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SBDC Success Stories and Testimonials

The Hutchinson Studio, LLC – a Hardee County Success Story

The Hutchinson Studio LLC (THS) is a design firm that produces computer generated architectural renderings and animations as well as graphic design. THS was established in the fall of 2008 by Michael and Megan Hutchinson. Michael has over 10 years of professional experience in various graphic design industries and 5 years experience in IT network implementation and management. He has a degree in Drafting and Design Technology and has worked in several graphic design industries including video editing, computer animation, architectural visualization and web design. Megan is an accomplished singer-performer and has a background in office management and marketing. She uses the experience she gained on-stage to make presentations to potential clients, clubs and other organizations. Megan?s duties at THS include sales, service, and bookkeeping.

THS came into existence through a series of both disappointing and inspiring events. Michael and Megan moved to Hardee County from St. Petersburg to escape urban life and to try their hand at farming. Their efforts to enter the agricultural market with a wholesale landscape nursery were met with disheartening results as the new construction market plummeted and the endeavor took a complete loss. In the midst of their disappointment, an unexpected opportunity opened for Michael to take on a rendering and animation project. The project once again ignited the Hutchinson?s entrepreneurial passion as they geared-up to launch THS.

With the failure of their plant farm fresh in their minds, the Hutchinsons decided to seek assistance to increase the chances of success in their new venture. They were referred to the SBDC by the Hardee County Economic Development Office. The Hutchinsons met with counselors Bill McKown and Dave Noel. They entered their first counseling session with many ideas and a list of products and services to offer. Accompanying the list was a ?plan? that included an even longer list of equipment needed and retail space they wanted to occupy. Over the next few months McKown and Noel guided them through the process of developing a more comprehensive business plan. The Hutchinsons participated in a 12 week business planning course (Rural Entrepreneurship through Action Learning) that both complemented and gave practical application to the topics discussed in the private counseling sessions. During the REAL course there were many team projects and role play scenarios that allowed the Hutchinsons to explore their ideas and gain perspective from others attending the program.

This is how Michael describes their SBDC experience:

“Mr. McKown and Mr. Noel were very thorough in their analysis of our ideas and developing our plan. They directed us to research and analyze every aspect of our business from different angles. The detailed level of planning that we were guided through helped us discover our strengths and weakness. By the end of the REAL class and the many counseling sessions, we had a complete business plan with accurate financial projections and a refined goal for the direction of our business. We presented our business plan to the class and got a great response from our classmates. After the success of our class presentation we had the opportunity to present our business plan as an example for the REAL class to the board of directors of Heartland Workforce. This in turn opened doors in our local community to network with the Hardee Chamber of Commerce, the Wauchula Kiwanis Club, Wauchula Main Street Association and others.

As we look back on our first year of business, we can see how beneficial our relation with the SBDC has been.Thanks to the direction of Mr. McKown, Mr. Noel and other counselors from the Tampa office, we completed a successful first year. Despite the difficult economic conditions, our customer base has grown and we have continued to increase our operational equipment and marketing resources without any outside financial assistance. We look forward to continual mentorship from the SBDC as our business grows and overcomes different challenges.

When mentioning the SBDC to friends, family and business associates, Megan and I greatly encourage them to access the wealth of knowledge and resources available through the counseling and training programs. Many people often chase the illusion of Government grants of ?free money? and dive into a good idea without adequate planning. The SBDC is the practical application of government assistance for new businesses.”

For us, the largest obstacle has been sales. I now feel that nothing is as important as sales. Luckily, I found SBDC earlier on and they have helped me with marketing, especially internet marketing.
— Greg John, Pool Works, Florida

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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.

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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.

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