It's a Stretch
Too small to take on big clients? Not enough big clients to grow? Unsnag your Catch-22 before business growth becomes a self-defeating concept.
Hal Galvin recently got a huge order from a huge customer. Sowhy isn't he singing "Happy Days Are Here Again"?Because he can't fulfill it. In fact, Galvin, CEO of AlumiPlateInc. in Minneapolis, says the massive opportunity would require a$10 million investment--enough to generate 20 timesAlumiPlate's current annual capacity for applying its patentedmetal-plating technology--if rolled out across the customer'sentire product line. Without the big customer, however, Galvincan't afford to expand his 12-person plant enough to be able toserve such big prospects.
"It's a little bit of a Catch-22," Galvinunderstates. "You need the customer to get big, but you'renot big enough to have the customer."
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