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As a management consultant focusing on technology and strategy, Doug Brown says he “gave lots of advice and then walked away,” never gaining what he really craved: operational experience.
That changed a little over a year ago, when Brown bought Florida Supplement Corp., a Hollywood-based contract manufacturer that produces vitamins, mineral and herb products for others ranging from retail chains to individual doctors who devise their own special formulas.
“The company was stagnating when I found it,” said Brown, who has a master’s degree in business administration from Columbia University. “It had a good reputation, but was not focused at all on building the business.” So Brown, 32, bought the firm and worked out agreements for two of the three original partners to stay on.
“That was a key decision,” he said. “I might have had great ideas, but I needed the expertise to make them reality.” To do that, he turned to Leonel Garcia, vice president of operations, who had 35 years in the vitamin and supplement business, and Irwin Kendall, vice president of sales, with 25 years in the industry.
“I was able to use my background as a management consultant and my energy while relying on their experience,” Brown said.
His decision, he said, paid off, thanks to developing new business leads and producing more for existing customers. The company counts about two dozen regulars and about 100 occasional clients.
“The company generated more revenues in the first half of this year than it did in all of last year,” he said. While he wouldn’t disclose specific figures, he described those revenues as “under $10 million.”
Brown said he achieved that growth in part by letting customers know the status of their orders every week (“something that isn’t all that common in this industry”) and finding firms that have high standards for their product lines.
“Since Doug has been on board, our business with them has almost doubled,” said Robert Frasca, vice president of purchasing for Miami-based FDC Vitamins Inc. “The quality of the products is excellent, the turnaround adequate. And I see them every week, so we are in constant touch.”
Brown said the business hadn’t grown before because the company relied only on word of mouth. Now he’s setting up booths at trade shows and initiating telemarketing efforts — sometimes making the calls himself.
“I’ll walk around a store that sells vitamins and check out the brands,” Brown said. “If I see one with which I’m not familiar, I’ll call the company and see if it’s interested in talking to us about manufacturing vitamins or supplements.”
Brown also focuses heavily on his employees. He pays 75 percent of their health insurance premiums, which is unusual for many small businesses. And he brings in an English tutor on a regular basis to assist many of his employees, who come from Latin America. The bulletin board in the kitchen area is filled with photos of employees’ birthday parties and other gatherings.
“It’s absolutely essential to treat your employees well,” he said. “Their loyalty means so much to the success of our company."
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