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SBDC Success Stories and Testimonials

SBDC Tampa Bay and Heavy Auto Parts

Exporting the Expected to Unexpected Markets

 

 

 

 

 

 

A young entrepreneur ventures into non-traditional territories and successfully builds an exporting business

Six years ago, Julian Montenegro came to the Small Business Development Center at the University of South Florida (SBDC at USF) with a clear business idea: buy heavy equipment in the United States to export to his native country of Colombia. He started as an industrial engineering graduate working on a master’s in engineering management at USF. But, instead of seeking a traditional career path, Montenegro followed his family’s entrepreneurial roots. As he transformed Heavy Auto Parts, Inc. from an idea into reality its exports didn’t only reach Colombia, but also unexpected markets, like Nigeria, Ghana and Russia. He continues his dream as Heavy Auto Parts’ growth has kept pace at an approximate 30 percent increase, each year, for the past three years.

HeavyAutoPartsLogo“While exporting heavy equipment and parts is a common U.S. export, Julian is very far from the traditional markets in which most American companies feel comfortable competing. Most businesses initially choose markets that are perceived as low risk and in close proximity to the United States,” said Maria Yepes, SBDC international trade consultant.  To put things in perspective she added, “In 2011, U.S. vehicles and parts exports totaled $120 billion, but more than 54 percent of these went to Canada and Mexico and less than two percent of Florida-origin exports went to African countries, while 50 percent went to Latin America and the Caribbean.”

Before reaching success, Montenegro’s journey started with family support and a visit to the SBDC. After receiving nearly 55 hours of SBDC assistance in the areas of starting-up, accounting and taxes, marketing and international trade he was on his way to business ownership as an exporter. But, the path wasn’t easy.  He was only able to export five trucks in the first three years.

“I’ve always believed that opportunities are everywhere, and the more difficult those opportunities are, the more money there is to make,” Montenegro said.

This open-minded attitude allowed him to persevere while he slowly began building the right connections and began braving non-traditional markets like Ghana, Nigeria and Russia.  Now Montenegro’s exports to his native Colombia account for only 5 percent of his sales.  He continued his exporting journey by obtaining industry accreditation as a Certified Global Business Professional after taking the SBDC’s advanced importing and exporting course, the International Trade Certificate Program.

When asked what the SBDC means to him, Montenegro says this:

“Having the SBDC at our side is like having a reliable consultant for free or at very low cost. The SBDC’s experts have been a fundamental resource for Heavy Auto Parts, Inc. They have guided us step-by-step from the beginning and still guide us today while we grow.”

SBDC was instrumental in starting my business Strictly Entertainment, Inc 27 years ago. I still am grateful for all the advice I have received along the way which allows me to continue to thrive. Thumbs UP for SBDC
Pat Fenda





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Latest Small Business Development Center Information


Maintaining Customer Service Under New Ownership

The maintenance light in my car came on about two weeks ago.  As usual, it took me a while to find time to get to my mechanic to get my oil changed, so I ignored it for a bit.  But I happened to be driving down Hillsborough Avenue in Tampa last Wednesday, and was very close to his shop, so I decided to drop in and see if he could squeeze me into his schedule.

I’ve been taking my cars to the same mechanic since 1985.  At first, Jim worked for a small shop that had been highly recommended.  So after a few years, when the two owners decided to close their shop, Jim chose to start his small business.  Jim was the only one that worked on my car, so it was a no-brainer for me.  About 15 years ago, he brought his two sons into the business.  Jerry worked as a full-time mechanic, and Charlie, also a mechanic, ran the office.  In the last three years, Charlie’s son PJ also started working on cars.  Jim has since retired, leaving Charlie and Jerry in charge of the shop.  These guys are not the least expensive mechanics in town, but they are the most trustworthy.  About 8 years ago, the trunk latch on my car broke.  I happened to be driving by the dealer and took it in for an estimate.  They told me it was going to be $600 to fix the latch.  I figured if I was going to spend $600, I’d take it to my mechanic and let him make the money.  Jerry took a pair of pliers and climbed into the car’s trunk and in 10 minutes fixed the latch.  He told me that if I treated it gingerly, it might last a while.  I asked him how much I owed him and he laughed and said it only took him 10 minutes to fix.  I argued that he saved me $600, so I should pay him something.  He refused to charge me, knowing, I guess, that my loyalty to them would pay off.  By the way, I sold that car a couple of months ago and the latch never did break again.

So imagine my surprise when I roll into the shop to get my oil changed and Jerry tells me that they sold the shop two months ago to a new owner!  Both Jerry and PJ are still working there.  Jerry introduced me to Bill, the new owner.  While Jerry is telling me the story, all I can think of is “do I want to leave my car here today?”  I have to admit, I was dismayed at the prospect.  After almost 30 years, I was faced with a decision about one of the important relationships in my life: my mechanic!

As an SBDC business consultant, I think a huge opportunity was missed here, by both the outgoing owners and the incoming owner.  The original owners must have had dozens of similar long-term relationships with other customers.  Why didn’t they send out an email or a letter to their clients letting them know of the changes that were happening?  Instead, they waited until we brought our cars into the shop to tell us.  Had I called to make an appointment over the phone, which is my usual protocol, I would have heard the news from the new owner instead of my trusted mechanic.  If down the line, they decide to open another shop, then their old customers may hesitate to return to them.  Additionally, they didn’t tell me they were thinking of selling.  Our consultants at the SBDC could have done a free valuation of the business and given them the necessary information to determine the right price for their business.

The new owner, Bill, is also missing an opportunity.  When he bought the shop, not only did he buy the land and the infrastructure, but most importantly, he bought a book of business….all of Charlie and Jerry’s customers!  He should have communicated with all of their customers immediately, introduced himself, and outlined his expertise and his commitment. Charlie and Jerry’s customers need reassurance that Bill is also trustworthy and will deliver similar services at similar prices.  If they don’t receive those assurances, what’s to stop them from finding another mechanic or going to the dealership?

Unfortunately, this is not an anomaly.  My dentist did the same thing three years ago as did my mom’s primary physician most recently.  Customer service extends beyond the life cycle of the current business owner.  As the seller, once your non-compete has expired, you may not have the loyal following you thought you had.  If you are planning on buying an existing business, communication with the existing customer base is part of the purchase.  If you fail to address this, you may find that your financial investment is not worth as much as it was the day you closed on the deal.  I’m going to wait 3,000 miles and see if I need to find another mechanic or not.  I hope he calls.


The Big Start-Up Business Mistake!

You’ve probably heard the alarming statistics saying that start-ups have failure rates of 80 percent and higher. While this statistic may be inflated, the truth is that many start-up companies do indeed fail. After working with hundreds of start-ups as a business consultant, I have identified the number one mistake causing most start-ups to founder is in the way they order the execution of the start-up process. Allow me to explain. When planning a start-up, burgeoning entrepreneurs usually think about the three main functional areas of a business in the following order: operations, finance and marketing. While all three are certainly important, they need to be executed in the correct order. Let’s explore this further.

Download Article Here!

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Transition from Fortune 500 to Florida Mid-Size

Transitioning from a multinational Fortune 500 company, to a Florida mid-size business is filled with challenges. When Steve Collins purchased Coast Brothers from the original owners in 2010, he took over the 13,000 square foot warehouse and its 10 employees and 8 account managers in Pinellas County. Keeping with the business’ all in the family tradition Stephen’s son, Patrick, joined the company. Now, Coast Brothers, which was established in 1988, is a multi-million dollar leading wholesale distributor providing over 1,000 items for the hospitality, healthcare, government, and commercial cleaning industry.

Both father and son experienced new owner transition pains in their first year of operations. The combination of Steve’s seasoned business savvy, Patrick’s enthusiasm and the Small Business Development Center Growth Acceleration consultants, Pearl Para and Dino Eliadis created a team destining the business for success. After completing a thorough health check, the team focused attention on the sales and marketing processes.

Working with Eliadis, 1,000 products sales volumes and gross margins were evaluated. This analysis helped to create a strategy focusing on Coast’s premium products and a plan to create customer promotions directed towards maximizing profits and providing a foundation for growth.

“Their knowledgeable and common sense approach makes it easy to focus on what’s important. This is one program in the state which is paying dividends. As I grow, I will be hiring more people.” said Stephen.

As a result of the SBDC’s Growth Acceleration assessments and strategy implementation, Coast Brothers is projecting 50 percent growth in revenues by 2015 with the expectation that the growth will help fill in their seasonal lows.

“Success isn’t complicated, it comes with simplicity,” said Dino. He explained that after finding where Coast Brothers had success, a marketing program focused on regularly promoting those products. He added that it shouldn’t take long to begin moving revenue northward. From there it’s adding more resources to scale the success formula. “I am confident if Coast Brothers follows the plan, growth isn’t that far away,” said Dino.

With world class tourist locations and top notch healthcare facilities in the St Petersburg/Tampa area, Coast Brothers, poised with knowledgeable account managers to assist clients with all of their janitorial supply needs, is destined to grow.

Industry Highlights
government_contracting_series_SBDC

Government Contracting Series – Starts June 4th

You’ve heard of B2B* and B2C*, but have you thought about tapping into new profits through B2G*? Winning a government contract could expand your market potential. Attend this six-part series to learn the ins and outs of doing business with government agencies that are looking to buy your products and services.

* Business to Business, Business to Consumer, Business to Government

When?

June 4 through July 10, 2013
Modules run from:
5:30 p.m. to 8:30 p.m.
June 4, 11, 13, 27, and July 2, 10
Seats are limited so Register today!

Cost

Cost: $120.00 for all six modules.
All inclusive price. Individual modules not available. Dates and topics subject to change.

Modules

Tues., June 4 Government Contracting Series #1- Doing Business With USF Doing Business with USF

Tues., June 11  Government Contracting Series #2 Doing Business with the Department of Transportation

Thurs., June 13 Government Series #3   5:30 – 8:30 PM  – More information  coming soon

Wed., June 27 Government Series #4 Doing Business With HART

Tues., July, 2  Government Series #5  Doing Business with Moffitt Cancer Center

Wed., July, 10  Government Series #6  Doing Business with MacDill Airforce Base


Small Business Development Center at The University of South Florida

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Funded in part by the U.S. Small Business Administration, the USF Small Business Development Center offers one-stop assistance to individuals and small businesses by providing a wide variety of information and guidance in central and easily accessible locations.