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Last Update: Sunday June 16, 2019

Key Idea: Have A Banker When You Don't Need One

Founder of Texas Nameplate, Roy Crownover, talks about how to get banks to work for you.

Key Question:

A: 

You have to watch every penny and we're not kidding.

Q:  How has Roy managed the cost of borrowing?

A:
  He has cash in the bank so that when he needs to borrow, his own deposits serve as leverage in bargaining for the lowest interest rate.

Think about it

Do you have a banker?  Does he or she understand your business?  Do you keep some cash on deposit?  Can you get a line of credit or a loan when you need it?

Clip from: Texas Nameplate

WINNERS OF THE MALCOLM BALDRIGE AWARD... TWICE!

Dallas, Texas: Dale Crownover took Texas Nameplate from being just another print shop to become the first small business to be given the Malcolm Baldrige National Quality Award. You will find their nameplates are on virtually everything. They print those specialized labels that out last the item to which it is attached. And because of quality controls, this group is the international supplier to the world's largest companies.

When he went to Washington to receive the Baldrige, the other two winners, Boeing and Solar Turbines, and all DC bureaucrats listened in awe; this man talked about the essence of quality, family and this nation's charter to achieve and to always do better.

We can all learn from Dale and his people. Yet, they did not stop working at it;  and six years later, they received the award again!
 
You will quickly see that this is an extraordinary work force. When we first taped this episode of the show, nobody including Dale had a college degree and some employees had just received their high school diploma. Notwithstanding, here you learn how they make world-class products and reap plenty of profits.

Oh yes, today, Dale and others have earned a college degree.

Internet Basics: Ont Dale's use of the web...
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Texas Nameplate

Dale Crownover, Owner

1900 E. Ervay
Dallas, TX 75215
2144288341

Visit our web site: http://www.nameplate.com

Office: 2144288341

Business Classification:
Manufacturing

Year Founded:

Have A Banker When You Don't Need One

HATTIE: What do you mean, `You work at it hard and you'll have people who follow you'? How...

ROY: Be a good leader. Be a good leader. Don't just be an old demander, `You go do this now.' Be a good leader to these people. If they do a good job, compliment these people in the shop. If you make more money, give these people a little piece of the pie. I've had to cut wages only one time, and that was the hardest thing I ever had to do, was to cut wages. But everybody understood. And it was about two years before we could ever come back up on those wages, and that's near when I bought out my partner.

HATTIE: You had that cash crunch because you were making those payments to the partner. So you were able to say to the employees, `This is a short time frame...'

ROY: We were in the crunch, in fact. So we had to...

HATTIE: Did you ever have to lay anybody off then, or...

ROY: No, ma'am. No, we never did.

HATTIE: Because one of your goals from the beginning was to have security for people.

ROY: Security for people, yes. My employees are always been right up there.

HATTIE: OK. So you self-finance everything internally...

ROY: Yes. The only reason why that I've ever gone back to the banks is because I felt like I needed the relation in case a hard time comes. Because I worked with paper (original loan) for all those years, they made the money. The bank made more money than I made.

ROY: If you ever get involved with a paper, it's rough to get out. So now, when you get some money (in reserve), and you need to go buy something, sure, go ahead and finance it to the bank, but know that you don't have to. So now you go to the banker -- always keep your contact with the banker -- and you say, `Look, prime is 6 percent. I'd like to borrow this and pay you back so many thousand dollars every 90 days at prime rate.'

Don't let the banker tell you what he has to have; tell him what you want to do.

HATTIE: Wow, I like this advice.

ROY: Sure. If you've got the money in the bank and he knows you got the money in the bank; he's no dummy.

HATTIE: This is good. This is smart.

ROY: He can make 6 percent so why wouldn't he lend it to you?

HATTIE: Absolutely.

ROY: And it works.

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