Jim’s Cover Pass: 3 principles of a successful small welding business

Q: I would like to open my own welding business, starting small at first and then expanding as time permits. What tips or advice would be most helpful for me to succeed?

A: Initially I was going to suggest that you take some business courses at your local community college, read some books on a small-business startup plan, and make certain your welding skills are relatively good. Doing all of these would be helpful.

And then I thought of a former student and friend who started out just like you plan to. Jeff Lawson, owner of LWF Services LLC, Odessa, Texas, began as a one-man operation after taking several of my welding courses. Currently he employs around 30 people and his business continues to expand. He was kind enough to share these three principles that have helped him along the way.

1. Always be available. Sometimes it’s hard to have to leave your home or miss out on events to go do a job, but the big companies probably don’t really care. If you are not available when they need you, it will only be a matter of time before they find someone who is.
2. Never let your accounts receivables get too high or far out. Remember, some major companies will pay out 90 or even 120 days later. Just because a company is big, don’t bet the farm that it will eventually pay. Lawson said his company was burned pretty bad by a major customer that filed for bankruptcy and never paid him. Their account was more than $100,000. He didn’t start hounding them soon enough or even have them on cash-on-delivery terms in time to get his invoices paid. It took him a while to recover from that incident.
3. Always strive for high quality and on-time delivery. Your name is on it! Once you go down that slope of poor-quality craftsmanship, it’s hard to crawl back up that hill. Lawson’s motto to his employees is that if they wouldn’t buy what they are making, then it’s not good enough for their customers.

I can honestly say that if you follow these simple guidelines you will also have a successful and lasting business. Be fair, be kind, and best wishes.