Jim Hankes of Thrushwood Farms spoke at Midwest Entrepreneurs yesterday about his $3MM business in processing meats. Mr. Hankes opened his business in 1978 as a specialized meat packer, but has recently begun plans to double his capacity and square footage in his Galesburg plant. The growth has not been an “easy ride”. “The entire decade of the 80ies was very tough for us”. Jim was originally enthusiastic about the concept but did not start with a detailed business plan. “We wrote out a few things on a napkin, but we were not totally sure what we were getting into. Like every other entrepreneur, the lack of capital was a huge restraint to growing our business”.
Since 2001, the locally grown or produced food category has grown in popularity and Thrushwood has seen its business double or triple its size during the last decade. “We are now doubling down our investment in the finest machinery from Europe and the best facility and people we can afford to maintain the highest quality reputation”. That investment is beginning to pay off for Hankes and his two sons who manage the company. His biggest concern for the future is the increasing level of taxes and oversight by government bureaucrats who’s focus is finding problems to “validate their existence” .
We expected a 20-30 page report every few years from inspectors outlining what needed to be improved or fixed after each factory audit. Now those reports are 150+ pages and contains hundreds of mandated changes that equate to thousands of dollars of expenses that do not benefit our customers. All of this extra expense to satisfy regulators goes on the backs of entrepreneurs. “I am concerned what will be left for my sons with all of the taxes, regulated processes, and time and resources to accommodate and respond to factory audits. Despite the worries, Jim is optomistic this decade will be Thrushwood Farms best.
“My advice to students is simple: 1) do internships and demonstrate you are willing to work hard. 2) Demonstrate curiosity and the willingness to learn something from almost anyone and everything you do”. Hankes told his own sons that “A” grades are not as important as the internships or jobs you work and what you did with the opportunities you are blessed with. Don’t get into debt–Hankes had a time when he was paying 19% interest and had no possibility of prosperity. He vowed to only borrow when rates are reasonable and maintains a “leveraged business” because the high cost of quality machinery.
Jim admires the marketing Of Jack Links but warns that most of the product is imported from “who knows where?”. The success of Thrushwood is buying from someone you can trust-like a good neighbor.
