By Sarah Zimmerman
SAVANNAH, GA.—After taking the network private 24 months ago and bringing in gross sales of more than $1.1 billion, ReSource Commercial Flooring Network recently welcomed 170 members and suppliers to Network Exchange 2008, its second annual members/owners conference here. Riding the wave of change, the meeting was themed “Thriving not just surviving in a changing environment,” and Ron Lee, executive director, said ReSource aims to enable its members to “weather the storm and continue to grow, especially during times such as these.”

That thought is deep routed throughout the group, as member selection is rather exclusive—currently 67 companies with 83 locations and aiming to cap at 75 companies. “We want this group to be of a size that we can remain intimate and really impact each other,” said Kris Keller, director of marketing and communications for ReSource. To that end, members are chosen and recommended based on attitude, growth goals and potential, and segment focus.

Lee explained, “We look for aggressive organizations that want to grow in their marketplace and/or segment, and we look at how we can help them to do this.”

Ken Daniels, vice president of ReSource, added general optimism and a positive nature are other qualities the group looks for in its members. “What a great business to be in and have control of your destiny. Our advantage is we have more than our shot at success with new building and renovation. Our members know and take advantage of these opportunities for growth.”

And, this year’s meeting expanded those aggressive, optimistic goals offering networking opportunities, educational speakers and a focus on several new initiatives to boost business in 2008.

Members called the event a success. They noted the sharing of ideas, education, reputation and intimacy as key advantages separating ReSource from the pack.

Fred Fisher, senior partner of Floorz in Denver, said he joined ReSource because the group holds some of the most respected, experienced and innovative contractors around the country, and Lee’s knowledge and reputation is unsurpassed in the industry. “My goal was to enhance the professionalism of our business through our participation in a community of best practices.”

He noted it’s the group’s passionate commitment to marketing, professionally trained installation, vendor relationships, the environment, continuing education and financial strength that’s key to its success.

2008 initiatives

Noticing and taking hold of the climate changes occurring in today’s marketplace, ReSource focused members on several businessboosting initiatives for 2008. First, the group discussed a two-part marketing strategy enhancing both its national and local business. Keller explained national recognition of the membership ties back to quality, product and service—sets an overall level of doing business with ReSource members.

To this, the organization introduced a new ReSourcebranded display and looked to the Web to promote the ReSource name nationally and provide users with the nearest local member. Also helping its members market locally, the group revamped all marketing materials to focus on the local businesses with ReSource as an added bonus.

A second program put in place this year was Ecollect—a trademarked name used to encompass ReSource’s environmental initiatives.

Keller explained this includes anything ReSource does to lessen its environmental footprint as well as efforts to further its suppliers’ environmental programs. She said the agenda was put in place to “really make sure the best environmental avenue is always being used.” The initiative also includes sample collection bins for recyclable content.

Focused on continued education, ReSource also introduced ReSource University, an online training university for members featuring licensed content on such areas as product and supplier information, installation and industry media coverage. Members can visit the site at www.resourceuniversity.com.

The group also provides a tighter “buy-in” through its ReSource USA program, which helps service national accounts through its network of members. However, not all members belong to ReSource USA as it adheres to strict performance guidelines.

Finally, to further inspire and recognize its members, ReSource introduced and awarded its first “One Best Idea” award. Keller said this is a way to share and celebrate best business practices and to gain other industry professionals’ ideas and knowledge. This year’s winners were Bob Plann and Greg Botma of ReSource Arizona in Phoenix for “Neocant,” an event for those who can’t attend NeoCon.

Education

ReSource’s Network Exchange also hosted several educational speakers to touch on an array of business facets in an entertaining and informative manner. Jaime Ackerman of Galvin, White & Boyd presented “Construction Law: Contracts, Documents and Payments,” which focused on the importance of a contract and other professional documents. “Being professional on a construction project is all about how well you mitigate risk,” he said, noting you must derive and maintain documents during and after jobs.

He also touched on electronically stored information, which should be thought of and organized as methodically as a paper trail. “Everything electronic exists everywhere—computers, blackberries, thumb drives, etc. This will only grow. Over 93% of corporate documents are created electronically and over 70% of those will never be reduced to hard copy, so keep your electronic files orderly. Put a retention and destruction policy in place, and assign every document you receive to a project.”

Drew Mendoza of Family Business Consulting Group presented “Family Business Planning,” which discussed the trials and tribulations of owning a family business. He shared some best practices for family organizations: well-run family meetings and shareholder development; strategy informed by values, vision and a mission, and appropriate and active governance for objective accountability.

He also recommended families discuss such policies as participation, ownership, succession, directorship, compensation, perks, vacation homes, buy-sell agreements, exits and re-entry to ownership employment.