📺 Stream EntrepreneurTV for Free 📺

Five Simple Ways to Redesign Your Business When you're looking to grow, sometimes less is more.

By Antonio Neves

entrepreneur daily

When Edith Heath founded Heath Ceramics in the 1940s, the legendary artisan likely had no idea that her work would end up in places like New York's Museum of Modern Art. But when husband-and-wife team Robin Petravic and Catherine Bailey purchased the Sausalito, California-based tableware manufacturer in 2003, the luster of Heath's company was fading.

Sales were lagging. Standard operating procedures were nonexistent. And morale was low. Using their background as industrial designers, Petravic and Bailey set out to redesign every aspect of the company. All changes would be based on a key principle of good design: simplicity.

"There's been a lot of emphasis on big innovation," says Petravic. "I think a lot of people have forgotten the importance of just doing something simple and doing it well."

Seven years later, Heath's "redesign" is a resounding success. Sales that barely topped $1 million in 2003 are projected to hit $9 million in 2010. Here's an inside look at how you can redesign your company the Heath Ceramics way:

Tell your story. Every business has a story to tell. Heath Ceramics has a rich history of producing tableware and tile. Petravic and Bailey used this to their advantage. "We don't always call it marketing," says Bailey. "Our strategy is to make sure we tell the story really well."

Heath tells the tale through factory tours, tools like its website and especially press and blogs. "We would really rather have people tell the whole story than … just take out an ad and have people just recognize the brand," says Bailey.

Focus on direct sales. According to Petravic, direct sales channels generate almost 80 percent of Heath's revenue. This includes its website, three retail stores and direct sales to restaurants, contractors and homeowners.

"We really enjoy being directly connected with our customer," says Bailey. "It also makes a lot of business sense because we're making a much better margin on our products when we're selling to them directly."

Collaborate with strategic partners. Though online wedding registries have been a major success for Heath Ceramics, they also presented a challenge in the beginning. "One of the big shortfalls when we first put registries up was that all we sold were dishes," says Petravic.

This led Heath Ceramics to partner with outside designers who created complementary products. "It really makes Heath a better place for [customers] to shop," says Bailey. "We're meeting more of their needs." Today, Heath partners with multiple designers, like flatware maker David Mellor and linen maker Skinny LaMinx.

Charge your real cost. Heath Ceramics products aren't inexpensive. Some mugs retail for $28, and an iced tea set goes for $175. But Heath's retail prices reflect what they define as the "real cost." This includes the high overhead of manufacturing in the United States.

"The idea that manufacturing is all about competing on price is kind of fed by the idea that shoppers only want the cheapest stuff they can buy," says Petravic. "There's certainly a market for a company our size where we focus on the value."

Revamp your company culture. A major challenge for Petravic and Bailey was revamping Heath's staid culture. Their first step was to convince employees that their goal was to create a strong company for the long term. "Both Cathy and I don't really understand this concept of building a business to sell it," says Petravic. They implemented a production bonus plan and employee morale immediately increased.

Second, they created transparency across the company, providing employees with access to the company's financials and metrics, excluding payroll. "Transparency enables everybody to be galvanized toward the same goals," says Petravic. "It's about organizing your team of people, getting them motivated, giving them clear tasks."

Since 2003, Heath hasn't laid off any employees, reduced pay or cut any benefits -- and that's part of what makes it a "Cool Runnings" company.

Antonio Neves

Workplace Engagement Speaker, Award-Winning Journalist and Author

Antonio Neves is the author of Stop Living on Autopilot, host of The Best Thing podcast and an internationally recognized speaker.

 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Science & Technology

She Ditched Her Steady Job in Tech to Pursue Her Love of Food. Now She's a Food Network Champion and Celebrated Cookbook Author.

A self-taught vegan chef known for her sustainable cooking practices, Chef Priyanka Naik's journey from the tech world to the Food Network is a testament to the power of passion and perseverance. Hear her insights into how embracing your unique path can lead to entrepreneurial success.

Leadership

9 Productivity Tips That the 1% Know to Follow

Is your inner high-performer waiting to be unleashed? If so, here's what the 1% swear by for peak productivity.

Devices

Save More Than 70 Percent on This iPad Pro

This refurbished iPad Pro comes with 32GB of storage space.

Starting a Business

Ask Marc | Get Free Business Advice From the Co-Founder of Netflix

Get the answers to your most challenging business problems during our next Ask Marc, live Q&A, on 5/9/24 at 2 PM ET. You don't want to miss it—send in your questions now.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Franchise

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.