Entrepreneur Archive:
Anderson Backhoe

North KC Site-Utility Construction Firm
Benefits from SBTDC Expertise

Anderson Backhoe — Riverside, MO
Assisted by:
Carmen DeHart, UMKC's Small Business & Technology Development Center

In her own words (below) Lynn Anderson tells the story of the company she and her husband, Stanley Anderson, started 14 years ago and how the counselors at the Small Business & Technology Development Center in Kansas City helped them improve their business.

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What do you do when your employer decides to call it quits?

Picture this: you have worked your way up in this construction company from laborer, to operator, to foreman, to project superintendent, to estimator, to vice president. Then the boss says: "I'm closing the doors."

	(Above): An Anderson Backhoe crew works on a water main extension for the City of Weatherby Lake, Mo., in southern Platte County. (Below): Stanley Anderson (right), along with his sons Neal (center) and Lyle, stands next to his company's 115-horsepower Komatsu backhoe.

But, when one door closes, another one opens. The old boss gave us favorable terms on the equipment and tools he owned and Anderson Backhoe was established.

That was 1993. Fourteen years later, here we are. We incorporated in 1997: Stanley Anderson, president, and Lynn Anderson, vice president - a husband-wife team.

From the meager beginnings of man and machine for hire, Anderson Backhoe Inc. has carved a niche in the plumbing and site utility construction field. As a licensed master plumber, Stanley sought jobs requiring permits, which was one way we began to establish a diverse customer base. Water main extensions, water meter installations, water line installation and repair are just a few examples of the work we do. We typically focus on work that requires the expertise, equipment and bonding capacity of a large contractor, but on a smaller scale.

Small business owners wear many hats. In the construction industry, the same holds true. Learning the ropes from the bottom up, makes you appreciate the demands each job entails. And with the combined effort of all involved, the company achieves excellence as an end result.

Sounds easy, doesn't it? Hardly. Contractors today find themselves faced with demands unheard of by their predecessors. The days of the "good ol' boy" and gentlemen's agreements are long gone, replaced with pre-qualification questionnaires, HR, affirmative action and OSHA compliance, just to name a few.

The challenges we have faced over the years are not any different than those faced by other small business owners. Location was probably one of the first challenges. We started out with the office based in our home and rented space for storage of equipment and tools. As the business grew, so did our need for space. Then we purchased a commercial building conveniently located in Riverside, Mo. (in the north Kansas City area), where our office is currently located. It contains enough shop space to do routine maintenance on equipment and to store our tools and vehicles.

Employees are always a challenge. Finding them and keeping them is a never ending process. Keeping up with documentation and compliance is also a challenge for small contractors. Whether it's updating safety manuals, compiling financial information for line-of-credit or providing information for the bonding company, paperwork is an endless task.

	Back at the office Lynn Anderson takes care of all the business details of the family-owned site-utility construction firm.

Another challenge we face as contractors is managing the work load. No matter how carefully you prepare, plans can always change. Weather is always a factor. Jobs that you schedule to take place can be held up unexpectedly by a plan review or the need for additional permits. Unforeseen equipment failure can convert a well-planned day into a disaster.

On the other side of the coin, our two sons have received well-rounded exposure to the construction industry. Neal, 18, and Lyle, 13, have learned common sense and personal safety skills over the years. Neal worked for us last summer, doing a variety of tasks and developing relationships. As a student in diesel technology at the Northland Career Center, he is learning about maintaining heavy equipment. He applies the skills he has learned and changes oil and hoses on our equipment. Since Lyle is too young to operate machinery or equipment, he listens and observes in the shop and on the job sites. He asks a lot of questions and I'm sure when he comes of age, the wealth of knowledge he gains will certainly land him a job in this field if he so chooses.

Of course, as Stanley and I developed our company, we figured out pretty fast that we needed expert business advice once in a while. I first learned of the services of the SBTDC in 1994, while I was enrolled in the Kauffman Foundation's FastTrac program. At that time, the SBTDC was located at Rockhurst College and we took advantage of the financial seminars offered there. The SBTDC provided a wealth of knowledge from its staff of counselors with whom you could schedule appointments to discuss various topics. At these meetings the counselors would provide information, answer questions, or refer us to someone who could.

Fast forward to 2005. We were ready to take our business to the next step. But to take that step we needed for more specific financial data as well as historical summary analysis. So I called for assistance from the SBTDC. That's when I met Carmen DeHart, director of the SBTDC now located at the University of Missouri-Kansas City. We needed someone to help us compile our financial data, analyze our history, and offer recommendations to improve our overall performance. Upon review of that information, we were able to clearly see our strengths and weaknesses. By doing this exercise, we were able to identify discrepancies in our financial statements that demanded a closer look and explanation from our accountant.

	Lynn checks on the progress of a company crew working to replace all commercial water meters for the city of North Kansas City.

During a follow-up visit with Carmen, I told her I needed a review of what all the data means. She recommended financial management training offered by the SBTDC. Those classes include "Understanding Financial Statements," "How to Control Cash Flow" and "Predicting Future Cash Needs."

Now that I have a greater understanding of the business financials, I have become a better decision maker and know what to look out for to avoid potential problems.

I would highly recommend the services from the SBTDC. The office is conveniently located and they offer a variety of assistance. Carmen DeHart is easy to talk to and can share her own first-hand experience as a business owner. In a group setting, Carmen encourages dialog among participants to share ideas and network. We've found the SBTDC approach to business counseling and training can help anyone who's serious about their business. It definitely helped ours.

Anderson Backhoe Inc.
4301 NW Tullison Road
Riverside, Mo. 64150
Phone: 816-587-7633
Fax: 816-741-6313

This story was featured in the November 2007 newsletter

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