Southwest Archives - Page 6 of 7

Category: Southwest

2019Business ExpansionBusiness PlanSouthwest

Dog Daze Grooming Salon

Groomed for continued success

With 500 clients, Minda and Allie doubled their space and created 3.5 jobs in less than one year of operation.

Minda Dixon and Allie Ruff always loved dogs. They had been grooming them for many years at various salons, but they sensed that there were better ways to pamper pets. “We wanted to have more one-on-one contact with customers,” Minda says. “We wanted the dogs to have more physical freedom and walking space. We saw ourselves as a free-range pet-grooming shop.” By late 2017, they were ready to open their own shop.

Fortunately, Minda’s husband had started a company the previous year, called New River Outdoor Adventures (featured in the SBDC Client Profiles, 2017 edition), and he worked with the Blue Ridge Crossroads (BRCR) SBDC to get it going. Her parents, Manuel and Rose Gonzalez also worked with the Blueridge Crossroads SBDC to open their food truck, Taco Trolley, so she had a history with Director Mandy Archer and Assistant Ginny Plant.

“I met Mandy and Ginny when my husband started Outdoor Adventures and when my parents started their Taco Trolley. I knew that their assistance would be invaluable for getting Dog Daze set up,” Minda explains. “We needed help with the basics – a business plan, a financial plan, getting a loan, some legal assistance — that kind of thing. The SBDC was amazing all the way through.”

“They helped us with projected income, projected expenses, and getting a good rate from the banks,” Minda adds. “Even today, we meet with the SBDC to discuss how we can increase productivity; that’s one of our big plans for the next few months. As our success continues, our relationship with the SBDC strengthens.”

May 2018 marked a big step forward for Dog Daze with the expansion of their store and the addition of two employees. As their business thrives, they continue to look for ways to go “above and beyond” customer needs, including doggy daycare services and engaging Facebook photo contests.

Minda is always quick to refer to the SBDC as the catalyst for their continued success. “The SBDC has been so beyond our dreams in terms of supporting and nurturing this business,” Minda says. “It was just an idea two years ago, and now it’s the centerpiece of our lives. For anyone starting a business, they’re the first people I would talk to.”

Tracy Nayar February 19, 2019 0

Access to CapitalPrior to 2016Southwest

Homestead Creamery

Rising to the Top

The Longwood/Martinsville SBDC helped Homestead obtain a Farm Credit loan for their new sewer system. Homestead was also selected as the Longwood/Martinsville Small Business of the Year for 2012, and the Award was presented by Congressman Robert Hurt at the Southern Business Expo in October, 2012.

Homestead is a producer of ice cream, milk and dairy products supplied by 45 farms in the Roanoke Valley/Smith Mountain Lake area. Started in 2001, its territory is Virginia, West Virginia, North Carolina, and Tennessee. Customers include Kroger and Whole Foods, as well other grocery stores, convenience stores, and home delivery in the Roanoke area. Sales for 2011 exceeded $5.5 million. There are 45 total employees at the end of 2012.

Homestead became a client in 2009 when they came to the Longwood SBDC in Martinsville and asked for an evaluation of the cost of a Farm Credit loan in the amount of $91,000 versus an SBA backed loan in the same amount from a conventional bank. The loan was for an expanded sewage treatment facility at the creamery. The Farm Credit loan was less expensive, and they proceeded accordingly. The ongoing relationship has been to assist in developing a loan package for a $1.1 million plant expansion. This has been finalized with the first ever Virginia Agriculture and Forestry Industries (AFID) grant in the amount of $60,000, a $45,000 Tobacco Indemnification grant, a $30,000 Franklin County grant and the remainder will be financed through Farm Credit.

Challenges and obstacles included writing the grant proposals and the handing paperwork involved in the loan, as well as learning about EPA regulations and mandates. The Roanoke SBDC assisted by finding and evaluating funding sources, as described above.

Tracy Nayar August 7, 2018 0

Prior to 2016SouthwestYears

Highlands Log Structures

Still Standing Despite Economic Hardship

With a revised market strategy, strategic financing and cost reduction measures, Highland Log Structures has positioned itself to remain profitable and to take advantage of business opportunities as the economy changes.

Pamela and Winston Johnson were referred by Christianne Parker, the Assistant County Administrator for Economic Development, Washington County, in 2001 for assistance in applying for financing to relocate Highlands Log Structures to a permanent location in the William Cole Industrial Park near Abingdon, Virginia. They needed to acquire additional land and material handling equipment for their expanding handcrafted log home business. The Virginia Highlands SBDC provided business planning and financial projection expertise to acquire $188,000 in financing from the Mount Rogers Planning District Commission and BB&T. These funds were used to purchase four acres in the industrial park and a 28-ton mobile crane. The property purchased allowed efficient raw log storage, log processing, and log-shell assembly areas.

The business continued to grow until 2007. A log showcase building was constructed on-site and employment grew from the original nine to over twenty-five (25) skilled crafters engaged in the initial construction and on-site re-assembly of the log shells on the owner’s site. Over 250 structures were assembled on sites in Virginia, West Virginia, Tennessee, Kentucky, North Carolina, Pennsylvania, and New York.

In September 2007, plans were developed for another major expansion of property and equipment. An additional six acres of land was purchased in the industrial park. A business plan to finance the construction of additional facilities and the addition of log-home related products was developed. With the downturn of the economy in 2008, these plans were not implemented and strategic plans were developed to ensure the company’s survival.

The plan included the sale of all non-critical equipment and the reduction of the labor force to seven critical skilled employees. The owners and employees took major pay cuts and, with the assistance of TruPoint Bank, a company debt of $500,000 was refinanced, allowing the business to continue to positively cash flow.

The marketing strategy was changed to fully utilize the workforce. All new structures sold were provided on a turn-key basis, rather than just assembling the log shells. A major marketing shift to promote the fabrication and installation of expansions and repairs was successfully implemented. These major changes in the business plan have enabled Highlands Log Structures to survive the downturn.

The customer base has changed from being real estate developer centered, to individual primary homes. Over 75% of log home manufacturers did not survive the 2008 downturn in home real estate development and construction. However, through the revised market strategy, strategic financing and cost reduction measures, Highland Log Structures positioned itself to remain profitable and to take advantage of business opportunities as the economy changes. The Virginia Highlands SBDC continues to be a resource for business advice and assistance to this long-term client.

Tracy Nayar July 31, 2018 0

NetworkingPrior to 2016Southwest

Back of the Dragon Project

Project Success

The Back of the Dragon route has now been granted official tourism designation by the Virginia Legislature. Signage has been provided by the Virginia Department of Transportation. The ribbon cutting for this official designation was held October 22, 2012.

The SW-SBDC Director initially met with Mr. Larry Davidson in January, 2011. Mr. Davidson had recently retired from the US Army and moved back to the “Thompson Valley” area, on VA State Route 16, a scenic, mountainous road between Tazewell and Marion, VA, in Smyth County. This 26-mile route crosses three mountains with an estimated driving time for the curvy route of about one hour. It is home to some of the most beautiful mountain areas in southwest Virginia, and Mr. Davidson was interested in putting this route “on the map” for tourism, attracting motorcyclist and car enthusiasts to the area. Back of the Dragon is the name he gave the route and his project.

Mr. Davidson, along with his son, wanted to open a store front at the Tazewell end of the route that would also sell the various items and refreshments. Research by the client and the Southwest SBDC found that this property did not meet VA Department of Health regulations for water and sewer, so the project was nixed.

Mr. Davidson began marketing the route to his target markets online. To date, the “Back of the Dragon” project has held three all day events called “Back of the Dragon Day,” which have attracted thousands of visitors from all over the US, Canada, and England to southwest Virginia. Another is planned for June, 2013.

Mr. Davidson has been successful in obtaining partners on the Smyth County end of the route, who also advertise the area and sell the memorabilia. Both Tazewell County and Smyth County report an increase in tourism that is attributed to this project. The “Back of the Dragon” website, www.backofthedragon.com , is active and internet sales to advertisers and sponsors continue to increase.

The SW-SBDC also coordinated meetings with Mr. Davidson and the Tazewell County Office of Tourism. Together they obtained a Marketing Leverage Grant through the Virginia Tourism Corporation to market this newly created tourism designation in southwest Virginia.The Back of the Dragon route has now been granted official tourism designation by the Virginia Legislature. Signage has been provided by the Virginia Department of Transportation. The ribbon cutting for this official designation was held October 22, 2012.

Mr. Davidson, working with the SW-SBDC, and has just completed a business plan and financial projections for the start-up of a full-service restaurant and event facility that would further enhance the Back of the Dragon project and promote tourism to southwest Virginia.

Tracy Nayar July 31, 2018 0

Prior to 2016SouthwestYears

Four-Way Fuel Company

Fueling Success

In May, 2012, their bank loan was approved, and the business is scheduled to open in late June or early July, 2013. The owners expect nine jobs to be created at the start, in addition to the owners themselves.

In March, 2012, Michael Rasnake requested assistance from the Southwest SBDC with the development of a business plan to accompany a loan application for funding a new business in Dickenson County, VA.

Mr. Rasnake and his wife along with their daughter, Beth Blansett, and her husband wanted to open a gas station, convenience store, and deli that would be managed and operated by Beth Blansett. They were confident that the location would provide an excellent customer base, with economic development initiatives being planned, including a new school complex across the street and a new mining operation opening nearby.

The partners had purchased the 22-acre site and were using personal loans and funds to make renovations and purchase equipment. They were now working with New Peoples Bank to consolidate their personal loans into one business loan for $356,000 that would also provide some working capital for the starting of the proposed business. Their business plan, though, was primarily narrative information with no financials for projected revenues, expenses, COGS, or any financial information for these aspects of the business:

Gas station operation offering regular, mid-grade and premium gasoline, as well as diesel fuel, with a full-service attendant. Fully certified underground tanks and gas pumps are owned and maintained by Riggs Oil Company, Big Stone Gap, VA.
Deli operation licensed by the US Department of Agriculture serving popular food products such as breakfast items, burgers, hot dogs, sub sandwiches and pizza as well as various other items.
Convenience Store operation offering a wide variety of food items such as milk, soft drinks, bread and snacks as well as tobacco products.
Limited service garage operation providing maintenance services such as oil changes and tire repairs. New tires and other products such as window washer fluid were going to be sold.
Rental properties, including business facilities and residential apartment, which are currently rented, one to a small parts distribution company and the two apartments are currently rented through a one year contract with HUD.

Over the next few weeks, the SBDC Director worked with Ms. Blansett and Mr. Rasnake to prepare financial projections for this proposed business. In May, 2012, their bank loan was approved, and the business is scheduled to open in late June or early July, 2013. The owners expect nine jobs to be created at the start, in addition to the owners themselves.

Tracy Nayar July 31, 2018 0

Prior to 2016SouthwestYears

Hello Bagel

New York Minute: Baking Success

Growing up in New Jersey, bagels – crackly, crusted, chewy, authentic, NY-style bagels — are ubiquitous. This northern treat was one of the things Lora Gellerman missed most when she moved to the South twelve years ago. She and her family have had ties with the mountains, Virginia Tech and Blacksburg for years, so making the decision to move to the area and start Hello Bagel felt like “coming home” in more ways than one.

The Hello Bagel concept began with Lora’s enthusiasm for enriching lives through good food and conversation. The vision was to open a specialty shop bringing fresh baked New York-style water bagels and bagel sandwiches to Blacksburg. She knew she wanted it to be both an efficient venue for take-out orders and a fun meeting place for friends, neighbors, and food lovers to come together and enjoy good food in a warm, casual atmosphere.

As Lora began the research and business development process, the blizzard of complexities became apparent. There is endless information for aspiring entrepreneurs on the Internet and at the library, but she found much of it contradictory and rarely ever applicable to her specific needs. She was starting to feel very alone in her efforts to start a business. The concept was solid, but she needed to talk with someone from a business and financial standpoint. Once she learned about the Small Business Development Center at Radford University she made an appointment to see what help they might be able to offer.

From the first meeting with the SBDC counselor, she felt like she’d found an advisor who saw the potential for success in her and in the Hello Bagel concept. Her counselor helped her prioritize and break the project into manageable chunks. This renewed focus and sense of direction helped organize her energy and efforts. His management experience gave tremendous value and insight while adapting standard business practices into the Hello Bagel model. Lora’s counselor helped her set realistic goals and offered strategies to accomplish them.

Lora shares, “The advice, advocacy, and mentorship from the SBDC have been a great encouragement during hard times. The counseling and information resources have supported me through an otherwise isolated development process. We collaborated on the refinement of a business plan and timeline, and now I am approaching investors for financing. I’m proud that my vision for Hello Bagel is now a legitimate business with structure, integrity and growth potential.”

Tracy Nayar July 31, 2018 0

Prior to 2016SouthwestYears

Personal Touch Florist

Blooming Towards Success

The Personal Touch Florist opened February 7, 2012. This proved to be successful for Tammy, since it was right before Valentine’s Day. Loyal and new customers sought The Personal Touch Florist for all their floral needs. The Personal Touch Florist’s sales were 60% higher than projected.

Tammy Sawyers came to the Blue Ridge Crossroads Small Business Development Center in April of 2011 to discuss opening her own floral shop. Tammy had over six years of experience as a florist, and she was currently working from her home, providing personalized arrangements as well as the majority of the floral work for a local funeral home.

The Blue Ridge Crossroads SBDC began working with Tammy on a business plan to apply for a business start-up loan. During the process we discovered Tammy had some credit challenges and lacked collateral. With the guidance of the local SBDC and People Incorporated Financial Services, Tammy spent the next six months building her business from her home, cleaning up her credit, and securing additional collateral.

In December of 2011, Tammy came back to our office, and we assisted in finalizing a business plan and loan package to be submitted to People Incorporated Financial Services. In January of 2012, Tammy was approved for a loan to get her business started. Tammy secured a prime location in downtown Galax, purchased used equipment, and traveled to get the lowest price possible for her start-up inventory. Tammy creates and designs every arrangement in her shop, inspiring her name as The Personal Touch Florist.

The Personal Touch Florist has not hired full time employees but does hire employees part-time staff as needed during peak seasons and for delivery assistance. The Personal Touch Florist plans to hire at least one full-time person to help with all aspects of the business by 2014.

Most importantly Tammy, a single mother to six children, is teaching her family about building something from the ground up. Her children range in age from 2 to 20, and many times you will find the older children helping in the shop. Although Tammy has missed many games and events, she knows she is teaching her children about the value of hard work.

The Personal Touch Florist looks forward to continual growth and servicing the Twin County Area for all their floral needs.

Tracy Nayar July 31, 2018 0

Access to CapitalBusiness PlanPrior to 2016Southwest

The Family Bakery

The Family Bakery’s owners were recognized at the 2012 Annual Scott County Chamber of Commerce Business and Industry Appreciation Breakfast with an Entrepreneur Spirit Award in conjunction with the Governor’s “Year of the Entrepreneur” campaign.

Vickie and Allan “Cotton” Roberts opened The Family Bakery in Gate City, Virginia, on May 12, 2009…the dream of owning a bakery with a loft apartment above the shop came true that day…the road was long and winding.

The Roberts did not enter this dream all starry-eyed but, instead, did their research and due diligence before investing in The Family Bakery. They had a concept in mind and spent time visiting bakeries around the country and developing their menu.

The Roberts also attended some small business workshops hosted by Mountain Empire Community College’s Small Business Development Center where they met Tim Blankenbecler, Director of MECC’s SBDC. The mentor relationship began in January of 2009, when the discussion included potential financing options and creating a business plan for their project.

Through one-on-one counseling sessions, it was determined that the best loan program available for the Roberts’ needs at the time was Scott County Economic Development’s revolving loan fund, which was established through the USDA Rural Development Rural Business Enterprise Grant (RBEG) program.

The application process required a business plan and a loan application. Vickie said, “I didn’t want to do that business plan. In fact, I was in the waiting room when my third grandchild was born, working on that business plan with a Sharpie so I could get it turned in for funding because there was a deadline for the application.” Both Vickie and Cotton agreed the “dreaded” business plan has been The Family Bakery’s most useful tool.

“You definitely need a plan if you want to borrow money,” Roberts remarked. “These folks want to make sure you succeed, and Tim was truly a blessing.”

With the low-interest loan, the family opened the business in May, 2009. Working with the SBDC Director over the next four years, they created 8 new jobs and grew revenue well into the six figures.

To enhance the ongoing one-on-one counseling experience, the SBDC Director used financial tools such as ProfitCents and market research tools such as IBISWorld. These resources provided industry-specific useful information for the client’s day-to-day decisions.

Tracy Nayar July 31, 2018 0

Prior to 2016SouthwestStart-up

Twin County Tire and Automotive

Accelerating to Success

The total capital investment was $650,000 and 10 jobs were retained.

Travis Leath came to the Blue Ridge Crossroads Small Business Development Center in late 2012 to discuss purchasing an established business in Galax, VA. Twin County Tire and Automotive (TCTA) is located on the corner of Main Street and Webster Street in downtown Galax, and has been in operation for approximately 18 years. TCTA provides general automotive services, including general repair, major and minor maintenance, front end repair, tire sales and installation, brake repair and installation, diesel engine repair, and upgraded parts and installation. Travis has been the general manager since 2011 and will continue to assume this role as part of his ownership duties. Travis brings a combined 15 year of managerial experience including furniture factories, automotive sales, and general automotive management.

“We want our customers to know that we are business as usual and look forward to taking care of all your automotive needs,” shared owner Travis Leath “We take pride in being part of the City of Galax, Carroll, and Grayson Counties.” TCTA is a member of the local Chamber of Commerce Galax, Downtown Association, and Better Business Bureau. “We will continue to support our local community in any way that we can” added Travis.

Travis is part of the Virginia Automotive Association and has recently been selected to represent the Southwest Virginia region on their board of directors. He will also be a member of their convention committee.

Travis worked the Bank of Floyd to secure funding for the business acquisition. The total capital investment was $650,000 and 10 jobs were retained.

Tracy Nayar July 31, 2018 0

2017Access to CapitalBusiness PlanSouthwestStart-up

The Learning Barn

Learning From the Ground Up

Currently, The Learning Barn has 18 students, and during the school’s first year, two high school teams won the KidWind Regional Challenge, and received the Judge’s Award at the National KidWind Challenge. “The SBDC networked to help me find a lender and acquire $200,000 in loans to open The Learning Barn,” Grimshaw said.

Wendy Grimshaw is an educator who believes in learning from the ground up. In October 2015, she opened the doors of The Learning Barn, offering agriculturally-oriented classes that incorporate STEM (Science, Technology, Engineering, and Mathematics) in the curriculum.

“It wasn’t until I left the public-school setting to complete my residency in the integrative STEM education doctoral program at Virginia Tech that I decided to homeschool my son,” Grimshaw says. “That was the beginning of the journey that led to a STEM-based home-school program that would become the Learning Barn.”

Living in Botetourt County, Grimshaw experienced agriculture up close and personal. “Farms and that whole way of life are diminishing nationwide,” she says. “As an educator, I realized I could tap into many of those agriculturally-based skills and concepts. I definitely think there’s a need for that education in our school, whether private or public. When you buy a sweater at the mall, there are a lot of steps in-between that put it there. I want my students to know about those steps.”

The Learning Barn offers classes through the homeschool community’s educational co-op and has after-school options for public school students, as well as hobby farm workshops for students of all ages. Grimshaw has also launched the Farm and Fishing Club and took two teams of high school students to the KidWind Challenge (a national program for students to design and build wind turbines) at George Mason University. “We won first and second place in the regionals and went to New Orleans for the national competition,” she says. “We won fifth and 18th place in the country!”

Grimshaw still recalls the day she brought her idea of the learning center to Bart Smith, Director of the Roanoke SBDC. “It was such a great day,” Grimshaw recalls. “Bart said, ‘Tell me what I can do.’ He stopped by the next day, and from that day forward he was supportive in everything I’ve done. The SBDC assisted with my business plan and even networked to help me find a lender and acquire $200,000 in loans to open The Learning Barn.” Although Grimshaw had 25 years of teaching experience, she still needed advice on setting up the “business side” of her learning center.

As she continues to pursue her Ph.D. in STEM Education from Virginia Tech, Grimshaw is excited about possibilities for the future. She’s already making plans for a summer camp and more workshops for community-centered education.

“Even though my business is a new model here, the SBDC still knew how this area might respond to my learning center,” Grimshaw says. “As my business grows, I know I can always go back to them. The SBDC is my safety net, and they’re really great people.”

Tracy Nayar May 29, 2018 0

Category: Southwest

Dog Daze Grooming Salon

Groomed for continued success

Homestead Creamery

Rising to the Top

Highlands Log Structures

Still Standing Despite Economic Hardship

Back of the Dragon Project

Project Success

Four-Way Fuel Company

Fueling Success

Hello Bagel

New York Minute: Baking Success

Personal Touch Florist

Blooming Towards Success

The Family Bakery

The Family Bakery

Twin County Tire and Automotive

Accelerating to Success

The Learning Barn

Learning From the Ground Up

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