Paul Raclawski, 3rd Armor

Imagine being overcharged for supplies by $25,000 in just one month! All businesses need to monitor their expenses, but the construction industry has sky-high challenges. Dealing with an ever-changing number of vendors and a myriad of contracted and fluctuating prices means having to check every line of every invoice for accuracy. Paul Raclawski has worked in this industry for over 20 years and understands the immense challenge faced by contractors, including the aforementioned business that found some $300,000 in annual discrepancies.

Paul knew he had a solution to save these businesses time and money. What he didn’t know was what to name his new company; nothing seemed quite right. Inspiration came in the form of his grandfather’s pristine WWII jacket with bronze star, emblazoned with his rank of Commander of Tank Division for the 3rd Armor Division. Symbolizing his grandfather’s courage, tenacity and ingenuity, 3rd Armor was the perfect name for Paul’s innovative new endeavor.

1. Why did you choose to start 3rd Armor? 
Having worked in this industry for 20+ years and talking with thousands of contractors, I realized what a pain point this pricing issue is for everyone. Whether a large, established company or a fledgling start-up, the potential invoice discrepancies could be devastating. I knew I could develop a system that would be an effective solution to this problem.

2. Tell us a little about your business and what makes it unique. 
Currently, these businesses are forced to scrutinize every invoice, comparing every line item to the negotiated price. This vital process is necessary, but extremely time-consuming and tedious. 3rd Armor provides a service, through unique collaboration of industry knowledge and process, to automate this dreaded, but critical task. We are ultimately shooting for a total concierge service for the U.S. construction trade industry.

3. What was the problem you were facing when you decided to contact the Illinois SBDC at Harper College?
I had a clear vision of what I wanted and what the system needed to do, but business-wise, I basically had no idea what I was doing. 

4. How did the Illinois SBDC at Harper College help with the problems you were having? 
The mentors I work with are amazing. I’d like to give a special mention to Marge - I have never spoken to a person who knows as much about her topic of expertise than Marge knows about business. She is amazing, I sincerely mean that. She has worked with me on a software development agreement and statement of work, stock capitalization tables, stock buy-sell agreements, business operating agreements, and software process flow reviews. She’s also helped me with hiring employees and compensation structure. 

Dennis LaPorta advised me on an appropriate pricing model and brand messaging from a sales perspective. Through weekly calls, Dennis LaPorta has really helped me accelerate my business; I can’t even express how invaluable this has been. Cherie Kretsinger was very helpful in offering advice regarding lead generation and a marketing campaign strategy, which I’ll be able to fine-tune as I approach different markets.

5. Would you recommend small business owners use the services of the Illinois SBDC at Harper College? 
I would, and I have already. If up-and-coming entrepreneurs can connect with the SBDC, they will position themselves for success. You don’t know how much you don’t know. The mentors really showed me the depths of what I was doing and what lies ahead. It’s really because of how knowledgeable they  are about their specific fields that I progressed so quickly. 

6. What does the future look like for 3rd Armor? 
Very bright. So many things have fallen into place and my team is amazing. I feel very hopeful about 3rd Armor’s future. While we are starting with the U.S. construction trade industry, this software is designed to be malleable to other industries. Once we get a strong foothold on our initial target market, we will focus on permeating other markets.

7. If you had one piece of advice to give someone just starting a small business, what would it be? 
Nothing is going to go right. Nothing is going to go to plan. Everything is going to be total mayhem. Try to understand that this is okay and don’t get bothered by it. Once in a while, something amazing will happen.