'Doing What It Takes'

RUNNER-UP

'Doing What It Takes'

Alan Zirkelbach

Founder

Zirkelbach Construction

Palmetto

For some entrepreneurs, nearly doubling one's company each year for three consecutive years would be more than enough. But in the past year, Alan Zirkelbach has shown a limitless appetite for entrepreneurial growth.

In December 2003, Zirkelbach - best known locally as the namesake of Zirkelbach Construction - helped raise $8.5 million to start the First Priority Bank of Bradenton, of which he is chairman.

Simultaneously, Zirkelbach raised another $3 million with chef and partner Jonathan Shute to open Jonathan's and Smokin' Martini, an upscale dining and drinking facility.

Both ventures are growing faster than projected. Zirkelbach, 42, has a solid record as the founder of Palmetto-based Zirkelbach Construction, started in 1997. The business, which became profitable in 2001, has had average annual growth of 75%, when annual revenues came in at about $12 million. It had revenues of $36 million in 2003 and expects revenues of about $52 million this year. The company employs 48 people, up from 10 in 2001.

There have been relatively few hiccups along the way. One came, however, last year when Zirkelbach merged his Palmetto-based business with one owned by friend and contractor Kelly Frye. Both men hoped the merger would give them more free time.

Ultimately, the short-lived deal between Frye General Contracting and Zirkelbach Construction served to remind Zirkelbach of his own business strengths.

"We thought the other was just a 'little different,' " Zirkelbach says. "But philosophically, we go after things in a different way. I only do commercial and he does residential and multifamily. I felt uncomfortable getting into the residential."

In fact, Zirkelbach, who still calls Frye a friend, says the experience taught him the most valuable business he has ever learned: to trust his instincts.

"No matter how good it looks on paper, trust your gut," he says. "I did a project that looked good on paper but never felt right. It was the only project we ever lost money on. It was the only residential project we ever did. I learned that I'm better at commercial."

Current projects include a $2 million, 43,000-square-foot showroom/warehouse for Bacon's Furniture, Port Charlotte; the design and construction of a $3.6 million, 40-acre Englewood YMCA; a $5.5 million, 38,000-square-foot shell for Riverside Plaza/Evolve Spa; and a $1.9 million, 43,000-square-foot manufacturing plant for AmeriTex Technologies. Past projects include a $3.5 million, 108,000-square-foot manufacturing facility for Avon Cabinets and a $1.8 million, hangar with a two-story office building for Aerial Films.

Not bad for the businessman who received little encouragement in the early days.

"I had other contractors mention that I'd be a nice little firm but it would be hard to grow in this environment," he says. "(But) my father and father-in-law gave me guidance."

He still remembers his first feeling of success, at the completion of a manufacturing plant. "It was incredible," he says. "It was my first project of any size, and when I finished it, I stood back and said, 'Yeah, I'm going to make it.' "

Zirkelbach credits his success to his company's structure, a one-stop construction shop, which boasts an in-house site team, civil and structural engineering teams, architecture department, certified public accountant and attorney. The structure evolved, he says.

"From the beginning, I didn't anticipate bringing those people in, but as I hired people and had problems with their timing, etcetera, I thought, 'If I was in control of that, I'd have better results,' " he says.

Today, he says, the teams fit together seamlessly.

He points to the company's in-house attorney as an example. "When he moved here from Cleveland, he worried we wouldn't have enough work for him," Zirkelbach says. "Now he says he can't believe he's had to work overtime since he has been here."

A Cleveland native, who moved to the Sarasota/Bradenton area as a child, Zirkelbach worked at his father's manufacturing plant as a youth. He helped his father and brother grow Aldon Industries to 350 employees. That experience influenced his business model.

"The manufacturing experience taught me how to assemble products in a systematic, organized way to produce results," Zirkelbach says. "To control results, you have to control the beginning of the project, all the facets through the end of the project. That's why we have our own site crew worth $2 million."

With a staff of almost 50, Zirkelbach says he's a hands-off manager. He shows his approval of employees' work by distancing himself. "I won't interfere," he says. "I want them to take chances."

Zirkelbach offers guidance during Tuesday morning staff meetings when short-term goals are discussed. He also meets with his managers quarterly. And once a year, he takes the team offsite for a two-day planning session.

Zirkelbach says he will have to rely more and more on the existing structure as he involves himself more with his new businesses. He may find that easier said than done after the ground breaking of a mixed-use development on the west corner of the Interstate 75, Interstate 275 interchange. The Woods of Moccasin Wallow will feature 800,000 square feet of commercial development and space for Zirkelbach's new corporate headquarters.

Currently, a typical week is 6 a.m. to 6 p.m. at Zirkelbach Construction, a pit stop at home, then spending the night hours at the restaurant, which serves continental food with a New Orleans flair.

"I don't know if it will take that much time forever," he says. "But I'm willing to do what it takes."

Spoken like an entrepreneur.

STATS

Employees: 2001: 10; 2002: 15; 2003: 28;

2004: 47.

Revenues: 2001: $12 million; 2002: $25 million; 2003: $36 million; 2004: estimated $52 million.

Average annual growth: 75%