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.
Fred began his business in July 2009. He originally started by selling hives on ebay but has recently opened a small store near Lake Lure. Ebay sales still account for 90% of his revenues but he is hoping to diversify his base by expanding sales through a website (still under construction—www.greenhillbeesupply.com) as well as from his store and other local sales. His target market includes backyard beekeeper and farmers. The backyard beekeeper is primarily a hobbyist but there are some self-reliant individuals that have a survivalist mindset as well. Through his website and blog Fred would like to become an educational resource for his target market. He would like to do more work with farmers, who need bees for the pollination of their crops, but has seen somewhat disappointing results so far.
Fred has been relying primarily on word-of-mouth and networking as his marketing strategy but is expanding his efforts to include Facebook and a new blog. He also is continuing to enroll in continuing education classes, as they are offered, to learn more about marketing and other topics related to operating a small business. His business is seasonal in nature with Christmas representing a spike in sales followed by his peak season which extends from late winter through May. Summer and fall sales drop off considerably.
Fred’s greatest concern related to his business is the state of the economy. He believes that his sales are hampered by the economic downturn. The decline of the number of viable bee colonies nationwide is a concern but he expects a slowdown of the decline in the near term. He is still unsure that his bee business will provide an adequate source of income but like most entrepreneurs Fred has a positive attitude and a passion for his business.
