Jon Meighan (One Leg Up!, Lake Erie Rubber & Manufacturing) joins to discuss his career and working with the Northwest Pennsylvania Innovation Beehive Network.
Sponsored by: Erie Regional Chamber & Growth Partnership
Music: Kevin Macleod’s "pamgaea" available via Creative Commons Attribution-International 4.0. License: https://creativecommons.org/licenses/by/4.0/
No changes were made.
Music by audionautix.com. Audionautix's "Roboskater" by Jason Shaw available via Creative Commons Attribution-International 4.0. License: https://creativecommons.org/licenses/by/4.0/
No changes were made.
Transcript:
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JON MEIGHAN: It's getting in the stores. It's selling well. And I think a lot of that is owed to the design work and getting the design to be just right through Behrend, and the professional look, and the how we've branded ourselves through working with Edinboro.
SPEAKER 1: That's Jon Meighan, owner of Lake Erie Rubber and Manufacturing, along with being the developer of the One Leg Up! line of pet toys. Meighan is the latest guest on Buzz, Generated, a show that introduces listeners to businesses and business leaders that collaborate with the Northwest Pennsylvania Innovation Beehive Network. We explore their stories, successes, and shortcomings, discovering what the buzz is all about.
Here, Tony Peyronel, executive director of Edinboro University's Center for Branding and Strategic Communication sits down with our guest on a variety of subjects, including his journey through the network.
TONY PEYRONEL: We're joined on the podcast today by Jon Meighan, owner of Lake Erie Rubber and Manufacturing and the developer of One Leg Up! pet toys. Jon, it's a pleasure to have you on the program, and welcome.
JON MEIGHAN: Thank you for having me. I appreciate being out here. And I appreciate all the help that you guys have given us getting One Leg Up! off the ground.
TONY PEYRONEL: Well, you're very welcome. And we're going to get to One Leg Up! products later in the show. But let's start with some background.
I believe you first came to the region to complete an internship at General Electric and then landed a job there. Can you fill us in on those details?
JON MEIGHAN: Sure. So I actually came down for an internship at GE to learn about manufacturing and actually take a job in supply chain. And initially-- you know, my background is engineering, actually. But GE had offered me this opportunity to learn about manufacturing. And I did the internship and ended up loving it and took a full time job at GE on the operations management leadership program, which thrust me directly into supply chain and manufacturing management.
TONY PEYRONEL: Interesting. As you progressed in your tenure at GE, I've heard you say that you became increasingly interested in starting your own company, but actually, came upon some existing family businesses that were in a difficult spot. Will you describe the scenario that actually led to the birth of Lake Erie Rubber and Manufacturing?
JON MEIGHAN: Sure. So I had always wanted to start my own business. Since I was a kid, I always thought of myself as an entrepreneur. But then I realized, after about eight years at GE, that I wasn't an entrepreneur. Because I was still working at GE.
And the reason was is that my career was progressing and I was enjoying what I was doing there and learning a lot, but it came to a point where I decided, OK, I'm almost 30 years old, I'm either going to become an entrepreneur or I'm not. So I need to start taking steps towards doing that.
So it actually started with the idea that I would start my own business from scratch. And after meeting with a family friend who had gone off and started his own business, he recommended that I look into an acquisition instead of starting my own business.
So I thought, OK, well, I'll investigate, I'll see what's out there. And once I figured out where you find businesses for sale, which you have to be introduced to a business broker and sign non-disclosure agreements-- and so that's why, most of the time, you're not aware that the businesses are for sale.
TONY PEYRONEL: There aren't necessarily real estate signs outside.
JON MEIGHAN: Exactly. This isn't something you can find in the newspaper, on Facebook, or anything like that. So the first step was figuring out, where do you find businesses that are for sale? And then, secondly, once I did, I realized that Erie has a unique situation where we still have a lot of small manufacturing companies that have aging ownership that may not have a plan in place for what happens when they're done running the company.
And in the situation of Lake Erie Rubber, it was, previously, Scully Enterprises, which had started in 1964. It was in its current format in the building that it's in now, since 2000.
And the owner had passed away pretty young. And there really-- there was no plan as to what to do with the business. So the options that they had were, basically, private equity companies were interested in it, a couple other rubber companies not located in Erie were interested in it, and myself.
And the family had ties to the employees and, certainly, wanted the company to stay in Erie. Any other group that would have purchased the business would have closed the doors, taken the customer lists, some of the equipment, and, most likely, moved it into one of their current facilities.
So it became apparent to me that this was a good opportunity to potentially save a business and jobs that would be leaving the Erie area by coming in and running the company.
TONY PEYRONEL: Right. That's interesting. In that scenario, you were something of the white knight. Because you were the one able to keep things together.
But even with that, I would think there had to be a period of uncertainty for those employees to go through a change in ownership. But I'm told you were able to retain every employee and then, actually, facilitate growth. But what would you say your biggest challenge was during that transitional period?
JON MEIGHAN: Honestly, it was a really hard time, personally. My second child-- my daughter was born four days before I signed the paperwork to take over the company.
TONY PEYRONEL: Wow.
JON MEIGHAN: So the challenge was is I had a two-year-old, a newborn. I was trying to do a good job of transitioning out of GE.
I was the plant manager for our international kitting and distribution. So I was trying to make sure that they were setup for success as I left the company. Because obviously, you know, I appreciate my career there and wanted to do a good job leaving.
And at the same time, now I have this financial burden I've signed personal guarantees on millions of dollars of loans that will keep this business going and pay all of our debt back. Because when I bought it, I was not a rich guy. I had to convince banks that I would do a good job and be able to pay back loans.
TONY PEYRONEL: Sure.
JON MEIGHAN: So personally, it was challenging for my wife and myself to balance between still working at GE, owning a new company, and having a newborn and a two-year-old.
TONY PEYRONEL: Wow. Each detail you learn about that story, it makes it seem even more incredible. And it seems like the Lake Erie Rubber and Manufacturing success story, alone, would establish you as a visionary business leader.
But yet, you're continuing to aggressively innovate with your new line of One Leg Up! pet products. I'm wondering what motivated you to branch out into pet toys and how that project's going.
JON MEIGHAN: Sure. So this company, Scully Enterprises, was a well-run company. They had good people working there that knew how to manage the business. And the issue really was increasing sales. Because the owner had been sick and did eventually pass away. And he was their person who created sales and new work.
And so when I came to the business, we were only about four months in. And it takes time to generate leads and develop growth. And so I started in August of 2017.
By December of 2017, our schedule was not looking good. We were running out of work. I was getting really nervous.
I had known before starting at the company that we were a little too heavy percent of business into a couple companies. And those companies were slowing down, which meant we were slowing down.
So at the time, you know, I'm four months in. I'm getting pretty nervous that did I just risk losing my house and all of my personal assets, and we're going to be living in my parents' basement?
TONY PEYRONEL: Putting your two sweet little children out on the street.
JON MEIGHAN: Yeah. So at that point, I'm thinking, OK, I need to be aggressive. And how do we diversify this company? How do we create something that hasn't been done before?
Because the employees are telling me, hey, this happens now and again, almost every winter, we get a little bit of a slowdown, this is a particularly bad one-- of course, my first winter owning a business.
TONY PEYRONEL: Of course.
JON MEIGHAN: And so I started poking around at the employees, like, hey, how come we've never developed our own product? Because our business was and is, until now, producing products for other companies.
And we want to continue doing that. That is the bread and butter for our business. But at that point, I knew, we need to diversify, and we need to develop our own product and attack a market that is completely different than rail and mining and oil and gas, which is where we are initially, as a company.
And so, actually, my business partner, I'm asking him almost every day, you know, what's a unique product that we could produce with the equipment we have? And he said, well, you know, all the rubber dog toys, like Kong or any of those, they're made by shops just like us.
And so, literally, the next day, I started designing dog toys and figuring out, all right, how do we enter this market, how do we brand ourselves? I started researching what are the rules and regulations on producing dog toys and all these things. And that's really where it came from.
SPEAKER 1: This episode of Buzz, Generated is sponsored by the Erie Regional Chamber and Growth Partnership, the voice of the business community in the Erie region. The chamber provides advocacy and access to people, education, and information so that businesses have the leadership, resources, and expertise needed for continued prosperity throughout the region. Schedule a time to meet with the business action team and learn more about how the chamber can help, or visit the Regional Chamber and Growth Partnership online at www.EriePA.com.
The growth of our vibrant community in Erie, PA depends on a dynamic business environment. The Erie Regional Chamber and Growth Partnership aims to provide just that.
TONY PEYRONEL: Now you were kind enough, at the outset, to thank us here at Edinboro and our Center for Branding and Strategic Communication for helping you out. But I think our listeners would want to learn more about how you did enlist the services of not just our center at Edinboro, but throughout the Northwest PA Innovation Beehive Network, which is a collaborative project, actually, between all four universities in Erie County and the Blasco Library that's aimed at facilitating economic development by assisting startup businesses.
I know that you work directly with students and faculty both here and at Penn State Behrend. Can you describe the roles that they played?
JON MEIGHAN: So as I mentioned, when we decided we were going to produce dog toys, I started designing and developing what I thought the product would look like. And then I heard about the Beehive and the potential to do 3D printing through Behrend and the potential to get marketing design through Edinboro.
And so I reached out and contacted the Penn State Behrend group. Because I thought, OK, well this could be really helpful, I have designs, but I'd like to test them.
And so I got in connection there. And they started printing models of my designs, which allowed us to-- it was a ball, the first design. And it allowed us to try a lot of different sizes.
And so, luckily, there was other local places, like the Erie Humane Society, and like Peninsula Pups, who were willing to let me borrow dogs. And so, here I am running around with 3D printed versions of our toy, trying to get dogs to play with them to check the sizing to make sure that they're not a hazard.
And so, they really helped us through that process and getting the toy the right size, the right shape, all of those pieces. Well, then the next step, you know, we're like, OK, well, we need packaging, what are we going to do?
And I had designed a logo. It was awful. I'm an engineer, not a graphic designer. I was OK at designing a product. I was pretty bad at designing a logo.
And so the group at Behrend connected me with Edinboro. And I got to meet with this fantastic group of students. And Quinn actually being the lead on this project.
TONY PEYRONEL: Quinn Thompson, right, who went on to get a great job in New York City.
JON MEIGHAN: Yes, absolutely. And so this group helped me develop a logo that looked fantastic, very professional. It hit all the points that we wanted to make with the brand. And then they also went through and designed multiple sets of packaging for us so that we could make this thing a reality, right?
Now we had a design from Behrend that we believed was going to be just right. We were able to manufacture it. And with the help of Edinboro, we were able to turn it into something that looked very professional.
And one of my favorite things about the product now is, like I had told you before we went on air, you know, we've been going around to different independent pet stores selling the product. And they're hesitant when I call them.
When I walk in with the product, almost every single store that I go to says, wow, this is the most professional looking product I've ever seen from a small business. And they say the design, the packaging, the logo, the tagline-- tagline also came up from Edinboro.
They say, you know, normally, we get calls like this for small businesses to bring in products, and we tell them, ah, you know, no, thank you. But so far, every store that I've been to has purchased product from me. And we've had almost every store reorder product from us.
So it's getting in the stores. It's selling well. And I think a lot of that is owed to the design work and getting the design to be just right, through Barron, and the professional look and how we've branded ourselves through working with Edinboro.
TONY PEYRONEL: Right. Those students you mentioned worked under the guidance of Brigette Davitt. Graphic design faculty member. She was our original creative director. She's temporarily on leave from the University. But the other fortuitous aspect of that is that Brigette herself is a packaging specialist. What she's most excited about in graphic design was, at the time, exactly what you were looking for, which is another meeting of those forces coming together.
I think our listeners might be interested, though, you talked about now going to different retail shops and trying to sell directly. But I think you're also having other meetings and looking to expand beyond direct retail sales.
JON MEIGHAN: Yeah. So we started with Nickel Plate Mills, which is where I buy my pet products. And the owner there was another person in Erie who was really helpful in the development, the ingredients we should use.
And so we started in one store, we went for sale in March of this year. We're now in about 30 stores. We've sold over 1,000 dog toys. We've developed our second product and purchased the mold for that. So we'll be producing that in October of this year.
And we now have distributors and major pet industry companies that are interested in potentially picking us up as a brand and also as a manufacturer for potential private label products as well. So getting that first product out there was the key for us to become a part of an industry that, like I said, the goal was to diversify the company. And we are a rail and mining and oil and gas company.
Well, we're getting to the point where I think we're on the verge of becoming a pet product company as well. And the pet industry has grown 25 years in a row. And I know, you know, a lot of analysts would say, OK, well, it's due for a slowdown. But I would say, do people like their pets any less this year than they did last year?
TONY PEYRONEL: I'm thinking the answer to that is No.
JON MEIGHAN: I don't think so. I mean, I still treat my dog better than I treat myself. And I think a lot of other people are the same way.
So, yeah. I think it's an opportunity that, with the help of these local resources, we have a good shot at being a part of this industry that could really stabilize and grow our business.
TONY PEYRONEL: Well, Jon, given the success you're already having and the obvious happiness you have with both your experiences at Behrend and at Edinboro, I'm guessing that you would recommend the Innovation Beehive Network to other businesses. Is that right?
JON MEIGHAN: Absolutely. And I would say, you know, the creativity and the willingness to help is is impressive. And it was a critical part in getting our new product going. And so we're incredibly appreciative for that. And we would definitely recommend to other small businesses to take advantage.
TONY PEYRONEL: That's great to hear. And your endorsement is certainly a significant one.
I'm wondering, too, if there's, outside of the collaboration with the Beehive, is there other general advice that you would offer to would-be entrepreneurs?
JON MEIGHAN: Yeah. There's one thing that I always tell everyone who asks that question. And actually, I had a boss at GE who was fantastic. And I learned a lot from him.
And one of the biggest takeaways that I used, actually, in my process of going from being a career corporate person to going into entrepreneurship is it's all about knowing your next actionable step. And your next actionable step should be something that you can do within the next two weeks, even if it's small.
And we would always take on these projects at GE that seemed impossible to get from where you were to the finish line. And he would say, look, all I want is for you to know what your next actionable step is within the next two weeks and how you're moving towards that. And if you always know your next actionable step, then you're always moving closer to that eventual goal.
As soon as you don't, then you're not making the progress, you're not going to get there. But you know, I've actually been mentoring a number of people who have reached out to me on making that same transition. And it's the same thing, just next actionable step, and keep completing those, and you'll get there.
TONY PEYRONEL: Keep putting one foot in front of the other, literally.
JON MEIGHAN: Literally.
TONY PEYRONEL: That's excellent advice. Well, as we said at the outset of the interview, you first came to Erie to do an internship. And you've been here ever since.
You've also made Erie a key part of the One Leg Up! brand. That's obvious. I mean, you've got Erie stamped right on some of the products. In your opinion, what makes Erie an attractive place to live and work?
JON MEIGHAN: I like Erie, because there really is a lot more than people realize. For me and starting a business, a huge piece of it is the affordability, is one piece of it.
If I was in Los Angeles and I was trying to buy the piece of property to start my business, I wouldn't be able to compete against China, Vietnam, or other manufacturers. Because my overhead costs would just be way, way too high.
The other thing is I've actually lived in Wisconsin, Texas, Syracuse, New York, West Virginia, and Pennsylvania. And I'll tell you what. Erie has a lot to offer between, I like to ski, I like to bike. So I can do all of those things in Erie.
We have the lake. My kids and I go to the peninsula all the time. So we love the area. We think it's a great place to raise a family. It works really well for us, living by-- we have Waldameer for the kids, which we go all the time. The zoo is great. There's just so many nice things about Erie and not a lot of traffic, too, which is nice.
TONY PEYRONEL: Right. That's interesting, kind of the double barrel satisfaction that, personally, you and your family enjoy the recreational opportunities, but also the unique appeal from a business perspective, in terms of lower costs, easier to do certain things. That's interesting. I'm wondering if there are any other stories or pieces of advice that you'd like to share.
JON MEIGHAN: I think the biggest thing is when you're doing something like what I'm trying to do in moving to an entrepreneurial role, you have to really learn about the resources that are available to you and take advantage. Because it allowed us an opportunity that would not have been there, otherwise.
Had we tried to release this brand and product without the resources, including other small businesses in Erie, who have been incredibly helpful to us, we couldn't have done it without it. We wouldn't even have a product right now, I would guarantee it.
Because with the help of the groups that moved us forward, we weren't in a position to just hire companies to do this work for us. We also didn't have the resource to do it ourselves, all the pieces that were required to take this product to market.
But using those local resources that are available, we were able to do it in a short amount of time with a really, really high quality product. So I think that's just such an important takeaway on how to go about moving to the entrepreneurial world.
You have to use the resources around you. Because you just don't start out with infinite resource available to you.
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SPEAKER 1: You've been listening to Buzz, Generated. This podcast was released through Edinboro University's Center for Branding and Strategic Communication. It's produced by Keith Hepler, Britton Rozelle, and Chris Lantinen.
Thank you to our guests for their insight and to you, our listeners, for taking the time to experience innovation alongside us. Consider subscribing, if you liked this episode, to get more as soon as they drop. And if you really enjoyed it, jump over to Apple Podcasts for a five-star review. Thank you for listening.
