Owner/President: Linda E. Peterson
Company: L.R. Cloverleaf Inc. Mechanical Contractors
Address: 2338 Merriam Lane
                 Kansas City, KS 66106
Phone: (913) 432-4323
E-mail:
Web Site: www.LRCloverleaf.com
Type of Business: Commercial Mechanical Contractor
Year Founded: 2002

L.R. Cloverleaf is a commercial mechanical contractor specializing in heating, air conditioning, refrigeration, process piping and plumbing construction and service. We provide a full complement of heating, ventilation and air conditioning (HVAC), and plumbing construction. Our employees are members of the pipe fitters, plumbers, laborers and sheet metal workers unions, and are skilled at new construction, remodeling and repair and maintenance service. We can provide design/build services or help engineer mechanical systems and plumbing jobs. We will provide estimates for new mechanical construction or service repairs on request.

Challenges
When we returned from California in 2002, there were very few jobs in the Kansas City. area. After working for a couple of poorly run companies, we decided I would be better off working for myself. My husband is a business broker and sees a lot of businesses that have a great product or service, but just need better management. We thought if we could find a company like that, it would be possible to do some great things. This business was going bankrupt but seemed a likely candidate for a turnaround situation. With my background in business, accounting and project management, and with some help from my husband who also has experience managing a construction company, we felt that this would be a good opportunity, even though it also would be a big challenge.

The biggest surprise for me was that I could not just hire great people and stay in the background and have the company be highly successful. It was quite a challenge for me to step out in front and be the face of the company, but after three years, I am becoming more comfortable with the role.

The second biggest surprise and challenge was how incredibly reluctant the incumbent workforce was to change. We started with 13 people, and none of them are still here. I look at each personnel change as an opportunity to upgrade our staff and improve the company. So far, I have managed to do that even though there have been a few missteps along the way.

Community and Social Wealth
There have been many surprises with business ownership, but one of the best is being able to associate with incredible people. The wealth in friendships and association with truly top-quality people has been invaluable in my business life, as well as my personal life.

L.R. Cloverleaf started with 13 employees three years ago and now has 36. Not only have employment and payrolls increased, but we also have increased opportunities for minority companies and individuals, which strengthens the community as a whole. We have doubled revenues each of the past three years.

I am very active in several organizations that support and help grow small businesses, and we look for opportunities to work with minority- and women-owned businesses. We feel that by growing small businesses and helping other entrepreneurs, we create jobs, help families and strengthen communities.

We support organizations such as the Minority Supplier Council, the Minority Contractors Association and the National Association of Women in Construction. I also mentor other women and minority business owners, as well as advise other business owners on opportunities, the certification process and general business issues. We also have actively recruited minorities to hire and have been successful in several cases.

Financing
I purchased the assets of a company on the verge of bankruptcy and personally have invested a tremendous amount in the company. I also have a Small Business Administration 7(a) loan and a revolving line of credit at the bank.

The first step was to assess the financial decisions the former owners had made. Although I didn't buy the company but only the assets, there were a few things that were included, such as leases on vehicles. The former owners had the vehicles leased on very unfavorable terms and by changing that to a traditional bank loan, I was able to cut the monthly payments by two-thirds and pay them off in two years. This is a small example, but the cash "bleeding" was incredible in many small ways.

During that same time, I was also assessing the personnel. I gave some of the key people about six months to adjust and understand the new philosophy, but after six months, I had to make some tough decisions. The construction industry was in the midst of the worst time in 25 years, so although the “turnaround” was complete, it took a little longer for things to turn around. It was about another year and a half before business started to pick up. Now, with all the construction in the area, the company is growing, but I am trying to be careful and intelligent about the growth.

Support Systems
We are a certified minority business enterprise (MBE), and because the certifying agencies require you to choose, we have not been certified as a women business enterprise (WBE). We do not want to live off our certification, however. I tell people to hire us because we do very good work, and if the certification helps meet goals, then that’s great.

There are a number of organizations that provide support to small businesses, but my major sources of support are other business owners and mentors provided by the Helzberg Entrepreneurial Mentoring Program and a joint effort of the Minority Supplier Council and the Kauffman Foundation.

Those two organizations have collaborated to create an opportunity for some MBE owners to attend the Kellogg School of Management and the Tuck School for an executive management course. As a follow-up to that, they provide a mentor to assist the companies in assessing and developing metrics and processes to grow the business.

Accomplishments
Being able to turn around a bankrupt company and grow it to the point we are today has been a tremendous challenge, and an accomplishment that I am very happy about. In addition, I am proud of the incredible people we have been able to hire and retain, without whom the turnaround would not have been possible.

I was quite surprised at the response of some people who said that I was not capable of running this company. Overcoming these types of prejudices is a constant challenge, which in this day and age, nobody should have to experience.

I was shocked to find that some successful MBE/WBE companies are not supportive of those who are trying to follow in their footsteps. If we don’t support each other, how can we expect anyone else to support us in our growth? Small businesses are creating jobs and wealth every day, and it is my opinion that if we can support each other, the “pie” will continue to grow and the communities we live in will be better places for everyone.