Paws and Claws
Lolly Stoner needed money to open a daycare for dogs. Stoner, 50, soon realized that she needed help so she turned to the Tennessee Small Business Development Center in Johnson City, TN. The Tennessee Small Business Development Center helped Lolly with her business plan and financial projections.
After receiving her loan, Lolly converted an 1800 sq.ft. house into play areas for cats and small dogs and built 35 outdoor lots for dogs divided by temperament, activity, and age. This year, with more than 800 clients (owners, not pets), Lolly will add 1200 additional sq.ft. and expects a 42% increase in gross revenue this year.
Interior Inspirations
Patsy White
2822 Schaad Road
Knoxville, TN 37912
Patsy became a TSBDC client in March 2001 after attending a business planning seminar. Her business idea was to open a home décor, accessories and design store in a growing yet underserved area of Knoxville. To date Patsy has received 43.8 hours of consulting services in the areas of business startup, business planning, accounting/bookkeeping, merchandising, marketing, inventory control, lease review and human resources. Patsy financed the business with her own funds. Patsy opened for business on August 8, 2001 and achieved $45,000 in sales by the end of December 2001 (she accomplished this despite the business turn down caused by 9/11). She currently employs 2 persons. Year to date sales have already surpassed $14,000 and Patsy is projecting $100,000 in annual sales for 2002.
Donnelly Sheer Physical Therapy, Inc.
The owners, Bunny Donnelly and David Sheer, with the help of the Tennessee Small Business Development Center at Middle Tennessee State University, identified a market niche in the physical therapy market in Rutherford County, Tennessee. The Tennessee Small Business Development Center helped with financial projections and other methods of financing to make the project a reality.
The business opened in November 2001 and broke even in the second month, with profitability coming in the third month of operations (January 2002). Currently, the business employs four persons, two physical therapists and two support staff persons.
BookWorks, Inc.
230 East Broad Street
Cookeville, TN 38501
Judith Mariano wanted to buy a nine-year old, 3800 square foot general bookstore, one of the few premier bookstores in the region. Each year more than 50,000 customers visit BookWorks, Inc. and spend approximately $500,000.
After several unsuccessful trips at area banks, Judith came to the Tennessee Small Business Development Center for assistance with writing a business plan and for help with prequalifying for an SBA-guaranteed loan.
Today, BookWorks owner, Judith Mariano identifies the partnership between the banks, the Small Business Administration, and the Tennessee Small Business Development Center as key to helping her secure the $163,000 she needed.
Overstreet & Hughes Company
Owners: Michael Overstreet and Charlie Bob Hughes
South Carthage, TN 37030
The Overstreet-Hughes Company, Inc. manufactures copper, brass, steel, and aluminum products and assembles products to customer specifications. The International Trade Center and the Middle Tennessee State Small Business Development Center provided assistance in proposing funding resources, packaging a Tennessee Industrial Infrastructure application for TDOT funded industrial road access, water, sewer lines and storm water drainage ponds. In addition, assistance was provided in securing financing for over $700,000 in plant and equipment expansion financing.
Company sales grew as a result of this assistance from $5,000,000 per year to over $25,000,000 with employment growing from 40 to over 120 persons. The TSBDC International Trade Office assisted too with our first venture in manufacturing in Mexico. Sales from that effort amounts to $2,000,000 of our annual sales.
Professional Design and Printing
Vince Croyle and Giovanni Sepulveda opened Professional Design and Printing on September 1, 2001. The Tennessee Small Business Development Center at Tennessee State University assisted the company with a loan package, which resulted in $45,000 from Bank of America. The company has realized a 40% growth in sales with a growth in its major customer base from 4 to 30 clients. Two of its notable clients are Vanderbilt University and Gaylord Entertainment.
Alan’s Industrial Waste – Ridgely, Tennessee
Alan’s Industrial Waste, the only privately owned waste management company in West Tennessee, sought assistance from the Tennessee Small Business Development Center in Dyersburg to assist with planning and financing their business expansion. Through TSBDC assistance at the Dyersburg service center Alan’s Industrial Waste received a loan for $2.5 million dollars to finance their expansion. As a result the business hired 14 new employees, with a commitment to hire 6 more during 2002, and increased sales $30,000 dollars per month to $110,000 dollars per month – representing an increase of 27%.
Bigger, Better LLC, dba Cheeburger Cheeburger
David Montgomery and Charles Sahm, Jr.
Chattanooga, TN
David Montgomery and Charles Sahm became TSBDC clients in 1996 when they decided to buy a Cheeburger Cheeburger franchise. Their plan was to open a downtown location and expand as quickly as possible. The clients received extensive assistance in developing and writing their business plan, which was used to obtain funding through an SBA guaranteed loan with AmSouth Bank. Staff assisted in creating a spreadsheet with formulas, scanned pictures, and provided information on advertising options and payroll company referrals. By August 1997, annual sales had grown to almost $1,000,000 and the company had twenty-two (22) employees. In February 2000, the owners came back to the TSBDC for assistance in updating their business plan so they could apply for financing for a new location in the Hamilton Place Mall area. The second location opened in the fall of 2000. It was also financed through AmSouth bank. Annual sales are projected for $1.9 million for 2001. Eighty (80) people are employed by the business.
Kumon Math and Reading Center – East Brainerd
James Monroe Boykin II
Sole Proprietor/Instructor
5959 Shallowford Road, Suite 221
Chattanooga, Tennessee 37421
Office: (423) 893-8333
Facsimile: (423) 893-8302
Kumon of East Brainerd is a franchised of Kumon Math & Reading USA, Inc. Kumon is the world’s largest supplementary after-school education program. The East Brainerd’s center is working with approximately 200 students in and around the Chattanooga area twice a week. The approximately 200 students are developing learning skills as well as fundamentals of math and reading. The goal of the Kumon program is mastery of math and reading skills at high school and college levels. The East Brainerd center was established August 1998.
James Boykin left a lucrative engineering management position with the Tennessee Valley Authority to help slow students learn and advance with their schoolwork. With a great deal of planning and taking on considerable risk to his financial condition, Mr. Boykin began a for profit school to accelerate slow students. Shortly after the business started, his reputation for successfully helping students got out to the public. Indeed, word of his success spread so that parents of many students enlisted his help. Consequently, advanced students as well as average and slow students came for his assistance. This reputation for success kept Mr. Boykin’s growth plan on target to the degree that he has consistently turned away students to limit his growth to a manageable level. It is my understanding that he has met every growth objective since the business started. It is paradoxical that while he initiated the business to help students that were behind in their studies, his success and reputation for helping students has created a meaningful demand regardless of the students level of achievement. Clearly, there are many who want to learn and advance their knowledge quickly without regard to the standard criteria and requirements found in both public and private schools. Mr. Boykin meets this demand.
Shortly after opening the doors for business, the financial status of the business became precarious. While there were enough students and the training was going well, the cash flow dwindled. James came to the Chattanooga Small Business Development Center for advice. James worked with his SBDC counselor, and examined the business. They determined that the Accounts Receivable was growing with aging accounts. James found it difficult to collect from the people he was helping. The SBDC counselor helped James understand that cash flow and the profits were necessary to continue and expand his assistance that the students needed.
Without a firm financial base, James would not be able to continue his contribution as he wished. The collection problem was solved and business continued. Additionally the SBDC counselor was so impressed with the Kumon Center he enrolled his own children in James’ program and helped spread the word about the value of Mr. Boykin’s program for children. This done, the business grew and continues to grow at a manageable and financially successful level.
Kumon Learning Center of East Brainerd opened on August 22, 1998 with 23 math students. The reading program was added on May 22, 1999 with 20 students. Kumon has since grown to 180 students. Each year a number of students are recognized nationally on the Kumon Honor Role; this year Kumon of East Brainerd had 15 students receiving this honor. The staff of Kumon has also grown over the years. The staff now includes eight employees. The business has grown more than 100 percent per year and has grown 900 percent since opening. This is due to the quality of the program and the quality of the implementation of the program.
We like to think that we at the Chattanooga SBDC have had some part in Mr. Boykin’s continuing success and James Boykin does not hesitate when called upon by the SBDC to share his story with other entrepreneurs.
Cannon Public Relations
Sharon A. Cannon
Owner
P. O. Box 8593
Chattanooga, TN 37414
(423) 624-1374
Facsimile: (423) 624-1512
Cannon Public Relations was established in August 1999 by Sharon Cannon as a Sole Proprietorship. Cannon Public Relations is a young, dynamic public relations consultancy located in Chattanooga, Tennessee. The firm offers a unique blend of counseling services to area businesses and organizations. As a public relations counselor specializing in the electronic and print media arena that provides promotional, marketing and communications ideas that favorably present the clients to the general public. As event planners the company can plan and coordinate events such as banquets and family reunions. As a meeting planner/facilitator she can give your work group insight into better ways of accomplishing tasks
Ms. Cannon came to the Chattanooga Small Business Development Center for help in 1999 when she decided to start her own business. She had been doing event planning and public relations work as a volunteer for many years and wanted to start her own company. Her relationship with the SBDC began with counseling on doing a business plan and setting fees and she continues to utilize the services. She now volunteers her time and services to other SBDC clients with marketing problems.
Business Profile
Cannon Public Relations provides creative marketing and communication services to our clients. As Professional Public Relation Counselors we are dedicated to providing our clients with positive promotional and publicity opportunities. We constantly strive to provide our clients with the highest quality service available, utilizing the latest technological advances in the industry.
The primary client base of Cannon Public Relations is the small to medium size firm. These businesses are more inclined to take chances and are run by the same kind of entrepreneurs that run Cannon Public Relations; therefore both parties feel more comfortable working with one another. Our secondary clients are non-profit organizations and larger agencies willing to subcontract a portion of their business.
The Public Relations sector provides information and expertise to a variety of clients on a contract basis. The fastest growing part of that sector is the small “boutique” consultancies that concentrate on tiny but profitable lies in the fact that the consultant selling the service is normally the one performing the work.
The Advertising sector consists of firms that prepare written copy, art graphics, audio, video and other creative work for clients, and places the finished product in the print/electronic media on a commission/fee basis. Here again smaller agencies have advantages over larger firms. Small firms also have lower overhead, thus are more willing to operate on a negotiated fee basis rather than the traditional commission basis.
Cannon Public Relations has positioned itself as a boutique agency utilizing negotiated fees during the first three years. In our proposals we stress our media background and continue to maintain our network of contacts. As we grow in size and dollar volume, we never want to lose our creativity and boutique image. In order to accomplish this we place student interns in three to five person design teams for each project, giving each valuable experience. It is our intention to grow steadily rather than explosively which could cause us to be run by business rather than us running the business. All major changes are planned in three-year intervals.
The primary goal of Cannon Public Relations is to be among the top ten full service advertising/public relation counselors in Chattanooga within ten years. In order to maintain our creative edge throughout, we will concentrate on the development of profitable niches in the marketplace. During the first two years of our existence we focused on a regional client base and took on projects that had a dollar value of $15,000 or less. During years three through five we will seek projects in the dollar range of $150,000 or less. Years six through eights, we will seek our national accounts in a dollar range of $250,000 or less. Finally in years nine and ten we will take on $500,000 projects. After our tenth year, we will seek international accounts and take on unlimited value contracts.
Stone Cup Roasting Company
Jennifer A. Stone
Owner
224 Frazier Avenue
Chattanooga, TN 37405
423-265-5010
fax: 423-267-7391
Stone Cup Roasting Company is a coffeehouse/café as well as a coffee roasting business and on-line commerce website. It sells retail coffee, coffee beans and food, as well as wholesaling beans to local cafes, restaurants, and grocery stores.
Stone Cup began in January of 1997 as Riverview Coffee House and has greatly expanded operations in its almost 5 years of operation. Its growth includes the addition of a coffee roasting business and the relocation of the store. Jennifer Stone ran the store by herself for three months but added two employees by the end of the first year. When she relocated the store, there were five employees and the store now operates with five full-time plus five part-time employees, not including Jennifer herself. The staff wages range from $6.00/hour to $11.00/hour per person. The staff also receives benefits and tips of approximately $3.00/hour.
Jennifer is actively pursuing a second location, with plans to open in the fall of 2002 in the large Hamilton Place Mall area. The plan is for the second coffee shop to be a full-scale operation. In addition, area business owners and commercial space leasers often approach Jennifer about opening a store in their place of business. Jennifer is very interested in opening a kiosk-type operation in the downtown Chattanooga area.
Sales have shown an increase of 20% over last year. Sales have multiplied five times since Jennifer first opened her coffee shop. The store sales are still on an upward growth track. She has not yet tapped into aggressive advertising and marketing opportunities. Jennifer says there is definite room for growth in the current store, and the second store promises to be successful on its first day of business, with little curve for downtime.
Wholesale sales are on the rise as Jennifer continues to add new accounts monthly. As the Stone Cup name brand and reputation continue to grow potential customers now call on Stone Cup to provide their wholesale coffee. Jennifer is slated to place her coffee in four local Wal-Mart stores with the prospect of doing the same in additional Wal-Marts and Bi-Lo Grocery Stores.
Jennifer recently had a booth at a national coffee trade show to promote sales of her coffee in other cafes regionally. At this same convention, she led a seminar on “Women in the Specialty Coffee Industry” which was well attended and reviewed. Subsequently, Jennifer has been asked to speak at future conventions and has formed an on-line newsletter and communication forum for women who own or are opening coffee-related businesses. This is an original topic for this industry.
Jennifer met with a counselor at the Chattanooga Small Business Development Center almost four years ago when she was struggling to keep her business afloat, and her creditors at bay. At that time, her company was known as Riverview Coffee House and, while it had a very loyal clientele, it was pretty small. Part of the problem, in three unoriginal words for a retailer, was location, location and location. It was in a “trendy” section, but had very poor access due to a lack of parking on an extremely busy street. Several options were discussed to increase sales, including setting up a “drive-through”, should Jennifer be able to successfully negotiate such a plan with her neighbors. Thankfully, her current location became available while that plan was still under consideration.
Jennifer took advantage of the resources made available through the SBDC, and to her credit, was open to suggestions and implemented several record keeping and cost saving recommendations. At that time she also exhibited her perseverance and determination by going so far as to pour samples of her coffee for those poor souls stuck in traffic on Hixson Pike trying to make it downtown!
We like to think that we at the Chattanooga SBDC have had some part in Jennifer’s continuing success and Jennifer does not hesitate when called upon by the SBDC to address issues, and is frequently consulted on business matters locally.