 |
Summit's second office location, the basement of our house:
Nora our Director of Operations with Jeff. The first office
was a picnic table in our living room. |
Our last big adventure, prior to starting The Adventurers' Club, was a business that Moira and I started, built and sold. What an adventure that was! We had both worked for government contractors supporting the same government agencies for many years and had often talked about starting our own business.
This is usually how we embark on new adventures. Our adventure lifecycle is: discussion, research, plan and execute. Moira had the opportunity to meet quite a few small businesses while working for larger companies and noticed many of them just didn't do a great job presenting their capabilities or their companies. She always said: "If they can do it we can do it better!" However, I had thought that we needed some killer idea or piece of technology as a differentiator until I remembered something my father, himself an entrepreneur, had told me long ago: "It doesn't matter what business you're in, you just have to do a better job then 90% of your competition to be successful."
We decided that we would focus on high quality delivery of high end competencies in engineering and strategic consulting within the Department of Defence (DOD) and Intelligence Community (IC) - the market where we had spent most of our careers. We wanted to develop a company known for doing a job well, consistently and always delivering what we had promised, with a culture that took care of employees and not just the bottom line.
 |
Moving to our third office location where we initially
rented one then two offices within a building. Moira's
Dad, Ron, helping with the heavy lifting. |
Once we had agreed to start a business, laid out our vision, did our homework and saved some money, we now just needed the right opportunity to start our company. Meanwhile, we both kept working at other companies and kept saving. The opportunity didn't happen right away but, in late 2002, a colleague began supporting a project on which I had previously been involved. His customer remembered me and he suggested I set up an interview with his company. I was pretty happy on my project, but you never know where these things might lead so I did the interview. The interview went well and they offered me the job so we discussed pay and benefits. The verbal offer was basically a lateral in pay with slightly worse benefits. So I asked if they would let me work as a subcontractor. They said that they would think about it and get back to me.
After a week or two that company got back to me and said they would allow me to be a subcontractor to them and offered me a bill rate. I accepted and they went off to start the contractual process. Meanwhile, I had to get a company up and running so I could sub to them! First, I needed to set up a legal entity, a corporation or limited liability company (LLC). We also needed a name. Moira and I spent several weeks trying to think of a single word, something singular and strong like Titan or Conquest, but those names were already taken in our marketplace. Coincidentally, we had recently returned from our honeymoon cruise and happened to be visiting with Moira's father who asked us the name of the cruise ship. Eureka, that was it! The ship was called Summit. Perfect. The fact that we also loved the mountains made the name even better. We tried to register the name Summit, but it was not available so we added Solutions at the end and got the name. Our new company, Summit Solutions, LLC, was created in December 2002.
 |
Our fourth office location and the first real office space that we
had modified to our specifications. We were so happy to see
our name in the directory! |
While I was waiting to hear back from the company to whom Summit was going to subcontract, I started my viability analysis by creating several financial models with spreadsheets. Most small business books and advisors say that you should start out by writing a business plan. However, I believe it is more critical to start out with a thorough financial analysis of your prospective business model. This analysis would not have been important if I was planning on being a one person consultant, but it was very important as we planned to grow the business. We needed to know how our business would operate financially with one person as well as twenty and beyond. The rest of the business plan was in our heads and was simple enough that we didn't feel the need to write it down. Once my bottoms up financial model agreed with Moira's top down financial model we both felt like we had a good understanding of the business model and were ready to get started.
 |
| Our sign in our first and only lobby area in the last (fifth) office. |
Throughout 2003 I was the only employee. Then in April 2004, Moira quit her job and joined me at Summit. We had $50,000 in savings and a $100,000 home equity line of credit at our disposal. With Moira on board we quickly grew from 2 to 10 employees by the end of the year and had invested all of our money in Summit. In fact, we were getting worried that we might not have enough cash to meet payroll. Typically, you get paid 30 to 45 days after the invoice is sent to the customer, but you need to have enough cash to make payroll in the interim. Essentially, you pay your employees a month before you get paid. We had saved a lot of money before we started the business specifically to have that buffer but accelerated growth was eating away at it very quickly. As we contemplated cashing in both of our retirement 401ks, we deliberately slowed our hiring pace so our cash flow finally had a chance to catch up and we could rebuild the cash buffer. Although Moira started at Summit earning nothing the first year, then $10,000 the second and third years, we eventually were both able to make decent salaries, and take our initial investment out and more over time.
Over the next 9 years, with the help of some absolutely dynamic key people, we steadily built Summit from 1 person to over 65 employees and estimated year end revenues of $23.5 million. It was a long, hard road with many ups and downs, many sleepless nights and hours burned. While we were building Summit we had a premature baby (Emily) born at 25 weeks, who was in the hospital for close to 5 months, we adopted our son (Michael) from South Korea, we had to terminate a few employees (never an enjoyable thing, despite the cause), we had to deal with difficult customers and we had to endure government funding issues just to name a few. At the same time, it was critical that we kept pursuing new work, writing proposals to win new work so that when other contracts expired, there were always options for the employees. We always said, "if you are not growing, you are shrinking", and in the government contractor world that is especially true. We were always competitive and loved the uphill battle to win new work and topple a 'solid' incumbent. It was fun, but it was also stressful and exhausting, and hard on the families of those of us putting in so many hours. However, one of the most challenging things of all was to decide to take our company to market and ultimately close a sale.
 |
| The large conference room in our fifth and final office space. |
Starting Summit was not without risk. Our family income went down significantly during the first several years. We could have lost our savings, our house and more. But we discussed these risks and decided the potential rewards far outweighed them. I remember sitting on the deck, drinking wine with Moira as we discussed this. We both agreed that the worst thing that could happen was the business could fail, we would lose our house, our savings and our retirement. Then we would rent an apartment, get a job working for someone else and start all over again....and we were both absolutely OK with that. After all, what's an adventure without a bit of risk?