Success Story
MGM Solutions
By Debbye Omlie
Shad Malone began working with barcodes weighing raspberries at a farm in Whatcom County. The experience led him to start MGM Solutions as a barcode scanner reseller in 2001 starting with one intern that has grown to 35.
MGM Solutions is an innovative leader in the point-of-sale (POS), distribution, and inventory control industries. MGM Solutions connects businesses with knowledge and tools to assist with information management. The business, through their Website, POSGuys.com focuses on restaurant POS systems and retail POS systems. They also sell barcode-driven inventory control systems and customized software programming.
Malone knew this business was right for him when he realized he really enjoyed solving problems and being creative about it. He first contacted Western Washington University’s Small Business Development Center (SBDC) in Bellingham for a business plan consultation in May 2001. While MGM Solutions had a business plan, the focus changed from an IT infrastructure to selling barcode equipment online. Tom Dorr reviewed financials, tracking systems, sales per day, and marketing strategies. As a result, management reports were put into place to improve profitability, not sales growth. The SBDC has since helped with getting loans; analyzing cash flow, balance sheets and profit & loss statements; and acquiring a key competitor.
Dorr is credited as “a mentor that has made a significant difference in our business,” according to Shad. “We see Tom about every three to six months. He helps us fine-tune profit and loss and balance sheets to focus on certain areas that make huge differences.”
When asked about some of his trials and tribulations as a small business owner, Malone quickly noted personnel issues and being a small business owner that didn’t have formal business education. Malone was a English major.
As far as advice to others, Malone recommends, “Don’t implicitly trust companies. Use Dun and Bradstreet. While it isn’t being talked about companies need to be aware of the PCI (Payment Card Industry) compliance. There are rules the majority of people don’t know about. And thank God for you guys. It is difficult!”