Small Business Spotlight: Pacific Refrigeration, Inc.

George Misleh isn’t technically a small-business owner but with his boss retired, the responsibilities and pressures of running Pacific Refrigeration, Inc.’s supermarket supply business fall to him all the same.

Misleh says he once worked as a factory representative for a large corporation, but as a self-proclaimed “business junkie,” he now enjoys handling more “owner-type” duties.

Robert Lerwill started Pacific Refrigeration, which is based in El Cajon, some 35 years ago. Now 64, Lerwill is retired from the company. He now enjoys auto racing, traveling and boating, leaving the daily chores of running a company to his grown sons, Steve and Mike, and Misleh.

One way Misleh is carrying on Lerwill’s work is by being an active member of the American Society of Heating, Refrigeration and Air-Conditioning Engineers, Inc., or ASHRAE.

VITALS

Name: George Misleh.

Title: Business division manager.

Company: Pacific Refrigeration, Inc.

Company address: 1440 Broadway, El Cajon.

Company phone: (619) 441-6960.

Year founded: 1971.

Average hours worked weekly: 50 to 60.

Source of startup capital: Personal savings.

2005 revenue: $5 million.

2004 revenue: $4.7 million.

Number of employees: 49.

Web site: www.pacref.com.

BACKGROUND

Birthplace: San Francisco.

Education: Community college.

Age: 41.

Current residence: Torrey Hills.

Family: Single.

Hobbies: Jet skiing, the stock market, golf and anything else related to business.

JUDGMENT CALLS

Reason for getting into business: Had a passion for providing the best products and services. And the timing was right.

How I plan to grow the business: Teamwork, innovation and implementing a business strategy. Promoting an environment that values individual differences, engages people in decision-making and encourages employees at all levels and across all parts of the company to work as a team.

Biggest plus of business ownership: Watching great people see their hard work and dedication realized. To watch somebody come up with an idea, execute it and then see customers really get value out of it is just an amazing feeling.

Biggest drawback: Contract lawyers, the Environmental Protection Agency and the high cost of insurances.

Biggest business strength: Creating and leveraging industry standards, and top-notch management team and field personnel. We have a passion for winning in everything we do and we have a culture of operational excellence.

Biggest business weakness: Trying to recruit talented people to San Diego. The cost of housing has hindered us. No freedom is absolute. Sometimes, it’s not having 25 hours in a day.

Biggest risk: Full-service contracts. For the most part they work out well. Once in awhile, you’ll have one unexpectedly go wrong. Having clients with food, medicine and hospitals that require our refrigeration service 24 hours, seven days a week, there’s no option for not being there.

Smartest business decision: Diversifying. Having five business units. Also being part of a buying group and purchasing our building in 1994.

Biggest business mistake: Not buying more real estate in the mid-1990s.

Toughest career decision: Deciding to work eight days a week and laying off an employee because of lack of performance.

Biggest ongoing challenge: We need to be able to embrace how big the opportunity really is. After we embrace it, we’ve got to make the tough choices on which of those opportunities we’re going to go for first and then we have to be disciplined in making sure that we’re focused on the things we picked and execute them before taking on something else.

The most important part of my business: Having strong leadership and a clear vision, you can make almost anything happen. Also, having happy customers and cash flow.

My business works best when: Everybody is working together as a team.

Best way to stay competitive: Having really smart people who have tremendous passion, great conviction and courage, and the willingness to go out there and take risk because when you’re in an industry that is evolving so rapidly, no one person has the right answer for everything.

How I measure success: By being in business since 1971 and never having a claim with the Better Business Bureau. Also, having a client list that represents many of the Fortune 500 companies today and being respected by colleagues and friends.

GOALS

My five-year business plan: It would be boring to know what you’re going to be five years from now.

I would sell my business only if: A home could be lived in without a refrigerator.

Guiding principles I will continue to follow: Targeting a huge market will not always guarantee success.