Bennett's Machine Shop Inc.
In 1975, Pat Bennett made a life changing decision. His entrepreneurial spirit drove him to leave a stable career and convert his part-time engine reconditioning business into a full-time endeavor. He moved from a shack next to his trailer home to a small hut that he rented for one month. After renting the hut he moved to a stall in a service station. With neither a business name nor a business license, Pat had little control over parts and profit. When the opportunity came to rent a larger space from a garage owner Pat took it. Here his business continued to grow and there was a need for him to hire a helper. Although he was in the business of engine reconditioning, he hired a premed student. Finally in 1977, Pat's business got a name. He incorporated it as Bennett's Machine Shop, Inc. During that same time he moved the business to a rented building that only he occupied.
From 1977-1979 sales and profits expanded for the business. Because of this Pat saw the need to borrow $80,000 from a bank and purchase a two acre lot. On the lot he built a 4000 square foot building. As the space increased so did the profits. In 1981 he bought 11 pieces of property and added 6000 square feet to his facility. He borrowed another $80,000 to do this. With the increase in space Pat was able to expand his service base to doing over the fender work, engine installations, and repairs. With business going so well, Pat was able to splurge. By 1985 he had a house, a condominium, and 23 cars. During the time of splurging, Pat made the decision to open a new location. The new location was for engine installation only. This endeavor lasted only 14 months. In February 1987 he expanded his business to doing contract work for Boeing.
All of Bennett's services were of a technical nature. Each required the ability to work with tools, and specific machines. Most of the individuals that Pat employed were not hired because they possessed the knowledge, skills, and abilities to do the job. Pat was very hands off when it came to his employees. They worked odd schedules, and many times did what they wanted. Pat was only interested in the bottom line. There wasn't a problem as long as there was money in his pocket.
With the desire for more money in his pocket, Pat borrowed most of the money for his machines and equipment instead reinvesting the money. Most of the loans that he borrowed were not in the company's name but in his and his wife's names. By 1987 Pat was downsizing and seeing red.
Bennett's Machine Shop Inc. does not have much strength, but they are aware that having service/product diversity is essential and this has given them a competitive advantage in their industry. This notion was apparent when Pat Bennett first expanded his services from engine rebuilding to installations, and then again by undertaking the tool sharpening and modifications contract with Boeing. In addition to...