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Thursday, Mar 28, 2024
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Small Business Spotlight: Rapid Response Emergency Flood Service, Inc.

As a property claims adjuster for the local division of a national insurance company, Andrew Grabhorn thought the quality of water-damage restoration companies in San Diego was lacking and often felt uncomfortable recommending companies to his clients.

Grabhorn, who at the time was working for State Farm, was weighing his options after the company offered to transfer him to Bakersfield. He instead decided to stay in San Diego and start his own water damage restoration company.

“I always knew I wanted to go into business for myself,” he said. “And when the reorganization at State Farm came about , it (the idea to start a business) kind of came to me.”

Now as president and owner of Rapid Response Emergency Flood Service, Inc., a San Diego-based emergency water damage restoration and mold remediation company, Grabhorn has helped the firm flourish, reaching revenues of $2 million in 2004.

The company was extremely busy this past winter, as San Diego was pounded with heavy rains.

“This year we got more rain claims because there was so much water,” he said.

The 21-person company completes 1,500 jobs per year, with the average job costing $1,500, he said.

Its chief competitors are Tennessee-based ServPro and Illinois-based Service Master.


Resum & #233;

Name: Andrew Grabhorn.

Title: President and owner.

Company: Rapid Response Emergency Flood Service, Inc.

Address: 5780 Chesapeake Court, Suite 5, San Diego.

Phone: (858) 715-0842.

Founded: 1997.

Prior experience: Property claims adjuster for State Farm Fire & Casualty (1993-97).

Average hours worked weekly: 40-50.

Source of startup capital: Savings of $40,000.

2004 revenue: $2.0 million.

2003 revenue: $1.7 million.

Number of employees: 21.

Web site: www.rapidfloodservice.com.


Background

Born: Dec. 16, 1970, in San Diego.

Education: Bachelor of science in finance and real estate from University of Arizona.

Residence: 4S Ranch (near Rancho Bernardo).

Family: Wife, Christine; sons, Kyle, 5, and Trevor, 3.

Hobbies: Golf, roller hockey and mountain biking.


Judgment Calls

Reason for getting into the business: I always knew that I wanted to go into business for myself and as an adjuster; I saw a definite need in the marketplace for a company that could deliver superior customer service at a reasonable price. The rest is history.

How I plan to grow the business: Continue doing what we’ve been doing for the past seven years. Deliver the best service possible at a reasonable price.

Biggest plus of business ownership: Pride in knowing that Rapid Response is the best water damage restoration and mold remediation company in San Diego County.

Biggest drawback: Waking up in the middle of the night and not being able to go back to sleep because you’re worried about a particular job.

Biggest business strength: Our dedicated and hardworking employees.

Biggest business weakness: Before going into business for myself, I never had any management experience at any level. I’ve had to learn on the job.

Biggest risk: The liability involved due to indoor air quality and mold contamination issues.

Smartest business decision: It’s not exactly a business decision, but marrying my wife, Christine. Without her love and support I never would have had the courage to open Rapid Response or determination to make it a success.

Biggest business mistake: Keeping an employee too long.

Toughest career decision: Terminating a key employee.

Biggest ongoing challenge: Finding quality employees.

The most important part of my business: Customer service.

My business works best when: Our flood technicians aren’t overworked.

Consistently busy is good. Consistently overworked isn’t.

How your business has changed throughout the years: Much more emphasis has been placed on indoor air quality issues due to fungal and microbial contamination. Mold remediation work has increased tremendously.

Best way to stay competitive: Maintain our high standard, keep up to date on changes in the industry, and continue to seek new customers in different industries.


Goals

Goals yet to be achieved: Continue to develop systems so Rapid Response can run without me being involved on a day-to-day basis.

My five-year business plan: I’m embarrassed to admit it, but I haven’t thought that far ahead.

I would sell my business only if: I had something else I was interested in that I thought I could grow and make successful.


Philosophy

Guiding principles: Set high standards for yourself and your company and don’t accept or settle for anything less.

Most admired entrepreneur: My dad. I don’t think it’s a coincidence that both my brother and I are self-employed.

Important lessons learned: Growing too fast isn’t necessarily good if you can’t maintain the standards that made you successful in the first place.

Advice for those looking to go into business: Go to your local bookstore and purchase “The E-Myth” by Michael Gerber. I wish somebody had recommended that I read it before I was in business.

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