Tom LaDow builds business after serving 24 years in military

An occasional series of stories about successful entrepreneurs

When Tom LaDow retired from the military at 47 years old, he needed to find something else to do with his time.

"I needed something to do after 24 years in the military," he said.

Before entering the military, LaDow was a teacher and had thought about going back to the career. He changed his mind though because he didn't want to work for someone else.

He looked into operating his own business and discovered an existing company, which created graphic designs on clothing. He was going to purchase it, but after attending a trade show , he realized it wasn't up to date with equipment and the items it was offering.

"I almost made a fatal plunge and bought the business," he said. "I decided to start from scratch."

He was able to do so by purchasing a subsidiary business of Modern Graphics, known as Creative Promotions.

Modern Graphics decided to sell the business and LaDow took over in 1994. He began building Creative Promotions and The Trophy Factory from his home basement.

He recruited his niece, who had worked for Modern Graphics, to help him. In order to promote his new business, LaDow realized the need to go out and meet people.

"I hit the road to generate more of a customer base," he said.

When he started, LaDow admitted he didn't know too much about the business. He knew he needed to know more about the products and what he could do for customers. Over time, he began to learn, attending several workshops to master the trade.

Since he started, LaDow has made many changes and feels fortunate to have been in business for 15 years.

After the first year, LaDow realized too many UPS trucks were visiting his home and he needed room to expand. So in 1995, he moved downtown to a site on Fourth Street and expanded into trophy sales.

In 1996, the bar located next door to his business caught fire.

"Everything was destroyed in the fire," he said. "It was discouraging, but luckily I had insurance."

LaDow used the insurance money to rebuild his business and moved to the 400 block of Broadway. He emphasized it's important for business owners to carry insurance.

"All it takes is one incidence like that," he said.

He had to relocate again in 1997 when the owner of the building decided to use his space for something else. LaDow purchased a building at Fourth Street and Broadway.

Creative Promotions expanded into screen printing in 2000 and quickly ran out of space. It relocated to North Street.

"When I moved here, all kinds of things started to happen," he said.

The most recent move allowed LaDow to add even more to his operation. He started offering embroidery and a technique of placing a full image on products. He eventually added vinyl graphics, so he could offer customers signs. The newest addition is a direct-to-garment printing machine, which will print a design onto clothing from the image on the computer, like a printer.

As technology continued to expand, LaDow knew he needed to keep up.

"One of the things I did learn is that you can't sit back and do what you've always done," he said. "I've learned it's important to keep up with the industry in order to keep people coming into your store."

LaDow feels his business is uniquely different from other companies because all of the work is done inside the business. This allows the owner to offer quick turnaround, even for the next day.

Being able to offer his customers quick service means better customer service.

"It's hard to get a new customer," he said. "But it's easy to lose one."

LaDow said he has learned customer service is key to making a business successful.

"No one is perfect and everyone makes mistakes," he explained. "It's about how you handle the mistake."

LaDow has had his share of worries in the last 15 years. His biggest worry came last year, he admitted.

"I had to take out my first line-of-credit loan because of the economy," he said.

In order to save some money, LaDow also had to make the decision to cut his store hours during the week by one hour in the morning.

He has learned from a few mistakes made along the way.

At one point, LaDow had a run in with credit card spending.

"I'm very cautious now," he said. "It's very easy to put money on the credit card and not have the money to pay for it."

Another mistake he made was buying too much inventory when it was on sale. He said before he knew it, items were stacked to the ceiling. At the end of the year, LaDow has to pay taxes on any merchandise in the store.

LaDow offers a few words of advice for those wanting to start up a business.

First, he said it is important to borrow more money than the entrepreneur thinks is needed.

"People usually don't fund themselves enough money," he explained. "You need to ask for two to three months of expected costs up front."

He also warns others to be prepared to work 50 to 60 hours a week or more when starting up and owning a business. LaDow also suggests hiring an accountant to help with finances. In his opinion, the job position is worth every penny.

No matter what, LaDow feels it is important for others to own small businesses or at least give it a try.

"There is something to say about controlling your own destiny and working for yourself that drives you," he said.

Looking back, he hasn't regretted the decision of working for himself for one minute.

"It's been a remarkable trip and it's been fun," said LaDow.