Many growing companies actively work to increase their debt load in order to expand their business. North Coast Banners works to eliminate its debt load to grow.
The Ann Arbor-based company has spent the last few years focused on eliminating its debt, while enjoying steady growth. It routinely aims for 10 percent revenue growth while making sure it owes as little to other people as possible.
"We have paid down every single nickel of corporate debt," says David A. Abramson, managing partner of North Coast Banners. "This is why we're here and a lot of people aren't."
He adds his company was inspired by Dave Ramsey, a financial author and radio host, and his emphasis on being debt free. That has allowed North Coast Banners to grow its staff to six employees and the occasional intern. It hired its last intern as a graphic designer, and it plans to hire another 1-2 people over the next year.
North Coast Banners has also added new work by making banners for concerts, festivals and events. Abramson says if you watch a local band in concert these days there is a good chance the banner hanging over it was made by North Coast Banners. That has allowed the company to add $250,000 in gross revenue and spike its revenue beyond the $1 million mark. Abramson credits that growth to the new business and his firm’s continued focus on remaining debt free.
"I'm really convinced it's the missing link in a lot of our businesses," Abramson says.
Source: David A. Abramson, managing partner of North Coast Banners
Writer: Jon Zemke