12 l exchangemagazine.com l NOVEMBER/DECEMBER 2004

TRACY

JOHNSTON-

ALDWORTH

IS ON HER

FEET AND

LAUGHING

BY JON ROHR

From Tracey Screen Printing

Ltd (left to right): Niki Endresz, graphic

artist and Tracey Johnston-Aldworth,

president.

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NOVEMBER/DECEMBER 2004 l exchangemagazine.com l 13

Haven’t budged an inch,”, says Tracy Johnston-Aldworth, whenasked, “How are things different 20 years later?” Her commentis followed with a quick laugh.

In fact, her statement is a vast understatement; her compa-ny, Traces Screen Printing, is approaching a million dollars insales, and under her leadership, has done everything but standstill.

Tracy makes a great first impression; her enthusiasm for liferadiates and encourages those around her. Although some-times ‘wacky,’ her candid approach yields dividends beyond ahealthy bottom line.

At the peak in the 90s, Traces Screen Printing employed 25screen printers and occupied almost four times their currentspace. They were at the top of their game, but reality was goingto shake things up. The recession of the early 90s suddenly

ended many vigorous partnerships. Penman’s, Traces ScreenPrinting’s largest client, went bankrupt. Traces’ receivableswere thrown into a tailspin, and so was Tracy.

It was a stressful period. “We weren’t making a lot ofmoney.” But her “never give up” attitude went into overdrive.She worked out a deal with her landlord, retooled her opera-tion, and plunged ahead.

“We did a lot of overhaul, to figure out where we’re makingmoney, how to make money, what would make TSP a bestbusiness.” Her biggest lesson was Penman’s – “putting toomany eggs in one basket; I know it sounds cliché, but that wasour downfall.”

“Those recessionary years were tough years ... but I lookback and realize how I got here.”

So 20 years later, Traces Screen printing is in a different

MOVER & SHAKER

AN UP & DOWNSUCCESS STORYTracingAN UP & DOWNSUCCESS STORYTracing

“

14 l exchangemagazine.com l NOVEMBER/DECEMBER 2004

state; “we make a lot more money, wehave a lot less people, and we’re a lotmore streamlined.” All the attributes abusiness wants.

Much of Tracy’s success can be attrib-uted to her entrepreneurial propensity toprosper. She’s more than just a businesssurvivor, she understands the nature ofrunning a small business, and the impor-tance it plays on our economy.

Along with her leadership comes a lotof well-placed energy. “I started volun-teering because I didn’t have any moneyto promote my business. I borrowedmoney from my parents to start thecompany; I figured I could never repay it.I volunteered everywhere. It started withthe Buskers 16 years ago.” Since then,Tracy has performed every function atthe annual festival. Currently she looksafter talent recruitment. She sits on theboard of Big Sisters and Big Brothers,and in Toronto as chair of a board forchildren with facial deformities that pre-vent them from seeing or speaking. “Imet a ton of people, a ton of businesspeople. If you sell yourself you can makean impact here and there; it’s surprising.”

And impact means business. “Whenthings get a little bit recessionary, busi-ness start pulling back money, especiallythe high tech industry in this area.” Tracysuggests her industry has been flat overthe last three years, but it’s picking upsteam.

The promotional industry feels theimpact of a slowdown early than otherindustries, the result of “business pullingback on purchasing promotional prod-ucts.” And they’re one of the first to feel

any recovery. 2004 “has been spectacu-lar” adds Tracy. “Business is starting tofeel their footing. Business is not afraidto spend money.”

Tracy thinks “there is a little bit ofuncertainty” in the market, “but it’sopening up, we’re a good forerunner, inthe sense of when business starts toloosen the purse strings, because we arelittle bit of a luxury.”

A 20-year industry veteran, Tracy has

navigated TSP through two economicups and downs. “Over the last few years,there were a whole lot of things thatwere misleading to people, everyone allgot scared.” The big question was,“would we get supplies from the states?”

Referring to the shortfall of tee-shirtsin the industry a few years ago, “wewere wondering if it was 9/11, Ameri-cans were angry, people were thinkingAmericans were holding back on theircotton. The screen printing industryrelies heavily on the US because theysupply most of the cotton, and they buymost of the cotton grown internationally... and the cotton that grows in theStates, stays in the States.” Tracy saysCanada uses only 5% of the cotton com-ing into and out of the US. But every-thing seems to have settled down.

As a traditional craft, screen-printinghas been around for centuries. AndNorth Americans love their screen-print-ing. “I'd like to see my sales increase,

MOVER & SHAKER

The promotional industry

feels the impact of a

slowdown early

than other industries.

Merike Ince, production manager (left) and HollyPanson, head screen printer.

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NOVEMBER/DECEMBER 2004 l exchangemagazine.com l 15

they've come down in the last few years.I don't have staff changes, we’re reallyconfident about what we’re doing, wefeel very secure with the majority of thecustomers base, and we've just done somuch for conserving, saving andstreamlining.” A combination of costcontrol strategies, and sensible markettiming has kept Traces Screen Printing aprosperous business focused on thefuture, one that is profitable but can fluc-tuate with the economy.

Every small business requires aknowledgeable and committed team forongoing development. After takingsome executive coaching, Tracy intro-duced to her staff two incentive pro-grams. “We have profit sharing” foremployees at TSP for over a year. “Theyget different percentages depending onwhere they fall within the structure ofthe company.”

In addition, she offers a “fun incentive... I have the trip incentive ... in its sec-ond year.” Realistic revenue targets arelinked to profitability and cost control.There’s one catch: “you have to showyour books to the employees, showingthe month end.” It’s not something every

owner or department manger can do.“To do this you need give a lot of trust,your employees have to trust you –you’re showing your bookkeeping,”

The executive coaching she took afew years ago, says Tracy, “turned itaround for me, it made me look at busi-ness differently. I was a nose to thegrindstone kind of girl, Protestant workethic type, and it wasn't working for me.I didn't like it, I was uninterested in thebusiness, I was tired, I was doing over-time, and my staff didn't have the com-mitment. I wanted to figure out ways forthem to have some ownership, andmaybe make a little bit more money, andall the things that say we’re all in thistogether. Let’s reap the profits of thebusiness. So I took what they taught mein coaching and just elaborated on it.Because I think there is new thinking inbusiness, I don't know if it’s just me orother people. In past years you wantedto give people what you thought theyneeded, you gave them dental plans orwhatever, and as much as I tried to offermy staff those things, they didn't wantthem. So instead of giving them whatthey needed or what I thought they

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needed, I just decided to give them whatthey wanted. People want things that arehard to save for. Trips are hard to savefor, they want a little adventure. Theywant to be able to brag to their friendsthat they went on a trip supplied by theircompany. It’s a little unique, interesting,especially for a company this size, thissmall, it’s awesome.”

Tracy was “surprised” at how muchthe staff “knuckled down” to earn theweekend trip. “I thought the cash wouldhave more impact.” The first year for thetrip, Tracy brought the staff to Halifax for

a weekend, a manageable perk.Last year, “everybody just nailed it in

no time. So I thought I'd challenge thema bit this year – double the stakes.” InJuly, Tracy took them to The DominicanRepublic for a week – all expenses paid.

TSP sales this year “will be aboutthree quarters of a million dollars.” Lastyear they sold just over $600,000. “Itdoesn't matter what your sales are, itmatters that everybody makes money,everybody gets what they need; it’s greatto have sales at a certain amount butthat doesn't mean your making profit! ...

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If they’re happy, I'm happy.” The new program allowed for some

changes in the boss’s life. “I started towork four days a week – suddenly I hadeverything I wanted. I had a little bitmore time off, I could come and go, thebusiness would run itself, and I couldoffer them a little bit more.”

The change had a silver lining; costcontrol produced financial gain. “I wassurprised at the percentages we savedwith just heat and hydro.”

One clear lesson is quite simple: “If youthink you’re going to get a free trip, it’s alot easier to reach into the garbage andpick out the scissors that dropped in.”

Cost control is important, and so arenew sales. “It’s great when a employeebrings in a new customer, when they’re

thinking about selling while out withbuddies.”

A concerned environmentalist, Tracydoesn't look past the small stuff – “con-serving, environmental stuff can save alot – reusing, reducing, recycling.”

As CEO, production, accounting andgraphic art all report directly to her. Her

staff of seven all have great titles. It’ssmall but carefully structured. It’s beenclose to five years since she introducedworkplace changes, and “it works verywell right now.”

The majority of work TSP does is textilescreen printing, “and then derivativesthereof”. They do a small quantity of indus-trial printing on materials that are unusual,they print temporary tattoos and actuallydesigned their own components that weresafer than the commercially available tat-toos, coming up with a new glue.

They contract out a lot of embroidery.Embroidery “is very competitive and youcan get good rates anywhere.” As forquality, “we have a lot of excellentembroiders in town.”

Her operation is very people-oriented.“There are companies with automaticequipment that service a different part ofthe industry, 10,000 pieces and up. A lotof companies invested $100,000-plus tobuy this equipment, and a lot of themaren't around. They just can't get the bigvolumes in Canada.”

“We get new competition every year;some of our best competition are peoplewho worked here and opened their ownbusiness. That’s what ambitious peopledo. I don't find that a problem. Andsome of them survive really well so I justtake it as a compliment.”

Tracy doesn't consider herself a bigrisk taker. Traces Screen Printing openedin 1985, and Tracy says, “Any idiot whoopened up a company in the eightieswould make money. I'm just glad I wasthat idiot and learned something quickenough to stay on my feet.”

MOVER & SHAKER

Every small business

requires a knowledgeable

and committed team for

ongoing development.

Chris Bernard, preparations at TSP.

18 l exchangemagazine.com l NOVEMBER/DECEMBER 2004

Men in Shorts - until Dec. 24thMen in Shorts - until Dec. 24thThe Men in Shorts would like to thank all past-supporters for their generous contributions. For the fifth year in a row the Men in Shortswill battle the winter elements to raise funds for the local Children’s Wish Foundation by wearing shorts until December 24th. The Menin Shorts campaign is a fun way to put a smile on a child’s face and create a memory that lasts a lifetime. To participate or get moreinformation on this year’s campaign please notify your local courier or send an email to mheiner@purolator.com.

Photo

court

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ios In

c.

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