Business Monday

Small Business Makeover: Machinery parts exporter gears up for changes

 

Small business experts from SCORE Miami-Dade help Le-Bert International develop more efficient accounting practices and expand its customer base.

MAKING OVER AN EXPORT BUSINESS

• The Business: Le-Bert International Export, Inc., a Miami-based company with offices at 6065 NW 167th St. in Miami. The company exports parts for heavy machinery manufactured by Caterpillar, John Deere, Volvo, Hitachi and other companies to the mining industry in South America, the Caribbean and parts of Asia.

• The Expert: Juan Lorca, a mechanical engineer with an MBA who volunteers as a counselor with SCORE Miami-Dade. Lorca also has more than 20 years experience in the building manufacturing business dealing with heavy equipment.

• The Challenge: Increase sales at a family-operated export company so that a mother can eventually retire and pass it on to her children.

The Advice: To grow the company, Lorca suggested Le-Bert look at other industries, like maritime, farming and trucking, that use much of the same equipment, and not limit herself to the mining business. He also brought in SCORE CPA Richard Raby to work over her books and create an accounting system that gives her a better picture of overall financials. The new system lets her more easily track invoices, a key feature in the fast-moving export business. Lorca also advised Le-Bert to pass on more day-to-day responsibilities, like issuing quotes for parts, to her daughter. That would let Le-Bert focus on increasing customers and marketing.


How to apply for a Small Business Makeover

Business Monday’s Small Business Makeovers focus on a particular aspect of a business that needs help. Experts in the community will be providing the advice. If you would like a makeover, here’s what you need to do:

Tell us why your business needs a professional makeover. Concentrate on one aspect of your business that needs help — corporate organization, marketing, financing, for example — and tell us what your problems are.

The makeover is open to anyone who has been in business at least two years. The business must be your primary source of income and be based in Miami-Dade or Broward counties.

E-mail your request to ndahlberg@MiamiHerald.com and put “Makeover” in the subject line.


About SCORE

Based in Washington, D.C., SCORE is a nonprofit with more than 12,000 volunteers working out of about 400 chapters around the country offering free counseling to small businesses. There are seven chapters on Florida’s east coast, including SCORE Miami-Dade, with more than 90 volunteer counselors.

Volunteers who work for SCORE Miami-Dade and other chapters come from varied backgrounds. SCORE Miami-Dade, one of the largest chapters, has nearly 100 counselors with expertise in all areas of business.

Counselors from SCORE Miami-Dade meet with small business owners and offer free one-on-one counseling as well as dozens of low-cost workshops, such as “Guide to Buying a Business” on Thursday and “Building and Funding your Business Plan” on Saturday. On Tuesday at 8 p.m. at Miami Beach Public Library is a free seminar titled “What SCORE Can Do For You.”

To volunteer or learn more about SCORE, go to www.score.org or www.miamidade.score.org.


In the 1970s, Veronica Le-Bert’s father and brothers started a business exporting parts for the massive mining machinery that excavates copper, gold, lithium and other minerals in South America and the Caribbean.

For 13 years, Le-Bert International chugged along as a family-run company, becoming a well known name in the industry.

Then George Le-Bert decided to move to Chile and raise cattle.

Veronica Le-Bert, however, had found a career. She followed her father to Chile, where she landed a position with a mining company. In 2006, when the company shut down, she returned to South Florida, revived Le-Bert International Export and once again operated it as a family-run company, providing parts for everything from excavators to crushers.

Le-Bert, along with her daughter, Michelle, have done well enough. They expanded exports for parts on Caterpillar, John Deere, Hitachi and other machinery to Chile, chiefly, but also added Turkey, India and the Philippines.

“We really don’t say no to anything we can ship,” Le-Bert said.

Now she would like her son, Mike, to move home from Atlanta and join the company. To do that, she needs to get bigger. And that means making some changes.

Enter Juan Lorca, a counselor with SCORE Miami-Dade, the local office of the national nonprofit that has more than 12,000 volunteer business counselors nationwide. Lorca has degrees in both mechanical engineering and business, as well as more than two decades experience in the building manufacturing industry that includes a mining company.

Lorca found two chief problems: First Le-Bert operates on speed, but her bookkeeping is getting in the way.

“For me to ship overnight is gold,” she said.

Explained Lorca: “Mines run 365 days a year, 24/7. When you’re running, it may be $5,000 an hour, or $20,000 or $50,000 depending on the size of the mine. So if you’re down a part and you can’t continue the line, a thousand dollar part is nothing to them. They’ll buy a thousand dollar part and pay $3,000 to ship it overnight because they’re losing money.”

To improve efficiency, Lorca said Le-Bert needs a better accounting system. While Le-Bert has been using QuickBooks, a staple accounting system for most small businesses, she was not using it efficiently.

“They’re winging it, doing kind of trial and error,” he said.

The second major hurdle, Lorca said, involves how Le-Bert views her client base. By narrowly defining her customers to the mining industry, she is severely limiting the company, he said.

“A Caterpillar tractor is a Caterpillar tractor whether you’re bulldozing roads or farming,” he explained. “For her to increase, she needs to get away from parts for the mining industry.”

To a lesser extent, Lorca is troubled by how Le-Bert has grown the business. Le-Bert said much of her sales have been based on contacts and referrals, particularly in Chile where her father is still remembered. So Lorca encouraged Le-Bert, who travels often to meet with customers, to work harder at networking. To do that, he said, she’ll need to transfer some responsibility and with it, some authority. That will also force her to draft a plan for the succession of the company, her main goal.

To help solve the bookkeeping issues, Lorca recruited SCORE consultant Richard Raby, a Coral Gables Certified Public Accountant and Certified QuickBooks Pro Advisor.

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