Lessons Learned from Near Bankruptcy

Most times its the things you learn when you’re down that stick.

Having begun in business in 1985, I built a larger, viable commercial painting company that grew from nothing to 60 employees and $3 million in sales. We had systems, procedures, a good grasp on the market, and even bought land and constructed a 10,000sf office/warehouse.

Then the market tanked and T. L. Hart, Inc. was left holding the bag of considerable debt, declining sales, and a building that lost half its value. In 2010 the bank called all our loans, including our mortgage on the property.

The good news is, we survived the storm, averted bankruptcy, and came out the better for it. On top of that, I came away with some valuable lessons. Here is a summary of what I learned during tough times.

1) Your business model must fit the locality in which it is located. My son John, an investment banker, told me this many years ago—but I didn’t listen to him. My business model would have worked well in a large metropolitan area, like Chicago or Atlanta, but not Lansing, Michigan.

2) You have to have the ability to adapt to an ever-changing marketplace. The bigger the ship the longer it takes to turn it around. I had accumulated so much overhead that when sales dropped by 2/3’s, I couldn’t unload it fast enough. Times change, and you’ve got to be ready for change whenever it occurs.

3) Use credit wisely and pay your debts quickly. It is hard to avoid using credit in today’s world, but the mistake I made was to rely on it. Not only did I fork out tens of thousands of dollars in interest over the years, but when things got bad economically, I had a difficult time making payments. Currently, we have virtually no debt and pay cash for everything—and it feels great!

4) Choose your employees carefully. I look back over my 29 years with T. L. Hart and wonder how I hired some of the people I did. I once heard a reputable contractor say, “Your only as good as the people you work for.” It is equally true that you’re only as good as the people who work for you.

5) Pray and believe God for good things. This really should have been first, but it certainly proved valuable when going through the loss of everything I worked hard to earn. In fact, it was faith and prayer that got us through, and not just by the skin of our teeth, but victoriously!

6) Don’t give up. When our banking official advised me to file bankruptcy—and file it fast, I told him I didn’t believe in bankruptcy. Had I quit I would have owed the bank and others close to a million dollars. As it turned out, I not only didn’t file bankruptcy, 2010 was among the best years T. L. Hart ever had!

7) Always make a profit. My mentor, the late Jim Russell, used to tell me this all the time. I would always respond (in my heart—I didn’t say this to him!), “Yeah, but. . .” Well, he was right. You have to make a profit every single month, even if it is a dollar!

8) Be aware that seasonal aspects and fluctuations in the market can affect your business. I struggled with the ups and downs of business cycles for decades. Finally, I faced the reality that ski resorts and golf courses face: you make your money when you can, when the weather allows. There are seasonal cycles, construction cycles, economic cycles; you’ve just got to come to grips with it. And. . . make sure your business model compensates for it.

9) Don’t throw the baby out with the bathwater. This was a hard lesson! I made the mistake of casting aside even the good things we had going for us during our fight for survival. Now, four years into a great recovery, I’ve still not put back into place many policies and procedures that helped grow T. L. Hart to begin with.

There are likely more, but these are the things that stand out to me as being the most significant. I am grateful that God not only led us through and of out of those difficult 7 years, but He taught me some valuable principles in the process.

Three Keys to Prospering in Your Work

By Terry Hart • January 13, 2023

“And every work that [Hezekiah] undertook in the service of the house of God and in accordance with the law and the commandments, seeking his God, he did with all his heart, and prospered” (2 Chronicles 31:21). There are here in this one verse three keys to prospering in your work. One, whatever you do should be in accordance with the word of God. God’s will is revealed in his word; it is to be found in no other place. I realize the Bible does not tell us whether we should be a carpenter or a financial advisor, a realtor or a nurse, but it does tell us to do what we do as unto the Lord. So if what you are doing can be so done, it is well and good as far as God is concerned. Better yet, find out what God wants you to do, and do that. I teach that a person should get a word from God as to his occupation. It could be that God puts a certain thing on your heart, to be and do such and such a thing. This is also good in God’s sight, as he gives us the desires of our hearts. He is in us both to will and to do of his good pleasure. That said, let it be “in accordance with the law and the commandments.” Two, seek God. He is a rewarder of them that seek him. Jesus taught, “seek and you shall find.” Having sought God as to what he wants you to do, keeping seeking him as to how to do it. This is a never ending endeavor. There is a verse in Scripture that goes like this: “As long as he sought the Lord, he prospered” (see 2 Chronicles 26:5). So if you are seeking God and prospering, if you want to continue to do so, keep seeking God. Three, do what you do with all your heart. The Bible says, “Whatever you do, work heartily, as for the Lord and not for men” (Colossians 3:23). What is to be noticed here is who you are working for. You may think you are working for the government, or the auto-maker, or the real-estate broker. Or, if you are self-employed or own your own business, that you work for yourself. The Christian, however, is to work for the Lord. Verse 24 of this same book and chapter says, “You are serving the Lord Christ.” So, if you think a half-hearted approach to your job pleases the Lord, then go for it. Otherwise, you had better up your game. There is another verse in Ecclesiastes that addresses how you work. “Whatever your hand finds to do, do it with your might” (9:10). In other words, in everything you do, whatever it is—your job, your service to your family or church, or even mundane things like mowing the yard or shoveling snow, give it all you have. Do it as for Jesus, as this greatly pleases him. It should be apparent, then, that if you wish to prosper, be applying these principles. And if you want to keep on prospering, don’t let up. I have found that after enjoying a measure of success, it is easy to ease off on the intensity with which you approach your work. Jesus says it best when speaking about prayer: keep on asking, keep on seeking, keep on knocking. The key words here being “keep on.” The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

What Goes into the Cost of a Paint Job

By T.L. Hart • December 8, 2020

While you can get your property painted for just about any amount, hiring a reputable commercial painting contractor will ensure you get a quality end-product with a firm that stands behind its work. To provide this, there are three cost-factors that go into a good commercial contractor’s price: labor, materials, and profit.

Keep Your Commercial Property Watertight

By T.L. Hart • November 12, 2020

Moisture is among your commercial property’s greatest enemies. Wind-driven rain, leaky gutters and downspouts, old, deteriorated caulk or glazing, plus improperly painted substrates are all factors in moisture penetration. The result of water getting into unwanted places include peeling paint, damaged substrates, and—worse yet, mold and mildew. This is why you want to keep your commercial building waterproofed. While no one can prevent unwanted weather, and leaky gutters and downspouts are outside the scope of this article, proper preparation and a good quality paint job can go a long way in preventing moisture penetration. The following will contribute to a watertight building: Caulking. It is surprising how much damage a little water can do and how small an area allowing access will allow a lot of water in. Gaps in building materials, open joints, holes, plus splits and cracks may seem insignificant, but they’re a major entry point for moisture. This is easily solved by installing a good quality caulk. Since building components vary, caulks vary as well. They can be as simple as latex caulk, acrylic, siliconized acrylic, polyurethane, butyl, and pure silicone. The key is to seal up points of entry. Painting. Your commercial building is properly painted when all the paintable substrates have an adequate and cumulative amount of coating on them. I say adequate and cumulative as typically one coat of paint applied too thin will typically not do the job. Every substrate, that needs to be protected from moisture penetration, must have the right amount of millage installed. The proper mill thickness can be found in the manufacturer’s product data sheet (PDS). Of particular concern are those commercial buildings comprised of concrete masonry units (CMUs), or block. Concrete block is extremely porous, and unless coated properly will allow a huge amount of water into the walls of your building. The most important aspect of waterproofing a masonry building is filling the pores of the CMU. This is done by applying a block-filler as a first coat, with no more than ten pin-holes (the pore) per square foot. Once this is achieved, a good quality topcoat of any sort will provide water tightness. Best for CMUs are elastomeric coatings. These are rubber-based paints that, once dry, form an impenetrable rubber film over the substrate, and are the best for preventing moisture penetration—even wind-driven rain. Another advantage to elastomeric coatings is that they expand and contract, and will actually bridge small cracks in the masonry that may develop over time. There are other options for waterproofing—actual waterproofing sealers, stains, and cementitious coatings, all of which we have applied over our 36 years in business. In summary, to keep your commercial building looking good and free of moisture damage, keep it sealed up and make sure it is properly painted. Here at T. L. Hart, Inc. our goal is to ensure your commercial property is always in excellent condition. Our team of professional painters stands ready to keep moisture out of your property. Contact us today to request a quote.