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.

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Frank Beam is the owner of Fitness Authority, a fitness center located at 909 West Union Street, Morganton, North Carolina. Frank has a diverse background including 20 years as a Health Care Tech at Broughton Hospital in Morganton, a pastor of a church for 23 years (he is no longer a pastor), owner of a hunting dog business, and owner of a small gym over 20 years ago.
Frank bought this existing business at the end of July 2010. The previous owner was a friend of Frank’s and a local football legend. Frank was nearing retirement from Broughton Hospital and began thinking about entering the gym business. Frank’s previous experience as a gym owner had gone well but the timing was not right at that point in his life. Frank has been passionate about fitness, particularly powerlifting and bodybuilding, since he was a teenager. When presented with the opportunity to buy Fitness Authority this summer Frank, a former pastor and deeply religious individual, spent a great deal of time in prayer before making the decision to buy. After praying about the decision he felt the time was right and God was leading him to buy the gym.
In addition to the decision to buy the business, Frank’s religious convictions and experience as a pastor has affected his approach as an entrepreneur in other ways as well. Frank’s experience pastoring a church as well as the business classes he took for his ministry education has given him an understanding of managing finances. His experience as a pastor also allowed Frank to develop significant social skills which translate seamlessly into a focus on customer service at the gym. He has spent his first few months learning the names and faces of his members so they can be greeted by name when they arrive and when they leave.
This more personal approach is a change from previous owners of the gym. To help make further beneficial changes, one of Frank’s first actions as a new owner was to survey current and past members to find out what their perceptions were of the gym and changes they would like to see. As a result of these conversations with members Frank made a number of changes to the gym and its operation. A thorough cleaning of the gym and equipment resulted from complaints from the members regarding the cleanliness and appearance of the facility. Another common complaint was poor customer service. Frank related a scenario of a customer requesting a protein shake from an employee after a workout only to be told to wait until the employee finished his workout. The employee forgot the shake resulting in the member joining a different gym. Frank also recognized customer service as a problem which he believed was related to the previous owner using a number of part-time employees to operate the gym. Most of these employees were given free memberships in exchange for their work. These employees typically spent much of their on-duty time working out. Frank’s response as a new owner was to reduce the number of employees to two and to establish a rule that they were not to work out when on-duty. Attention to details such as making sure that there are paper towels in the locker room has also been a welcomed change
Another change that was important for Frank to make was to improve the reputation of the gym. The gym had been known, over the years, as a place where steroids could be purchased. These were strictly locker room deals but they were tolerated by previous owners. Frank is adamantly opposed to the use of steroids so he has taken steps to eliminate their use and availability from the gym. He also spends time with younger members to help educate them about the dangers of steroids. He is a valuable resource to all members on dietary and training topics as natural methods to improve health and fitness.
Frank main sources of revenue are memberships and supplements. The previous owner relied mainly on his reputation as a football legend to attract members. Frank has mainly focused on radio ads on a local station which run during Friday night football games. These ads have resulted in seven to eight new members every week. He has also personally contacted a number of previous members to let them know about the changes in the operation of the gym. His efforts have resulted in the return of several previous members. Frank also plans to use events, such as a bench press competition, to help generate excitement at the gym.
A typical day for Frank would find him in the gym by 7am (an employee opens up at 5am). He spends most of his time greeting members and assisting them with their workouts. He gives workout and nutrition advice and often makes the member a shake with protein and other supplements he sells. He closes the gym at 8pm during the week (the gym is open 7 days a week). His hours are somewhat variable depending on the scheduling of his employees.
Frank’s focus on customer service and attention to detail seem to be paying off. Membership is growing and members seem to be very happy with the new owner. Frank is passionate about his new business and is looking forward to years of successful gym ownership.

Frank Beam Owner of Fitness Authority