Robert Thompson, CEO of Thompson Family Farms, knows how to form perfect partnerships. In an industry in which minorities are under-represented, he has become a minority farm foods supplier for McCain Foods USA and other customers, and that is where the perfect partnership of diversity and value is formed. Thompson chose to start his own farming business five years ago after working his way up to a management position at Del Monte, and has proved that business savvy, quality products and a willingness to meet tough challenges head-on can lead to business growth and success even in the toughest times.

During times of economic retrenchment, many minority firms suffer because they are suppliers to the largest corporations. Thompson is a standard bearer for those minority firms that are wondering how they can position themselves to take advantage of the next growth cycle. Many of the answers to this question are found in the details of Thompson’s story.

In the Beginning…

When Robert Thompson decided to go into business for himself, he chose one of the most difficult industries – farming. Like most other businesses, farming is subject to the vagaries of bank lending, consumer demand and global markets. In addition, farming is also subject to weather, which can wipe out field inventory on a moment’s notice. When a farming supplier is a small minority business, you can also throw into the mix the fact that it’s a small business competing with large complex corporate farming operations. To further complicate the issue, Thompson chose a business in which the minority business enterprise (MBE) is rare.

Talking with Thompson is inspiring because he exhibits a blend of unbounded optimism and competitive toughness. These are two qualities that are needed to succeed. When asked why there are not more minority farm businesses, he responded that, “Minority business enterprises are rare in farming due to lack of capital and lack of land ownership or acreage access.” These kinds of hurdles are difficult to overcome, and yet that is exactly what he did. With a touch of justifiable pride in his voice, he lets us know that he is the only potato grower in North America who is registered with the National Minority Supplier Development Council.

There Was Mentoring… That is exactly what happened too. Thompson Family Farms is well into its ten year growth plan despite only being in business for five years. He pointed out the only thing holding his farming business growth in check is lack of bank credit availability. Convincing the banks to lend, money in a post-recession business that is subject to unpredictable factors like weather, is not easy. However, in a sign of the true success Mr. Thompson has achieved, his business has been “…growing on cash…” Effective business strategies enabled him to fund his operations year to year on cash profits. Once the banks begin to lend again, his farming business is poised to grow.

Then There Was Quality, Quality, Quality…

Many small businesses, including minority firms, fail early because they try to go it alone. When asked what advice Mr. Thompson would give minority businesses, he had plenty to share thanks to his experiences and everything is related to building a quality business. Much of his advice emanates from his experiences with McCain which only confirms the importance of establishing working relationships with established businesses.

Mr. Thompson has three bits of advice for minority business right off the top. First, an MBE should do its homework by thoroughly researching the targeted firm to find out what it needs from a supplier, and then insure the MBE can fulfill that need before making an approach. Second, the minority business should have an area of expertise that sets it apart from its competitors. Third, Mr. Thompson said that, A diversity company has to be savvy and competitive.

A minority business cannot rely only on its MBE status for success. The biggest challenge Thompson Farms faced was getting the attention of the established corporations as a small business. It’s easy to get overlooked unless you develop the expertise and offer the big businesses something they won’t find in larger suppliers. Often that “something” is service and performance that meets the highest quality standards.

When asked how Thompson Farms measures success, the response was “…on performance…” Mr. Thompson’s business has steadily increased its yield per acre meaning there is less to throw out which leads to higher profits. Quality farming methods…quality service to its customers…quality strategies that promote success. In real estate the old saying is that it’s ‘Location, location, location!’ that leads to success. For minority businesses, it’s quality, quality, quality.

Leading to Value…

The value proposition as an MBE for Thompson Farms has four points. First, Mr. Thompson has experience in growing potatoes and that experience has led to superior product ratings. Second, the farm has developed strategies for overcoming the vagaries of weather to provide revenue stability. Third, Mr. Thompson said that he developed the ability as a small minority business to communicate effectively with small and large customers. Fourth, and equally important, Thompson Farms tweaks its programs to fit the needs of the customer making the business responsive.

Therein lies the ultimate piece of advice that Mr. Thompson has to give minority businesses to achieve the kind of success he can claim. The MBE must cater to the customer and not the other way around. Mr. Thompson’s next step is to join the global marketplace once the capital markets loosen up. If that’s his next strategy, one thing is for certain – he’s already done his homework.

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