Focus on Small Business: Nuance Solutions Cleans Up Act!

written by Ann Meyer -Reporter for Chicago Tribune-"Business"

http://www.chicagotribune.com/business/columnists/ct-biz-0308-small-biz-minding--20100308,0,3444538,full.column

Click on link to read the full artcile.

Getting to the Starting Line

written by Gretchen Roufs -Reporter for Sanitary Maintenance-"Freetime"

http://www.cleanlink.com/sm/article/Getting-To-The-Starting-Line--11662

When Jim Flanagan was 25 years old, he received some inspiring, yet blunt, advice from his now late uncle who was also his doctor. He simply said, "You're getting fat and if you don't do something about it now you'll end up just like me." It wasn't exactly subtle, but it worked. Jim, president of Nuance Solutions, a Chicago-based chemical manufacturing company, has been running now for 30 years. Two years ago, at age 53, he ran his first marathon.

"I occasionally ran a 10-kilometer race, but I never tried to run a marathon because I didn't think I could do the training that a marathon requires," says Jim. "But, in January of 2007, I literally woke up and decided to do it. I put myself into the mindset that if I had to quit in the middle of training, at least I would have gotten in better shape."

To train for his first marathon — the 2007 Chicago Marathon — Jim signed up for the Chicago Runners Association marathon-training program. Pre-marathon training lasted for 30 weeks, four days each week.

"Getting into the heavy marathon training was the best thing that happened to me," says Jim. "I would run long runs at seven o'clock on Saturday mornings with my pace leader and 150 other runners. Our leader was just a regular guy, but before every long run he would give us an inspirational speech that would bring some people to tears before they ran."

A runner's goal for a first marathon is not getting to the finish line, but to the starting line. There's a lot of anticipation during the training, along with some big lifestyle changes. Runners commit to a significant amount of training time (for instance, an 18-mile run on a Saturday takes longer than three hours). But training does have its upsides, for example, the "guilt-free eating" for the rest of the weekend after completing a long Saturday run.

Jim still recalls the excitement of that first marathon, especially the thrill of standing at the starting line with 40,000 other people. Though the race was cancelled in the middle of the event due to unseasonably hot temperatures, Jim was still able to finish.

"It was 97 degrees when I finished the race, which took me five hours and 40 minutes, about an hour longer than I trained for," he says.

Jim ran the Memphis Marathon two months later and improved, finishing in four hours and 54 minutes. Since then he has completed four other marathons: the Flying Pig Marathon in Cincinnati in 2008, the Chicago Marathon again in 2008, Grandma's Marathon in Duluth, Minn. in 2009, and the New York Marathon in 2009.

At this last marathon Jim achieved his best time: four hours and 49 minutes. He ran in honor of six family members and friends who were fighting cancer, giving him a special motivation. He even made T-shirts that said "Faith, Hope and Courage" on the front and their names on the back.

"It's a selfish thing to run in honor of other people, because they give me encouragement as I think of them while I'm running," says Jim. "It keeps my mind off of my own pain. They are the true marathoners."

Nuance Makes the Cover of Crain's Chicago Business

written by Christina Le Beau -Reporter for Crain's Chicago Business

http://www.chicagobusiness.com/cgi-bin/mag/article.pl?articleId=32652

RECESSION IS THE MOTHER OF REINVENTION,The "new normal" is forcing entrepreneurs to rethink — and in some cases completely reinvent — their businesses.

The need to diversify, dump duds from the product line, tweak pricing, get into new markets or find new uses for old technologies has become keenly relevant as shell-shocked business owners grasp the reality that they're facing a structural — rather than cyclical — shift in the economy.

"Last year and into this year, a lot of people were more reactionary and impulsive. Now they're thinking more strategically," says Raman Chadha, executive director of the Coleman Entrepreneurship Center at DePaul University. "Once everybody realized this is how it's going to be, they had to find a way to adapt."

Clare Hefferren found her new niche by repositioning Callosum Creative Ltd., her 4-year-old solo graphic design firm, as a corporate image consultancy.

After realizing last fall that ad agency layoffs were flooding the market with freelance competition, Ms. Hefferren, 40, hired a strategic adviser to help her determine a new revenue stream that drew on her background in fashion as well as marketing. They came up with a service called People-First Branding, which offers coaching in communication, business etiquette, appearance and other aspects of "personal branding."

Wanting to focus on the repositioning, Ms. Hefferren stopped seeking new business in the first half of the year. "Clearly this affected our goals, numbers and my personal finances," she says. This year, she brought in only $20,000. But the upshot is that her new personal-branding business is on track to bring in 70% of her projected revenue in 2010.

Another successful repositioning: Two years ago, retailer Stephanie Sack sensed that consumers' discretionary spending was about to shrink considerably. So she switched Vive La Femme, her plus-size boutique in Bucktown, from high-end price points (up to $525) to a "cheap-and-chic" model with prices from $35 to $175.

REVENUE IMPROVES

Ms. Sack, 35, who opened the store in 2002, says revenue since the price change has been the best ever. This year she expects to take in $400,000, up from $360,000 last year and $240,000 in 2007.

"I had a spidey sense that my decision to reprice the store would play well," she says. "And it did. It completely saved the business."

"Recessions have occurred routinely throughout American history, but they've been minor by standards of recent memory, so there's an entire cadre of executives who've never seen anything like this," says Steven Michael, an associate professor of business administration at the University of Illinois in Urbana-Champaign and co-author of a 2005 study on recession-fueled business failures.

"Executives and entrepreneurs are naturally optimists. They want to focus on what they're good at," says Mr. Michael, whose report states that about 500,000 businesses fail in each recession. "It's a second order of consideration to think about the risk (of continuing to do the same thing)."

In September, New York-based ThomasNet, which connects sellers and buyers in an online industrial marketplace, released the results of a survey that asked 800 executives and professionals how they were handling the recession. About 70% were looking for business in new industries, increasing their marketing, and exploring new sales channels as a way to increase cash flow and dilute risk. And 38% were developing new products. All good signs.

But another study released the same month by New York-based credit card issuer American Express Co. found that 68% of 763 small-business owners and managers were stressed out, and 41% focused mainly on retaining current revenue sources (rather than seeking new ones). Only 26% said they were looking to grow this business.

In which case Jim Flanagan's case is instructive.Jim Flanagan, president of Nuance Solutions Inc. in Chicago, has been developing more markets for "green" cleaning products. Photo: Stephen J. Serio

GOING GREEN

Mr. Flanagan, 55, is president of Nuance Solutions Inc., a 37-year-old Chicago company that develops and produces cleaning chemicals for private-label and branded clients. Nuance Solutions was strictly a commercial and industrial manufacturer until 1999, when it began dabbling in retail cleaners. But it was still using mostly conventional chemicals.

Then, in 2002, Mr. Flanagan was referred to a job for Seventh Generation Inc., the huge cleaning products company based in Burlington, Vt. "We'd always prided ourselves on using greener raw materials, but there was no advantage to marketing that because people weren't buying green just to be green," Mr. Flanagan says. After Nuance got the Seventh Generation referral, things changed.

'IN CONTROL OF OUR DESTINY'

"We had to look hard at our company and where to go, and all arrows pointed toward us developing more markets for green products," he says. "That was a significant difference."

And, in hindsight, a prescient move. Sales at the 70-employee company have been rising steadily ever since. Today, 75% of Nuance Solutions' $25 million in revenue comes from green cleaners, commercial as well as retail. And it's the reason, Mr. Flanagan says, that the company has grown even during the worst recession in his lifetime.

"We were ahead of the curve, so we felt we were in control of our destiny and had better seize the opportunity to go out and grow the company before (green manufacturing) gets more crowded," he says. "It's a scary time right now, so I feel pretty fortunate."

ISSA Show 2009

The results of this year’s show in Chicago exceeded all of our expectations, and are possibly the best in company history. The success can be traced to two key factors: preparation and focus. The sales force concentrated their efforts in the months leading up to the show to qualifying prospects and arranging for set appointment times with a specific agenda. The result was that we had 45 set appointments and were able to meet with 18 brand-new prospects. With such a busy agenda, we needed to have very focused meetings. Each meeting had an agenda, and we concentrated our efforts in three specific arenas where our brands offer clear advantages: Actiblend Superconcentrates, featuring the new DfE-approved Fusion degreasers for customers interested in growing their Industrial business, the Enviro-Solutions product line for customers who want to offer the most authentic and comprehensive green cleaning program on the market, and to support the sales of both those programs, The Winning Edge Sales training program. Less than one week later, we have already received orders for these offerings from new and existing distributor partners and look forward to growing them significantly in the next year. Thanks to all those distributors who came by and helped make this year’s show a great starting point for growing mutual success.

Each evening of the show, the company hosted a “happy hour” in our suite, and it provided a relaxed and intimate setting for continued discussion and a chance to relax and relate. Looking forward to seeing you in 2010 in Orlando! 

Green Cleaners Remedy Economic ills for Nuance Solutions

written by Leslie Patton -Reporter for Northwestern University’s Medill

http://news.medill.northwestern.edu/chicago/news.aspx?id=119579

At Nuance Solutions Inc., a Chicago-based manufacturer of specialty and maintenance chemicals, orders have been down about 25 percent over the past three months. Nevertheless, the South Side company is barreling forward in the bearish market, seeking to ride today's green wave.

While the company has traditionally made cleaners for agriculture, golf course maintenance, construction products and release lubricants for the construction and beverage industries, Nuance has been concentrating its latest efforts on making environmentally friendly cleaners.

Nuance’s five-person research and development staff has focused 75 percent to 80 percent of its work on green product development over the past five years.

“If it’s green, it’s selling right now,” said James B. Flanagan, President and Chief Executive.

Gerald Hills, Coleman chair of entrepreneurship at the University of Illinois at Chicago, commented that Flanagan “readily perceives and pursues opportunities as the technology of cleaning fluids changes and the markets shift. I would give him an ‘A’ in opportunity recognition."

Despite Nuance's success in green products, times are tough and Flanagan has seen customers slashing orders going into the company’s busiest time, February through June.

“It’s been like a cascading effect,” said Flanagan, of retailers' cutbacks as their consumers continue to skimp and save instead of spend.

Still, Flanagan has beefed up Nuance's staff to 75 workers, 15 of them added in the last two years, from 40 ten years ago.

Nuance's sales were $26 million for the year that ended Sept. 30, 2008, up 8 percent from $24 million the year before. “Our business has grown really nicely in the last four years…but the last three months have been in the dumps like everyone else,” Flanagan said.

Nuance sells about 60 percent of its production to commercial customers such as hotels, offices, schools and hospitals. The other 40 percent goes to retailers that sell consumer products, some of them as private labels.

One of Nuance Solutions’ main customers is Burlington, Vt.-based Seventh Generation Inc., which sells environmentally-friendly household cleaners under its own brand to retailers such as Whole Foods Market Inc., Target Corp., Kroger Co., Walgreen Co. and online behemoth Amazon.com Inc. 

Seventh Generation has been purchasing laundry, dish, auto, glass, kitchen, carpet, and shower and tile cleaners from Nuance for seven years. The formulations belong to Seventh Generation but Nuance manufactures them, said Jeff Phillips, Executive Vice President of Seventh Generation. 

Demand is way up for green cleaners, according to Phillips. “In 2008, our liquid cleaning product sales grew by over 60 percent,” he said.

“I think people have really finally gotten to the point where they realize cleaners matter,” said Page Remick, chief executive of consumer product review Web site Pure Zing and an expert on green living.

“There are some great suppliers and more are coming on. They realize there is demand for it,” Remick said.

In 2008, to ensure Nuance’s continued acceleration, Flanagan adopted the Illinois Manufacturing Extension Center’s Eureka Winning Ways program, a growth framework for small and mid-sized businesses.

“I think it has put us a step ahead of the competition,” Flanagan said. “It forces you to do some really data-driven analysis,” he added. Eureka has enabled Nuance to recognize opportunities that are not worthwhile to pursue, teaching them to "fall fast, fall cheap and move on," Flanagan said.

“A lot of times what you think you know is not really the case,” Flanagan said.

He recounted that Nuance researchers at one time had been working on what they thought was a “slam-dunk” product to be sold to the medical field. But after doing a Eureka analysis, they recognized potential complications so the company decided to scrap the project and move on to other things.

“That innovative process is what Eureka teaches you,” said Flanagan, emphasizing that the program has not only helped Nuance grow business, but has made the company more profitable.

In November 2008, Flanagan recognized another chance to broaden Nuance’s reach. He initiated a partnership with Enviro-Solutions Ltd., headquartered in Peterborough, Ontario, to manufacture and market Enviro-Solutions products for delivery to the Midwest.

“Together we are able to cover more geographic area,” said Mike Sawchuk, Vice President and General Manager of Enviro-Solutions. Enviro-Solutions has been producing “green and only green” for 15 years, Sawchuk said.

“There is an automatic trust built into the whole relationship,” said Flanagan, who has known the original Enviro-Solutions owner for more than 25 years.

“The benefit is for both of us, it’s a win-win…there are more resources,” said Sawchuk, who confers with Nuance executives in a monthly conference call, but informally exchanges calls and e-mails with Flanagan and others at Nuance every few days.

Sawchuk stressed the importance of integrating sales, marketing, research and development, and production efforts of the two companies to ensure the cleaners coming from different plants are identical.

“At the end of the day there are no egos. If that’s the best, we’re going to go with that one,” Sawchuk said.

In addition to a tough sales environment, Nuance is facing raw materials cost increases. In the summer, Neil Houtsma, Executive Vice President of Nuance, sent a letter to customers explaining that suppliers are experiencing increased costs in energy and freight by about 10 percent each.

Additionally, Flanagan said, the company has had to deal with short-term shortages as suppliers decrease their capacity. “But we’ve been through some ups and downs before,” Flanagan said.

In 2007 Flanagan was inducted into the Chicago Area Entrepreneurship Hall of Fame, which recognizes those who embody the entrepreneurial spirit and exhibit exceptional business talent.

Flanagan called it a “humbling honor” to be nominated by a fellow business associate.

“In recent years his company has grown at a much higher rate than the industry,” said Hills, the University of Illlinois at Chicago professor and Hall of Fame founder.

The nomination process is very selective, Hills said. Normally, 20 people are inducted into the Hall of Fame annually.

“We do ask about profit and there has to be consistent profit over the past five years,” Hills said. Additionally, the panel of judges carefully weighs sales growth, innovation, community involvement and how the company treats its employees.

Constant re-evaluations may be the key to Nuance’s success. Just as quickly as Flanagan cites company growth strategies and plans, he is able to explain future threats.

One of the dangers of selling green is being able to gain enough market share to be a leader because there is a lot of competition out there, Flanagan said.

“You do have to take a look in the mirror every once in a while,” he said. “We’ve been around for 36 years and we want to be around for another 36 years.”

Nuance and Enviro Solutions Joint Partnership

http://www.worshipfacilities.com/go.php/editorial/6400

Enviro-Solutions, manufacturer of green cleaning products based in Peterborough, Ontario, Canada, and Nuance Solutions of Chicago, Illinois, a 35-year-old manufacturer of cleaning chemicals, have entered into a joint venture/strategic marketing and production agreement.

Under the terms of the agreement, Nuance Solutions will manufacture and market Enviro-Solutions products for delivery to the western half of the United States.

According to Mike Sawchuk, vice president and general manager of Enviro-Solutions, the partnership has many benefits for both companies, as well as distributors and end-users. “This will improve production capabilities and result in greater branding, product, and marketing direction for our companies and sales reps,” Sawchuk says. “We will also be able to provide more technical support and R&D for our customers.”

One goal and a significant aspect of the arrangement is that with the added manufacturing capabilities in Chicago, freight costs to customers in the middle, southern, and western portions of the United States will be reduced. “This is further enhanced because Nuance Solutions has developed state-of-the-art production and manufacturing systems,” Sawchuk says.

He adds that the alliance will allow shared equity in the brand, beef up production, help expand research and development programs with the addition of four chemists and technicians, and add much-needed warehousing capability.

Jim Flanagan, president of Nuance Solutions, says that once the alliance is fully implemented, Nuance Solutions “will be manufacturing over two-thirds of its [cleaning chemical] products meeting or exceeding current environmental standards. We see this as an exciting development for our company.”

For more information, visit www.enviro-solution.com or call toll free (877) 674-4373.

900 E. 103rd Street, Suite D, Chicago, Il 60628 1-800-621-8553