Juggling Sports, Business, and Pasta: Steve Penkala's Entrepreneurial Journey Through Challenges and Triumphs

We're thrilled to welcome Steve Penkala, the entrepreneurial mind behind Wisconsin-based Binding Edge Inc., in today's riveting exchange. Imagine a sports fan comparing the performance of two of his favorite teams, the Philadelphia Phillies and the Green Bay Packers, to his own business. Steve, an ardent Packers aficionado, takes a unique perspective at how the principles of dynasty and legacy ripple through the sports and business worlds. Together, we navigate the delicate balance of continuous striving and avoiding the pitfall of complacency in both arenas.

Steve's journey from childhood to the helm of a successful company in the printing and paper converting industry is nothing short of inspiring. Hear about the audacious investment decision he made against his advisors' recommendations and the subsequent triumph that affirmed his risk-taking. When the corporate world and faith intersect, magic happens, and Steve, a man of faith, is determined to leave a positive and lasting legacy for his employees.

Of course, the path of entrepreneurship is strewn with challenges, and Steve's is no exception. The COVID-19 pandemic brought with it a unique hurdle – finding and retaining employees. We discuss Steve's strategies to combat this, including wage increases and automation investment, all while fostering a positive company culture. Steve's love for homemade Italian pasta and his commitment to his employees' well-being, even amidst business pivots during the pandemic, paint a picture of a leader worth emulating.

About Steve Penkala:
Steve Penkala is the founder and owner of Binding Edge, Inc. and Quality Coil.  He has 47 years experience in the printing, graphic finishing and paper converting industry. His experience ranges from machine operation, sales, sales management and business ownership. His ultimate goal is to integrate his faith into his workplace with the desire to have an eternal impact on those he works alongside.

Connect with Steve:
Website bindingedge.com
Website qualitycoil.com
LinkedIn linkedin.com/in/stevepenkala
LinkedIn linkedin.com/company/bindingedge
Facebook facebook.com/BindingEdgeInc

This episode is brought to you by Binding Edge, Inc., mechanical binding, finishing, and custom services with a “can-do” customer-focused attitude.  Go to bindingedge.com to learn more.

Be sure to click "+ Follow" at the top of the page, new episodes every Wednesday! Thanks for listening!

Follow Marc Bernstein on Instagram, LinkedIn, and Facebook!

And follow Ang Onorato on LinkedIn and Instagram!

Are you a visionary founder with a compelling success story that deserves to be shared with our audience? We're on the lookout for accomplished business leaders like you to be featured on the Founders' Forum Radio Show and Podcast. If you've surmounted challenges, reached significant milestones, or have an exciting vision for the future, we'd be honored to have you as a guest on our show. Your experiences and insights can inspire and enlighten others in the business world. If you're eager to share your journey and the invaluable lessons you've learned along the way, we invite you to apply here.

Transcript

Announcer: 0:00

Entrepreneur, author and financial consultant, Marc Bernstein helps high-performing entrepreneurial business owners create a vision for the future and follow through on their goals and intentions. Ang Onorato is a business growth strategist to blend psychology and business together to create conscious leaders and business owners who impact the world. Founders' Forum is a radio show podcast sharing the real stories behind entrepreneurship as founders discover more about themselves, while providing valuable lessons and some fun and entertainment for you. Now here's Marc and Ang.

Marc Bernstein: 0:35

Good morning America, good morning Philadelphia, good morning Wisconsin, since we have Steve Penkala on with us today, coming from Wisconsin, and we'll introduce him formally in a few minutes. But and we were talking we actually did a show earlier today where we were talking about the Phillies loss last night and we thought that was the beginning of a Philadelphia sports dynasty, and hopefully it still is, but it's hard to see that on the day after. But we've got talking about the difference between dynasty and legacy and so you were talking about dynasty and thought we would talk about that, but they're talk about your definition of the difference between a dynasty and a legacy and then we can apply that to Wisconsin as well.

Ang Onorato: 1:26

Yeah, you know. So I was driving into the studio today just completely crushed and devastated.

Marc Bernstein: 1:32

Did not expect that we would be talking about not going to the World Series, right, and you know was and I had to eat my words on the radio that the Phillies were going to win the World.

Ang Onorato: 1:41

Series. Well, the whole city did. But you know I was. I was really feeling it and I kind of thought, you know, I had an hour drive in and thinking. You know, I grew up with this. My grandparents are huge fans, my mom's a huge fan. To this day she's got season tickets.

Ang Onorato: 1:54

I was at game six, you know, trying to process everything and on the radio the local guys were talking about. You know, this really does stink, but the owner of the Phillies wants to ensure that we're building a dynasty and it got me thinking that we didn't win this one right. But what is the difference between a legacy and a dynasty? And for me it was like I think they could be interchangeable sometimes.

Ang Onorato: 2:17

But a legacy is kind of what you leave behind, where a dynasty, I feel like, is the foundation of what are you building on top of right and never, never settling for complacency or even a moderate level of success, that it's constantly building an innovation above that. And it helped me process this loss by thinking, all right, we didn't win this one, but are we really built to be a dynasty? Are we gonna look back in two generations like they did in the 80s with the Phillies, or our guest, steve here is going to talk about his dynasty of the Packers. What does that really mean and how does that tie into business and life and and just that constant striving? And so I'm hurting today but I'm feeling like, all right, you know, we're just going to build back better for next year, it's. I think that's the best way to think of it.

Marc Bernstein: 3:01

I'll just mention that I was a partner in a company for a long time that really built quite a dynasty, was always number one in the industry for a long, long time, but something happened along the way to the culture where it. I don't believe there is going to be that legacy, although it had been a dynasty, and I think that happens. You can see that with sports teams as well. So, speaking of which, let's talk about the Green Bay Packers for a minute. Since Steve's from Wisconsin and a Packers fan, how would you view that that conversation in regard to the Packers?

Steve Penkala: 3:34

We hear that, by the way.

Marc Bernstein: 3:35

Good morning good morning, thanks for having me and thanks for being here, steve.

Steve Penkala: 3:39

Yeah, it's, that's a word we hear about a lot, or we've heard that word a lot in this, in this state, because of the Packers. A dynasty, and I'll be honest, you know, brett Favre had a good run, aaron Rogers had a good run and now everybody's ready to throw in the towel. This, this young guy, jordan Love. They want to give up on him already.

Marc Bernstein: 4:01

Well, I think it's amazing, by the way, yeah, and it sounds like you live in Philadelphia, because that's what they do here too, they give up pretty easily, yeah, yeah.

Steve Penkala: 4:11

So I mean that, that that's a very near and dear to my heart, that that word dynasty you know how do I apply it to my business guys. Well, I guess I don't look at binding edge as a dynasty, more so as a like, a go-to. You know is, as the market has changed in our industry, we're kind of one of the last guys standing and so it's. I guess I don't look at us as a dynasty. I love the other thought to of legacy. You know, what am I leaving behind? And that's a, that's a big responsibility.

Steve Penkala: 4:45

I think about that and it's not just a paper converting, book binding Manufacturing company. But what type of company am I leaving behind? What is a legacy? To continue to support and encourage people and help them grow and be Desires to come to work and and and make a difference. And that's really what I think about is what type of legacy and that to me is is more of an impactful thought than a dynasty, I guess so, steve, I know you don't do a lot of these shows, but you just did a beautiful transition, so really appreciate that.

Marc Bernstein: 5:26

Really well done so. So, listen, so I'm not let me officially introduce Steve Pankala now. He is the founder and owner of binding edge eat ink, Binding edge ink and quality coil. He has 47 years experience in the printing, graphing, finishing, graphic finishing and paper converting industry and has experience in that business ranging from machine operation, sales, sales management, business ownership pretty much everything you can do in the printing and paper conversion industries, I would think and his ultimate goal is to integrate his faith into the workplace and With the desire to have an internal, eternal impact on those who he works alongside which he just referenced, actually, in that great transition. So officially welcome Steve, and Like to start out asking you a little bit about how you got there. How did you become the founder and owner of binding edge?

Steve Penkala: 6:24

Oh, Gosh, you know, I just think about my childhood years Growing up in Wisconsin, appleton, Wisconsin. My, my grandfather, my father and my two uncles all of them work for the same company, a printing and publishing company In various roles management for some, machine operation for others. And so early on I just I knew about the industry and, for whatever reason, in intrigued me. When I was 16 we still had Co-op classes in high school and there there was woodworking, there was metals. Well, I took a printing a co-op, which meant half a day I was in my class, the other half I'd go out in the community. In my case, I ran up a printing press at a local hospital and that experience I learned early that I was not a machine operator. I was terrible at it. I didn't know what I was doing. I Wanted to master it so much that I convinced my parents to go out and buy a small press and they put it in our basement in our home so I could run this thing, and for Christmas I would run business cards and pads for the family. So that's, that was kind of my introduction back in the late 70s. I, as I said, I did not have any desire to run a machine. So I took a couple years off after high school, work for a paper mill which obviously is a related industry Again found out that wasn't for me and went back to college, got a bachelor's degree in business and economics.

Steve Penkala: 7:55

After college Natural thing for me was find a job in the printing industry. So I did that and work for a couple of years for a local printing company at sales. Walk through the door and they said you know, here's a business card, go at it, tiger, no accounts, nothing. So I learned kind of the hard way, just knocking on doors. I After two years found out that there was a no local company that I could could make a heck of a lot more money. And I went there work for five years in printing again and then after that a search Executive search firm sought me out to be in sales management for another company.

Steve Penkala: 8:33

I did that for Three years and during that time Marc what I did is I would be on sales calls. I was a sales manager. I would be on sales calls with my sales people and I just started asking questions what's meant, what's missing in our, in our region, what's missing in our area? And I kept hearing people repeatedly telling me that there was a lack of a good book binder or paper converter and I, honestly, I Leave those meetings and I'd have to research because I had no idea what that meant. And that was in Gosh. That had to be 19, 1993, I believe, was so I started. I started my process of putting together business plan in 93. It was in 1994. I got approval from a bank Based on a business plan. I had a buddy who had a flatbed truck. We drove around the Midwest, bought equipment, put on the flatbed truck, bought it back to Nino Wisconsin, rented a building, put the equipment in there. January 1st 1995 Got our first order for my attorney 50 books. So that's how, that's how finding edge started.

Marc Bernstein: 9:41

That's great. And he started with a need. You identified a need and filled the need, which is pretty interesting and you know you don't think of. I've worked in the past with a lot of people in the graphics industry and and printing. In fact, I grew up I think I may have mentioned you in the greeting card business although my family were distributors, but I was around manufacturers, we would go to the plants and things like that, so kind of familiar with all that. But you don't really think of like that. You look for a specific need to fill. I want to jump ahead maybe 20 years or so when, in the early 2000s I think, when you came into a situation where you, in order to grow and to keep up and to be profitable, you had to make a major investment in the company, which your advisors told you was not a great idea. Do you want to talk about that for a minute?

Steve Penkala: 10:31

Absolutely. At the time, probably just in my, in our city, there was four or five companies doing what I did. So there was one company. It was a great need to begin with, but then I started a second business and then there were a couple of other people that started anyway. What, what? What I determined was I could continue to try to Compete with these small guys. A couple guys literally worked out of the garage, no overhead. I couldn't compete with them.

Steve Penkala: 10:59

So I did some research, worked with one of our vendors and in the end he convinced me to take a trip over to Germany. So my wife and I went to Germany and they showed me a book binding machine that would punch and bind plastic spiral books and at the time most people were doing this by hand. Plastic spiral books at about Eight to nine hundred books an hour doesn't sound like a lot, but when you're talking about taking a piece of PVC plastic and forming into a coil and binding a book, it's it's pretty fast. So at that point in Germany I signed the paper for this company to to literally Build for me a custom machine. This is some, not wasn't something on a shelf. They literally had to build this for me. So it took close to a year to have this thing built. But I got back and whether it was my banker, my accountant, I had an advisor at the time. They said what were you thinking?

Announcer: 11:56

or what are you thinking, the size of your company?

Steve Penkala: 11:58

This is gonna be a million dollars for the machine. Then you have installation and you have transportation getting it from Germany to here. And I and I said, no, I've got this figure out because, honestly, I ran the numbers and it made sense. But I'll tell you what, when it first arrived and that first payment had to be made, it was hard to sleep. It was difficult to sleep. But now I look back. If we wouldn't have done that, we would not be in business now. What? What that machine does with two people. My competitors would require between seven and nine people to put out what we can do an hour with two people. So the automation is tremendous. If I wouldn't have done that, I honestly think we wouldn't be here today.

Marc Bernstein: 12:44

And I know that wasn't the last time you had to innovate through automation and we'll talk about we have a break coming up, but we'll talk about that after the break. So you've had some challenges. That was a big challenge. So competition from local people. My understanding is, steve, that you're probably the primary book binder in the Midwest today and we talked about the numbers. Is that a fair statement, that you're primary or one of the primaries?

Steve Penkala: 13:10

One of the primaries.

Marc Bernstein: 13:10

yes, and how many books a year do you think you bind?

Marc Bernstein: 13:17

Combination of the different processes, probably about four million Pretty amazing for small business in middle America. With that, let's take a quick break. Commercial break will be 60 seconds and we'll be back very shortly with Founders Forum. Hello, we are back on Founders Forum and we're talking to Steve Penkala of Binding Edge Inc. Out of Wisconsin. Steve, we were talking about some challenges you had and what you had to do to overcome those challenges. I know another one that you've had over the years is employees finding the right people and keeping them. Do you want to talk about that a minute? And then? I know Ang likes to talk a lot about company culture and she'll go a little deeper on that question with you.

Steve Penkala: 14:43

Yeah, I mean it really began finding good talent during the pandemic. We had some people that let me just step back real quick. We were deemed essential. A lot of the books that we do are going to the government, their federal regulations, there are things of that nature. So we were deemed essential and that didn't sit well with a portion of my team and we gave the choice. We said if you want to take time off and not come in, we get it. Some of those people just never came back and our tenure at one time was 20 years and now it's probably down to about 10 or 12.

Steve Penkala: 15:28

And following or coming out of the pandemic, the biggest thing that we faced here in our region in Northeast Wisconsin was any place I would drive down the interstate there will be starting wages between between 22 and $30 an hour and signing bonus of $5,000. Well, in our industry I always kind of thought to myself I won't be around to see the minimum wage be at $15. Well, we quickly had to get to $15 and at that we couldn't find people. So you know we are somewhere around the upper teens to lower 20s to get people through the door and that was the biggest challenge because I would have some, some of those people that the tenure they had would come to my door and say hey, steve, I can make X amount and X amount was $10 more than I was paying them here.

Steve Penkala: 16:19

In my mind I wanted to pay them that, but the moment I would do that then there will be a line outside my door because they all talk. We know that they would all want to raise, so that that's been a real challenge. I'm really pleased to report in the past year year and a half that has changed. There's a lot more talent available. There's more people that are looking for work in our area I'm not sure about your area, but it's encouraging and we've seen that swing in the past 12 to, I would say, 14 months.

Marc Bernstein: 16:55

I know Anne is going to want to get more into the employee issue, but you also. I know part of your solution to that in the pandemic was again use of automation to help handle that problem. Do you want to talk about that for a second?

Steve Penkala: 17:09

Yeah, great point, Marc. That was during that time we had I guess we're really blessed with cash flow and it wasn't due to PPP or anything else. So we invested close to three quarters of a million dollars in equipment that, for example, we replaced a piece of equipment that took two and a half three hours to set up to. It took 15 minutes to set it up and, honestly, I could set it up and where it would normally take on the old piece of equipment to our three people to run, one person can run it. So we added equipment that the setup was quicker and it required less manpower on it, and that's really served us well.

Marc Bernstein: 17:52

That's great. So Anne, go ahead yeah yeah.

Ang Onorato: 17:55

So, steve, that's so interesting. I mean I think I love the way that you're. You know you're looking at solutions to sort of a human problem in some ways, right. So during that time and you know I come from the place, as Marc said, of the human capital and labor and organizational design and company culture and all of that. So you know you've got the challenge of initially finding the availability of talent, being able to pay them. But I'm also curious about on the retention side, right, so you're saying you had long 10 years and maybe that shrunk a little bit.

Ang Onorato: 18:25

But both in an industry where on the outside looking at and you shared a little bit about this before the show about you know some people might perceive it as kind of a dying industry in the book binding industry, but it sounds like you've done a number of things, both in terms of how you approach that piece of it, right, the existing coinciding with digital technology. But also I love the stories that you're telling us about how you keep the culture and how you embody, it seems, servant leadership. You know you want to share a story with us about you know what do you do to kind of make your staff feel welcomed and appreciated, because I don't think a lot of owners are understanding that there's a big push to return to office and it's just making a bigger divide between employees and management. So tell us a little bit about that from your perspective.

Steve Penkala: 19:08

Yeah, and just a great question.

Steve Penkala: 19:10

And the thing that that we all know is the perception is going to be different with anybody on whether it's my production floor on a different production floor. But you're right For a long time, honestly, it's going to sound terrible to you, but for the longest time and this was this was 25 years ago I looked at my team out there as an asset. Well, they're not an asset, they're not a machine, and what I learned over the years is this might sound simple to you, but I get here between five and five during the morning with a cup of Starbucks and I walk from workstation to workstation and someone might want to chat and someone might not, and it's in one day it's an issue with their child or they had a car accident, whatever. So so I intentionally take the time to walk around and I encourage my two other supervisors. We're just not going to blow through this place and push numbers and expect people just to make money for us. We want to get to know them, we want to spend time with them and and they bought into that, so that I mean that that's one thing.

Steve Penkala: 20:17

Another thing that this morning we did I did was with my leadership team. I was up rather early and I was hoping you'd get to.

Marc Bernstein: 20:26

this is a great story, but go ahead.

Steve Penkala: 20:28

I was up rather early We'll just say 3am and I set up a I guess I'll call it like a kitchen back in our shipping and receiving area and we made bacon and eggs and toast and hash browns and served juice and we did that. And you know what guys? It's not. We're not trying to bribe people to perform for us. We just feel that it's our job to serve them, because what they do for us every day is amazing. What they do for us is when we expect overtime most of them, don't right?

Steve Penkala: 21:06

They and they work, they put the hours in. So once a month we put in our calendar just a different activity. Whether it was this morning was breakfast, we do. Well, the big one throughout the years we'll do steaks and baked potatoes and we'll serve them on white linen. So we just do different things like that and, like I said, some people kind of look at it as like you know what's behind this and what's really behind it is. We truly, genuinely appreciate what they do for us.

Ang Onorato: 21:34

That's. You know the term for that in today's world, steve. I think it's conscious leadership and it's really near and dear to my heart. You know you're shifting that mindset from looking at them as an asset to embodying servant leadership. So I think that's an amazing lesson and I can't wait for all of our listeners that own and you know, found companies to kind of learn from that, cause it's important more than ever, I think.

Steve Penkala: 21:56

Yes, I agree.

Marc Bernstein: 21:59

Steve, looking ahead, cause I know it's a business.

Marc Bernstein: 22:03

You know it's a I don't want to say non-tech business, cause you do use some advanced technology and innovation in your business, but it's a, you know it's a business of tangibles, which is one of the reasons I was really anxious to have you here, because a lot we talked to a lot of business. A lot of business people you talk to today are doing consulting or they're dealing with thinking, or they're dealing with technology or they're dealing with less tangible things. And we still have the need and it's one of the reasons why I mentioned to you we have this manufacturers forward focus forum to talk about what's going on in manufacturing as it comes back to America, cause things still need to be made, which is why I'm thrilled to have you here today. Given that, where do you see, if this were October of 2026, it's three years from now and you're looking back on the last three years what would have to happen for you to feel that that was a successful three year period in your life and in your business?

Steve Penkala: 23:12

Well, when I think about the three year vision and I guess even beyond, I'm just gonna maybe digress a little bit I always hope that one of my sons would have a desire to be involved in the business. Our eldest son lives in Boston and he has a job that he wouldn't have any interest in. Our younger son lives in Manhattan and he actually produces commercials. So he was recently home and during the course of his visit and over dinner and a couple of glasses of wine, I said hey, what about the business? I just off the cuff. What about the business? So why never thought you would want me to?

Announcer: 23:48

run the business.

Steve Penkala: 23:52

So there's a possibility for that. But the biggest Marc, the biggest thing right now I'm presently working on a transition plan. So in three years, what would that look like For me? I have a 10% owner in the business right now. We have a couple of other people that would like to invest as well, and in three years, you know what I would like to myself. I'd like to be rid. I would like to be done with the HR stuff, some of the safety stuff, some of the AR, the AP, some of the administrative stuff, and just go out and solve the customer's problems. That's what I'm best at and I would be perfectly fine, Marc, if at that point I completely sold 100% or if I just was a minority owner. That's kind of my three year vision, my three year plan. And Ang and Marc, you're the first to know this I mean that much detail because I haven't really talked to too many people about that.

Steve Penkala: 24:52

We all hear it's tough at the top and I sit in my office and I can't really share that with a lot of people because I would hate to have a mass exodus because Steve's gonna leave or he's gonna be out of here in three years and I've got a good team and I wouldn't want that to happen.

Marc Bernstein: 25:07

I do need to remind you I'm not sure that answered your question. You are sharing it with a lot of people.

Steve Penkala: 25:12

I don't well, my team hopefully not.

Ang Onorato: 25:15

Yeah, you'll have time to prepare them.

Marc Bernstein: 25:18

Anyway, but listen, it's a natural thing to think about. I don't think you have to worry.

Ang Onorato: 25:22

It's a prudent thing to think about, and you just said.

Marc Bernstein: 25:24

What I heard you say is you wanna stay engaged with the business, doing what you do best, or what I like to call your unique ability, which is serving the customer's needs. That's a great not that you used a word you didn't wanna use, but it's an asset to the business that you wanna be there. So I don't see that as a threat. That would actually encourage employees. I think that they're gonna have a job for the foreseeable future, you know, and that there might be, if not a dynasty, a legacy left as a result. And yeah, we do just have about another minute. What do you like to do in your spare time? Because you kind of alluded to it earlier, but what do you do for fun?

Steve Penkala: 26:04

Oh goodness, you two. I absolutely love to cook. I just I can have the worst day. I can get home and I can just not even a recipe. I can just start making stuff up, and that's my creativity.

Marc Bernstein: 26:17

We have something in common, cause I love to eat. Yeah, we love to cook.

Ang Onorato: 26:21

I have a feeling, steve, you might have a new recruiting tactic. I think you might have a line of applications for people if they know they're gonna get a home cooked meal by the founder of the company. So I think you're doing all right, but yeah, and. I think you mentioned earlier, Italian is your favorite.

Steve Penkala: 26:39

It is homemade pasta, Homemade pasta.

Ang Onorato: 26:42

Wow homemade pasta.

Marc Bernstein: 26:43

Very nice. Hey, we're almost out of time, but listen, you've said a lot here today. You've talked a lot about your business. You've talked about several times you had to pivot in the business, including the pandemic, like many of us, and you talked about a great future and you talked about a way to incorporate your passion into the business while serving your ultimate customer not your ultimate customers, but your customers, who are your employees which is really an amazing thing.

Marc Bernstein: 27:11

So we really appreciate you having you here today, steve, and wish you continued success, and we thank all of you for being here today on Founders Forum and we hope that you'll listen next week for more stories of our founders and as they look to their futures. Thanks and have a great week. Have a good one, ang. Thanks all.