In 2010 Ms. Long approached several banks in Hampton Roads in an attempt to obtain financing she would need to grow her business. In 2009, the company had over $3 million in sales but there was a market that had, to this date remained untapped and she wanted to move her business into the potentially lucrative field.
Recognizing that her 8(a) designation gave her an opportunity both for significant growth as well as new business, she set about to get funding from the banks to enable her to expand. Unfortunately every bank she approached declined to lend her the money because they thought her company’s balance sheet was weak and the fact that the company had experienced losses in two of the three preceding years.
The SBDC began working with Ms. Long in October 2010 and identified a number of operational and organizational deficiencies the business possessed. These made it difficult, if not impossible for her to properly manage her business and have the company reach its true potential. Working closely with the owner, her employees and the company’s accountant, a system of checks and balances were established which enabled Ms. Long to more accurately determine the business’s status and assist her in making decisions to move the company forward.
In 2011, Gov Solutions obtained $300,000 in financing which enabled Ms. Long to better manage cash flow and growth. Her company’s 2011 year-end profit and loss statement showed revenues in excess of $8.5 million and a net income of over $200,000. During the last two years Ms. Long has been able to add additional employees each year to handle the growth the company is experiencing as well as operate more efficiently.