OF ENTREPRENEURS NWTSBDC 2015 ANNUAL REPORT

Transcription

1 OF ENTREPRENEURS NWTSBDC 2015 ANNUAL REPORT

2 NORTHWEST TEXAS SBDC REGION NETWORK The NWTSBDC is the most comprehensive and premier business resource in Texas South Plains, with sub centers in Abilene, Amarillo, Granbury, Lubbock, Odessa, and Wichita Falls. The centers are hosted by leading universities and funded through a partnership with the United States Small Business Administration and by the State of Texas. The NWTSBDC is part of the nationwide network of the America s SBDC. The highly experienced staff at the America s SBDC provides service and assistance to local community entrepreneurs. Consulting is offered at no cost and can provide guidance in various areas on such issues as business startup, employee relations, marketing, contracting, identifying sources of funding, patents, financial management, and goal setting SBDC TEXAS TECH UNIVERSITY AT ABILENE 2. SBDC WEST TEXAS A&M UNIVERSITY AT AMARILLO 3. SBDC TARLETON STATE UNIVERSITY AT GRANBURY 4. SBDC TEXAS TECH UNIVERSITY AT LUBBOCK 5. SBDC UNIVERSITY TEXAS PERMIAN BASIN AT MIDLAND/ODESSA 6. SBDC MIDWESTERN STATE UNIVERSITY AT WICHITA FALLS

3 To Our Clients, Partners, and Friends: In 1987 Texas Tech University established the Northwest Texas Small Business Development Center (NWTSBDC) program. For the past 28 years the NWTSBDC has supported the economic growth of 95 counties in Northwest Texas by providing business counseling and training to the area. By providing assistance in business plan development, marketing, accounting, fi nance, technology integration and other areas of business, the NWTSBDC has been extremely successful in supporting business growth and economic expansion. Over the past 28 years, the NWTS- BDC has helped open 9,168 new businesses, expand over 1,836 existing businesses and create 32,524 new jobs. In the most recent year, the NWTSBDC helped start 333 new businesses, expand 76 existing businesses, create 1,285 new jobs and create $ 27,827,324 of new capital formation. These businesses represent everything from retail, manufacturing, and service companies to biotech, nanotech, medical research, and software. We are extremely proud to have been a part of the growth of the Northwest Texas economy. Our entire staff is dedicated to providing the most professional and timely assistance to all businesses of Northwest Texas. We cordially invite business owners and prospective business owners to contact us for assistance. Sincerely, Craig Bean 2579 S. Loop 289 Lubbock, Texas Phone: (806) Toll Free: (800) A member of Northwest Texas SBDC Region NWTSBDC 2015 ANNUAL REPORT 1

4 Small Business: Breaking Out of the Big Box Abilene Bible Hardware and Builders Supply Eleven Employees In 2010, Bible Hardware in Abilene was in the process of closing. This business had been in Abilene since 1939 (76 years) and was one of the most recognized landmarks of downtown. Bobby Bright and wife Jennie along with sister-in-law, Carol, who are the owners of Builders Supply in Kermit, Texas, saw the potential and began inquiring about buying the business. They asked the Texas Tech ASBDC for assistance with a business plan and financial analysis for the purchase of Bible Hardware in Abilene. They came to the newly acquired Bible Hardware with a great deal of experience; however, there were many obstacles to overcome in rebuilding the business as well as competition with the big box stores such as Lowes and Home Depot. Bible had enjoyed a reputation of offering the hard to find items. Due to the declining status of the business, it was apparent that in order to rebuild a customer base they would need to hire employees that were knowledgeable, eager to work with the public, and dedicated. The new owners decided to include several senior citizens who wanted to remain in the work force (full or part-time). Bible s workforce consists of approximately five full time and six part time employees. With efforts focused on Bible Hardware and relying on Builders Supply to financially assist Bible, in the beginning, the strategy was successful as there was steady growth for each operation. Both businesses have been self-funded and profitable for quite some time. The philosophy of management is to keep the cost to the customer as low as possible and not to escalate those costs according to the local economy. This philosophy not only adds value for the customer but helps to maintain stability in the business. Since the purchase of Bible Hardware in Abilene, Texas the owners are currently in the process of expanding Builders Supply in Kermit that currently has six full time employees. Carol and Jennie saw another opportunity and that was positioning Bible Hardware to sell to Dyess Air Force Base in Abilene. It is a true success story when small businesses such as these are able to thrive and expand in an era where the big box stores usually squeeze out the smaller, local entrepreneurs. The Texas Tech Small Business Development Center is proud to be of assistance as the business continues to grow. Congratulations to Bobby, Jennie and Carol on their continued success. 2 NWTSBDC 2015 ANNUAL REPORT

5 COMMUNITY PROFILE Abilene Economic Area TEXAS TECH AT ABILENE 749 Gateway Street, Suite 301 Abilene, Texas Wind Energy Capacity: 4,003 Mega Watt $ Oil & Gas Production: 32,543,071 Oil (BBL) 15,939,240 Gas (MCF) Judy Wilhelm Regional Director Gayla Fullerton Senior Business Consultant Retail Sales Per Capita: $16,404 Richard O Shields Senior Business Consultant Becky Green Business Analyst Median Household Income: $53,482 Jennifer Epstein Office Manager Average Home Sale: $153, County Service Area: Callahan Coleman Eastland Fisher Haskell Jones Kent Knox Mitchell Nolan Runnels Scurry Shackleford Stephens Stonewall Taylor Throckmorton NWTSBDC 2015 ANNUAL REPORT 3

6 Living His Dream Amarillo Tyler s Barbeque Tyler Frazer Fourteen Employees Unlike many business owners who start their businesses by just jumping in and hoping to figure it out as they go, Tyler Frazer set a goal to own and operate a barbeque restaurant; he developed a five year plan to learn what he would need to be successful. He borrowed as little as possible to protect his cash flow and worked his tail off. The result is world class barbecue and a profitable, nearly debt free, growing business. Since opening for business in May of 2010, Tyler s Barbeque has become a stable fixture in the Amarillo restaurant scene. While other restaurants in the area have been closing locations or going out of business, Tyler s Barbeque has expanded its customer base in sales, as well as, reaching a broader market base. Tyler s success is a testimony to the fact that even in tough economic times people will pay for quality, and Tyler s reputation for quality has transformed his business from a local favorite to a panhandle favorite to one of the best barbecue restaurants in the world. In November of 2012, Amarillo Magazine named Tyler s the Best Barbecue Joint in addition to having the best ribs, best brisket & best flavor. In May of 2013 Tyler s Barbecue was named as one of Texas Monthly s 50 Best Barbecue Restaurants in the world. Since those recognitions, Tyler s business has seen gross revenue grow by 64% from 2012 to Looking back, Tyler recalls two years of working 18-hour days and having to pay friends in free food to work at the store while using family-donated items to decorate the restaurant. He also recalls using his personal savings combined with a small family loan to purchase the necessary equipment and lease the building. Tyler could have opted for conventional bank financing, but with his past corporate experience, he did not want the debt burden. Today Tyler works a few less hours per day. He employs fourteen people, and they take excellent care of his customers. He gives away more food to local charities than he used to sell. Next time you are in Amarillo, stop by 2014 Paramount Blvd. and you will find Tyler living his dream. You may find him visiting with customers at the counter or in the back office keeping the bills paid. You may also find him out back at the smoker - making sure everything is just right to keep some of the best barbecue in the Texas available to friends and family at the little red restaurant with the star on the sign. 4 NWTSBDC 2015 ANNUAL REPORT

7 COMMUNITY PROFILE Amarillo Economic Area WEST TEXAS A&M UNIVERESITY 701 S. Taylor, Ste 118 Amarillo, TX Wind Energy Capacity: 4,483 Mega Watt $ Oil & Gas Production: 22,911,286 Oil (BBL) 527,765,155 Gas (MCF) Gina Woodward Regional Director David Dickerson Assistant Regional Director Retail Sales Per Capita: $17,618 Ana Lozoya Business Consultant Tracy Shea Business Consultant Median Household Income: $49,553 Sabrina Meck Office Manager Average Home Sale: $172, County Service Area: Armstrong Briscoe Carson Castro Collingsworth Dallam Deaf Smith Donley Gray Hall Hansford Hartley Hemphill Hutchinson Lipscomb Moore Ochiltree Oldham Parmer Potter Randall Roberts Sherman Swisher Wheeler NWTSBDC 2015 ANNUAL REPORT 5

8 Rural Entrepreneurism Heats Up Texas Dairies Dublin Thomson Services, LLC Colin and April Thomson Twelve Employees Thomson Services is a family owned business operating out of Dublin, Texas. Best known for its Dublin Dr Pepper, Dublin is also a hub of dairy activity for North Central Texas. Although Colin and April Thomson s business is just over three years old, it is being recognized both statewide and nationally for making life and business better for the dairies in rural Texas. The Thomson s visited with the America s SBDC at Tarleton shortly after Colin decided to start his own dairy service company in Erath County. The SBDC partnered with them from the ground up on starting their new venture. The Thomson s have invented, developed, trademarked and patented an innovative system called WHRLflo chiller that is eliminating the need for propane on dairies. The WHRLflo system has caught national and international attention and was recently showcased at the World Dairy Expo in Wisconsin and the World Ag Expo in California. This environmental friendly system allows dairy farmers, in America and Internationally, to cool milk in the most efficient way possible, while delivering all of the necessary hot water for free. Dairies are having a very quick return of investment of two to four years all while having access to abundantly more hot water than ever before. The interest in this is product has been so tremendous that the Thomson s have begun a separate company, WHRL Solutions, LLC, to handle the selling and distribution of the system. The next phase of products that WHRL Solutions has developed will be used to deliver hot water to large universities, hospitals, and food manufacturing plants. Test have yielded an extremely successful amount of hot water at their first food processing plant, Marine Harvest, a salmon farm in Fort William, Scotland. Installation is currently underway at Makie s Ice Cream in Aberdeen, Scotland. Upcoming projects include installing their largest system to date in Bells Hill Scotland, at one of the largest dairy processors in Europe. Thomson Services is marketing the WHRLflo system to additional milk producing areas in the US, while maintaining their focus on Texas. The WRHLflo name is now trademarked, and they have been approved for a UK patent for the product while their international patent is pending. After several successful installations in America, the Thomson s are now installing WHRLflo systems in international markets. The American SBDC at Tarleton accompanied the Thomsons to Waco where they were named the 2014 winner of the fifth annual Texas Rural Challenge after being named one of eight finalists in the statewide contest. In 2015 they won the Entrepreneur of Erath Business Plan Competition. Thomson Services is a true example of grass roots entrepreneurism, and how a small business in a rural area can make a big impact on the world! 6 NWTSBDC 2015 ANNUAL REPORT

9 COMMUNITY PROFILE Granbury Brownwood Economic Area TARLETON STATE UNIVERSITY 105 N. Stockton Granbury, Texas (817) Wind Energy Capacity: 205 Mega Watt $ Brownwood Office: 600 East Depot, Second Floor Brownwood, Texas Oil & Gas Production: 925,167 Oil (BBL) 434,189,061 Gas (MCF) Granbury Area Randy Burch Regional Director Randy Thomas Senior Business Consultant Retail Sales Per Capita: $17,015 June Hill Office Manager Amy Wright Business Analyst- Brownwood Office Median Household Income: $57,352 Brownwood Area Retail Sales Per Capita: $12,123 Median Household Income: $57, County Service Area: Brown Comanche Erath Hamilton Hood Mills Palo Pinto Parker Somervell Wise NWTSBDC 2015 ANNUAL REPORT 7

10 High-Voltage Entrepreneurship Lubbock Elite Transmission & Distribution Electric, Inc. Arturo Samaron and Roger Rosales Twenty-six employees Elite provides highly specialized and technical work for electric utility companies, consisting of transmission, substation, and distribution services, including both maintenance work and new installation work. The company was founded by Arturo Samaron and Roger Rosales and currently employs fifteen people. business start-up information, market research, loan counseling, and helped them put a business plan together. Working together with their bank and the SBDC, they quickly obtained an SBA Loan in early 2011 and started Elite Transmission & Distribution Electric, Inc. shortly thereafter. The son of migrant workers, Mr. Samaron never imagined as a child that he would one day run his own company. Early on, Art s parents taught him, his 8 brothers and 7 sisters the value of hard work, as he helped his family by working in the fields picking cotton, planting onions or chopping weeds. Mr. Rosales is a Bronze Star decorated veteran who enlisted in the Army after High School and became a Sergeant before his 21st birthday. He served his country in both Korea and the Middle East during Operation Desert Shield/ Desert Storm. In late 2010, the owners decided to combine their more than 30 years of experience working for Southwestern Public Service Co., and start their own company. After contacting their bank, they sought the services of the America s SBDC at TTU, who provided them with Obtaining contracts as a new company in this industry turned out to be more challenging than the owners had anticipated, even with their years of experience in the field, but soon they were able to get work. Since then, the need for the Elite s Technical expertise has been tremendous. Their biggest challenge is now to find enough qualified employees to work in the field. They have expanded from the Plainview-Amarillo area to the Abilene and Midland areas in Texas, as well as Colorado, New Mexico and Oklahoma. Early this year, Roger Rosales and Arturo Samaron were recognized by the U. S. Small Business Administration as the Minority Small Business Champion of the Year for the entire Lubbock-West Texas District. Elite s accomplishments and potential did not go unnoticed in their industry either, as they were recently acquired by another company. 8 NWTSBDC 2015 ANNUAL REPORT

11 COMMUNITY PROFILE Lubbock Economic Area TEXAS TECH AT LUBBOCK TTU SBDC Lubbock 2579 S. Loop 289 Lubbock, Texas (806) Wind Energy Capacity: 723 Mega Watt $ Oil & Gas Production: 57,427,326 Oil (BBL) 5,585,468 Gas (MCF) Adrien L. Bennings, PhD Regional Director Ray Laurent Assistant Regional Director Retail Sales Per Capita: $19,778 Elaine Melot Office Manager Corbin Sosa Business Consultant Median Household Income: $45,337 Baron Eliason Business Consultant Average Home Sale: $168, County Service Area: Bailey Cochran Cottle Crosby Dickens Floyd Garza Hale Hockley King Lamb Lubbock Lynn Motley Terry Yoakum NWTSBDC 2015 ANNUAL REPORT 9

12 It s An Epic Story Odessa Epic Collision Services Rosie & Gilbert Ramirez Thirteen Employees Rosie and Gilbert Ramirez opened Epic Collision Services in Odessa, TX in July The first time they visited America s SBDC-UT Permian Basin was in Even though they were approved for a loan, they decided after much deliberation that they were not quite ready to start their own business. Gilbert knew that if he gained several more years of experience in the industry, he would be in a better position to be a business owner. Gilbert and Rosie returned to the SBDC in 2012 with a restructured plan to lease a building instead of purchasing one. The SBDC assisted them with updating their business plan and financial projections. In December 2012, they were approved for an SBA loan. Since July 2013, they have been steadily growing. They opened their doors with five employees and now, Epic Collision Services has a staff of thirteen. They also have purchased additional equipment and are looking to expand to a bigger location. Gilbert and Rosie both graduated from high school in Odessa. They had been working towards opening their own business for years. Rosie studied business administration at UTPB and had worked as an office manager for almost 20 years. Gilbert had been working in the auto industry for 19 years. His training and exposure to the industry began in 1996 when he accepted a position at a local dealership. In high school, he was part of a vocational mentor program. He started out as a lot attendant and was promoted to service assistant advisor and then to body shop manager. While employed as a collision center manager in 2010 and 2011, Gilbert played a strong role in developing the growth of the collision center, which resulted in receiving the Collision Center of the Year award several years in a row. Both Gilbert and Rosie are bilingual, have excellent customer service skills and are adept at working well under pressure valuable traits for these entrepreneurs! 10 NWTSBDC 2015 ANNUAL REPORT

13 COMMUNITY PROFILE Midland Odessa Economic Area UT PERMIAN BASIN UTPB CEED Building 1310 North FM 1788 Midland, TX (432) Wind Energy Capacity: 2,775 Mega Watt $ Oil & Gas Production: 351,369,145 Oil (BBL) 79,035,151 Gas (MCF) Enrique Romero Regional Director Emily Weinberg Assistant Regional Director Retail Sales Per Capita: $22,370 Gary Edmiston Senior Business Consultant Kukina S. Hernandez Office Manager Median Household Income: $53,983 Larissa Reza Spanish Business Consultant Daniel Hughes Business Consultant Average Home Sale: $246, County Service Area: Andrews Borden Coke Crane Dawson Ector Gaines Glasscock Howard Martin Midland Reagan Sterling Upton Ward Winkler NWTSBDC 2015 ANNUAL REPORT 11

14 The Power Is Electrifying Wichita Falls Browning Electric Jeff Browning Thirteen employees & four service trucks Jeff Browning spent years in the electrical industry, four years as an apprentice, four years as a journeyman, and two as a master foreman as an employee with a local electric company. He saw an opportunity for the future and decided he wanted to become an independent contractor in Jeff contacted the America s SBDC in May 2007 for general startup assistance and information on incorporating his business. He was given assistance with cash flow projections and tax planning. A business plan was created which helped him secure a loan to open his business. After many hours of counseling, Jeff decided there was an opportunity in Wichita Falls and surrounding areas that could use his expertise and high degree of professionalism and service. He opened his business in August At the time of his opening, he had one full time and one part time employee. By August 2008 he was quickly becoming one of the top electrical businesses in the area. In just seven years since his opening, Jeff has built Browning Electric from a one room leased office, shared storage building with one truck and one employee, to a newly built 5000 square foot office/warehouse with four service trucks and 13 employees. Browning Electric has completed numerous local projects ranging from $5,000 to $250,000 in electrical costs. These projects include several new business build outs to electrical remodels in existing businesses. Browning Electric provides the latest technology and equipment. They pride themselves as one of the leaders in the electrical contracting industry. In 2009, Browning Electric was nominated for North Texas Small Business of the Year. Jeff Browning makes it known in a personal profile letter to his new and existing customers that many meetings with America s SBDC at MSU helped him realize the opportunity there was for him to establish his electrical company to offer services in Wichita Falls and surrounding areas. 12 NWTSBDC 2015 ANNUAL REPORT

15 COMMUNITY PROFILE Wichita Falls Economic Area MSU AT WICHITA FALLS 3410 Taft Boulevard Wichita Falls, TX (940) Wind Energy Capacity: 1,424 Mega Watt $ Oil & Gas Production: 9,436,657 Oil (BBL) 97,532,363 Gas (MCF) Vanda Cullar Regional Director Linda McIntier Office Manager Retail Sales Per Capita: $12,598 Lynda Cannedy Senior Business Consultant Michael Gonzalez Jr Business Consultant Median Household Income: $45,892 Dan Leslie Business Consultant Shani Page Special Projects Emily Jones Graphics Design & Social Media Average Home Sale: $119, County Service Area: Archer Baylor Childress Clay Foard Hardeman Jack Montague Wichita Wilbarger Young NWTSBDC 2015 ANNUAL REPORT 13

16 2015 CLIENT SURVEY 1/ What category best describes your business? Agriculture 5% Construction 5% Finance/Insurance/Real Estate 6% Manufacturing 22% Retail 14% Service (including professional services) 23% Transportation.5% Wholesale 2% Other (please specify) 23% Total 100% 2/ For how many years has your business been operating? Less than 1 year 9% 1 to 3 years 12% 3 to 10 years 23% Over 10 years 57% Total 100% 3/ Including the business owner(s), how many employees do you have? 1 to 5 employees 52% 6 to 10 employees 10% 11 to 25 employees 18% 26 to 50 employees 13% 51 to 75 employees 1% 76 to 100 employees 4% Over 100 employees 2% Total 100% 4/ Please indicate the range of your gross revenues for the last fiscal year: Under $100K 31% $100K to $500K 17% $500K to $750K 8% $750K to $1 million 5% $1 million to $10 million 32% Over $10 million 6% Total 100% 14 NWTSBDC 2015 ANNUAL REPORT

17 5/ Do you represent a certified minority-owned or woman-owned business? Yes 39% No 51% Don t know 8% Total 10% 6/ The past 6 months Question Increased No Change Decreased Total Responses Mean Sales/revenue Number of employees Spending on equipment/facilities Overall business opportunities / Your expectations 6 months from now Question Increased No Change Decreased Total Responses Mean Sales/revenue Number of employees Spending on equipment/facilities Overall business opportunities / What are the 3 most important changes, if any, you made to your business operations during 2015? Developed new products/services 16% Cultivated new clients/new markets 26% Increased productivity 17% Increased technology investments 9% Cut costs 12% Reduced debt 10% Reorganized management 7% Other factors: 3% Total 100% 9/ What is the most important issue you are struggling with that will affect your ability to grow your business? Access to capital 13% Talent (finding right workers) 23% Strategic planning (advice on how to grow business) 10% Finding new markets 19% Complying with government regulations 10% Using technology/social media to attract new customers 12% Financial management (managing cost and revenue streams) 6% Other factors: 5% Total 100% NWTSBDC 2015 ANNUAL REPORT 15

18 10/ Please select the top three types of financing you use for your business, by greatest dollar value: Business earnings 32% Bank line of credit 17% Equity financing 5% Credit card 15% Personal savings 15% SBA-backed loan 5% Non-SBA-backed loan 4% Crowd funding (e.g. Kickstarter) 1% Other: 6% Total 100% 11/ Over the last 12 months, did your business do any... Applied for new credit 25% Applied to renew existing credit 25% Did not apply for credit because we had sufficient financing 30% Did not apply for credit because we did not think we would be approved 16% Paid down debt 44% Total 100% 12/ If your business has not been able to get all of the credit you want, why not? Select the 2 most important reasons: Low credit score 20% Unwilling to provide personal guarantee 2% Uneven cash flow 17% Weak sales 21% Banks are just not lending to my type of business 29% Insufficient collateral 9% Weak/missing financial statements 15% Level of outstanding debt 11% Business is too young 31% Other. Please specify: 14% Total 100% 16 NWTSBDC 2015 ANNUAL REPORT

19 13/ What are the top three employee skills your business needs? Basic math skills 6% Basic English skills 6% Basic computer skills 11% Advanced technology skills (e.g. engineer) 5% Interpersonal skills 20% Advanced math skills 1% Sales and marketing 20% Advanced computer skills 7% Foreign language skills 2% Punctuality/reliability 15% Other. Please specify: 7 % 14/ How difficult has it been for you to find workers with the following skills? Question Very Difficult Somewhat Difficult Neutral Somewhat Easy Very Easy Total Responses Mean Basic math skills Advanced math skills Basic English skills Basic computer skills Advanced computer skills Advanced technology skills Sales and marketing Foreign language skills Interpersonal skills Punctuality/reliability / Which of the following professional resources has your company utilized in the last year? (Check all that apply) Bookkeeping 11% Legal/Attorney 17% Insurance/Bonding Company 16% Marketing 11% Small Business Development Center (SBDC) consultant 9% Accounting 20% Real estate agent/broker 6% Financial planning/investment 5% Private consultant 5% End of Survey NWTSBDC 2015 ANNUAL REPORT 17

20 Texas Tech at Lubbock 2579 S. Loop 289 Lubbock, Texas Phone: (806) Toll Free: (800) A member of Northwest Texas SBDC Region A member of the Regional Business Development Partnership Funded in part through a cooperative agreement with the U.S. Small Business Administration The SBDC does not discriminate on the basis of race, color, creed, national origin, ancestry, sex, marital status, disability, religious, or political affiliation, age or sexual orientation. The SBDC is committed to ensuring that its programs and services are available to all persons, including persons with disabilities or needing language assistance. For persons needing an accommodation to an SBDC program, it is best that we receive your request at least 10 working days before a scheduled event.