2012 Penny, Savvy Rest, Charlottesville
Savvy Rest. Inc. became a client of the Central Virginia SBDC in November 2010, when the founder and owner, Michael Penny, was referred by a local economic development official. The company initially sought assistance to refine the strategic direction of the company and marketing tactics to continue to expand its sales growth.
The company, which manufactures natural latex mattresses and organic bedding products and accessories, had distribution through independent retailers, one company-owned store in Ivy, VA, and an online sales presence. The company was also seeking financing sources and has since sought guidance from the SBDC on a facility acquisition, company credit policy and procedures and human resource/organization planning.
The Center formed a team of counselors covering financial and marketing expertise to assist the company in analyzing their profitability and capabilities by expanding its dealer network and retail operation. Over the past two years, the Center provided over 35 hours of counseling to this second-stage business. The Center recommended more focus on marketing through the dealer network with improved tactics to help the dealers grow sales. The Center referred financing sources which resulted in a line of credit. It has also provided counseling assistance in considering a facility acquisition and credit policies and collection practices as well as on organization and staffing training and development.
As a result:
- Sales have increased over 30% and the client is now exporting to Canada.
- Employees increased by over 35%.
- A permanent trade showroom was added at the World Furniture Market.
- A second retail location was added in Vienna, Virginia.
- A four-acre commercial parcel in Nelson County was acquired for future planned relocation.
- The company created an employee stock ownership plan (ESOP).
- Company was listed for third consecutive year in Inc. magazine’s fastest growing 500 small companies.
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