Category: Northern Virginia

Fredericksburg Food Co-op

Food for all: Community food co-op finds funding

Obtained $4.3 in million in loans — $1.4 million from an SBA 7(a) loan and the remainder from the community.

https://fredericksburgfood.coop/

When you ask Rich LaRochelle, a founding member of the Fredericksburg Food Co-op, to explain what lies at the heart of the 10,000-square-foot food market located in the center of Fredericksburg, his answer is simple: the community.

“We are not a chain,” Rich explains. “We are owned by people. A co-op is a business with a social purpose,” he continues. “Because we are a consumer-owned co-op, our members have a say in everything we do, including what we sell.”

When the Fredericksburg Food Co-op opened its doors, it had been a vision a long time in the making. One of the key players in that vision was Rich, an adjunct professor of Cooperative Business at the University of Mary Washington (UMW). He knew right away that making the food co-op a reality would be a collaborative effort.

Rich and other key stakeholders sought the insight and guidance of the UMW SBDC team to judge market readiness for a local food co-op and grocery store. Rich partnered with consultant Susan Ball to craft and perfect a business plan for the budding idea. “Susan was always very responsive,” Rich says. “She provided a template for us to use as well as training on our business plan and market data, particularly on the grocery industry in our area.”

This business plan was key to helping the co-op secure a $1.4 million SBA 7(a) loan, putting their dreams of a community-based food exchange well within reach.

The rest of the $4.3 million were raised by two incredible loan campaigns within the community itself.  “I think the amount raised from the community shows the commitment to the co-op, and we are grateful for that,” Rich says.

Since opening its doors, the Fredericksburg Food Co-op has enjoyed strong support from members and non-members, and seeks to purchase as much of its inventory from local producers as possible. The co-op also boasts an atmosphere that creates “a gathering place for people and ideas to come together,” as Rich describes it.

While the co-op continues to gain new members each day, Rich is grateful that they still have the resources of the UMW SBDC at their side. “We value the partnership with the SBDC for our business planning and development. Susan is definitely someone we would still use as a resource today.”

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ClaimEdge

Software company gets its start with ICAP

Received a $50,000 grant from the NSF

www.claimedge.co

As an insurance defense attorney for 35 years, James Chapman saw the need for a litigation management tool to enable faster and less expensive resolutions of lawsuits. In 2018, he launched a company to provide that tool. One of his first moves was to contact the Hampton Roads SBDC. Three years later, James is glad he did.

“In 2018, I was interested in what tools were out there to help us grow a business,” he explains. “Through the SBDC, we had an opportunity to get involved in a cohort through the Innovation Commercialization Assistance Program (ICAP).” Backed by the Virginia SBDC Network, ICAP helps Virginia’s entrepreneurs maximize the potential of their technology startups. “I applied for ICAP through the Hampton Roads SBDC,” James adds. “I worked with Bob Smith and, later, Josh Green.”

The ICAP cohort met weekly. “ICAP focused on the concept of customer discovery — figuring out who customers were and deciding what ideas would appeal to them,” James explains. “During each weekly class, we reported on our customer discovery and how we could use that information.” After the first month, ICAP classes moved online. “ICAP continued to provide support for each business following the cohort,” James adds.

When they received a $50,000 grant from the National Science Foundation (NSF), the company continued their customer discovery journey with I-Corps. Created in 2011 by NSF, I-Corps helps entrepreneurs with promising ideas and technologies move from the laboratory into the marketplace. “It was through ICAP that we learned about I-Corps,” James says.

In 2020, the company was one of five selected for an accelerator program. “During the accelerator program, and in spite of the COVID environment, we were able to build out our software,” James reports.

Now in 2021, three years after making a connection with the SBDC, their software product, ClaimEdge, is in pilot testing with a major insurance company. “The SBDC’s ICAP program was a great way to get our business started,” James says.

James continues to keep in touch with ICAP, sitting in on monthly meetings four or five times a year. “I absolutely recommend the SBDC,” James concludes. “With the SBDC, you have a whole team that’s ready to help you out.”

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Proctor360

Proctor360 makes virtual testing real

Proctor360 have experienced very significant growth.

https://proctor360.com/

Long before the COVID pandemic forced virtual learning to become a reality for students across the nation, Ganga Bathula and Kranthi Bathula were making plans to enter the online testing market, an estimated $1,34 billion industry by 2027. Both Founder/CEO Ganga Bathula and CTO Kranthi Bathula were industry veterans with successful backgrounds in live testing centers and wanted to bring that expertise to remote testing.

Their company, Proctor360, brings novel technology to the market, which includes headset that incorporates a 360-degree camera, speaker, and microphone. The result is a complete view of the testing environment for proctoring – a game changer. “We saw early on that a transition to remote testing was underway,” Kranthi says. “We developed what the market needed to further its growth.”

Going to the Mason SBDC, as Kranthi put it, was a no-brainer. “One of Proctor360’s offices is right next to the Mason SBDC,” he adds. Ganga and Kranthi met with Mason SBDC Senior Business Counselor George Siragusa.

“We spent most of 2018 planning,” Kranthi continues. “George advised us on the decisions we had to make. He also helped us explore different avenues of funding.” George connected the Proctor360 planners with the SBDC’s Innovation Commercialization Assistance Program (ICAP). “ICAP helped us in performing a market study, talking directly to our customers,” Kranthi says. “That feedback was especially helpful.”

In February 2019, Proctor360 held a soft launch to demonstrate its patent-pending technology at the Mason Enterprise Center in Fairfax. “Our 360 total-view system is unique to us,” Kranthi says. “Students don’t have to leave their house — they can just log on to the computer and take their exams from anywhere.”

Proctor360 caters to colleges and universities, as well as training and certification companies.
The company currently has 10+ employees spread across the US. Kranthi credits the SBDC for aiding in Proctor360’s success. “Since we started working with the SBDC, our business growth has been over 600 percent,” Kranthi notes.

“The SBDC is well established,” Kranthi concludes. “They can bring in the right person to help with a specific business need. That gives company owners a great deal of confidence.”

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Bridges Home Health Care LLC

Bridges to a better world

Received a $95,000 PPP loan, a $10,000 EIDL loan, retained 32 jobs and created 28 jobs

Thaddious “TJ” Osby, Jr. had seen a lot by the time he prepared to end his 20-plus years of military service. A Marine and a registered nurse, he had seen war and had been stationed all around the world. You wouldn’t think that much could rattle him, but as he mulled over his retirement and what path to take, he felt plagued by one unfamiliar feeling: fear.

“I knew going back into a hospital wasn’t going to be an option for me. I had seen too many fighters torn up, and I didn’t want to see any more. I knew being the owner of a business was the route that I needed to go for mental, spiritual, and physical well-being,” TJ explains.

In 2014, TJ sought out the University of Mary Washington (UMW) SBDC and connected with Susan Ball. He initially broached the idea of operating an assisted living facility, but Susan helped pivot that idea into a home health care agency. “Even though I sat on the battlefield and had bullets shoot by my head, I was still afraid. I didn’t have enough confidence. I didn’t believe in myself. But Susan started plugging in numbers right away,” TJ recounts. “She started talking to me as if I already owned the business. The biggest thing I needed initially was the courage to put thought to paper — and I got that from Susan.”

TJ had observed many elderly and disabled veterans in his life who were not getting the care they deserved. He realized that a home health care company would provide a way for him to keep doing what he loved most. “It allowed me to continue to take care of people. I was drawn to something I had naturally been doing, which was taking care of elderly people. I saw and still see a lot of veterans falling through the cracks. I decided I was going to create that bridge for the elderly and the disabled,” TJ says.

TJ slowly began building Bridges Home Health Care LLC from the ground up with Susan and the UMW SBDC right by his side. He credits them for helping him navigate the many pages of paperwork required to satisfy federal and state requirements, not to mention the piles of paperwork for both the Richmond and DC Veteran’s Administrations, as well as Medicaid, Medicare, and other major insurances.

Despite COVID-19, TJ’s company closed 2020 with strong numbers: over 30 full-time employees, 20 part-time employees, and plans for a brick-and-mortar building in early 2021. TJ hopes to expand the business to offer more robust PCA, CPR, and nurse’s-aid training classes.

It’s a long way from the nervous man that debated if he could take the first step with his business back in 2014. TJ credits it all to the SBDC. “If there is anybody that could be a mascot for the SBDC, it’s me. I preach it to everybody that is even thinking about starting a business,” TJ says. “They have had my back from day zero, and they’ve still got my back today. It’s been quite a ride, and I am so grateful for every single person there.”

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Binbox

The SBDC’s guidance puts a lock on success

Received investment funding from several Mid-Atlantic angel and venture networks

When COVID-19 shut down Binbox, a business Dan Flynn and Eric Herring launched last fall, Dan didn’t despair. Instead, he turned to the Mason SBDC for guidance through the pandemic. “When you’re thrown a lemon, make lemonade,” Dan says.

Dan and Eric started planning the business in Dan’s garage. “It took a while to get some traction,” Dan describes. When a friend suggested the George Mason Entrepreneurship program, Dan decided to check it out. “They linked me with the Mason SBDC, who linked me with ICAP,” Dan adds. The Innovation Commercialization Assistance Program (ICAP), a statewide technology-commercialization initiative, is a program offered by the Virginia SBDC Network. The ICAP program changed the course of the business by focusing on “customer discovery.” As a result, Binbox developed a solution for what people could do with their personal belongings while attending sporting events, concerts, or the like. “We monetized a smart lock and put it in a locker so people could use their phones to store belongings while attending large events,” Dan explains.

After completing ICAP’s Introductory Course, Dan continued to work with his ICAP mentor. “We looked at high volume venues, like arenas,” he says. “We’re currently pushing close to 30 venues, including the Washington Nationals, Miami Heat, Orlando Magic, Denver Broncos, and Atlanta Falcons — some major teams.”

Binbox was well on the way to success when the pandemic stopped them in their tracks. “We were completely impacted,” Dan says. “With everything closed down, we had to focus on conserving cash and finding a different way forward.”

That way became clear as sports venues cautiously began to reopen. “We became part of the opening plans for these venues,” Dan explains. “The venues needed to keep everything safe and sanitary, and we could provide that service.” Messaging on the Binbox webpage reflects the new focus, which reads, “Keep belongings safe and prevent the spread of COVID-19 with secure, no-contact solutions from Binbox.” Dan adds, “Our sales tripled in the last couple of months.”

To ensure a continued future, Binbox received investment funding from several Mid-Atlantic angel and venture networks.When COVID-19 shut down Binbox, a business Dan Flynn and Eric Herring launched last fall, Dan didn’t despair. Instead, he turned to the Mason SBDC for guidance through the pandemic. “When you’re thrown a lemon, make lemonade,” Dan says. 

Dan and Eric started planning the business in Dan’s garage. “It took a while to get some traction,” Dan describes. When a friend suggested the George Mason Entrepreneurship program, Dan decided to check it out. “They linked me with the Mason SBDC, who linked me with ICAP,” Dan adds. The Innovation Commercialization Assistance Program (ICAP), a statewide technology-commercialization initiative, is a program offered by the Virginia SBDC Network. The ICAP program changed the course of the business by focusing on “customer discovery.” As a result, Binbox developed a solution for what people could do with their personal belongings while attending sporting events, concerts, or the like. “We monetized a smart lock and put it in a locker so people could use their phones to store belongings while attending large events,” Dan explains. 

After completing ICAP’s Introductory Course, Dan continued to work with his ICAP mentor. “We looked at high volume venues, like arenas,” he says. “We’re currently pushing close to 30 venues, including the Washington Nationals, Miami Heat, Orlando Magic, Denver Broncos, and Atlanta Falcons — some major teams.”

Binbox was well on the way to success when the pandemic stopped them in their tracks. “We were completely impacted,” Dan says. “With everything closed down, we had to focus on conserving cash and finding a different way forward.” 

That way became clear as sports venues cautiously began to reopen. “We became part of the opening plans for these venues,” Dan explains. “The venues needed to keep everything safe and sanitary, and we could provide that service.” Messaging on the Binbox webpage reflects the new focus, which reads, “Keep belongings safe and prevent the spread of COVID-19 with secure, no-contact solutions from Binbox.” Dan adds, “Our sales tripled in the last couple of months.”

To ensure a continued future, Binbox received investment funding from several Mid-Atlantic angel and venture networks.

 

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Adroit Theory Brewing Company

Dark Magic: making better beer in Loudoun County

$100,000 increase in export sales

From the beginning, Adroit Theory Brewery Company has never opted to do anything small, quiet, or dainty. Their inaugural beer, a 10.0 ABV Imperial Stout, set the stage for a litany of wild, novel, and downright extreme beers that have earned a cult following, not only in the United States but beyond. When asked about his favorite beer, owner Mark Osborne quickly describes an “Invisible Black IPA” that is brewed with black sesame seeds. “It’s actually delicious,” he says with a laugh. 

Adroit Theory’s goal was to start small, but with a big idea. “I remember thinking, ‘I can make something different, cutting edge,’” Mark recalls. “Our specialty is experimental beers. We’ve been polarizing our fan base since day one with these wild, crazy beers.” 

Adroit Theory is also set apart by their marketing and the designs on their bottles. “I decided right away that I wanted to heavily brand what we were doing,” he explains. “I wanted to give it a distinct look and feel. People often describe this look as ‘dark art’ or shocking, but it’s still aesthetically beautiful.”

With Adroit Theory releasing over 915 distinct beers in 6.5 years, the creative demand for new ideas is high. Mark credits Adroit Theory’s singular aesthetics for a huge part of their success. “I would say the branding aspect made it possible for us to expand as fast as we did,” Mark says.

Wanting to get into exporting, Mark remembered how neighboring brewery, Port City Brewing Company, had worked with the Virginia SBDC Network to begin selling internationally. The folks at the Virginia SBDC’s International Business Development (IBD) program conducted market research and shared recommendations for a way forward. Mark and the Adroit Theory team found themselves on a trade mission to Europe, where their unique and bold brand of beer was gaining traction. You can detect the amazement in Mark’s voice as he lists the countries that Adroit Theory ships to — Japan, Korea, the United Kingdom, Russia, and France — with more orders from European countries pouring in. Production has doubled in the last 12 months. For Mark, the analysis from the SBDC’s IBD program was critical to successfully moving international sales forward. “They provided us so much valuable advice,” he says. “Honestly, it’s changed the way we do business.”

As Mark and his team continue to push beer boundaries, both here and overseas, they know the SBDC will be by their side for a dark, wild, and most importantly, fun ride.

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Amy Peltier Interior Design & Home

Amy Peltier goes from coast to coast with the SBDC

Increased sales by $200,000 and created 6 jobs

“I’ve spent almost 20 years refining my design style and skill set, but I’m learning more every day when it comes to running a business,” says Amy Peltier of Amy Peltier Interior Design and Home. The design agency boasts East and West Coast offices, and specializes in a signature preppy style infused with California, classic, and modern vibes. She and her team work with clients on anything from selecting new furnishings to entire remodels and new construction.

As owner and founder, she brought a wealth of knowledge in residential interior design when she left Michigan for Southern California to re-open her design firm. Armed with a passion for design and a high standard of professionalism, she quickly became a well-known interior design name in the Pasadena area. Amy was even featured in HGTV Magazine, the Los Angeles Times, and was on the cover of California Homes. This success has allowed Amy and her team to expand their services to the East Coast. Amy’s company serves the Virginia, Maryland, and Washington, D.C. areas, and brings a hint of California-casual to the traditional East Coast design landscape.

Amy sought out the Mason SBDC to help expand her firm “the right way.” They helped with everything from business planning, budgeting, marketing, and most recently, obtaining a PPP loan. “The SBDC advisors have been invaluable in helping me navigate the roller-coaster climate of 2020,” Amy says. “For many years, my business had been strong but stagnant. My SBDC advisor helped me plan and execute an organized and logical growth strategy.”

The advice she received helped her remain on track during this difficult year, and as a result she has emerged more determined. “I look forward to my regular meetings with my advisor because it is a way to strategize with an experienced professional that I otherwise would not have access to,” she notes. 

 

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The Difference Baker

Making a difference with the SBDC

Started the business, gained equity investment, and created 2 jobs

Alyssa Sobecki found success by making a difference. The Difference Baker, the business she launched for individuals struggling with food allergies, is doing well in spite of the COVID-19 pandemic. With multiple food allergies herself, Alyssa found it difficult to find restaurants that catered to gluten, soy, or nut allergies. The solution, she decided, was to open one of her own. “I wanted a local place where gluten-free families could come and enjoy delicious baked goods, sandwiches, and wraps,” she says.

After locating a building approved for a commercial kitchen, Alyssa and her husband, Jason, went to the Loudoun SBDC. “We worked with them from the inception of our business,” Alyssa relates. “We met with Eric Byrd, manager of the Loudoun SBDC office.” Eric gave the couple an overview of their proposed business and advised them on rules and regulations. “Eric walked us through the entire process,” Alyssa says. “It was awesome — help from A to Z even before we signed a lease.”

The Difference Baker officially opened November 7, 2019. Five months later, it closed due to COVID-19. “We were closed to foot traffic for six months,” Alyssa notes. If customers couldn’t come to her, Alyssa reasoned, she would go to them. “I started doing deliveries,” she says. “That summer was slow, but we were able to keep afloat.” Helping with that effort was the Loudoun SBDC. “Eric reached out to see if we were okay,” Alyssa adds. “He kept us informed about all the assistance that was available.”

During the shutdown, Alyssa looked to her marketing team to maintain sales. “One thing I didn’t do was let my marketing team go,” she explains. “That helped us reach new markets. When something like a pandemic happens, you have to find new ways to market your products.”

The Sobeckis also depend on a bookkeeping team to manage the financial side of the business.

“I know what I’m good at doing and what I’m not good at doing,” Alyssa comments. “What I’m not good at, I outsource to professionals.” The Sobeckis consider the SBDC to be a valuable part of their team. “Eric Byrd has been the bridge when I need a point of contact,” Alyssa says. “All I have to do is reach out to him, and he’ll put me in touch with the right people.” It’s a business relationship the Sobeckis plan to continue. “Just last month I had a coaching call with Eric to go over the future of the company,” Alyssa relates. “He’s already in the process of making some connections toward the path of our growth.”

In addition to baked goods and sandwiches, The Difference Baker offers freezer meals to take home, such as chicken pot pies and baked ziti. The menu is growing and continues to change. “My mission goes beyond what you see in our kitchen,” Alyssa says. “The main focus is to bring peace to those who have to deal with food allergies.” 

The Sobeckis are glad they made the decision to visit the SBDC early on. “I connect with a lot of people who want to start a business,” Alyssa concludes. “The first thing I say is, ‘Go to the SBDC.’ I’m so glad we did.”

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Fend Inc.

Fending off cyberattacks

Received nearly $3 million from multiple SBIR and state grants, a contract with the Department of Defense, and investment from Virginia’s Center for Innovative Technology

Cyberattacks: a scary and unexpected threat to everyone from thriving nations to next-door neighbors. The systems that make our modern lives possible are moving online. From electricity providers and water utilities to refrigerated trucks and beyond, the comforts we enjoy are made more efficient and reliable by bringing massive industrial equipment into the Internet of Things (IoT). The downside? These vital networks are increasingly susceptible to hackers. 

Aware of this growing area of vulnerability, Colin Dunn created Fend Inc., a cybersecurity company dedicated to preventing critical infrastructure from being attacked, data stolen, or equipment held for ransom. “We keep attackers out of the critical systems that make America run,” Colin explains. “We are putting data into the hands that need it, as well as ensuring that these systems are not left open to threats or vulnerable to attack.”

Since its founding in 2017, the Arlington-based company has been integral in providing superior security to critical domestic infrastructures. Colin, with a background in mechanical engineering and business administration, recognized the opportunity to expand to the international market, but needed help. While touring the Mason Enterprise Center (originally looking for office space) he also found the State Office of the Virginia SBDC Network. 

“I got to know the SBDC by just walking the halls,” Colin says. “Someone would say, ‘Hey, I know someone who can help you with exports’ and ‘I can help get you in touch with someone to put in contact with others in the industry.’”

First, the Innovation Commercialization Assistance Program (ICAP) advisors at the Virginia SBDC State Office worked with Colin to first help him develop and validate his customers and product premise. “Customer interviews done through this program gave us insights that informed the design of our products and services,” Colin explains. 

Next, the State Office’s International Business Development (IBD) program helped Fend export their services, taking their operation global. The first step was researching the industrial cybersecurity market in Western European countries and member nations of the intelligence alliance known as The Five Eyes. The SBDC also connected Colin with other firms for potential partnerships, and compiled a list of certifications needed to compete internationally. 

“Without the SBDC’s ICAP and IBD programs, our view of opportunity would be a lot smaller,” Colin says. “They helped us realize that protecting critical infrastructure worldwide is something that is possible for Fend, and helped us develop a methodical way of serving this community beyond our borders.

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Mason & Greens

Parlaying personal views of sustainability

Received a $135,000 loan, a $10,000 line of credit, and started new business

In mid-2019, Justin and Anna Marino were searching for the “right” business to open in Old Town Alexandria, with “right” meaning a retail business that represented their personal environmental views on preservation and sustainability. 

When they found a two-story townhouse on King Street in the Historic District, they began writing a business plan for a first-floor retail shop and a second-level Airbnb property designed to be an eco-conscious alternative to a hotel suite. Alexandria SBDC’s Business Analyst Jack Parker helped them create a viable plan and found a bank interested in the project that was to become the first such brick-and-mortar, zero-waste sustainable products store in the region. They would be offering bulk-grocery products, sustainable-living products, health & beauty, and children’s products. Anna is a “runner” and has over 7,000 viewers on her Blog, in addition to being a well-versed social-media marketer for her online athletic clothing business. Their store also received local media attention prior and during their opening.

In early January, they closed on the $125,000 SBA term loan and a $10,000 line of credit with M&T Bank. Then they began the build-out process on Mason & Greens when the COVID-19 pandemic exploded, causing a veritable shut down of retail businesses. In effect, they were forced to open in the teeth of the storm without eligibility for the EIDL or PPP loan programs. 

The online store, on their well-designed website, was relatively easy to launch, but in-store shoppers and guests for the suite upstairs were another matter. They had some success in May with by-appointment shopping, but the website sales took off right away, surprising everyone including themselves that they were able to breakeven for their first month. After reopening, in-store sales continued to improve and since August, the Airbnb suite has generated enough revenue to pay the monthly rent for the building.

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