Atlantan goes to the rural mountains and learns how to make money during the recession and beyond. Here is what he did.

By: Jerry Chautin, SCORE volunteer, business columnist

SCOREing small-business success

A little business with “A little night music”

George Kelischek knows that music and business go well together. He used to live in Atlanta and repaired musical instruments for the members Atlanta Symphony and other others that needed his specialized craftsmanship. But since he could take his niche business anywhere, he moved to the rural, picturesque and community of Brasstown, North Carolina. The Appalachian Mountain town is near the borders of Georgia and Tennessee.

Kelischek’s business evolved beyond repairing instruments. What is more, his sales have increased each of the last 10 years --- even during economic downturns. Equally as intriguing, his company’s mainstay is manufacturing, an industry that has suffered in Georgia and throughout the nation. But unlike the textiles and other mass-produced products hurting from cheap labor overseas, Kelischek manufactures historic musical-instruments. They are marketed under the Susato brand and sold by his Kelhorn Corporation.

The love of music brought us together a few weeks ago to hear the Chatham Baroque Trio’s concert in at the John C. Campbell Folk School in Brasstown. The folk school’s craft-making classes and its concerts are frequented by American and international visitors.

It gave me an opportunity to catch up with Kelischek and talk about his successful business techniques. You can use many of them especially since his niche products are lesser known than yours. For example, he sells Tabor-Pipes, Txistus, and Minnesinger Hurdy-Gurdies --- not the kinds of staples found at local supermarkets.

Because of the recession, I was somewhat hesitant to ask Kelischek, “how’s business?” But he was gracious and glad to tell me about his company. He said that he substantially reduced the company’s operating cost by discontinuing its mass-produced catalogue. In turn, that eliminated the cost of printing and mailing voluminous catalogues to customers worldwide. Instead, he lists all of his products on his web site, susato.com. It keeps his product line and prices current, and a click away from his customers.

If you are looking for sheet music of the Cherokee Nation, there are 33 choices posted on susato.com. Also posted is a range of 35 pennywhistles in 18 keys, numerous varieties of dulcimers and a greater assortment of harps than I have ever seen in concert.

When I look at the breadth and depth of his products, I could understand how eliminating the catalogue was a huge savings. Furthermore, the money saved was invested into molds and tools that are used to make many of the instruments he sells.

Kelischek says that musical instrument-making classes are not taught in universities. But he can teach his machinists how to use his molds and equipment. It gets the job done more economically than being hand-made. As a result, he has been able to increase production and avoid layoffs during the recession.

“Welcome! Willkommen! Bienvenu! ¡Bienvenido!” are the bold-faced greetings on the susato.com web site. It tells me how far from Brasstown his customers are located. He says that business from Japan, Korea and Australia is also brisk.

Kelischek is constructing a two-story, 5,000 sq. ft. building to increase his manufacturing footprint in Brasstown and make room for “jam sessions.” But he was quick to differentiate his folk and classical-style music from the Bluegrass that my wife Julie and I heard last Friday at the folk school and later that night at Clay’s Corner --- a local gas station that has been attracting local musicians for several decades.

The jam sessions and traditional advertising will make locals more aware of the Susato brand. Susato is the namesake of Tielman Susato who lived during the 16th century. He was a composer, publisher and musician that exhibited the entrepreneurial traits and passion for music that Kelischek admires. He was also from the same region of Germany as Kelischek’s family.

Kelischek has niche products. He reduced his operating expenses and invested the savings in his business to reduce operating cost and increase productivity. That is a winning formula for you to consider during the recession. Moreover, it can position you for greater profit when the economy improves.

OTHER INFORMATION:

About SCORE:

Since 1964, SCORE “Counselors to America’s Small Business” has helped more than 8 million aspiring entrepreneurs and small business owners through counseling and business workshops. It is a nonprofit resource partner with the U.S. Small Business Administration. More than 11,200 volunteer business counselors in 370 chapters serve their communities through entrepreneur education dedicated to the formation, growth and success of small businesses. The Atlanta chapter has 100 volunteers in conveniently located branch offices.

Note to media: Photos of the SCORE counselors quoted and interviews are available upon request. For interviews with SCORE business counselors or SCORE small-business clients, contact SCORE’s chairman, Jeff Mesquita: e-mail, scoremarketing@joimail.com, cell: (770) 713-1702. You may use this article in part or in its entirety and distribute copies with credit to SCORE Atlanta www.scoreatlanta.org. The columnist’s CV is online at: tenonline.org/sref/jc1bio.html. You can follow him on Twitter, www.twitter.com/JerryChautin

SCORE Atlanta | Publish Date: 11.12.09 | Back to home |