James Buchanan retired from the Morganton Police Department twelve years ago with the rank of Major. James is the type of individual that needs to stay busy so a relaxing retirement was not for him. James and another retired police officer, Alvin Webb (the W in B&W), decided to go into business together. From their law enforcement background they were aware of the state system for the disposal of items seized from drug arrests. The state offered contracts, based on bids, to haul, store, and auction seized property. Alvin and James incorporated and placed the winning bid for the state contract. For the next three years they collected, hauled, stored, and sold at auction seized property. They were paid a small percentage of the auction proceeds with the state receiving the remainder. Unfortunately much of the property seized was not worth much and the auctions were expensive and time consuming to conduct. Their last auction cost $6,000 which brought their net proceeds down to a disappointing level. About the time they were ready to dissolve the partnership the state changed the seizure disposal procedure. All seized property is now transported to Raleigh and sold on the internet.
With the partnership dissolved James new business evolved into a towing service. He owned a flatbed truck and a wrecker as part of the seizure business so it was somewhat of a logical decision for him. Alvin was no longer a partner leaving James as the sole owner of the business.
According to James it takes a long time to build a towing business. There is a great deal of competition so trying to get in rotations or get business from garages is difficult because they are already using a service. His business is now well established but he doesn’t recommend towing for new entrants. In fact, his advice to entrepreneurs is, “Don’t go into the towing business!” He shares an experience he had a couple of years ago with an acquaintance who was determined to enter the business. James sold him a wrecker and the man started his own towing service. Six months later he was out of business.
According to James there are several drawbacks to the towing business. One of the major drawbacks is the amount of overhead involved. For example, his flatbed averages 7 ½ miles per gallon of diesel, oil changes are $200, each tire costs $400 (there are 6 tires), insurance is $5400 per year, and there are a number of miscellaneous fees involved in operating the business. In addition he must also own a wrecker in addition to his flatbed to be eligible for highway patrol rotations. He actually does not have to own a flatbed but the hookups are faster and easier which makes accident cleanups operate more efficiently and safely. He uses his flatbed 99% of the time.
Another major drawback to the towing business is the time involved. James is on call 24/7. His workload is very unpredictable. Some days he may only receive a couple of calls; other days he has towed as many as eleven vehicles. This unpredictable schedule has hampered James favorite pastime—hunting. He would like, at some point, to sell his business and spend more time with his family and hunting. I would not say that operating a towing service is James’ passion but it does fill his need and stay busy and to help people.
Author Archives: Rick Childress
Randy Morgan Owner of Randy’s Custom Golf Interviewed by Rick Childress
Randy Morgan is the third generation of his family to work in the golf industry. His grandfather was a golf course superintendent; his mother was a caddie, and Randy has worked in the golf industry his entire working life. He started as a cart boy at a golf course in Tryon and later worked in the pro shop for several years. Randy later worked in the pro shop at Silver Creek Plantation, in Morganton, for 14 years.
Randy is one of the few entrepreneurs who started his own business to spend more time with his family. Even though golf is Randy’s passion, the downside of working at a golf course is long hours, especially on weekends. He decided to open his own golf shop two years ago, in downtown Morganton, partly to free up Sundays for his family. Randy missed being able to attend church with his family but since opening his business he has become a deacon in his church which would not have been possible while working for a golf course.
Randy selected downtown Morganton as the location for his store for several reasons. He liked the store size and rent when compared to similar properties. The amount of traffic in this location was also to Randy’s liking. Across the street from the store is a popular local restaurant that is frequented by local golfers during their lunch hour. Randy has noticed golfers looking out of the restaurant while eating and then visiting the store after lunch. Randy would ideally like to be located at a driving range facility but there were no such facilities available. To save money Randy did most of the work to remodel the building prior to opening himself. The only work that he paid for was to build a putting green in the front of his store.
Randy’s Custom Golf carries new and used golf equipment for golfers of all skill levels from the new golfer to professionals. Randy can also customize the equipment he sells to match the physical stature and swing characteristics of the golfer. He uses technology including a launch monitor to analyze the golf swing so that the golf club can be modified to match the golfer. Randy has ordered a golf simulator which will allow customers see a projected image of a golf course and play a round of golf by hitting real balls into a screen with their own clubs. The computer will project the results of the shot based on the way the ball was struck. The result is a fairly accurate depiction of what the shot result would have been in actual play. Randy hopes the simulator will draw golfers into the store this winter, providing revenue from the game itself as well as equipment sales.
Randy’s equipment sales have received a boost from the recent addition of Taylormade golf clubs. Taylormade is one of the most popular brands of clubs so becoming a dealer has been a positive development for Randy, resulting in a 300 percent increase in equipment sales. He has scheduled a demo day with the Taylormade rep at a local driving range. He has advertised the demo day in the local newspaper as well as on the local radio station. He is hopeful that the demo day will be well attended and result in equipment sales as well as publicity for his store.
Randy uses a variety of advertising and promotions, such as demo day. One of his most successful forms of advertising is through facebook. He also believes that the magnetized signage on his truck has resulted in a number of phone calls and new customers. Since he worked at Silver Creek, a local golf course, for 14 years Randy was well known to local golfers when the business first opened which helped with word-of-mouth. Randy is also the only local shop that provides full service club repair. When the store first opened two years ago club repairs accounted for about half of revenues. As equipment sales have increased this ratio has dropped to about twenty-five percent of revenue. Repairs will continue to be an important source of revenue and to maintain repeat business. Golf club grips, for example must be replaced once a year, on average, and more often depending on the frequency of play or practice. Golfers also are notorious for changing clubs often to improve play so when they come in for repairs or grip replacement they will often purchase a new club.
Randy would like to increase the number of club brands that he offers and to see the continued growth that he has experienced his first two years. One of the biggest surprises in his first two years of operation has been the dramatic increase in sales during his second year. He was expecting a slower, more steady rate of growth, especially during the first three years of operation.
When asked what advice he would give to new entrepreneurs Randy replied, “Do what you love to do. I love golf and I have always worked in the golf industry so this is what I’m naturally going to be happy doing. I would not be happy working in a factory or doing a trade or occupation that I know nothing about. Working for myself allows me to have control over my time so I love what I’ve been able to do.”
Randy Morgan
Chris Carroll Owner of Carroll Woodcrafts Unlimited Interviewed by Rick Childress
Chris Carroll
Chris worked as a home builder for over 20 years prior to starting his own business—Carroll Woodcrafts Unlimited. Like many entrepreneurs Chris’ business began as a hobby. He has always loved craft work as a hobby, usually making things and giving them away. Chris also always wanted to own his own business so when the housing market slumped Chris began planning his new venture. As a result of his planning efforts, Chris started Carroll Woodcrafts in 2009 and is now doing what he loves–creating a wide variety of items from wood from furniture to candlesticks. The tagline on his brochure is “If you have an idea, I can create it.”
When Chris started his business he realized that he needed to learn more about the basics of operating a business in order to be successful. Chris enrolled in a 6 week program through NC REAL, a nonprofit organization dedicated to help bring entrepreneurship and small business creation to North Carolina, to learn business basics and to develop a business plan. Chris is highly motivated to learn as much as he can about operating a business and feels that he learned a great deal through the 2 night a week workshops.
In addition to his educational efforts Chris is an amazing networker. Chris commented that “there is a story behind everything I make”, a testament to the success of his networking and the personal connections he makes. He is well known in Polk County where he operates his business. He tirelessly promotes his enterprise and networks and barters to find sources of materials. As a result of his efforts he has seen significant donations of materials and equipment. For example, a local tree trimmer delivers sizable logs to Chris’ workshop which can be milled into valuable lumber. He has also received a sawmill valued at around $40,000 as a donation. Chris may mill some lumber for the previous owner of the sawmill, if the previous owner needs the wood, otherwise there are no strings attached. Chris plans to build a solar kiln for drying the wood he mills. As a result of the sawmill, kiln, and donated logs, Chris will have significant control of the costs of materials.
Chris’ workshop is located at the Mill Spring Agricultural Development Center a facility that serves as a resource center for agricultural development, farmland preservation, education, community service and business development. Chris receives the benefit of affordable rent and utilities as well as the space that he needs to operate at the Center. There are other small businesses at this location and there will soon be a small store to display and sell their products which are mostly arts and crafts. The Center also hosts events that bring in the public which provide good exposure to the small businesses located there.
Chris’ primary marketing is trade shows and fairs. He would like to have more money to invest at attending these shows because he believes that this exposure is critical to the growth of his business. The shows are also a primary source of sales, both at the show and from customers who contact Chris later after seeing his work. Unfortunately the shows are expensive so he has to limit the number of shows he attends.
He often uses networking and bartering to enter shows. For example, a high-profile show—the Southern Highland Craft Guild—has a selection process requiring a professionally produced portfolio consisting of photographs of the craftsman’s work. Chris bartered with a local photographer to take the photos and produce a CD of Chris’ work in exchange for some of Chris’ products. A panel of guild members reviews the CDs from applicants and approves or rejects the entry. If Chris is selected he will be able to show his work at the Southern Highland Craft Guild show at the Asheville Civic Center. Exposure at such a high-profile show would be very beneficial for his business.
In addition to shows Chris would also like to have more money to advertise. He does some newspaper ads but would like to do more. Other marketing efforts include work on a future website.
Although Chris believes that the poor economy has hampered his growth, he is encouraged by the amount of business that he’s experienced in this economy and is optimistic regarding his future prospects. He would like to see his business grow enough to hire 5-6 employees and to provide a steady, long-term vocation.
Fred Nichols Owner of Greenhill Bee Supply Interviewed by Rick Childress
Fred Nichols is the owner/operator of Greenhill Bee Supply. Fred was a production supervisor for a sheet metal manufacturing company for a number of years before being laid off a couple of years ago. Fred realized that the employment situation in Rutherford County was poor and would not improve anytime soon so he decided to start his own business by turning his hobby—beekeeping into a business. Fred had been a beekeeper for about five years. He also made his own hives in a workshop behind his house. These hives would be the primary source of revenue for his new venture. In addition to selling hives Fred would have additional income sources including supplies, bees, and services which include maintenance of the hives that he sells locally. He receives a fee for his maintenance service as well as half of the honey he collects.
The transition from turning a hobby into venture that would allow Fred to make a living would require assistance from multiple sources. Part of the assistance would come from a 6 week entrepreneurship training course called NC REAL. NC REAL is a nonprofit organization dedicated to help bring entrepreneurship and small business creation to North Carolina. He also received assistance from the GATE program, or Growing America Through Entrepreneurship. GATE targets dislocated workers from rural counties for a variety of assistance directly related to starting and running a business including free business training, free counseling, and access to business loans. An important component of the program is that unemployed workers can still receive their unemployment benefits while getting their businesses off the ground. North Carolina is one of four states offering assistance through GATE from 2009 through 2011.