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Interview with Gina Cocking of Cobalt Finance
THE ADMINISTAFF ADVOCATE (April 4, 2007): Gina Cocking is the Chief Financial Officer of Cobalt Finance and responsible for successfully raising capital for her company, including a $25 million line of credit with Bank of America in 2005.
Cobalt Finance is a leading provider of financial services for fleets and owner-operators purchasing pre-owned Class 8 tractors and trailers. The Company owns The Cobalt Agency, which offers trucking insurance to owner-operators and small fleets. Cobalt Finance was founded in 2000 and now has more than 25 employees in Deerfield, IL and Phoenix, AZ.
Prior to joining Cobalt in 2004, Cocking spent her career in investment banking and has worked for Kidder, Peabody & Co., J.P. Morgan, the private equity firm Madison Dearborn Partners, and, most recently, as a VP at the boutique investment bank Colonnade Advisors. Cocking received AB and MBA degrees with honors from the University of Chicago.
1. What is the best thing about leading a company?
We have found it to be an incredible experience to watch our vision become
our reality. As we hit new milestones and achieve our goals, we get
energized to take the Company to the next level. We get to celebrate
our successes company wide, and our team shares in our enthusiasm.
2. What have been some of the challenges for your small business?
As a growing company, we are continually increasing our number of employees.
We spend significant time finding the right people for our company.
We look for people who are passionate and take pride in their work.
The tight labor market has challenged us to be creative, while still
maintaining discipline in the hiring process.
3. What role do you see small businesses playing in your industry?
Small businesses are vital to the health of the trucking industry and,
therefore, the U.S. economy, as 70 percent of all goods are moved by
truck at some point during their lifecycle. Approximately 25 percent
of all truck drivers are owner-operators running their own business,
and another four percent work at small fleets with between three and
10 trucks. Small finance companies fill a void in the market by giving
small trucking companies and owner-operators more options for sources
of capital.
4. What piece of advice would you give to a small business?
Have a plan, and live your plan. Too often, companies deviate from their
business plan, because they believe that they have hit upon a better
strategy. Constantly changing strategy can lead to market and employee
confusion. To be successful, a company’s business plan must be
flexible, and the team must be focused on executing that plan. We have
found success by focusing on what we know best – providing financial
products to the trucking industry. Everything we have done since the
first days of Cobalt has been aimed at executing that plan.
5. What do you think the future holds for small business?
This year could be challenging, due to the macro economic environment
and issues such as the turmoil in the sub-prime market possibly tightening
overall credit criteria, therefore reducing access to capital; increasing
payroll expenses due to an expected six percent rise in compensation
per person during the year; and moderate economic growth.
On the upside, there are a number of factors that could prove to be beneficial overall for small businesses. The labor market may continue to loosen, as seen in January and February, making hiring new employees easier for growing companies. Consumer confidence is at the highest level of the past five years and is expected to continue over the next few months; plus, elevated consumer confidence typically indicates higher consumer spending. Finally, interest rates are unlikely to increase before the second half of the year.