People

At Allstar, Growth Is Guided By Three Principles

Posted on April 1, 2006 by LCT Staff - Also by this author

When Grant Fashbaugh heard Michael Gerber speak at the 2005 LCT Show, it confirmed that he was on the right track. Fashbaugh, president/COO of Clearwater, Fla.-based Allstar Limousine & Transportation Services, completely agreed with Gerber’s approach, taken from his mega-bestseller, The E-Myth: Why Most Small Businesses Don’t Work and What To Do About It.

Gerber preaches that most entrepreneurs get swamped every day putting out one fire after another, and never create a solid operating system that allows them to step away from day-to-day details and work on strategically growing their companies. For Fashbaugh, the speech came at a good time. He and an investor group had purchased Allstar in 2004 and were in the midst of implementing their new business plan, and were just starting to see positive results. Today, the company is on track to produce $4 million in revenue for the year with its 30 vehicle fleet.

Not the Cheapest Guy on the Block Fashbaugh is a relative newcomer to the chauffeured transportation industry. At 54 years old, he has owned and/or operated eight companies before Allstar in a variety of industries, including restaurants, real estate and manufacturing. When he and his investor group discovered Allstar and analyzed the market, they liked what they saw — a 22 year-old company with a good brand name in a relatively young and fragmented industry. The investor management group believed they could apply principles used successfully in previous business ventures to the luxury ground transportation business.

While analyzing the industry, Fashbaugh saw that many operators in the Tampa, Fla., market were beating up each other over price. He monitored many phone calls during his due diligence where customers would call in and the person handling the inquiry would quote a price and hang up. “Companies that grow on price lose customers on price,” he says. “It’s a train wreck waiting to happen.” Fashbaugh and his team focused on creating a business plan based on selling value rather than price. The company saw that corporate and group business represented a sizable market growth area and reorganized Allstar around pursuing this business.

Today, Allstar’s clients include meeting and convention planners, local companies, corporations with local satellite offices, hotels and private academies. To handle this type of business, the company needed the right fleet (motor coaches and minibuses were essential) and a major technology upgrade for processing group accounts and offering reliable online reservations. Today, clients receive immediate e-mail confirmations, which are followed up quickly by phone confirmations.

Implementing Three Principles Fashbaugh focused on building a strong employee team and developing a day-to-day operating system that could get the company to its next level of growth.

All of these business-building activities were guided by three ideas:

1. The organization must be principle driven — motivated by values and strong business ethics.

2. Everyone must be accountable for his or her actions.

3. Everyone must be treated with respect.

Being a good listener is the fundamental behavior for carrying out these three principles, Fashbaugh says. “You generate a tremendous amount of respect from people by listening to them, and this then leads into accountability.” This behavior has to be modeled with employees to teach them how to do it, and for managers to practice what they preach. “If you give employees training, a good operating system and treat them with respect, they’ll usually be successful,” Fashbaugh says.

View comments or post a comment on this story. (0 Comments)

More News

Reston Limousine Hires New Marketing Manager

Anna Wilkinson will spearhead several new projects to grow the Washington, D.C.-area company's outreach and public profile.

BusCon 2017 Has Plenty To Offer Limo And Bus Operators

If you're running a chauffeured transportation or motorcoach service, then you'll find more helpful resources at this year's expo.

Nominate Now (Yourself?) For People's Choice Awards

The awards at LCT East is your chance to be recognized by the industry for being an innovator, entrepreneur, or humanitarian.

Operators Air Out A List Of Leading Concerns

The Greater California Livery Association deployed a new format that got members talking about challenges and problems.

Lindsey Limousine Wins “Best Limousine Company”

The growing Hartford, Conn. operation scores No. 1 on two noteworthy local business lists.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - July 2017 $12.95 COVER STORY: * Why These Titans Work So Hard to Give it Away * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close