Featured Entreprenuer: 48, mother of five, ages 22, 19, 18, 15 and 11; Chairman and CEO, PrimeSource Foodservice Equipment, Dallas, TX Number of employees: 85 Gross revenue in 2008: $100 million

My story: After nearly two decades climbing ladders in corporate America, I was at the top of my game. I was the executive vice president of sales and marketing and chief financial officer for The Dallas Morning News. I had a comfortable expense account and access to box tickets to the Dallas Mavericks. But after a while, what I didn’t have was passion for my job. I had a wonderful career but needed change. Call it what you will: burnout, maybe—I just wasn’t happy. So I resigned.

I knew I wanted to become an entrepreneur, but I didn’t want to start a business in my basement—that just wasn’t me. I’d heard, though, that if I went to work for a business that had been bought out by a private equity firm, I could run a company without having to start one from scratch. That just might be me.

A former colleague was on the board of PrimeSource, which is the nation’s tenth-largest food service equipment distribution company and supplies nearly 19,000 restaurants in 47 countries. He called me and asked if I would be interested in running the company, which had recently been acquired by a private equity firm. Although I knew nothing about food service equipment, I had an extensive background in finance and operations. After long conversations with myself, I decided to take the leap.

In June 2003, I accepted the position of president. My actual salary was lower than I was used to, but if I performed well, I could ultimately make a lot more than I could working for someone else. I went on to become CEO in 2004 and chairman of the board of directors in 2006. PrimeSource’s executive board offered me performance-based cash incentives as well as equity ownership and the ability to purchase additional equity in the company.

It was a challenge at first. I had to get used to overseeing everything from day-to-day operations to the conception of our overall business strategy—and solving all sorts of problems myself. When we had a tax issue the first year, I thought, Well, we’ll just send it to the tax department. Then I remembered that we didn’t have one. On the other hand, I had the freedom to set strategy, invest for the future, pursue new lines of business and build a great team. So far, it’s going well. The company has seen steady growth since I started.

The best part of this arrangement? I can make my job fit my life. Even when I work long hours, it’s less stressful than before because now I set my own agenda. It’s amazing how much of my life was once spent debating in meetings. Now I can eliminate most of that. We have a board of directors, but we can get to a decision fast. I still travel, but I can say, “Tuesday is better than Thursday.”

Even my kids are happier. They pummel me with questions at the end of the day—they have a much greater interest in my work now that they realize I’m risking their inheritance! The only downside so far? We really miss Mavericks games.  

Lessons Learned

1. The partnership is primary You need to understand a private equity group’s philosophy: What’s the firm’s investment strategy? What return is expected? What’s the time frame for getting out of the business? I should’ve spoken to the people who run the firm’s other portfolio companies before I took the job to see if their working style fit mine. Luckily, it turned out okay.
 
2. Industries differ The restaurant distribution biz was unlike anything I was used to. There were lots of players who’ve been in the business for generations. So I joined a professional women’s food service organization to network, where I’ve met both female and male decision-makers.
 
3. Take Risks In this role, my livelihood is directly linked to my performance. I may have made a larger salary in corporate America, but as an entrepreneur I have the potential to reap professional and personal goals far beyond anything I’d once imagined.
 
4. Think big picture It’s easy to get so caught up in the day-to-day that you forget to look at your overall business strategy. I make it a point to set aside time each week to focus on my company’s overall long-term goals.

Ask a Pro: Venturing into venture capital
Jobs in the private equity industry are highly sought after. Laura P. Pearl, managing director of Ceres Venture Fund in Evanston, IL, offers advice on what to consider when seeking a job at a company backed by a private equity or venture capital firm.

• Do your homework. Review the fastest-growing companies and industries profiled in national business magazines. More management opportunities typically exist in these areas, and the opportunities themselves are likely to be more fruitful.
   
• Find common ground. Focus on companies that invest in areas that complement your experience. Private equity firms process deals quickly and operate with less bureaucracy. If you’re known to them for a particular area of expertise, you can get in the door fast, which can greatly improve your chances of being hired.
   
• Prepare for financial risk. Straight salaries in these firms may be lower than in corporate America because of the richer bonus and equity oppor-tunities. Make sure you’re willing to live with a more uncertain compensation arrangement.
   
• Be clear about your talents. Resumés that can be labeled and categorized (software company marketing executive, pharmaceutical regulatory affairs VP, health-care service CFO) are more likely to be retained and reviewed than “general management” resumés.
   
• Seize networking opportunities. If you currently work for a company that’s going through a leveraged buyout, try to get to know the principals of the private equity firm early in the process. Think creatively about how the company could be taken in new directions, and pitch your ideas to the new owners.
   
• Follow the money. Be sure to focus on the financial stability of the company. A venture-capital-backed firm that just closed a $25 million financing that’s expected to last for three years is very different from a firm that has raised enough money to last another four months.