. My Grandfather was the head gardener at the estate of a Bethlehem Steel executive. My Father worked nights as a bartender and operated a handyman service during the day. My Grandfather was a nurseryman by trade; this background would set a direction for the handyman business.
My Father purchased a used Rototiller and a surplus Jeep; he offered a custom tilling service. In other words, if you wanted a garden dug, you would hire my Father to dig it with his tilling machine. My Father would also cut lawns and purchase a chainsaw to cut trees. With the chain saw, he had an opportunity to sell chain saws to farmers and contractors in the area. My Father would spend the winter traveling the roads of the Lehigh Valley, demonstrating the chainsaw to farmers. He had an innovative product; unfortunately, as hard as he worked, my Father would sell only a few chainsaws in those early years. Most farmers could not justify the amount of labor saved compared to the cost of the saw. The farmers were amazed by the speed but would confess to my Father that they had all winter to cut wood with a hand saw.
The power chain saw was developed in the early 1900's it was a heavy, expensive machine. Even the lightest chainsaw needed two strong men to operate. Wartime advancements in aluminum castings would make the chain saw lighter, cheaper, and more portable. The first brand we sold was Mall; over the years, we have sold and rented most major brands of chain saws.
The postwar chainsaw was an innovative product; however, it was not a product that the Business could be built around. My Father never intended to open a retail store, so the chain saw was just a product that would enhance his handyman business.
My Father still envisioned finding a career in aviation; however, with no aviation jobs available, he would pursue his lifelong love of aviation as a hobby. My Father was active in the Civil Air Patrol and the founding of the local Pilots Club. He would be involved in flying all his life; however, aviation would always remain a hobby as he grew his Business.
Another business opportunity that would present itself to my Father was home building. One of my Father's friends convinced him to buy a large Army surplus Glider. These kits were cheap and were purchased to reclaim the lumber used in the wooden crates and the wood recovered from the glider. My Father would salvage enough lumber to build a house. A few years later, he would marry and build a second and third house on land he purchased from his Father. These three houses still stand in the rear of my Grandfather's property at 3301 Linden St in Bethlehem.
My Father would touch other business opportunities; however, once the new building was erected, the Handyman Business would be discontinued.
The wooden propeller had no real significance to my Father's flying. My Father purchased it after it was salvaged from a wrecked airplane. My Father hollowed out the center and mounted a clock in the center. When his first standalone store opened at 2960 Linden Street in 1955, the propeller clock was hung above the front door. In 1970 it was moved to the new 3608 Linden Street store. It was always a conversation piece. When the Business was evicted from the 3608 location, I found the propeller in a back office. The propeller now hangs inside the front door of my store.
First decade… 1948 - 1958
My Father acquired a Toro dealership in 1948. I doubt he knew he had found a product to grow a business. Power lawnmowers were not new; Toro introduced a consumer-sized powered Lawn Mower in the 1930s. With the post-war building, the boom came an expansion of the suburb yards that were too large for push mowers. A power lawnmower in 1950 was still an expensive item. A walk-behind power mower could cost a homeowner 2 to 3 weeks' salary. With the population moving to the Suburbs, the demand for power lawnmowers increased. The power lawnmower moved from a luxury item to a necessity.It was never made clear how my Father and Toro got together; however, with virtually no investment, my Father would be given exclusive rights to sell Toro lawn equipment in the two counties that comprised the Lehigh Valley. This was postwar retailing, where business relationships were consummated with a handshake rather than a contract. My Father would go on to slice up his territory by wholesaling Toro products to other retailers within his territory.
The lawnmower necessitated a change in my Fathers handyman business. The lawnmower was not an item he could sell out of the back of his Jeep. The lawnmower would need a showroom. My Father installed some large windows in my Grandfather's garage, and Donald W Leiser Sales and Service was born. As the lawnmower business grew, the handyman business would be phased out. Toro lawnmowers would be the single product that would support my Fathers new business.
Location is always critical, and establishing the Business in the center of
Northampton county would give my Father's business access to a robust middle
class. The Lehigh Valley was the home of Mack Truck, Bethlehem Steel, and
Ingersoll Rand. This would help grow a middle and upper-middle-class community
with disposable income. The flat land between downtown Bethlehem and my
Grandfather's house was ready for suburban development.
Even with the retail store opening, this would not set my Father on a lifelong
career path. My Parents had a season-long campsite at Promised Land State
Park. When the State of Pennsylvania started leasing sites, my Father would
lease a site and build a cabin. During construction, Dad would watch the
neighbor struggle in his cabin-building project. In helping the neighbor
with his cabin, my Father would notice the neighbor's lack of building skills.
This would give him the idea of building cabin shells. He would install the
foundation, erect the floor, walls, and roof, and the owner would finish off
the inside. While this would be a mostly weekend and off-season business Dad
would find customers for his building services.
My Father had only completed a few of these shells when back-to-back hurricanes
spawned flooding that would devastate the Pocono Mountains in 1955. The
flooding would kill hundreds of people; wash out most bridges. Dad would
fly my mother and me up to the cabin site he was working on to check on it. The
floods had picked up the enter lumber pile and pushed it against the foundation
without losing a single board. He would finish that cabin; however, the
demand for cabins in the Poconos had died.
Another product that would be a stepping stone in the growth and diversity of
the Business would be the backhoe. Today the backhoe loader is now found on
every construction and landscaping project. However, before World War II, the
backhoe loader as we know it did not exist. Digging a basement or digging a
trench was accomplished by hand or with a "Steam Shovel." The
prewar power shovels needed to be hauled to a construction site in pieces and
assembled before use. Moving a power shovel from one job to another could take
days.
My Father would start by buying a Shawnee or Pippin backhoe kit. Then mounting
the loader kit on the customer's tractor. Now a digger could be driven to a job
site and then moved to the next job. This would lead to Dad acquiring a tractor
dealership to supply tractors for the backhoe kits. The tractor
dealership we would acquire was International Harvester Industrial Tractors.
With International Harvester industrial equipment Dad had a full line of
construction equipment, from garden tractors to bulldozers.
The tractors and construction equipment necessitated a move out of my
Grandfather's garage. In 1955 Dad purchased 3 acres at the intersection
of Linden St and Macada Rd in Bethlehem, Pennsylvania, and moved the business ½
mile South of my Grandfather's garage. The building was built mainly for the lawn
equipment business. However, the showroom floor was reinforced enough to hold
the weight of a bulldozer.
As the Business's first decade ended, it was still evolving; however, it seemed
to be on a solid foundation. From a starting point of a chain saw in the
back of a Jeep. The decade ended with a 44 x 48' building, and the Business was
successful.
My Father hadn't yet hired a full-time employee, as extra help was needed; my
Mother, my Grandfather, or Dad's friends would provide it. Every Friday,
Mom would drive a truck to Philadelphia with a check to purchase replacements
for the mowers sold during the week. Dad would schedule deliveries and
service calls for evenings so he could operate the store during the day.
This was honestly a Mom and Pop.
First decade… 1948 - 1958
My Father acquired a Toro dealership in 1948. I doubt he knew that he found a product to grow a business around. Power lawnmowers were not new, Toro introduced a consumer sized powered Lawn Mower in the mid 1930's. However in the 1930’s the suburbs hadn't been invented yet and with a limited market they were very expensive. With the post war building boom came yards that were too large for push mowers. A power lawnmower in 1950 was still expensive item. A walk behind power mower could cost a homeowner 2 to 3 weeks’ salary. As the demand for power lawnmowers increased prices would drop and the suburban sized power lawnmower moved from luxury item to a necessity.
It was never made clear how my Father and Toro got together, however with virtually no investment my Father would be given exclusive rights to sell Toro lawn equipment in the 2 counties that comprised the Lehigh Valley. This was postwar retailing, where business relationships were consummated with a handshake rather than a contract. My Father would go on to slice up his territory by wholesaling Toro products to other retailers within his territory.
The lawnmower necessitated a change in my Fathers handyman business. The lawnmower was not an item he could sell out of the back of his Jeep. The lawnmower would need a showroom. My Father installed some large windows in my Grandfather’s garage, and Donald W Leiser Sales and Service was born. As the lawnmower business grew the handyman business would be phased out. Toro lawnmowers would be the single product that would support my Fathers new business.
Location is always very important and establishing the business in the center of Northampton county would give my Father’s business access to a strong middle class. The Lehigh Valley was the home of Mack Truck, Bethlehem Steel, and Ingersoll Rand. The Lehigh Valley’s many college's that included Lehigh, Lafayette, Muhlenberg, Moravian and others would get a boost from the GI Bill. This would help grow a, middle and upper middle class community with disposable income. The town of Bethlehem was built on the side of a mountain. Between downtown Bethlehem and my Grandfather’s house would be miles of flat land ready for suburban development.
Even with the opening of the retail store this would not set my Father on a lifelong career path. He would find other business opportunities to explore. Dad’s lifelong love of the outdoors would start another business. My Parents had a season long campsite at Promised Land State Park in the Pocono Mountains. When the State of Pennsylvania started leasing building sites my Father would lease a site and build a cabin. During construction Dad would watch the neighbor struggle in his cabin building project. In helping the neighbor with his cabin my Father would notice the neighbor’s lack of building skills. This would give him the idea of building cabin shells. He would install the foundation, erect the floor, walls, and roof and the owner would finish off the inside. While this would be a mostly weekend and off season business Dad would find customers for his building services.
My Father had only completed a few of these shells, when back to back hurricanes spawned flooding would devastate the Pocono Mountains in 1955. The flooding would kill hundreds of people; wash out most of the bridges. Dad would fly my mother and me up to the cabin site he was working on to check on it. The floods had pick up the enter lumber pile and push it against the foundation without the loss of a single board. He would finish that cabin; however the demand for cabins in the Pocono’s had died.
Another product that would be a stepping stone in the growth and diversity of the business would be the backhoe. Today the backhoe loader is now found on every construction and landscaping project, however before World War II the backhoe loader as we know it did not exist. Digging a basement or digging a trench was accomplished by hand or with a “Steam Shovel”. The prewar power shovels needed to be hauled to a construction site in pieces and assembled before use. Moving a power shovel from one job to another could take days.
My Father would start by buying a Shawnee or Pippin backhoe kit assembling the kit, and installing it on the customers tractor. Now a digger could be driven to a job site used and then driven to the next job. This would lead to Dad acquiring a tractor dealership, to supply tractors to install backhoe kits on. The tractor dealership wer would acquire was International Harvester Industrial Tractors. With International Harvester industrial equipment Dad had a full line of construction equipment from garden tractors to bulldozers.
The tractors and construction equipment necessitated a move out of my Grandfather’s garage. In 1955 Dad would purchase 3 acres at the intersection of Linden St and Macada Rd in Bethlehem, Pennsylvania and move the business ½ mile South of my Grandfather’s garage. The building was built mostly for lawn equipment business, however the showroom floor was reinforced enough to hold the weight of a bulldozer.
As the businesses first decade was coming to an end the business was still evolving, however it seemed to be on a solid foundation. From a starting point of a chain saw in the back of a Jeep, to the 44 x 48’ building the business was a success.
My Father hadn't yet hired a full time employee, as extra help needed, it would be provided by my Mother, my Grandfather or Friends. Every Friday Mom would drive a truck to Philadelphia with a check to purchase replacements for the mowers that had been sold during the week. Dad would schedule deliveries and service calls for evenings so he could operate the store during the day. This was truly Mom and Pop.
Monday, February 3, 2014
Picture Link.
Current photo links
http://www.flickr.com/photos/rentalbarn/sets/72157640423879753/
Pictures from my Toro Collection are scattered through the picture page.
http://www.flickr.com/photos/rentalbarn/sets/
Second decade… 1958 - 1967
The Controlled Chaos of 1966
The Controlled Chaos of 1966
By the mid-1970s, the business had matured around a general tool and party rental store with lawn and garden equipment sales and service. During the 1960s, the Store was bursting at the seams with an unfocused inventory and direction. One tiny corner of the equipment showroom was dedicated to swimming pool supplies; a swimming pool was assembled and filled in the lawn next to the business. A powered Ice Cycle hung from the ceiling above the main entrance. The lawnmower showroom had a wall of housewares and hardware. The other wall contained Snowmobile clothing. Another room was the paint department. This could have described any year from 1965 to 1970. I chose the year 1966 because the promotional Helicopter was added.
For me, the Chaos of the 1960s was familiar when I got off the school bus in front of the Store. My bus mates would see an 8' tall sign that resembled Mad Magazine, Alfred E Newman. Printed under the sign was "This Idiot rents anything." Looking back, I can't imagine how a first-time customer or new employee would react to seeing merchandise of every variety on every wall, shelving, and ceiling.
Every winter since the 2960 Linden St store opened in 1955, my Father would add a new addition. By 1966 our fire trap would concern the City of Bethlehem. However, they continued to issue new permits every fall. Every side of the building had doors. Every evening, 12 entries needed to be checked.
The building had six levels and two attics. Customers parked in the parking lot had choices of three unmarked entrances. You were a winner if you chose the door with the most decals. This door led to the rental counter, Parts, Service Counter, and office. The center door was the lawn equipment showroom, and the far-left door was the party rental storage and paint. The house across the driveway that was the original rental department displayed racing go-carts.
During the 1960s, January would always start with packing up and storing the unsold Christmas merchandise. At the time, we were the largest Christmas decoration retailer in the "Christmas City" of Bethlehem, Pennsylvania. Once the Christmas decorations were removed, the bulk of the Bird Feeders would be returned to the showroom. The floor space reserved for Lawn Equipment would display Bird Feed snow throwers and snowmobiles
Blizzard of 1966.
Most of our Snow thrower sales occur in the fall and early winter. The inventory remaining after the first of the year wouldn't sell unless we had heavy snow. After Groundhog Day, the remaining snow throwers would be stored away, and the new lawnmowers and Tractors would move in.
The Blizzard of late January of 1966 was one I remember. When the storm ended, drifts above 6' blocked the road in front of the business. Linden Street (Nazareth Pike, as it was called in 1966) was the main route from the four-lane highway into downtown Bethlehem. It was closed for four days. The phone was ringing off the wall, and the Store was cut-off. The first job was to clear the driveway and use the bulldozer to clear a path to a side road the city had plowed open.
Some customers challenged the streets; others ordered snow throwers over the phone. Our only driver worked late into the night the first few evenings after the storm delivering snow throwers. Often using the snow thrower to cut a path to the customers' houses. At the Store, the parking lot was jammed with customers. Everyone was assembling new snow throwers. This included all of us kids and our friends. By the second day, we were completely sold out.
Bird feed and feeders would keep a steady business flow during a typical winter. We stocked bird feeders from more than 50 manufacturers. We had bird feeders hanging from the ceiling lining the walls, and on shelves that usually held other merchandise. While the local hardware store might have a half dozen bird feeders, we displayed over a hundred. Every week during the fall and winter, a truck would deliver hundreds of pounds of bird feed. My Grandfather always took charge of the bird feeders, and everyone knew not to step into his territory during the bird feeder season.
Our first sign of spring was a train car loaded with peat moss mulch. When the train car arrived at a siding about a mile away, our rental moving vans would be used for the all-hands-on-deck unloading of the train. We had a specific time to unload the hundreds of bails before extra charges were added to the shipment. Peat Moss is packaged in a 16" x 18" x 32" bag and weighs about 40 pounds. They would be stacked into a pile as high as we could get them. No pallets or equipment were used; it was all by hand. Soon after the Peat Moss, the tractor-trailers loaded with Lawn Products garden tools and lawnmowers arrived. The Bird inventory would be squeezed out as the mowers and tractors were assembled
Good retail items that time forgot were concrete and clay lawn ornaments. Bird Baths, gazing balls, Driveway Jockeys, 6' Indians, and other politically incorrect concrete items. The shipments arrived, and dozens of bird baths lined up outside the display along the street. Theft happened, but it was usually unnoticed until a 500-pound concrete bear was stolen. Dad figured it would be located when the Lehigh University fraternity houses cleaned out in the spring, but it was never found. Decorative Cast Iron Lawn Furniture was trendy at the time. You couldn't have a 1960's backyard without Pink plastic Flamingos. It was the 1960s, and we sold floating space-age-looking floating lawnmower and lava lights.
Spring Fair and Open House.
Our focus in early spring was getting ready for our April Spring Fair. Tents would be erected to display the Mowers, Tractors, and other large equipment outside. The rental camping trailers would be cleaned and set up in the front yard. The late April date would allow the live plants to be displayed outdoors. Inside were garden chemicals, grass and vegetable seeds. My Mother would put weeks into preparing and freezing Barbecue from whatever animal my Father shot the previous fall. The entire back page of the local paper was covered with our full-color Ad. Factory Reps would come for the weekend, and a WWII searchlight would be hired. Our staff was small, so cousins and the neighborhood kids would be given grey shirts and cowboy hats as all hell would break loose for two days. The count of free sodas and moose barbecue would go into the hundreds.
The Helicopter years. In 1966 "Ortho," our garden chemical line, introduced a lawn fertilizer with a small hand-held spreader called the Whirlybird. With the purchase of a box of fertilizer and the little spreader ($20.00 for the Package), The customer would receive a 3-minute Helicopter ride. The Helicopter would rotate in and out of the front yard of our house for two days). One customer admitted that he lived in an apartment and only bought lawn fertilizer to get the ride.
The FAA issued us a Heliport permit. Those were the good old days before lawyers, noise ordinances, and annoying neighbors. The helicopter rides lasted two years, but customers would remind us of that promotion for decades after the Helicopter years ended.
The Spring Fair extravaganza was toned down after the move to Bethlehem Township in 1970. The wild game barbeque giveaway continued until my Father retired from big game hunting.
April and May were always the two busiest months. The rental business would return to life after the ground was workable. Vegetable gardens were still prevalent during the '60s and '70s. From renting rototillers to seeds, plants, and fertilizers, we were a one-stop garden center.
Blue laws were still in place in Bethlehem. Sunday sales were not allowed. However, we were open Sundays during April and May. We opened at 1 pm and closed at 5. The Mayor was a good customer, along with many city council members. It didn't bother anyone since we were only open Sundays for two months and opened after Church let out.
By early fall, it was time to change the seasonal displays. The Tulip bulbs would arrive from Holland, and Heaters would come from England. Snowmobiles, snow throwers, and snow shovels, replacing rake shovels and lawnmowers. Mower decks were removed from the lawn tractors and replaced with snow plows. Bird feeders and bird food would replace fertilizer and garden chemicals. We would dig the Christmas merchandise out of the attic around Thanksgiving.
Our annual Christmas outdoor lighting contest was the last event to close out the year. Friends and family would pile into station wagons the week before Christmas and visit the entrants' homes. The winner would win a new Toro Snowthrower.
The new year and the business would prepare for the Chaos of another spring and summer in the Garden, Rental, and just about anything store.