Dakota Pump Inc.
Jim Sebert, PE, President
BUSINESS ADVISOR: MIKE RIDDER
BLUEPRINT SERVICES USED: CFO & TRANSITION
MIKE’S TAKE
I have been working with Dakota Pump Inc. since 2014.
Over the years, I’ve helped president Jim Sebert, PE, and his brothers grow the business by doubling gross revenue, spreading business risk, and hiring a controller — something that wasn’t necessarily in my best interest, but something I knew was in their best interest.
Hear why Jim calls my “unselfishness” a key factor in the trusted strategic relationship we still share.
“Mike Ridder has been an important part of our business for the last decade.”
– Jim Sebert
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I cannot say with certainty we wouldn’t be here without Mike, but I can say with certainty it would have been a much more difficult journey.
– JIM SEBERT, PE, PRESIDENT
The Problem
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Dakota Pump Inc. (DPI) is owned and operated by three brothers who are second generation to the business. In 2014, we had been on a slow and steady growth path, yet we’d been recently stricken by the 2010 recession.
We tried a few “business advisors” who would analyze particular portions of our day-to-day business and make rightful recommendations. These advisors were satisfactory, but we learned that “if you don’t know the questions to ask, it’s difficult to get the results you expect.”
We were and still are a financially strong business, but it seemed difficult to get strong financial direction, and finance wasn’t a strong suit to any of the three brothers. We turned to our CPA for business advisory, but they seemed to be more directed in following the IRS — which is a necessary practice, but it didn’t help grow the business.
The Solution
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I was referred to Mike Ridder by a peer. Our initial conversations were primarily current standings of the business; backlog, cash, forecasts, etc. Mike was quick to realize DPI was a sound business with sound financial practice; however, we carried a heavy cash balance, and we had settled into “doing things because we’ve always done it this way.”
After a few months of gaining trust and understanding, Mike started meeting with me every week. We would strategize about “where we’ve been, where we are now, and where do we want to go.” A lot of “whiteboard” sessions!
When Mike and I were satisfied with a plan, we’d meet with all stakeholders, expose the challenges, define a plan, and lay out how to execute our plan. We started with the low-hanging fruit and eventually worked our way up the tree.
As the years have gone by, we’ve doubled gross revenue and spread business risk by expanding our footprint of services, all the while staying in the same business sector.
The Results
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Mike has always told me, “I’m here to help the owners of a business grow and make more money.” We worked every week with Mike for several years. One day, Mike said, “It’s time. It’s time you hire a controller.”
This was a big step. It meant our little business had grown, and we needed to take a risk. From my viewpoint, it was an easy risk.
We’d been working with Mike for years. I wholeheartedly trusted his guidance, but the biggest key to this particular guidance was his unselfishness.
Mike knew that Dakota Pump Inc. hiring a controller meant Mike would lose business from Dakota Pump Inc., and that is true today. We cut our time with Mike in half, our controller handles the day-to-day financial aspects of our business, and Mike and I still work on strategy.
The Impact
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Today, DPI is a well-rounded business staged for continual growth. We’ve added two key employees as shareholders, and we have our sights aimed high.
Mike Ridder has been an important part of our business for the last decade. I cannot say with certainty we wouldn’t be here without Mike, but I can say with certainty it would have been a much more difficult journey.
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