Small Business

Four Hot Tips From the 2011 Small Business Person of the Year

By Donna Fenn

Updated on: May 23, 2011 / 6:58 PM EDT / MoneyWatch

Last Friday, Rick Cochran, the CEO of Mobile Medical International Corp. (MMIC) was named the U.S. Small Business Administration's Small Business Person of the Year. The $14 million St. Johnsbury, VT company manufacturers mobile health care and diagnostic units for both commercial and military use. Think mobile breast care centers, laboratories, and surgery units that can be transported via semi-sized tractor-trailers to natural disaster sites, under-served rural areas, or military theaters. Here's what SBA administrator Karen Mills had to say about Cochran:

"The innovation, inspiration and determination shown by Rick Cochran and his employees have elevated his company, Mobile Medical International, to a level that is above and beyond the norm. These are the qualities that make small businesses such a powerful force for job creation in the American economy and in their local communities. Rick had a dream and he persisted - creating jobs, winning the loyalty of his team, and filling a need in the marketplace that has taken Mobile Medical from his basement to a worldwide stage."

After a conversation with Cochran, it seemed to me that all small business owners could learn a thing or two from his success. For instance:

Leverage your past experience. In the early 80's, Cochran worked for JedMed, a medical and dental instrument company, where he developed a catalog of medical instruments for ambulatory surgery centers. In 1986, he started his own company, Outpatient Services of America, a healthcare consulting company specializing in the development of ambulatory surgery centers. Through his relationships with physicians, he discovered that while many doctors had an interest in mobile units, few could afford to build their own. "My boss at JedMed would always say that if you heard a business problem over and over again, there's an opportunity there," says Cochran. And so the idea for Mobile Medical International, which manufactures mobile units that doctors can share, was born in 1994.

Find a champion. Cochran built his first mobile surgery prototype in 1996 and the first doctor to use it was Major General Paul K. Carlton, M.D., commander of the medical center at Lackland Air Force Base. Having a military heavyweight like Carlton as a fan was invaluable; Carlton later became Surgeon General of the USAF and continued to advise Cochran on "containerizing" his mobile surgery units to make them more deployable for the military. The result: MMIC landed a $30 million U.S. Army contract to design a medical shelter system. Carlton is now a member of MMCI's board.

Build a loyal workforce. Things were not always easy for Cochran. In 1999, the company had piqued the interest of military customers, but the sales cycle was excruciatingly long. MMIC was severely underfunded and nearly closed its doors. But Cochran's core team of five agreed to work without pay to keep the lights on. That just doesn't happen unless employees have intense loyalty and faith in a company's leadership. When MMIC's finances improved, employees were reimbursed for their sacrifices and the company was ready to rebound with a seasoned and motivated team. "They were loyal, and they're still with us today," notes Cochran.

In tough times, conquer international markets. "Throughout this downturn, we've continued to make traction in the international community," says Cochran. He began making inroads overseas a few years ago and now has solid relationships in Oman, Armenia, Iraq, and Saudi Arabia. A member of the Saudi royal family has even purchased mobile medical units for his own personal use. "That opened doors for other discussions with the Ministry of Health," Cochran says. He company's products have also been used by provincial reconstruction teams in Iraq. "If you're serious about growing your company, possibly doing an IPO, or a future acquisition, I don't think you can do that if you don't take on international markets," says Cochran. He says he predicts 20-25% revenue growth this year and then "exponential" growth in 2012.