Help for business at a crossroads.
by Reynolds, Dan
Michael Pearson's career track reveals two qualities that
could be considered the linchpins of his business success. The first is
that he isn't afraid to change direction if the path he initially
chose seems like the wrong one. The second is that when he decides to
make a change, he sits down and carefully considers his options,
including getting advice from other business professionals if he thinks
he needs it.
The owner of Yeadon, Penn.-based Union Packaging LLC, has already
encountered several crossroads with his company, and he finds himself at
another one in 2008.
In nine years, Pearson's paper-container making company has
grown to 94 employees and $20 million in annual sales. As a manufacturer
of individual food containers for the fast-food industry, Union
Packaging can count itself as a supplier to the big three of what
professionals refer to as the QSR, or quick-service restaurant,
business.
Union Packaging makes sandwich, french-fry and other finger-food
containers for McDonald's Corp., Burger King Corp. and Wendy's
International Inc.
So far so good; nothing wrong with those connections. But Pearson
has a dilemma. Sales have leveled the past two years and he wants to
continue to grow his business. The question is how and in which
direction.
"For me the dream is about growth organically and watching
Union Packaging move into more segments of the folding-carton industry
beyond just food," said Pearson.
Whether that might be in pharmaceuticals or some other segment,
Pearson isn't sure at this point.
"That's the dilemma where I am at fight now," said
Pearson.
If past performance is any indication of future results, Pearson
will rely on a combination of his gut and expert opinions before making
his decision.
As a younger man, Pearson had a dream of being a Marine pilot. But
he came from a family that placed a strong emphasis on higher education.
So after graduating from the University of Pennsylvania, Pearson
enrolled at the University of Michigan Law School. That made his parents
happy, but one year into it he started having misgivings. It was during
his first summer law clerking that it hit him.
[ILLUSTRATION OMITTED]
"It wasn't me," said Pearson. Even though his family
opposed it, Pearson left law school for Army officer candidate school.
He now wore eyeglasses, so flight school was out of the question.
Pearson ended up serving in military intelligence and spent nine
months in the Middle East during the first Gulf War. After the service,
Pearson went to work for Pfizer Inc. It wasn't long before a
college football buddy recruited him to Westvaco Corp. (now MeadWestvaco
Corp.), a packaging-container maker that wanted to beef up contracts in
the pharmaceutical industry.
Pearson got good training in the packaging business at WestVaco.
But he was working with relatives of the company's founders, who
were also shareholders. He wasn't. Something started rumbling in
his gut again.
"I would have liked to think that I was their contemporary,
but I was not. The name of the game in business in America is
equity," said Pearson.
At his father's urging, Pearson began making plans to return
to his native Philadelphia and start his own packaging business. He had
written a business plan, but his ever-active intuition told him the plan
could probably use some improvement.
"I had come out of a corporate background and systems and
principles and things of that nature. I had a respect for process, and I
knew that I needed to talk to experts or to people who could direct me
to experts to get my business plan to the point where I could attract
the capital to get my idea off of the ground," said Pearson.
That's when he turned to the Small Business Development Center
at the University of Pennsylvania Wharton School of Business.
The Wharton SBDC is part of a network of centers that provide
guidance to entrepreneurs in a partnership between educators, the
private sector and government. Wharton's SBDC is one of more than
1,100 SBDC service locations across the country.
At his alma mater. Pearson had access to the gray matter of highly
regarded Wharton MBA students. The MBAs, many of whom had experience in
business, tore his plan apart and built it back up better and stronger.
Pearson not only had a better business plan. He absorbed plenty in
the process.
"I learned the language that I needed to deal with the
financial folks. And I also learned that there are many vehicles to
raise capital," said Pearson.
That's typical Pearson, humility combined with a sharp mind,
according to an executive with a Philadelphia-area business development
group. Jeff Vermeulen, president of the Delaware Valley Chamber of
Commerce, says Pearson, who serves on the chamber board, is one of the
smartest people he's ever met.
"He's just has got a way about him, where he is
intellectual, but he's not intimidating at all," said
Vermeulen.
Therese Flaherty, director of the Wharton SBDC, said Pearson is
working with the center again as he plots his next move.
"I'm proud that Mike has come to the Wharton SBDC again
to help him challenge his thinking and analysis as he makes his next
strategic decisions," Flaherty said.
Pearson also serves on the national SBDC advisory board for the
SBA. He was named 2005 Small Business Person of the Year for Eastern
Pennsylvania by the SBA.
PEARSON'S BEST DECISION?
"Leaving Corporate America and deciding to venture out on my
own."
HIS BIGGEST RISK?
"Signing a personal guarantee, putting everything on the line,
I have children, so that is a big deal."
ADVICE FOR A STARTUP?
"First thing, make sure you have the passion for your idea or
concept and you believe in it wholeheartedly. And secondly, can you
afford to be wrong and risk stuff and look back and not regret it?"
Union Packagin LLC * 6520 Baltimor Ave., Yeadon, Penn. 19050 *
(610) 622-7001 www.unionpkg.com * Founded 1999 * 94 employees * 2007
revenue: $20 million
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NOTE: All illustrations and photos have been removed from this article.