By Maggie Chicoine
Peter Kathmann was born with entrepreneurial blood in his veins. But that’s not so unusual, since he also sports a business brain and the strength of an ox. At 57, he says he still has a lot to learn; he’s never done.
Kathmann’s story as a global manufacturer and merchant may seem simple on the surface. As a successful real estate agent in the Netherlands, he realized that his tax bracket was too high. Choosing Canada over Australia as an immigrant was a decision based on common sense: visiting family in the homeland would be easier.
He purchased a motel in a little place called Geraldton, because the people were just so absolutely friendly there. He invested in more real estate, branched into construction and renovation of fixer-upper houses, joined the Chamber of Commerce and settled into life in a northern town. When the economy plummeted and interest rates zoomed to 24 per cent in the 1980s, things got tough.
How does this savvy business man deal with difficult situations, like an economic downturn? Without taking a breath, he lists his inventory of ways he keeps his business afloat.
“If you have an idea, work on it. Stick with it. As soon as you start doubting your product, you’re done. Do your homework. If you are too eager to get something into the marketplace, and you don’t take the time to check out your competition’s weaknesses, then maybe there is no market. Follow up and don’t pressure your customers. Talk to people about why your product is special, why it is superior. Offer incentives. Handshake."
His company, IMEXKO (the acronym means “Import, Export, Kathmann, Ontario” – chosen for its international appeal), found its niche in the early 2000 with the renewed interest in mining explorations in the North. With his motto “If you can draw it, I can build it," a chance encounter in a restaurant eventually evolved into a new line of business: mining core racks. Always guaranteeing the highest possible quality in his work, the racks are built with pressure treated lumber, heavy gauge tubing and recessed nails. It’s no wonder that he was forced to move out of his former backyard shed into a new manufacturing facility in downtown Geraldton. He doubled production from 2006 to 2007 and doubled again in 2008.
He admits that northern businesses face challenges. “We all know what those are: Municipal taxes way above the national norm; heating and hydro costs, and for manufacturers, distance from the marketplace. Even banks have special rules for the north, but the Royal Bank has been good to me.” And with enthusiasm, he says: “It’s a wonderful place to live! My visitors from the Netherlands go crazy about our wide open spaces and the possibilities of owning all of this land for next to nothing.” In fact, his attitude about opportunities becomes even more interesting when he talks about the potential of mining exploration in the region.
“We can become the future of the mining industry in Ontario, if not Canada. We have an excellent labour force, proven natural resources and a renewed interest in Greenstone. We’ve just had big announcements about million dollar goldmine investments. Our infrastructure is good: airport, highway, hydro and gas.”
The Geraldton Chamber of Commerce has played a major role in Kathmann’s life in the community. “In the Netherlands”, he says, “if you wanted to be in business, you had to have a licence issued by the Chamber. Chambers are very powerful. In Canada, we need to invest in our own community with our time. I’ve been a multi-year Chamber President.” And obviously, he is one of the region’s best ambassadors.
So what can new entrepreneurs learn from the likes of a visionary, common sense immigrant based two hundred kilometers from the largest urban center, Thunder Bay?
Peter Kathmann’s Rules of Thumb for Entrepreneurs:
1. “Don’t put all your eggs in one basket. If it’s not working, admit it and diversify. But focus.”
2. “Listen for opportunities and chance encounters, like the time I overheard a conversation in a restaurant and offered to help with a new hydro line venture. This became the start of my Korex Core Storage Racks.”
3. “Study your competition and do things better than they are doing. It’s not about the profits. Quality counts.”
4. Sign deals with a handshake. Use common sense. Trust people. Add some incentives that will surprise the customer and help them to remember you.”
5. “Always think about the next level. If there are tough times, find ways to ride it out.”
6. “Any idea is a good idea no matter how stupid it might sound. Come up with 20 good ideas to find the one that is realistic and will work. Then make it work.”
With total conviction in his voice, he presents a final thought. “I’m like a train. It’s hard to stop me.”
Maggie Chicoine is a professional member of the Professional Writer’s Association of Canada, a charter Director of the Canadian Association of Professional Speakers and a Master Coach. Maggie is one of Northern Ontario Business’ Most Influential Women. An accomplished entrepreneur, she specializes in “strategies to think ahead”. Reach her at 1 800 587 1767 or www.theideasculptor.com
