by Jeremy Nulik

Bernie Squitieri started down the road of entrepreneurial success with a simple promise.  On Halloween morning in 1995, he told his 2-year-old son that when he got home from work, they would go trick-or-treating.  When Squitieri arrived for his shift as manager of a St. Louis Bread Co. location, he learned that the general manager had scheduled him to work an evening shift.

“I told him that I had asked for the evening off to take my son trick-or-treating,” says Squitieri.  “I handed him the keys and said, ‘Thank you very much for the opportunity.’  That night, I walked down the street trick-or-treating, asking myself, ‘What did I just do?’  But I don’t regret it.  I wanted independence.”

Squitieri already had much more than coffee brewing in his mind when he was working at Bread Co.  A couple of years before moving to St. Louis, he had read an article that said Missouri was going to adopt a managed health care system.  As part of that system, safe transportation had to be provided to health care clients.

“I had been to St. Louis before when I was visiting family and knew that there was not much in the way of transportation,” says Squitieri, a native of The Bronx, where he managed a taxicab company with a fleet of 250 vehicles.  “I saw an opportunity that I knew would grow.  So I moved to St. Louis.”

Several months after he left Bread Co., Squitieri started Express Medical Transporters (EMT), a nonemergency medical transportation company, in the basement of his home in Arnold.  “When I started, it was just me and a 1989 Chevy Caprice, and I went around to HMOs and brokers and told them I wanted to do their transportation,” he says.  “They said, ‘Where are all your vehicles?’ I told them that if they gave me business that I will grow.  So they gave me their business.”

And they continue to do so.  Last year, EMT cleared $6.5 million in revenue, and it currently employs 200 people at its St. Louis location.  Along with its growth in size, EMT has expanded its service offerings.  “If you think about every situation except for someone needing a paramedic, it would fall under the umbrella of nonemergency medical,” says Squitieri.  “We are also the largest provider of transportation to school for homeless or displaced children.  The State of Missouri believes that just because you lose your home does not mean you should lose your education, so we provide that transportation.”

By 2007, EMT had done such a good job of serving clients that it began experiencing pressure to expand to other cities.  Although franchising was not part of his original plan, Squitieri saw it as the best way to grow the business and keep expansion costs down.  “I thought the best way to grow was to not use my own money,” he says.  “So that is when I met with the iFranchise Group, consultants that evaluate a business to see if it can be franchised.  They told me I definitely had a franchisable product and that I would be one of the first companies in the industry of nonemergency medical.”

It would seem counterintuitive to begin franchising during a recession.  However, after just 18 months as a franchisor, EMT has seven franchise locations in 10 states employing 220 people.  The company is poised to close five more franchise deals before the end of the year. 

Squitieri has had no trouble letting others be successful using his business model.  “I was in a cab in Florida, and an EMT van passed us at a red light,” he says.  “It is an amazing feeling.  I can say to myself, ‘I started that company 13 years ago.’  There is a feeling of accomplishment when you have seven places throughout the United States that are saying:  ‘Thank you for calling EMT.  Can I help you?’”

However, Squitieri’s success did not come overnight, and the lessons he has learned along the way are valuable for any entrepreneur.

Here are the business lessons Squitieri learned on his road from being the guy in the basement to the man with a franchisable business empire:

Find an underserved population with increasing needs
Before EMT, health care providers and schools were forced to choose between ambulances and taxicabs.  “I would not put my child or a loved one into a cab since you don’t know who that driver is,” he says.  “We do drug testing and careful background checks.  If you have had a DUI in your life, you cannot work for us.  I may not be cheaper than a taxicab, but I am safer and better.”  By offering a third option, Squitieri has carved out a market niche.  And as baby boomers age, the need for safe transportation will increase.  He cites his unique position as something that not only allowed him to steadily expand his business but also has made his company more attractive to franchisees.

Create a track record of proven profits
Potential franchisees, like any investor, want to be assured that they will make money.  “You have to have a track record of being a profitable business,” says Squitieri. “We have been proven to be recession-proof.  Sept. 11, Hurricane Katrina and gas prices going to $4 a gallon have had no effect on our profitability.  Our sales for 15 straight years have increased 8 to 10% a year.  That is the proof of your effectiveness.  Time will tell if it is going to succeed or if your business is just a trend.”

Systemize everything
“The hardest part of creating the franchising model was when I had to systemize everything,” says Squitieri.  “As a small business, you don’t have a formal operations manual.  So it is taking everything out of your head and putting it into a book form.  Everything about your business and how you do business has to be in a book.  The hardest part was taking the systems that we created internally and turning them into training modules.” 
In addition to manuals, Squitieri has had to create a training infrastructure for franchisees, complete with a full-time business trainer and a separate facility.

Get good representation
As Squitieri learned, the process of franchising takes twice as long and costs at least twice as much as you would expect.  Other than documenting policies and creating training modules, the largest time and money barrier is legal compliance.  “Taking up the legal process in every state in the country is a process since they all are a little different,” says Squitieri.  “You have to have good documents and have a good franchise attorney.  We are fortunate to have Lenny Vines from Greensfelder, Hemker & Gale PC.  He is well-known in franchise associations, and he has been a huge help to us.”

Make sure you are capitalized
One of the biggest mistakes Squitieri sees businesses make is to not properly set up their cash flow.  “If you are undercapitalized and you want to franchise, you are setting yourself up for failure,” says Squitieri.  “You have to be capitalized well and have a good plan.  Make sure you understand your business in regard to working capital.  Usually, we are not paid for a while on our contracts, so you have to plan for that.  You still have to make payroll and other expenses even when clients are slow to pay.”

Make others’ success a priority
Sue Perszyk, owner and operator of EMT – St. Peters, was the company’s first franchisee.  She covers transportation from St. Charles west to Columbia.
Perszyk cites Squitieri’s expertise and willingness to be a resource as the biggest reasons her franchise has doubled in size in just 18 months.  “EMT and Bernie have been so supportive and helpful, says Perszyk.  “Anytime I need advice, he is there to help.  He is a walking encyclopedia, and the passion he has for this business is electric.  He has given me so many advantages over my competition, including customized dispatching software, better deals on insurance and fuel costs.  I know that I am a priority, and that is important to me.”