Interview by Barbara Hall
Three years ago Robert Kanofsky decided to leave corporate America and go into business for himself. Like many entrepreneurs it didn’t matter to him the type of business, as long as he could use his management skills, skills he had honed over twelve plus years.
Kanofsky’s management background was extensive. He had worked for a steel company as a production scheduling supervisor, an inventory analyst for a company that made jet engines, and for Harley Davidson in a myriad of positions—marketing research analyst, district sales manager, director of special operations, of fabrication, field operations—you name it.
“My frustration with corporate America and its bureaucracy and wanting to have more control over my destiny is why I wanted to own my own business,” he said. So he set out to find the right business.
The first criterion was location. He and his wife wanted to live in the Southeast, so they ended up visiting thirteen cities. “Did we like the city? How were the people? We’d spend a day or two at each city touring and shopping.” They ended up deciding on Charlotte, N.C. The next criterion was that he wanted to purchase an existing business, rather than start something from scratch and it had to be “decent sized.”
The business also needed to fit his interest in renewable energy. “I originally wanted a business that did wind or solar, but I found out it was hard to make money doing only that as a business. I’d see roofers doing solar or plumbers doing geo-thermo, so I almost purchased a roofing company and I had also looked at an electronics recycling business.”
However, after research, he came upon a heating and air conditioning company. “G & S was located in Kannapolis, N.C., about 40 miles from Charlotte, and with its 20 employees, it was the right size, although I didn’t know anything about HVAC other than how to set my thermostat.” Kanofsky decided the business would meet his interest in renewable energy since he could focus on energy efficient products, do energy audits, blower door testing, and other energy saving services.
He says he didn’t use a business broker for the deal because of his business background, but he admitted that it probably took him six months longer to close everything than it would have had he used a broker.
In the three years since he purchased the business, Kanofsky has hired four additional employees. G & S Heating-Air-Energy Services also has about 40 percent commercial work, 40 percent residential, and 20 percent service.
When asked what he sees as most challenging he says making changes. “It’s difficult when you have a company that has been doing something one way for many, many years and now there’s some resistance to change. I have to handle that carefully because long-time employees have the expertise in HVAC so I can push but only so far.” He also says cash flow has been a challenge. “I understood cash flow but each business is very unique in its cycle. For commercial jobs, I didn’t realize we had to buy all the equipment up front, but wouldn’t see money for 60 to 90 days after the sale was made, which meant we’re floating thousands of dollars each month and when you have several projects a month the money isn’t there when you expect it.
But Kanofsky sees a bright future for G & S and has a goal of growing the business to $100 million in sales via new markets and new product offerings, but he gives a word of caution to anyone thinking of starting a business. “Don’t kid yourself. It’s a long, hard road with many ups and downs. Try to stay focused. And if you’re thinking of buying an existing business, talk to people who have done it and people in the industry who can give you a heads-up on what you’re getting in to.
