solutions for growing your business

Georgia’s 2012 Small Business Persons of the Year

A tasty product, hard work and a desire to learn have made Lois Judy, left, and Laura Darnall

the success story of the year. – Page 21

Solutions for Growing Your Business

A Supplement to Georgia Trend

A Complete GuideTo Starting and Growing A Small Business

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SB4 Georgia Trend’s SMALL BUSINESS GUIDE

6 Encouraging Success Governor says Georgia committed to helping small business.

8 Georgia SBDCProviding resources small businesses need to survive and prosper.

9 SBAGeorgia director says, “We’re not just for startups.”

10 The First StepsSBA ready to help you get up, going and growing.

12 International TradeGood for small business, good for Georgia.

14 Things Change, But…Business basics remain the same.

15 SuccessDo you have what it takes?

16 Business OwnersUnleash your inner CFO.

17 Time To LearnLean business is good business.

18 Race To New NormalsAre you prepared to change and win?

19 Know The RulesAvoid “employee vs. contractor” pitfalls.

20 HiringSix best practices that make sense.

21 Small Business Persons of the YearSavannah area company finds sweet success.

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C O N T E N T S

Small Business Guide2012/2013

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Georgia Trend’s SMALL BUSINESS GUIDE SB5

Success Stories

22 Former hobby becomes a thriving business with right staffing.

23 Managing the bottom line eases company’s growing pains.

24 Company finds exporting can really boost sales.

25 Family business finds help to expand … and save money.

26 Good succession planning keeps family business thriving.

27 Strategic planning leads to greater profits.

28 Valuation aids veterinary clinic and pharmacy.

29 Updating accounting methods adds value.

30 Getting on right path to sustainable growth.

31 Change to strategic staffing just what company needed.

32 SBDC maximum marketing program maximizes success.

FREE INFORMATION

www.georgiatrend.com

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Bank of North Georgiawww.banknorthgeorgia.comp. SB40

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Georgia Small Business Development Centerswww.georgiasbdc.orgp. SB2-SB3

Georgia Chamber of Commercewww.gachamber.comp. SB13

Georgia Department of Economic Developmentwww.georgia.orgp. SB7

Editor In Chief and Publisher Neely Young Associate Publisher Ben Young

EDITORIAL STAFFEditor Susan PercySenior Editor Jerry GrilloSenior Correspondent Ed Lightsey Associate Editor Christy Simo Dining Editor Krista Reese

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SMALL BUSINESS GUIDE2012/2013

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GEORGIA TREND (ISSN 0882-5971) is published monthly by Trend Publications LLC. Copyright 2012. All rights reserved. Reproduction in whole or in part without written permission is prohibited. ADDRESS CORRESPONDENCE to GEORGIA TREND, 5880 Live Oak Parkway, Suite 280, Norcross, GA 30093. Telephone 770.931.9410.SUBSCRIPTION RATES in the U.S. are $24 for one year, $38 for two years. Call 800.428.7363. Readers: Please send address changes alongwith mailing label from past issue to GEORGIA TREND, 5880 Live Oak Parkway, Suite 280, Norcross, GA 30093. Allow six weeks.POSTMASTER: Send address changes to GEORGIA TREND, 5880 Live Oak Parkway, Suite 280, Norcross, GA 30093. Periodicals postage paidat Norcross, GA and additional mailing offices. Microform copies available from NAPC. Telephone 800.420.6272, ext. 6634.GEORGIA TREND adheres to the best practices of business journalism. Editorial content is prepared independently of advertising sales.

22-34 Success StoriesGeorgia small business owners tell how they did it.

35-38 Small Business PartnersYou need more than just a handshake.

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SupportingSmall BusinessSuccess STATE OF GEORGIA

OFFICE OF THE GOVERNOR

ATLANTA 30334-0900

Nathan DealGOVERNOR

Dear Small Business Owner,

Year after year, small businesses in Georgia remain a primary component of ourstate’s economy and have consistently employed more than 80 percent of our work -force. In our effort to make Georgia the No. 1 place in the nation to do business,we find that small businesses are leading the way.

Through the Georgia Department of Economic Development (GDEcD), Georgia’sentrepreneurs and small businesses are provided resources and strategic assets specificto the needs of this business community. We must have the best initiatives andresources in place to encourage success for these companies here in Georgia and inmarkets where they do business around the nation and world.

We are proud of the wide range of rankings and national indicators that point to thestrength of our business climate, workforce and other factors important to fosteringsuccess for Georgia’s small businesses. In 2011, CNBC ranked Georgia as the fourth-best place nationwide for business, and also among the top states in the UnitedStates for access to capital. As a small business owner, you understand why thesefactors are important. It is our commitment to work aggressively to assure smallbusiness owners and entrepreneurs have every advantage in our state.

As we work to help small businesses compete, I encourage you to take a close lookat some of the aggressive ways we’re working to help these companies grow throughinternational trade opportunities. This year, GDEcD is implementing a new programto increase Georgia’s small business exports. Through collaboration with the U.S.Small Business Administration’s State Trade and Export Promotion (STEP) GrantProgram, the Georgia Reaching Out Worldwide (G.R.O.W.) international tradeinitiative specifically targets export opportunities for Georgia’s small businesses.Exporting creates twice as many jobs as domestic trade, and helps small businessesexplore opportunities that might not otherwise exist. Through this program, smallbusinesses can develop enhanced global relationships and help Georgia’s economyrebound.

I appreciate all you do to keep Georgia working and look forward to our continuedpartnership in making Georgia the No. 1 place in the nation to do business.

Best regards,

Governor Nathan Deal



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One of the common mis -con ceptions about the U.S.Small Business Administration(SBA) is that our programs andresources are just for those think-ing about starting or in theprocess of starting a business.Actually, there is an array ofassistance for various stages ofbusiness development.

Individuals looking to start abusiness often (but unfortunatelynot often enough) contact oneof our resource partner organiza -tions — SCORE, SmallBusiness Development Center

(SBDC) or Women’s Business Center. These entities provideone-on-one consultation at no cost and modestly pricedtraining on topics appropriate for developing a business ideaand preparing for startup. Once a business owner gets theventure off the ground, working with these organizations doesnot have to stop. New challenges and opportunities occur.SCORE, SBDCs and Women’s Business Centers can continueto be counseling and training resources to assist the existingbusiness owner going forward in their enterprises. Ownersoften work with the same counselors for an extended time.

Another SBA resource for businesses at all stages is ourwebsite, www.sba.gov. For those in the preliminary stages, thereis an entrepreneurship assessment tool to see how ready youare to take on being a business owner. Other helpful itemsinclude “Writing a Business Plan” and “Market Research.” Forthose who have started and are operating businesses, the websitecontains articles on subjects such as “Growing Your Business,”“Running a Business” and even “Getting Out,” which addressesthe importance of having a business exit strategy.

There is also information on the SBA’s programs supportingexpansion strategies such as government contracting andexporting. Under “Counseling and Training,” there is the OnlineSmall Business Training section containing approximately 30courses on a variety of business subjects.

The SBA business financing programs also span across

We’re Not Just for Startups

various stages of the business life cycle. The self-employed andmicroenterprises might start with an SBA microloan, up to$50,000 (actual maximum may vary by individual microlendingorganization). As the firm’s activities build or it needs toconsolidate its earlier, more expensive debt, SBA’s 7(a) LoanGuaranty program could help. A company that is ready to buildor expand its own facility can go with the 504 program, whichfinances long-life fixed assets and support projects thatcreate/retain jobs or meet other business and economicdevelopment objectives.

For young, high growth companies, there is the Small BusinessInvestment Company (SBIC) Program. SBICs provide venturecapital for entrepreneurial firms that do not fit the conventionalcommercial borrower profile.

SBA also offers several specialized programs that are not aswell known, even by those in the general “SBA know.”Construction companies are often required to have a suretybond for bidding jobs. If they win the bid, they are requiredthen to put up performance and payment bonds as insurancefor the customer in case the company becomes unable tocomplete the construction contract. The SBA guarantees bid,performance and payment bonds issued by surety companiesto smaller contractors who cannot obtain such bonds throughthe traditional market.

The Small Business Innovation Research (SBIR) Program isa highly competitive program that supports small businessesin the federal research and development arena. SBIR funds thecritical startup and development stages of R & D, and itencourages the commercialization of the technology, productor service. Eleven federal agencies participate in this program.The SBA serves as the coordinating agency.

The SBA houses the National Ombudsman for RegulatoryFairness. Small businesses, particularly those in highly regulatedindustries, may encounter enforcement actions of federalregulatory agencies. The mission of National Ombudsman isto assist small businesses when they experience excessive orunfair federal regulatory enforcement actions, such as repetitiveaudits or investigations, excessive fines, penalties, threats, retal -iation or other unfair enforcement action by a federal agency.

From having the first seed of a business idea to being theowner of a mature small firm, the SBA can be a resource for you.

By Terri L. DenisonGeorgia District DirectorU.S. Small BusinessAdministration

SBA




For further information, go to www.sba.gov/osg, orcontact: Thomas C. Ewbank, Supervisory Surety BondSpecialist, Seattle Area Office 2, 2401 Fourth Avenue, Suite450, Seattle, WA 98121-3419; phone 206-553-0961; [email protected]. (This office handles SBA bonds inGeorgia and 21 other states.)

Counseling ServicesSBA resource partners – including SCORE, the Georgia

SBDC and two women’s business centers (WEDA and TheEdge Connection) – offer a variety of other services to smallbusiness.SCORE Counseling Services

Free counseling, advice and low-cost training for starting abusiness are available through SCORE, “Counselors to America’sSmall Business.” SCORE mentors are located at the downtownAtlanta SBA Georgia District Office and other branches andoffices in a number of other Georgia cities.

SCORE offers counseling by email (eCounseling) and faceto face. You can schedule an appointment to meet with aSCORE mentor at www.score.org or www.atlanta.score.org forbusinesses in the Atlanta metro area. For a list of the SCOREoffices and a workshop schedule, go to www.scoreatlanta.org. The Georgia SBDC Network

The Georgia Small Business Development Center (SBDC)is another excellent source for counseling, technical assistanceand low cost workshops. With 17 locations across Georgia,there is an SBDC office within reach of every small businessin the state. Funded through a partnership between the SBAand the University of Georgia, the Georgia SBDC is one of theoldest and most successful small business support networksin the nation. For a list of classes and offices in your area, goto www.georgiasbdc.org.

The U.S. Small Business Administration (SBA) was createdin 1953 as an independent federal agency to help Americansstart, build and grow small businesses. SBA delivers its servicesthrough an extensive network of field offices and partnershipswith public and private organizations. In Georgia, SBA’s DistrictOffice in Atlanta is responsible for the delivery of agencyprograms and services throughout Georgia’s 159 counties. Italso maintains an extensive website at www.sba.gov/ga withonline training courses, a calendar of upcoming workshops,and lists of SBA lenders, etc.

Financial AssistanceThe Georgia District is ranked as one of the nation’s top

volume producers of SBA backed loans to small businesses. InFY 2011, 1,691 SBA backed loans were approved for Georgiasmall businesses, totaling more than $1.1 billion. These loanswere made by banks and other lenders through the agency’s7(a) and 504 loan programs.

The 7(a) program offers SBA guarantees on business loansprovided by banks and other commercial lenders. Proceedsmay be used to purchase real estate, machinery and equipment,inventory, along with working capital and debt refinancing.The maximum 7(a) loan is $5 million.

The 504 Program provides long-term (10 or 20 years) fixedrate financing for fixed asset projects to increase productivity andcreate new jobs. Proceeds may be used to purchase real estate,machinery or equipment for a small business. Terms and interestrates vary depending upon the size and use of loan proceeds.

The maximum 504 loan package can total as much as $5million and up to $5.5 million for a small manufacturer. Theseloans cannot be used for working capital.

A 504 loan includes funds from an SBA approved CertifiedDevelopment Company along with financing from a bank orother private lender. Borrower equity injection can be as lowas 10 percent of the project cost.

SBA Surety Bond ProgramThe SBA can guarantee bid, performance and payment bonds

for contracts up to $2 million for eligible small contractorsthat cannot obtain surety bonds through regular commercialchannels. Many federal, state and local agencies, as well asprivate sector companies, require bonding for constructionand other service contracts.

Ready To Start Or Grow a Small Business?

SBA & Its Partners Offer Services To Help



Small Business Assistance Corporation(SBAC), Savannah, at 912-232-4700; andthe Atlanta Micro Fund at 678-539-6900.

SBA Resource Guide OnlineYou can view the SBA’s Georgia

Resource Guide online atwww.sbaguides.com. The guide hasinformation on the full range of SBAcounseling, training, technical assistanceand financing programs to help smallbusinesses start, grow and succeed.

SBA Georgia District OfficeThe Georgia District Office is located

in downtown Atlanta at 233 PeachtreeSt. N.E., Suite 1900-Harris Tower, Atlanta,GA 30303 adjacent to the MARTAPeachtree Center Station. Office hoursare 8:30 a.m. to 5 p.m., Mondaythrough Friday. Call 404-331-0100 orvisit online at www.sba.gov/ga forclasses and special events.

Women’s Business CentersWomen’s Business Centers are non-

profit agencies created to help people start,grow and expand their small businesses.There are two SBA-funded women’sbusiness centers in the metro Atlanta area.One is the EDGE Connection at KennesawState University, at 770-499-3228.Website: www.theedgeconnection.com.The other is operated by the Women’sEconomic Development Agency (WEDA)in Atlanta at 678-904-2201, ext. 6.Website: www.weda-atlanta.org.

These centers offer a wide range ofservices for women entrepreneurs includ -ing counseling, workshops and smallbusiness information through computersand audio-visual equipment.Women’s Business Development

In addition to SBA backed women’sbusiness centers, a Women’s BusinessOwnership Representative is located inthe SBA District Office in Atlanta. She canadvise business owners about programstailored specifically to the needs ofwomen-owned businesses. Call CharlotteJohnson at 404-331-0100, ext. 405.

International TradeSpecial loan programs, along with

counseling and workshops, are availablefor businesses involved in InternationalTrade.

The SBA Export Express loan programprovides a 90 percent guarantee for loansup to $350,000 and 75 percent for loansbetween $350,000 and $500,000.

An SBA international trade specialistis based at the U.S. Export AssistanceCenter in Atlanta, a partnership with theState of Georgia and the U.S. Departmentof Commerce. The center is located inMidtown Atlanta at 75 Fifth St., N.W.,

Suite 1055. Another Export Center islocated in Savannah at 111 E. LibertySt., Room 202. Both centers help smallbusinesses export goods and services.

SBA offers an Export WorkingCapital Program (EWCP) and otherservices. For information, call 404-897-6089 in Atlanta or 912-652-4204 inSavannah. On the web, go towww.buyusa.gov/georgia/.

VeteransFor veteran-owned businesses, the

SBA has a local Veteran’s Affairs Officerto provide business counseling andinformation about SBA guaranteedloans. Call Jorge Valentin-Stone at 404-331-0100, ext. 609.

8(a) Business DevelopmentThrough its business development

program known as the 8(a) Program,the SBA assists small businesses ownedand controlled by socially andeconomically disadvantaged individuals.Participating businesses must be able toprovide a product or service that ispurchased by an agency of the federalgovernment.

Since government agencies havedifferent mission requirements thataffect purchasing needs, firms owned bysocially or economically disadvantagedindividuals are encouraged to attendthe monthly 8(a) orientation workshopsfor the 8(a) Program that are held eachmonth at the District Office in Atlanta.To register for this free workshop, go towww.sba.gov/ga and select trainingcalendar. Also see SBA’s website forinformation on government contracting,minority enterprise development andthe 8(a) Program Application – go towww.sba.gov.

SBA Microloan ProgramThere are five non-profit intermediaries

that provide loans up to $50,000 tosmall businesses under the SBAMicroloan Program. They are: AlbanyCommunity Together Inc. (ACT) at229-420-4600; Appalachian CommunityEnterprises (ACE), Cleveland, at 706-348-6609; DeKalb Enterprise BusinessCorporation (DEBCO) at 404-378-1899;

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In Georgia, SBA’sDistrict Office inAtlanta is responsiblefor the delivery ofagency programs andservices throughoutGeorgia’s 159 counties.



International trade is on the rise in Georgia. And, that’sgood for business. The year 2011 was a landmark one for thestate, with exports exceeding $34.7 billion – the most thestate has ever exported in a single year and a 20 percent spikefrom the year before.

One of the reasons for this growth, quite simply, is ourgeographic location. Located on the East coast, with easy accessto international markets, and in the heart of the Southeast,one of the fastest-growing regions of our nation, Georgia isperfectly positioned to lead the nation in international growth.

However, one can’t stop there and forget to mention the state’sbusiness assets that make it so ripe for international trade.Home to the busiest airport in the nation, it’s easy for peopleto get to and from Georgia and global markets. Our containerport in Savannah is the fastest growing in the nation and offerscompanies in Georgia a seamless way to get goods from factoryfloor to the hands of customers – from Paris to Tokyo.

Another reason for Georgia’s growth in international tradeis attributed to the federal and state-level support small- tomedium-sized businesses receive. The Georgia Department ofEconomic Development, along with other state and federalagencies, including the Small Business Administration (SBA),is working hard to increase small business involvement in trade– often an overlooked growth strategy for companies of this size.

And, as a part of the National Export Initiative calling todouble U.S. exports in five years, the SBA awarded Georgia afederal STEP Grant to help small businesses expand productsand services internationally in 2012. Through this grant, thestate’s trade division and its experienced trade representativeshave been able to increase their efforts to help companiesacross Georgia grow their exports. Under the name ofG.R.O.W. (Georgia Reaching Out Worldwide), the program ishelping small businesses by connecting them with experttrade resources.

One company that has worked with the GeorgiaDepartment of Economic Development’s international tradeoffice for quite some time is Albany-based SASCO Chemical.What started as a meeting about the company relocatingwithin Georgia, ended up being a reference to the state’sinternational trade division and, subsequently, participation ina global trade mission, hosted by the state of Georgia.

“Honestly, I had no idea that the Georgia Department ofEconomic Development offered international trade support,” saidMarc Skalla, president, SASCO Chemical. “While our companyhas been exporting since the 1980s, it was on a much smallerscale. Partnering with the state’s trade office helped spark ourinternational sales growth in international markets and ishelping to position our company for long-term success.”

By Kathe Falls, director of the Georgia Department ofEconomic Development’s International Trade Division

InternationalTrade:

Good for SmallBusiness and Good

for Georgia

Often considered out of reach, tradeis an overlooked growth strategy

for many small businesses



• Utilize these services and more forfree or reduced rates.International trade should be a part of

any Georgia small business’s growth plans– particularly in today’s economicclimate. Not only does it help boost short-term business goals, but it helps ensurelong-term health and success. One smallbusiness at a time, international trade is

And successful the company has been.In 2011 SASCO Chemical was recognizedwith the Governor’s Award for outstand -ing growth in international trade. Thecompany is a good model for otherGeorgia small businesses who may beconsidering growing their internationaltrade to its full potential.

As with SASCO, international tradehelps a business’s bottom line throughincreased sales volume and, consequently,profits. The introduction to new marketshelps increase a product or service’s lifecycle as well as decreases company risk– a result of being able to diversify one’scustomer base.

However, international trade doesn’thelp just one company: its impact goesbeyond a company’s four walls and helpsan entire state economy, creating morejobs and higher-quality jobs. In fact,exporting creates twice as many jobs asdomestic trade. Secondly, jobs created byexport are pure job creation – meaning,they are not jobs that are moved fromone part of an economy to another, butrather entirely new jobs that wouldn’t havebeen created otherwise. Thirdly, export-related jobs are typically higher-paying –about 20 percent higher than standardwages, on average.

So, with all this convincing evidenceto grow one’s international trade, howdoes a company get started? The state’sinterna tional trade office can help Georgiacompanies:• Engage in international markets

through assistance with trade shows,trade missions and in-countrymatchmaking appointments/connec -tions with potential buyers.

• Gain customized export assistanceby connecting them with the state’s10 international offices.

• Accelerate their growth in internationalmarkets, guided by a qualified teamof trade specialists and staffers.

• Connect with partners including theSmall Business Administration, U.S.Department of Commerce and others.

• Access research such as online assis -tance, training, financial opportunitiesand in-country market assessments.

helping Georgia’s economy rebound. Nolonger is it an option for economic develop -ment success, but rather an essential partof doing business on the global stage.

To find out more about the State ofGeorgia’s International Trade Divisionor the Georgia Department ofEconomic Development, please visithttps://trade.georgia.org.



By Debbie Graham

When I first started as a business consultant over 20 yearsago, my business experience didn’t parallel a background inoperations of a multi-million dollar company, and I wasn’t surewhat to expect in my new role. It soon became clear to me thatthe business basics remain the same – the industry, owner’spersonality and experience, business structure and many otherparticulars may change, but the business basics do not.

A client asked me what the highlights are in working withsmall business owners and wanted to know if I ever got boredwith my job. My client portfolio is full of incredibly interestingpeople, and they are never boring. Challenging, maybe, butnever boring. Some of the highlights of many years of meetingsmall business issues are interesting.

Steven Covey’s “begin with the end in mind” is one of myfavorite quotes, and explaining that concept to two women whowant to start a business together can be frustrating. Too oftenpeople minimize the “trouble” it takes to be sure the new companyis set up properly.

Good friends ignoring details like buy-sell agreements,paying the Secretary of State for a corporation and never puttingthe corporate book together, not discussing financial arrange -ments, and then avoiding the responsibility of preparing theinevitable tax return ruins good friendships that involve families,friends, co-workers, neighbors and church members.

This devastating life experience can be avoided with simpleplanning and follow-up with a business mindset. Planning whereyou want your business to go in the future, how long you aregoing to be involved, and having a good exit strategy is vital.

Guiding clients to understand the opportunity to learn onsomeone else’s dime is key. Often, folks who like good foodwant to open a restaurant without any food service experience.Experience and background is more important than free money,and getting a job similar in operation is an excellent education– plus you get paid to learn. My philosophy is you learn morefrom a bad boss than a good one because the good boss doesn’tmake the mistakes that can point out ways to learn and improve.

Developing a business plan – long or short, detailed or brief,with fancy graphics or plain – is by far the best business basic.Taking the time to think through the various issues in businessstartup, expansion and exit often uncovers related unrealizedissues – many can be strong enough to defeat the success of thecompany. Planning is a simple basic, but one critical to makingyour mistakes on paper, and not in your checkbook.

Listening and being alert are significant skills to master. Somany times clients come in for help in buying a business, but

The Basics Remain the Same

when asked why the owner is selling and if the company isprofitable, they can’t answer. Learning that banks don’t loan100 percent of a project or a purchase is also particularlypainful.

Your due diligence in researching a major investment inbuying an existing business is critical for success. Really listeningto the seller, the vendors, the customers and your banker willprovide you with tangible information to make a wise decision.

Finally, and probably one of the most critical keys to smallbusiness basics is to maintain a strong credit rating. Living withinyour means, paying your bills on time, setting aside emergencyfunds and building an asset base for future leverage all contributeto good credit.

Lenders look at past performance as a good prediction offuture performance and you never know when you may find agreat opportunity that requires financing. Those who look tothe future and are prepared to leap to the next level will bemost successful in their business ventures.

So, the business basics remain the same: maintaining goodcredit, listening carefully in business decisions, developing agood business plan, building experience and beginning withthe end in mind are applicable for all profitable small businessowners.

Debbie Graham is a business consultant in the Brunswick office of theGeorgia SBDC Network.

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By Kay Remar

What does it takefor a business to besuccessful? Two mainingre di ents are sales andcustomers. You can’t haveone without the other.But then the question is,what does it take to getsales and not just any customer, but loyal customers? Myanswer is successful people and the relationships they build.

In my opinion, success in sales or gaining customer loyaltyreally depends more on “who you are” than “what you know.”It depends on a person’s beliefs, attitudes, values, ethics andintegrity. Customer loyalty also requires truth, respect, honestyand empathy.

People buy from people they like, know, respect and trust.Trust and respect have to be earned. That requires building arelationship. It requires that you connect and communicatewith your customers over and over again. Customers have toget to know you and your business and what you stand for andyou have to see the world and your business through their eyes.Building rapport is essential, but so is asking the right questionsand being a good listener. Sales and customer loyalty bothdepend on being able to identify and satisfy customers’ needsand being able to create value for them. It requires that younot only understand your customers’ expectations and feelings,but anticipate them as well.

The important thing to remember is that you get out of arelationship what you put into it!

A positive attitude and persistence are also key traits ofsuccessful people. They might also be habits, but then so isquitting. Habits are actually the outcome of the choices wemake over and over again.

So “who you are” is all about the choices you make.Successful people choose to set goals for themselves, live bythem and have the determination to accomplish them. Theyhold themselves accountable for their actions instead of makingexcuses or blaming their circumstances. They choose to havea positive attitude, and they choose persistence over quitting.They have made the choices that help them to get the resultsthey need to be successful.

But “whatyou know” is also

impor tant. And,the important thing

to know about rela -tion ships is that they

need to address thespecific needs, wants and

desires of each individualbuyer or customer. You can’t

treat all buyers or cus tomers the same and think that you arereally building a significant and sincere relationship. They allhave different values, needs and perceptions. It’s up to you tofind out what they are and how your product or service canbest fulfill their needs, solve their problem or create a newreality for them. You have to be passionate about serving yourcustomers. You have to choose to exceed their expectations,and you have to train your employees to do the same thing.Your employees need to know what your customer servicevision is in order to help you build loyal customer relationships.

The importance of “what you know” is why successfulpeople choose to never stop learning. They choose to read, takeclasses and surround themselves with people and friends thatthey can learn from.

Tom Asacker in the book “Sandbox Wisdom” says thatstories create intimacy and relationships. He also says thatstories are the essence of a strong brand. Will you choose tobuild a relationship with your customers that will want them totell stories about you and your business? Have the choicesyou’ve made to date created the kinds of stories that you wantto share with your customers?

You may have heard the quote: “They don’t care how muchyou know until they know how much you care.” “Who youare” matters first; but “what you know” is also very important.Who are you? What do you know? What choices will you makein the future to help you be successful in sales and to buildloyal customer relationships? Choose wisely!

Kay Remar is a business consultant in the Athens office of the GeorgiaSBDC Network.

Do You Have What It Takes?



By Ted Beveridge

All business owners pour a certainamount of resources into bookkeeping.Whether the work is done primarily in-house with an accounting software packagelike QuickBooks or the paperwork isdelivered to the trusty CPA, it takes timeand money to simply maintain complianceand pay income taxes. As long as thebusiness is subject to this requirement,why not transform the role of accountingand bookkeeping in the business from amere obligation into a powerful manage -ment tool?

It may not sound exciting at first, butbusiness owners who learn to utilizefinancial information to optimize resultsfrequently find themselves on the fasttrack to entrepreneurial stardom. TheCash Flow Statement, Income Statementand Balance Sheet are potential goldminesof information that can drive effectivebusiness decisions.

Profitability is great, but strong cashflows are downright inspiring. And thetwo are not one and the same. Whenincoming revenues are used to acquirenon-cash assets like inventory or equip -ment, a profitable business may not haveenough cash for next week’s payroll. Infact, many small businesses have failed

due to a cash crunch caused by salesgrowth.

For businesses planning to expandwith the help of debt, the first thing alender will examine is – you guessed it –cash flow. In general, companies withappropriately managed cash flow cyclesare able to fund increased profits andavoid costly pitfalls. For these reasonsand more, owners benefit greatly fromunderstanding the Cash Flow Statement,learning to project future cash flows, andutilizing cash flow information to makewise business choices.

The Income Statement offers crucialdata for tracking business performance,and the value is increased when thecurrent period is compared to a priorperiod or to a budget. By comparingitems like gross margin percentage orlabor as a percentage of sales to industrybenchmarks, owners can discover powerfullevers for increased profitability.

Income Statement analysis pinpointsareas of improvement and opportunitiesfor higher profits. Owners are subject toa common trap when it comes to theneed for increased profitability: theymistakenly assume the only way to do sois to bolster total revenue. Informed

Business Owners: Unleash Your Inner CFO!

analysis identifies specific targets forimprovement – targets that are trueperformance indicators – and generatessmart strategic decisions.

A successful business will producestrong cash flows, achieve ample profitability,and improve in value over time. Andwhen it comes to the value, or health, ofa business, the Balance Sheet is a greatsource of information. Is the businessattractive to buyers? Is it more valuablethis year than it was last year? How has itperformed compared to other possibleinvestments? The Balance Sheet providesowners with a “final score” on businessperformance.

Finally, by using data from the threefinancial statements to undertake financialratio analysis, owners can truly unlockthe potential of the information at theirfingertips. The quick ratio sheds light onliquidity, return on equity evaluatesinvestment, interest coverage determines“bankability,” and there are plenty more.

So unleash your inner CFO! Ifaccounting has been a chore rather thana management tool to this point in yourcompany, an opportunity awaits. Financialstatements offer not only a report card forbusinesses, but actually direct owners tothe specific areas that need attention. Theresult is increased cash flow, robustprofitability, and a vibrantly healthycompany. If you need a little help gettingup to speed, your CPA or local SBDCconsultant can help you get started.

Ted Beveridge is a business consultant with theGeorgia State University office of the GeorgiaSBDC Network.



By Bob Thiele

During the past boom years, when people were using theirhouses as ATMs and spending at a rate of $1.30 for every dollarthey made, businesses produced and were able to sell productsand services of questionable value. In the process, these samebusinesses developed sloppy management systems and perpet -u ated purposeless policies and built-in waste in all aspects ofthe business.

Today’s economy has changed, reality has set in, waste won’tand can’t be tolerated and providing the customer the bestpossible value is paramount for survival. It’s time to evaluateyour business and learn to get lean.

Lean works, and while lean principles are mostly associatedwith manufacturing, they apply equally well to all businesses andbusiness functions. Lean works because it is a way of thinking.

It is a whole systems philosophy and is customer focused andcustomer driven. Simply put, lean eliminates waste through asystem of value stream mapping (VSM). VSM is a structural processthat captures the flow of a product or service, people, tools,resources, and instructions for the purpose of eliminating waste.

The goal is to identify value in the eye of the customer andchange, diminish and eliminate all activities that don’t providethe customer value.

The Lean Enterprise Institute defines the lean process as afive-step thought process:

1. Identify the value2. Map the value stream3. Create flow4. Establish pull5. Seek perfection

While some of the steps are self-explan atory, steps 3 and 4 mayneed some additional expla -na tion. Create flow meansmaking the value stepsoccur in tighter sequence.Pull means providing theproduct or service only whereand when the customer needs it.

Dell is a good example of leanin that it creates value by providingthe customer a customized computer whileelimin ating the waste of carrying a large inventory.

ALDI grocery chain is also a good examplein that it identifies its value to its customerbase as low prices and provides the low price

by reducing choice and negotiating low costs on selected items.The good news about adopting lean principles is that

getting started is easy. While there are sophisticated leansoftware tools, you can start with pencil and paper. In fact, inhis value mapping workbook, Learning to See, John Shookrecommends that you start with pencil and paper in that itforces you to look, observe and really see what’s going on.

Mapping the value stream involves looking at and describingin painstaking detail each step of providing the product orservice and asking yourself, “does the step create and providethe value identified by the customer? If not, what can I do?”

I like to use a system called SAMM (Systems AttributesModification Matrix). SAMM is a technique in which you list allof the attributes of a process on one axis and all of the modifierssuch as rearranged, combined, increased, eliminated, etc. alongthe other axis and consider the modification to the attribute.For example, making an irregular product regular. What aboutPringles? The package reduces shipping volume and betterprotects the product.

In the lean process you next create flow and pull asdescribed above and repeat the process until the waste iseliminated.

Business is all about providing the customer real value andsatisfying a need in a timely manner.

Lean is about identifying the value and providing the bestvalue in a manner that eliminates waste.

Lean can produce extraordinary results, and in today’seconomic environment, lean business is good business and isessential for survival.

Bob Thiele is a business consultant in the DeKalb office of the GeorgiaSBDC Network.

Lean Business Is Good Business



By Lydia Jones

Business practices are changing rapidly in every aspect ofoperations, finance, marketing and human resources. Some saythat several traditional business practices are long gone as aresult of the economic downturn and that incredible uncertaintyis changing consumer behaviors in the marketplace.

Neale Martin, Ph.D., describes a consumer change in hisbook, Habit: “Some of our most entrenched habits are undergoingprofound transformations. We no longer read the daily paperreligiously (as the stock price of most dailies attest). Cell phoneshave replaced landline phones for millions, and a new generationviews email as old-fashioned. Even carbonated beverage salesare experiencing a persistent two percent decline.”

Regardless of the reasons for the changes, essential nextsteps should include adjustments to current business practices.Consider the following five shifts in business practices.

1. Business financesWithout a doubt, volatility is the new norm in the financial

aspects of business operations. As scarcities of resources andother factors drive prices up, purchasing issues loom large forsmall business owners. More than at any time in recent years,conventional lending on a local level is heavily dependent onhow much risk community lenders can carry and how muchcash additional financing will generate for a business borrower.

2. WorkforceTwo mega retailers are hiring more part-time employees to

work only 30 hours per week to avoid their eligibility for full-time benefits. The company’s cost is substantially less, but thepractice decreases job appeal. With this practice as the newnorm, one might speculate that employee pools with managerialtraining potential will be much smaller.

3. Marketing researchProponents of habit-based marketing say it’s better to observe

purchasing behaviors than to survey consumers with questionslike those in traditional focus groups. The thought is that consumerbehaviors are actually different from responses provided onsurveys. “What we do” is now recognized as different from“what we say we would do.”

4. Upfront chargesA builder complained recently that cash in the business has

dwindled because of increased numbers of customers whoeither pay on extended terms or just don’t pay invoices. Thatcustomer practice no longer allows him to purchase materialsand complete work without upfront deposits.

5. TechnologyQR codes, mobile payments, other mobile device features,

online business communications and networking are just a fewefficient aids to businesses. Very few businesses, however, cancompete without sufficient technology and applications.

Other changes in practices to note include mass mailings toemail, paper checks to electronic payments, written documenta -tion for technology products to online tutorials, and massconsumption versus individualized product purchasing.

The details may be different for each company, but theformula for business success remains the same. Keep a keeneye on marketplace volatility and make necessary adjustmentsto your business practices in light of the new norms – and win.

Lydia Jones is regional director of the Georgia SBDC Network.

The Race To Establish New Normals: Is Your Business Prepared To Change and Win?



By Randy Donaldson

It’s a decision that most small businessowners face sooner or later. Your businessis doing well, but you’ve reached animpasse in your growth curve and youdecide that you need to add an additionalperson to take you to the “next level” insales and profits. You like the flexibilityand cost savings of an independentcontractor, but at the same time you wantto have some control over the person’swork habits and output. So you askyourself: “How much control can I legallyhave with an independent contractor?”

To determine whether a worker is anindependent contractor or an employeeunder common law, the IRS uses avariety of factors that basically fall underthree different categories – behavioralcontrol, financial control and the relation -ship of the parties. In each case, it isimportant to consider all the facts, sinceno single category provides the answer.Let’s look at the factors below.

Behavioral Control These factors show whether the

employer controls the way the work isdone. For instance:

• Instructions. If you receive exten -sive instructions on how, when and where

the work is to be done, what assistantsto hire, what tools or equipment to use,and/or where to purchase supplies andservices, it indicates that you are anemployee.

• Training. If the business providesyou with training on procedures andmethods, it indicates that you are anemployee.

Financial Control These factors show whether the

employer controls the financial aspectsof the job. For instance:

• Expenses. Does the employerrequire an accounting for all expensesincurred, and does he reimburse for someor all of the worker’s business expenses?If he does, this indicates an employeerelationship.

• Profit/Loss. Can the worker make aprofit or suffer a loss as a result of the work?If he can, it is indicative of a contractor.

• Investment. Does the worker havea personal investment in the tools, equip -ment and facilities used to do the work?The greater his investment, the morelikely he is to be considered an independentcontractor.

• Pay Schedule. Does the employerpay the worker by the hour, week or

Know the Rules and Avoid the “Employee vs. Contractor” Pitfalls

month? Independent contractors aregenerally paid by the job or on commissionvs. regular time intervals.

Relationship of the PartiesThese factors show how the parties

perceive their relationship. This includes: • Personal Services. Is the worker

required to provide the services personally,as opposed to delegating tasks to someoneelse? If the worker is not allowed todelegate, it is generally indicative of anemployee relationship.

• Benefits. If the worker receivesbenefits such as insurance, pension or paidleave, it indicates an employee relationship.

• Right to Fire and Worker’s Rightto Quit. Can the employer fire the worker?An independent contractor generallycannot be fired without the risk of abreach of contract lawsuit. Conversely, anindependent contractor has a legalobligation to complete the job undercontract and cannot quit without incurringpotential liability.

• Services offered to the Public.Does the worker advertise his services tothe public? Does he work for more thanone company at a time? These factors arenormally indicative of an independentcontractor.

• Continuing Relationship. Is therea long-term, ongoing relationship betweenthe worker and the employer? Are theworker’s services considered an integraland necessary part of the business? Thesefactors would generally indicate an employeerelationship.

Mistakenly classifying an employee asan independent contractor can result insignificant fines and penalties. Make sureyou know the rules as listed above andavoid a big headache in the future!

Randy Donaldson is a business consultant in theGainesville office of the Georgia SBDC Network.



By Laura Katz

Six Best Hiring Practices that Make $en$e

the salary range, hours and any benefits to make sure they areacceptable. End the conversation by telling the candidate whenyou will be making a second interview decision.

The second interview should be at your business, againconsisting of job description related questions. Ask open-endedquestions and observe the candidate’s body language while theyrespond. Remember you cannot ask a candidate about their age,race, creed, sexual orientation or marital status. Discuss yourbusiness goals, mission and any important facts about jobperformance expectations and again review the salary range,benefits and working conditions. If there are skills required for

the position, be sure to testthem. Have a programmerprogram code, or ask asalesperson to make apresentation. At the end of theinterview ask the candidate ifthey have any questions andrequest professional references.

If possible, set up a thirdinterview with a trustedadvisor. A good rule of thumbis: three candidates, three

interviews and three sets of eyes! Finish by letting candidatesknow when a decision will be made. Never hire on the spot andalways check references! Take the time to carefully consider allthe candidates interviewed before making a decision. Hiring thewrong person could be a costly mistake.

5. Make an offer After acceptance of a verbal offer, follow up with a written

offer letter and a date the decision needs to be made by. Includeany employment contingencies, such as passing a backgroundcheck or drug screen. Once the candidate accepts, notify theother candidates that a qualified candidate was selected andthank them for their interest.

6. Employee On-boarding Complete all federal and state documents as required. For a

list of what is needed, go to: www.SBA.gov and search on“Hiring Your First Employee.” Finally, be sure to have a trainingschedule set up and follow up evaluations at 30, 60 and 90 daysto make sure that your employee is adjusting and will be asuccessful addition to your growing business!

Laura Katz is a business consultant in the Athens office of the GeorgiaSBDC Network.

If you have been in business for a while and sales are startingto increase, you may be ready to hire your first employee. But,you may think to yourself, now what? Below are steps youshould take before saying “you’re hired!”

1. Develop a job descriptionMake sure your new employee fits into your long-term

business strategy by analyzing your goals when developing andprioritizing key position requirements. Define what education,skills and personality characteristics are necessary to fill theposition and grow with your business.

2. Recruit Qualified ApplicantsStart by asking associates, friends and family for applicant

referrals or post the opening on your website, businessFacebook page, LinkedIn profile or company Twitter account.By doing so you should find candi dates that are familiar withyour business. All requests for resumes should describe keyapplicant qualifi cations, job requirements and main tasks.

3. Screen Candidates Objectively evaluate resumes using a screening form based

on the job description, tasks and specifications; make note ofany questions or clarifications needed when talking with thecandidates. Sort and categorize applicants as: not qualified, meetsminimum qualifications and meets preferred qualifications. Ifpossible, have a trusted source review and sort as well. Select aminimum of five candidates for initial phone interviews.

4. Interview Process Utilize a short phone interview to pre-screen candidates

using the screening form and by asking your job descriptionrelated questions. Additionally, don’t be afraid to ask employedcandidates why they are leaving their current position or, theunemployed, why they left their last position. Finally, review



SUCCESSstories

Darnall, who says she “loves to make candy” and “loves tocome up with new ideas,” traces her entrepreneurial spirit toher mother, who had her out selling toaster covers when shewas 10. Before launching Candy Craft Creations, Darnall wasa teacher and had developed a product she called Candy ClayDough that her students could use for art projects.

Darnall joined forces with Judy, who she had met whentheir daughters played soccer together, to form a new companyto make and sell the Candy Clay Dough. The real turning pointfor the company came when the two partners adapted theproduct based on suggestions made by well-known sugar artistKerry Vincent. Darnall was at the Oklahoma State Sugar ArtShow when she was advised by Vincent to alter the recipe tomake it more flexible and workable. In other words, turn theirCandy Clay Dough into fondant.

The owners faced new challenges as the company began togrow and that’s when they turned to the SBDC for assistance.“I had gotten help from the SBDC many years ago with one ofmy earlier ventures, but this time we needed consulting to helpwith a lot more, like cash flow and anticipated capital needs,”Darnall says. “Lynn and Connie have been fantastic. They area rock for us, always there when we have a question.”

While the future is now “looking great,” Darnall says it wasnot easy getting to this point. “For the first few years we putevery penny back into the business. In fact, we just startedpaying ourselves last May,” she says.

For aspiring entrepreneurs, Darnall offers this advice: “Startwith the SBDC, find a mentor already in the business –entrepreneurs love to give advice – and get a good attorney toprotect your business. These are the people who can give youthe solid foundation you need.”

A number of high tech firms have started off in somebody’sgarage or basement. But it’s not often that a food companybegins in a backyard shed and four years later has a productthat captures a major share of an established market.

But that is exactly what happened when Laura Darnall andher business partner Lois Judy formed Candy Craft Creations,LLC in 2008. Their Savannah area company manufactures anddistributes “Fondarific,” a new type of fondant that offers improvedease of use as well as a pleasing taste.

Fondant is used by chefs and bakers to create the smoothicing used to coat cakes for special occasions, like weddings.“It’s what makes a cake look elegant,” Darnall says. And, unlikemost fondant, “you can eat ours,” she says.

With its special qualities, “Fondarific” fondant has takenthe confectionery world by storm. Supporting the product’sremarkable sales growth has been television exposure on theFood Network, the Learning Channel and public endorsementsby some of the top chefs and cake artists in the country.

In four short years, Candy Craft Creations has gone fromthe two owners to 30 employees, from one store to over 2,500

stores and from zerosales to over $2.5 millionin 2011 revenues. Andthat shed in Darnall’sbackyard used in thecompany’s early dayshas long been replaced,with a 10,000-square-foot plant/warehouse“bought with cash.”

As recognition oftheir success, Darnalland Judy have beennamed Georgia’s 2012Small Business Personsof the Year by the U.S.

Small Business Administration (SBA). They’ll be honored alongwith winners from other states during the annual National SmallBusiness Week May 20-26 in Washington, D.C.

The two were nominated by Lynn Vos and Connie Edwardsof the Savannah office of the Georgia Small Business DevelopmentCenter (SBDC). “We are very proud of Laura and Lois,” saysVos. “They are very cre ative and have great ideas, but they havealso taken the time to educate them selves and embrace changeso they could expand successfully.”

Laura Darnall, left, and Lois Judy show what their productcan create

Georgia’s 2012 Small Business Persons of the Year

Years of hard work makes the taste of successeven sweeter for these Savannah entrepreneurs

Photos by R

uss Bryant

SBG-Success Stories.qxd:Small Bus Guide2-p.17-34 4/16/12 2:11 PM

Ann Peden Jewelry

Athens jewelry maker learns staffing is an art


“My first question was about the basics of setting up abusiness. I had to learn how to work the numbers, how tofigure out my cost per piece, my manufacturing costs and howto be profitable. I took the Starting a Business class and haveworked with them ever since,” she says.

Consultant Kay Remar has worked with Peden since 2006.“It took Ann some time to understand the value of her jewelry,”Remar says. “She also had to learn to surround herself withpeople who will do what she can’t do. She needed to have theright people in the right positions to help her.

“Finding the right people is not easy. Employees are alwaysone of the hardest things for small business owners to dealwith. She had some difficulty,” Remar continues. “But she hasa good team in place now.”

“It has been hard for me to learn how to manage people,”agrees Peden. “Kay helped me make our business environmentprofessional and build camaraderie. Now everyone who worksfor me treats it like it’s their own business. They buckled downand worked together through the tough economic times, andit has been awesome.”

Since Peden’s first call, Remar and others at the SBDC haveconsulted with her on collegiate licensing; QuickBooks; accounting,financial and cash flow analysis; loan packaging; pricing; barcodes;labeling laws, inventory systems, outsourcing of manufacturingfacilities, duties involved and custom’s brokers; distribution,marketing and branding; and many other aspects of her business.

“The SBDC has helped me grow from a craft business to aretailer, wholesaler and manufacturer, and a national brand,”says Peden. “We have moved forward a lot faster because ofthe SBDC.”

SUCCESSstories

By Jennifer Giarratano

Raised in a family that emphasized practical employmentand downplayed artistic talent as a “hobby,” Ann Peden neverguessed that her passion for creating art would someday earnher a living. But when her whimsical, cheerful jewelry designsbegan to make more money than her shifts at the hospital,nurse Peden decided to build a business around her art.

Peden launched Ann Peden Jewelry out of her kitchen witha bin of beads and a pair of pliers in 2000. Starting out sellingat art festivals, she has exhibited her playful collegiate andthemed jewelry at hundreds of regional and national tradeshows and opened a retail store in Watkinsville in 2003. Nowher jewelry line is carried in more than 1,000 stores across thecountry and sold wholesale at the Americas Mart in Atlanta.She employs 14 staff members who work out of the company’sheadquarters in Watkinsville and another 20 commissionedsales reps locally and nationally.

Peden says her first big challenge was making the time tolearn all she could about business, finances and managementwhen all she really wanted to do was design, create and spendtime with her children.

“Most artists are starving because they don’t embracerunning a sound business,” she says. “In nursing, I never tookmarketing or accounting classes. I didn’t know what the term‘invoice’ meant.” She decided to contact the Athens SBDCoffice in 2002.

Ann Peden’s artistic “hobby” became her business

Photos by A

nn Peden



SUCCESSstories

Children Unique Christian Daycare Center, Inc.

With help, Augusta child care companyfinds way to solve its growing pains

she needed additional funding, she came back, and we revisedthe plan and pulled the loan package together.”

“The SBDC helped me strengthen the business plan andput together the loan packet for the construction of our 9,500-square-foot building designed just for children. We received anSBA loan and moved there in June of 2008,” says Davis. In2009 she learned that a competitor was liquidating several ofits centers. To acquire these assets, she needed another loan.

Caldwell guided Davis through the due diligence process ofthe purchase and assisted her in developing another businessplan and loan package that included detailed financials for eachof the five centers.

Children Unique now operates six centers in Richmondand Columbia counties, each of which accommodates morethan 100 children. It operates with 78 caregivers and staffmanaged by Davis and her daughters, Verwanda Childress,Virginia Patterson and Charlene Middleton. Davis says thatparents are now requesting that she consider opening a privateschool for K-3rd graders, an idea she has begun looking into.

“Susan is wonderful. She needs to write a book,” saysDavis. “No other organization has made me feel they were herejust for me and my business. Susan and the SBDC do.”

“Janie knows what matters in her business,” says Caldwell.“Six centers are an enormous responsibility. Janie is successfulbecause she keeps her eyes on the needs of the children andstaff, as well as managing the numbers and bottom line.”


Shortly after opening a licensed child care service in herhome, Janie Davis needed to expand. “We started in 1996 withsix children in my home, but received so many calls that weknew we had to grow,” say Davis, founder and CEO ofChildren Unique Christian Daycare Center, Inc., in metroAugusta.

Within two weeks, Davis found and rented a new location.Licensed for 24 children, the center filled quickly, so sheexpanded again. The first portable she purchased, whichallowed for 18 children, filled within weeks. By the time shehad filled three portables and put a playground in the back,she decided to build a center designed specifically for children.

“I was already looking for another place to go to becausethe first structure was originally a home built for a family,” saysDavis. “We needed to do a lot of modifications to bring it intocompliance. That sent me to the SBDC in 2000.”

Davis sought help in developing a business plan, financialsand loan package she needed to finance her new facility, buther plans did not pan out. “It was my vision to build, but Iwas trying to get there before I had been in business longenough,” she says. She continued working with the SBDC andeventually identified a suitable site, negotiated its purchase,found a contractor, obtained funding and built her new center.

“Working with Janie is a pleasure,” says consultant SusanCaldwell, area director of the Augusta office. “Over the years,she has come in and out of our lives. As her business grew and

Janie Davis found the help she needed to grow her business

Photo by K

atie Reising



SUCCESSstories


Gary Majestic, general manager of the Rome office forCommercial Fluid Power, was simply looking for help withexport documentation in 2008. “We had done a couple ofexport documents and wanted to make sure we had all of ourt’s crossed and i’s dotted,” he says.

The company, headquartered in Dover, Ohio, distributessteel tubing and bar and processes precision-honed tubing. TheRome office serves the Southeast, Mexico and Latin America.

Majestic contacted the Greater Floyd Chamber of Commerce,which referred him to trade resources including the GeorgiaSBDC Network. At the same time, SBDC consultant Rick Martinand Alice Carson of the Georgia Department of EconomicDevelopment (GDEcD) were actively scouting companies withtrade potential in the Rome area. They connected, and Martinsuggested he join the SBDC’s ExportGA program.

“This program helps companies research where theopportunities are in the global marketplace,” says Martin. “Asthey go through it, they learn the various mechanics and skillsthey need to feel comfortable in transacting business overseas.”

Majestic was partnered with SBDC consultant DimitrisKloussiadis and a University of Georgia business student internwith ExportGA. They targeted and gathered market intelligencethat would help determine where in the Americas Majesticshould concentrate Commercial Fluid Power’s efforts. Additionalvaluable trade resources were provided through ExportGA teammembers, the GDEcD and the U.S. Department of Commerce.

“Before the program, Gary was just responding to foreigninquiries,” says Martin. “Afterwards, he joined foreign trademissions to seek and meet prospects in his target markets.”

“We have learned how to be intentional exporters, to makeit a focus for us,” says Majestic. “We have learned that it’s notas difficult as you may think, and it can be very profitable.For example, exporting gives us higher margins on ourmaterial and, through wire transfers or letter of credit, we getpayment before we ship our product – a huge incentive.

“I learned more in the first few sessions of ExportGAthan I could have learned in a year on my own,” he continues.“Through these contacts I have been to Chile once with theMetro Atlanta Chamber and twice with the GDEcD, whosetrade office in Santiago showed us the ropes, makingappointments, arranging for translators, etc.

“You can’t put a price tag on this kind of assistance,” hesays. “It makes a big difference.”

And the results? Commercial Fluid Power’s internationalsales in its Rome office grew from approximately three percentof total sales in 2008 to 16 percent in November 2011.

“Many companies are exposed to useful new information,but don’t take advantage of it,” says Martin, who continues toconsult with Majestic. “Gary is very good at finding what heneeds to be successful, taking advantage of the resourcesavailable and putting this knowledge to work for his company.”

“Rick and others at the SBDC are very capable, very experi -enced in exporting,” says Majestic. “They offer real businessknowledge, and they are just good people to deal with.”

Commercial Fluid Power

Export assistance heats up South Americansales for Rome steel tubing distributor

Photos by K

atie Reising

Gary Majestic says export assistance “makes a big difference”




The Curtis Packing Company buys bulk loads of pork andbeef and packages it for sale to independent grocers, meatmarkets and other food services. Run by brothers Dan, Jerry andEarl Branch, this Tifton business produces about 80,000 poundsof sausage a week under the name Georgia’sBestBrand Smoked Sausage, as well as other popularmeat items.

“We’ve created a southern-style flavor profilethat people like,” says Earl, the company’ssecretary and treasurer. “We had a call not toolong ago from a woman in California who said,‘I want bacon like my grandma used to cook.’When I told her the shipping would cost hermore than the bacon itself, she said it would beworth it to experience the flavor again.”

The Branch family’s business started whentheir father purchased a small meat slaughter -house in 1951. It has grown from “one person,working with dad” to a 50-person operation thatships up to 300,000 pounds of product a week.

About three years ago, the brothers decidedto look into expanding, and a banking friendsuggested they contact the SBDC. They metconsultant David Dunn, who helped themdevelop a business plan, introduced them tothe concept of revolving loan funds through theTifton Development Authority, and connectedthem with the Georgia Department of EconomicDevelopmentto discuss tax credits.

“The Branches are already successful. They have been andare going to be,” says Dunn. “But it is always a good practice toexamine some of the little things working around the peripheryof the business. When you can add a dollar here and save adollar there, pretty soon you’re making some significant money.”

“We had wanted to do an expansion,” says Dan, who worksin sales and production. “But these days you don’t just go intothe bank and tell them you need to borrow money. Our friendsaid we needed to talk to David, and he was right. David wasvery thorough in making us think about things we hadn’tconsidered. He showed us that we should expand.”

“Although we felt there was a need, David helped us establishthat,” agrees Earl. “And he confirmed the fact that an expansionwould pay for itself.” They expanded the plant to 55,000 squarefeet and added about a dozen employees.

At Dunn’s suggestion, the Branches recently contracted forthe SBDC Energy Audit program offered through the Universityof Georgia’s Engineering Outreach Services. “Most of our spaceis refrigerated, and all of our work areas are cooled. Electricityis one of our big expenses,” says Jerry, who handles shippingand receiving.

Earl says the family will stay in touch with Dunn. “The SBDCis a great resource. I’d recommend David to anyone trying to doan expansion or a startup. He’s been very helpful to us.”

And Dunn will look forward to their call. “Curtis Packinghas been around 60 years. The Branch brothers took over agood business and made it better, which is not always the case,”he says. “They’re an example to others.”

SUCCESSstories

Curtis Packaging Company

Expansion advice leads to other cost-savingplans for Tifton family business

Brothers (L-R) Jerry, Dan and Earl Branch

Pho

to b

y K

atie

Rei

sing




Tony Owens purchased The Fudge Factory in Dahlonegafrom his parents on its 25th anniversary. Five years later, thisretail manufacturer of scrumptious confections and chocolatesis celebrating another milestone anniversary with five full-timeemployees, sales growing in the double digits, a strong Internetpresence and plans to expand its products and services.

As far as consultant Ron Simmons is concerned, the youngerOwens’s success is way ahead of the odds. “Tony had a 17percent growth rate last year. He is flying in the face of the statisticthat 80 percent of small businesses fail to transition ownershipfrom one generation to the next.”

Simmons began consulting with John and Debby Owenson business management tactics in 1990, after they had ownedthe store several years. “Tony grew up in an entrepreneurialenvironment,” says Simmons. “He saw the life and liked it.”

“I grew up in the business,” agrees Tony. “But after college, Iwanted to gain experience in outside management and sales.”He opened the Nike Factory Store in Dawsonville and later soldengineered retaining walls. When his parents began discussingtheir retirement, they asked Tony if he would like to buy thestore. He brought his family home to Dahlonega, went to workin the store and began the transition.

Almost immediately, Tony realized he would need advice.Sohe contacted Simmons. “People facing a possible businesssuccession need to start talking and planning a lot earlier thanwe did,” says Owens. “Have a plan in place. When you’re inthe middle of running a business and your parents are ready toget out, it’s a tough time to start thinking: how are we going todo this?”

“Ron sent me to the SBDC’s entrepreneurship course,GrowthVenture, where I made contact with succession planningprofessionals from Gainesville that helped us work through thedetails of the sale. I wanted it to be structured in a way thatmade my parents comfortable stepping away from somethingthey’d been hard at work on for 25 years,” says Tony. “Once theground was laid for that, we moved forward.”

Simmons continued counseling the parents, too. “Ourprocess included educating the Owens about how they couldsell it to Tony without cashing out all at once. I counseled themthat once the sale was made, they needed to go on vacation andleave him alone for a while.” He also counseled Tony on hisbusiness plan and options for financing.

Upon assuming ownership, Tony hired a trained pastry chefto expand his product lines. After attending Maximum

Marketing, he changed the store’s marketing approach andlaunched a retail website. “This last year, our gross sales werehigher than the biggest year in our history, and our profits areup,” says Owens. “We’re a small operation, but we crank out alot of candy.”

Simmons finds the Owens story is instructive to others.“With entrepreneurial Boomers approaching retirement inincreasing numbers, the number of family ownership transitionswill only increase,” Simmons says. “An entrepreneur who wantshis or her children to take over should send them out to learnand be prepared, when they come back, to let them makechanges. The Fudge Factory is a success because Tony knowsthere are other ways to make his company work.”

SUCCESSstories

Tony Owens stirring up success

Photo by Jennifer M

axwell

The Fudge Factory

Succession planning transitions intosuccess for Dahlonega shopkeepers



SUCCESSstories


After leading an IT department thathad won several awards for anothertechnical firm, Mary Hester acquired LANSystems in January 2008. “We did thekind of IT work people needed,” saysHester, who sports both an M.B.A. and adegree in electrical engineering. “I wantedto take that experience and philosophyand formula – hiring engineers who couldtake complicated technical informationand communicate in easy-to-understandterms – and bring them to LAN Systems.

“I did not realize until later that yearthat a recession had been declared.”

Norcross-based LAN Systems providesIT consulting and computer systemsdevelopment, installation and mainte -nance support for small- to mid-sizedcompanies. “We focus on companiesthat need help navigating the computersystem they need to create and supporta competitive advantage,” says Hester.“We help them succeed.”

By the fall of 2008, new customerswere difficult to get and older clientswere retrenching, so Hester increasedspending in marketing and sales. At thispoint she realized she needed to dosome strategic planning to grow in theright direction. She started interviewingmanagement companies, “but none satwell with me,” she says.

Hester met SBDC consultant BobThiele at his strategic planning presen -tation at the Gwinnett Chamber ofCommerce. “Mary raised her hand andasked how much our service wouldcost,” he says. “When I said it was free,she said she wanted to talk to us.

“Mary was working from a soundbusiness plan and had hit the groundrunning,” he continues. “However, she hada lot of young, inexperienced employees

and was making all of the decisions onher own. A strategic thinker, Mary waslooking for an organized plan to help hercompany grow and increase its profitability.

Thiele and consultant SharonMacaluso, both of SBDC’s DeKalb office,conducted a series of strategic planningsessions with Hester and three of her keypeople in October 2010. They developedan overall direction and three-yearprogram to help LAN Systems grow.

Two staff members – Terry Hart andLauren Maxwell – attended FastTrac(now Grow Smart). Upon completingthe program, Hart was promoted toCOO and Maxwell to vice president ofsales and marketing. They continue toadvance as members of an SBDC CEORoundtable.

In 2011, LAN System’s revenue grew

38 percent and gross profit margin in -creased by 25 points, and Hester hashired five new employees. The team isagain winning awards, including its thirdyear as Best of Gwinnett in InformationTechnology and the 2011 Atlanta BBBTorch Awards in Community andCustomer Service.

“We believe in relationship buildingand smooth, steady progress,” says Hester.“From the moment we met Bob andSharon, we were very impressed. Theyshare our values, and the things we believeabout business just lined up perfectly.”

“Mary has taken full advantage of ourconsulting and training services and imple -mented the recommendations,” says Thiele.“We get a lot of satisfaction from clients likeMary who listen, follow throughand seegreat results as a result of their actions.”

Mary Hester saw her actions bring results

LAN Systems

Strategic planning leads Norcrosstechnology firm to greater profits

Photo by Jennifer M

axwell



SUCCESSstories

April Mitchell always knew she wanted to be a vet. “Dr.Taylor Bragg, who opened the Monroe Veterinary Clinic in1949, was friends with my parents. He was my childhood herofrom the age of three,” she says. “Being a vet was my only plan.”

After growing up in Dr. Bragg’s clinic, Mitchell worked therea few years after graduating from the University of Georgia’sCollege of Veterinary Medicine. “I always wanted to be the practiceowner,” she says.

Last March Dr. Mitchell fulfilled her dream when she purchasedthe clinic. Before negotiating the sale, however, she called SBDCconsultant Jeff Sanford.

“He helped me evaluate the practice, negotiate the purchase,work out a business plan and deal with the loan process. Hegave me great advice.”

“The way things work now,” she continues, “banks do notjust loan money. They use the valuation to determine whetherto finance the loan.”

Although the valuation was for the bank’s benefit, it can alsohelp the negotiations go smoother. “Both parties need to be realistic,which is where a thorough valuation comes in,” Sanford says.

Sanford leads the SBDC’s collaboration with UGA’s vetcollege to consult with veterinary practice owners and managers,

utilizing vet students on theirpractice management rotations.Assistance the SBDC provides mayinclude analyses of financials,feesand compliance, strategic marketingassessments and other activities tohelp owners understand the business.

After assisting Dr. Mitchell inher purchase of the business, morerecently he consulted with her onthe purchase of a building downthe street that will double the sizeof her practice. She and her staffmoved into the new clinic in February.

“Jeff brings a lot of support, great information, and he reallyputs a lot of time into his work,” says Dr. Mitchell. “He is awonderful asset to the veterinarians in our state. A lot of peoplewho do not practice in Georgia do not necessarily have a greatresource like him. We are really lucky to have him.”

“April’s genuine care for her patients and their owners andher resourcefulness in building a team of business advisors willdefinitely lead her on the path to success,” Sanford says.

Valuation aids vet clinic and pharmacyBy Jennifer Giarratano

Monroe Veterinary Clinic

It was Ron Cain’s financial planner who suggested he get avaluation on the Hall County pharmacy he has owned since 1988,Wauka Mountain Pharmacy, in Clermont, north of Gainesville.

“I really needed to get an appraisal of my business,” saysCain. “I had no idea what it was worth, but I needed to knowto plan for my family’s financial future.” After considering hissituation, he contacted Jeff Sanford of the SBDC.

The SBDC, in collaboration with the University of Georgia’sCollege of Pharmacy, provides consulting services that addressthe specific needs of pharmacy owners. This program is directedby Sanford, who conducts the analysis of the practice with thehelp of fourth-year pharmacy students while in their independentpharmacy management rotations.

“Jeff brought a team of two really nice guys – Jon Alligoodand Justin Hildreth – who came and spent a couple of dayswith us,” says Cain. “Before they came, I had sent Jeff all of myfinancial information. They did a walk-through of the pharmacyand took photos and notes. We had lunch and talked aboutthe business and our unique programs – including the diabetesself-management education and training we’re developing andfree multivitamins for children. They were really thorough. Whenthey came back, we spent another half day or longer together.”

The students helped gatherand analyze the information, putit into a valuation model, wrotethe report and presented Cain hisfinal valuation along with otherrecom mendations he requested.

“This process was so muchmore than what I’d expected,”says Cain. “They gave me so manymore ideas than I ever antici pated.It really inspired me to get working on my business.”

It also inspired Cain to make a generous contribution tothe College of Pharmacy to support the program. “I could seethat this program had given these students hope that theycould own a pharmacy one day. If it does nothing more thaninspire our young pharmacists to own their own businesses,then this experience would be worth it all for me.”

“What I like about Ron is that he is genuinely interestedand concerned with his patients and is always looking for waysto improve their health,” says Sanford. “Instead of just relyingon dispensing drugs, he and his staff are actively working onways to improve the quality of life in their community.”

Wauka Mountain Pharmacy

Photo by Jerem

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Photo by K

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April Mitchell

Ron Cain




Farming is a family business at Resaca Sun Feeds and hasbeen since Gus and Dell Moore began tilling the soil on theirGordon County farm in 1955. Today they and their sons, Joeand Tim; Joe’s wife, Martha; and their grandson, Andrew, notonly double-crop 8,600 acres, they have improved businessopportunities for nearby farms in the northwest corner of Georgia.

“We decided to add value to our crops by putting in an oilmill in 2006,” says Andrew. “In 2008 we had expanded andwanted to add more value to our sunflower and canola oilproduction. We realized that our customers were putting ourcanola and sunflower meals into their animal feed, so in thefall of 2010 we began to develop a plan to start manufacturinglivestock feeds.”

To buy the right equipment for this process, the Mooresneeded a loan. Their local bank suggested they call the SBDC,where they met consultant Jerry Sims. Andrew and his familyworked with Sims through the loan process, and Andrewattended SBDC’s FastTrac program.

“Andrew needed help with his business plan,” says Sims.“We worked extensively with him on financial modeling,developing standard costing and pricing of various feed lineitems and developing financial projections for three years.”

“Our plan put Resaca Sun Feeds in a cost-efficient positionto take its quality product to market at the best possible price,”Sims says.

SUCCESSstories

Resaca Sun Feeds

Updating accountingmethods adds greater valueto Resaca farm and mill

The feed operation has created 15 full-time jobs and,according to Andrew, its costs are pretty much on target withthe cost modeling they developed.

“Jerry provided a significant benefit coming into a businesswe didn’t know a lot about,” says Andrew. “Our farm had beena ‘back of the envelope accounting’ company – as long as wepaid our bills, we were good. Jerry helped us focus on accountspayable and receivables, variance cost accounting andproduction reporting. He worked with us until we understoodthose methods.”

Resaca Sun Feeds started its livestock feed production inJanuary 2011 and has already added a second production shiftand a 50-pound bagging operation. “We expect to double oursales this year,” says Andrew. Now running the mill 14 hoursa day, he says their goal is to run two full eight-hour shifts.

And clients like their natural products. “We go all the wayback to the farmer, to the ground,” says Andrew. “We’re locallyowned, grown and processed, and we use all-natural proteinand fats – no chemicals – in our processing.”

Updates made to Resaca Sun’s business processes will helpthe farm and mill prosper. “We have learned that accountingsoftware and a good accountant and bookkeeper are veryimportant. Spend the money you need to do it right,” saysAndrew. “Every business owner wants to do everythingthemselves. It is easier and more cost effective to put the rightpeople in the right places to do the work.”

“Andrew is one of my most dynamic clients,” says Sims. “Ijust pass him the ball and he’ll run for a touchdown.”Andrew Moore keeping family business growing

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Resaca Sunproducts are

natural -- "all theway back to the

farmer," saysAndrew Moore



SUCCESSstories


The word “service” fits ZebWorley like a favorite pair of jeans.Service is his leading philosophyand practice, not only as a smallbusiness owner, but in his volun-teer and charitable engagementwith his community. However,Worley has learned that goodservice alone does not build athriving business.

Worley built and sold a tirebusiness before forming WasteAway Services, LLC, a commercialand residential waste hauler, in2005. This Elberton businessserves about 1,900 customersin Elbert and Hart counties withthree garbage trucks and sixemployees. In 2007 WorleycreatedWaste Away Portables, LLC, to rent and service portablerestroom units. “I’ve always been drawn to service-typebusinesses over retail,” he says. And he credits the SBDC forputting his companies on the path to sustainable growth.

“Zeb came to us looking for help with his collection processes,cash flow and projections, developing a loan package, andQuickBooks,” says his consultant, Kay Remar, of the Athensoffice of the SBDC.

“Given the current economic climate, many of Zeb’s customershad fallen upon hard times and were unable or unwilling to paytheir collection fees. Although the thought of cutting servicepained Zeb to the core, he knew that he had to do what’s rightfor his company and the families that rely upon him,” says Remar.

The company installed a new policy requiring payment ofpast due charges before reinstating service to delinquent customers.“His delinquencies improved, and Zeb was again able to maintainthe high level of service that his customers expect,” Remar says.

“Kay will tell you up front, ‘I may not tell you what you wantto hear, but I’ll tell you the truth,’” says Worley. “She pointedout that my receivables were too high and we were doing toomuch without getting paid. That and trying to control our rapid

growth were our big issues. If I had waited too much longer tosee the SBDC, the wheels would have run off the cart.”

“Zeb’s customer growth was outpacing the services he couldprovide,” agrees Remar. Working with her, Worley wrote a businessplan that enabled his company to tap into the state’s OneGeorgiaAuthority’s Entrepreneur and Small Business Development(ESB) loan guarantee program. With loans from Pinnacle Bank,he purchased new trucks and containers as he grew.

“OneGeorgia is awesome, and Pinnacle has always workedwith us,” says Worley. “But after Kay showed us how importantit was to keep our financials up-to-date, I noticed it was a loteasier to get approved.”

Worley now shares his experiences with other small businessowners as a member of the Terry Entrepreneur Society at theUniversity of Georgia. He is also a member of the SBDC’sAdvisory Board.

“I can’t say enough about the SBDC. It is an asset to ourstate,” he says. “If it wasn’t for Kay, we’d be out of business.”

“Zeb Worley is one of the smartest business owners I know,”says Remar. “He reads a lot, listens, gets advice from other people,then implements what he learns. He is a great example to others.”

Zeb Worley of Waste Away Services

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Waste Away Services

Elberton business owner learnssustainable practices for service delivery



Pobst also worked with Rose on her organizational structureand her financials and helped her develop key performanceindicators.

“Torey is a success because she’s passionate about hercompany,” says Pobst. “She is extremely quality conscious andvery passionate about going out there and finding the rightclients for her premium product.”

With 30 staff and growing, Rose plans to move to a largerfacility this year. “YSS is a great example of a manufacturingfirm that continues to grow and create good jobs in GwinnettCounty,” says Pobst.

“Gloria continually gave me things to think about and workon, while recognizing that YSS was still my business,” saysRose. “When I didn’t make changes, she would keep bringingit up. The SBDC provides wonderful mentors.”


Torey Rose never dreamt that when she began designingand sewing custom uniforms for her high school’s athleticteams that she had started a global business. Nearly 20 yearslater, YSS Athletics – a business she started in her living room– takes orders from athletes and teams around the world.

YSS Athletics now manufactures its premium Made inAmerica product in a facility in Snellville. A lean sales teamblankets the domestic market for new customers. Rose creditsthe SBDC with helping her make the changes necessary to getto this point and plan for future growth.

“I was a teacher when our principal asked me to make theuniforms. I don’t come from a business background,” saysRose. “I recognized that I would need help when YSS startedgrowing to the point that I didn’t know what to do with it.”

She joined the Gwinnett Chamber of Commerce andattended its monthly Metro Atlanta Entrepreneur Program.There she found a brochure for the SBDC’s FastTrac programand signed up to attend. At FastTrac she was matched withSBDC consultant Gloria Pobst.

“Torey was looking to expand her manufacturing facility andimprove the overall management of her company. She reallywanted to make some changes,” says Pobst. “She felt like manyof our participants do at first: overwhelmed, with so much todo. I helped her prioritize what she needed to change, and webegan working on different items.”

“I had to address several growth-related challenges,” agreesRose. “Every week at FastTrac I learned that there was somethingI needed to change immediately. The training helped merecognize that if I wanted my company to be different, I had tostart thinking differently. I had to think as a business ownerand not just as someone making uniforms.”

Rose first targeted her sales and marketing for improvement.“When I started the company, we made apparel for every typeof sport,” she says. “As time progressed, I hired sales peoplewith strong contacts in specific sports, not recognizing that theywould not leave their comfort zones to sell in other markets.Very quickly we changed from year-round into a seasonalcompany.

“Gloria helped me understand the steps I needed to take tomake one of my most important changes. Staffing strategicallywas very difficult, but was probably the best change I made,”she says.

YSS Athletics

Strategic staffing extends sales year-roundfor Snellville uniforms manufacturer

SUCCESSstories

Torey Rose of YSS Athletics

Photo by Jennifer M

axwell



Marketing was developed for the state’s Entrepreneurial FriendlyCommunity Initiative by Kyle Hensel of the Georgia SBDC Network.

Develop marketing unique to your business “During our interactive course, business owners are taught

what marketing is, how to identify their customers, traditionaland new ways to reach their markets and selling techniques,”says Simmons. “They leave the course equipped to develop atrue marketing plan.”

“In the first class we go over mission statements, showingowners how the statement they make helps define what they aredoing and why,” adds Gossage. “In some cases this knowledgehelps them restructure their business.”

Small business owners from Cleveland, Sautee, Dawsonvilleand Helen joined Graves in the course taught in Helen. Theyleft with takeaways that helped them improve their marketingand processes and build their businesses during an anemiceconomy.

Graves had founded his business and mission around apersonal philosophy recognizing tools, resources and communityas the most important business building blocks. “Since mid-2008, we have needed an effective way to manage the synergywe built,” he says. “Maximum Marketing helped me connect tothe community and access the tools and resources we neededto be profitable and to give back.”

“Our course was clearly a catalyst for helping Forrest getconnected with his community,” says Gossage. “It also introducedhim to lenders and other resources like Tom O’Bryant of Georgia’sDepartment of Economic Development, who has been instru -mental in helping our business community access the technologyinfrastructure they need to plug into more opportunities withbroader bandwidths.”

“Maximum Marketing was time well spent, and there weremany advantages, but perhaps our biggest takeaway was how totruly identify our customer,” Graves says. “I think most businessprofessionals have a general misconception that ‘everyone istheir customer.’ Nothing is further from the truth. Knowing ourcustomer has been a tremendous asset in helping us manageourgrowth.”

Identify your core customersInsideOut Sautee, Sheilah Welsch’s home furnishing, decorative

art and custom picture framing business, was less than a yearold when she attended Maximum Marketing with Graves. “Iwanted to learn how to draw more people to my storefront,”

SUCCESSstories


JumpinGoat Coffee Roasters has experienced tremendousgrowth since owner Forrest Graves opened its Internet store in2008. In fact, within three months, sales were so brisk that Gravesquickly outgrew his manual operation and moved to moreautomated processes. Five months later he opened a retail storein the Nacoochee Village on the Chattahoochee River in Helen.

From the beginning, JumpinGoat’s sales have increasedmore than 100 percent every year. This growth is one of thecompany’s two biggest challenges, Graves says, along withunderstanding who his customers are.

“Many people would believe that runaway growth is a goodthing, and on the surface it certainly has its advantages,” hesays. “But the reality is that this type of growth is not sustainable.And not knowing the profile of your customer is equallyproblematic.”

Graves decided he needed help and turned to the GeorgiaSBDC. He joined other business owners who attended theSBDC’s Maximum Marketing course in 2010. Taught by consult -ants Dede Gossage and Ron Simmons, it was funded by aOneGeorgia grant targeting small businesses in areas like WhiteCounty that would benefit from the instruction. Maximum

Maximum Marketing

SBDC Program Helps Small BusinessesMaximize Their Success

Forrest Graves of JumpinGoat Coffee Roasters

Photo by Jerem

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she says. In class she met other business owners who helpedher establish herself in the White County community and, likeGraves, she learned how to decipher her customer base so shewould know how to reach them.

“My business is primarily art and framing plus events,”Welsch says. “I am now focusing on American-made, mostlylocal pottery and handmade jewelry. This emphasis on localartists will create a niche for my gallery and draw morecustomers to my door.”

“Sheilah broadened the spectrum of her services after theclass, which opened up a whole world of other opportunitiesfor her,” says Gossage. “She also now does a great job at reachingher customers through social media, the Internet, ConstantContact emails and just getting the word out. She has increasedher inventory due to an increase in her market share.”

“I learned that social media is the advertising wave of thefuture,” says Welsch, who has created Facebook pages andfocused ads to publicize her events and the greater Sautee area.“I have also learned that doing a few things well is better thandoing too many things inadequately.”

Fine-tuning turns your revenue to profit“Maximum Marketing made me realign my entire business,”

says Deana Adams, owner of The Clipping Post in Cleveland.“I had started out as a tack and feed company, but that wasjust costing us money. There’s almost no markup on a bag offeed.”

Working with Simmons, Adams learned to figure out hermargins and found she was losing money, so she changed herbusiness model. She had begun supplementing her businesswith pet grooming a year earlier, and through word of mouthit was growing and carrying the feed business. She decided toconsolidate.

“For the class I pulled the information from my financials.I had everything in my computer and could track the numbers,but I had not been watching them,” says Adams. “When I lookedat the industry as a whole, I realized that people still spendmoney on dogs and cats, buying food, toys and getting themgroomed. I eliminated the items costing us money and takingup floor space, scaled down to 1,000 square feet, and nowfocus on the pet items that sell.”

For the first time, Adams reports, her profit margins arenetting between 40 and 60 percent. Her staff has doubled, andby the end of the year she hopes to employ another bather andgroomer.

“I decided to go to Maximum Marketing because I realizedwe could make some improvements,” she says. “I believe nowthat it helped save my business. We have a long way to go inthis economy, but the future is a lot brighter.”

Donna Blocker has 13 years in the insurance business.When she opened Blocker Insurance in Cleveland in 2008, sheneeded help defining her customer base and learning how tomarket to potential customers over the Internet. After attending

Maximum Marketing, Blocker was able to identify her mostinfluential target market and prequalify her customers. Shecreated a Facebook page, began advertising in membershipdirectories and developed an online advertising presence.

And the results? In July 2011, Blocker Insurance opened asecond office in Dawsonville, and her business jumped 20percent. Her projected three-year growth is 50 percent. “Socialmedia is an important trend in this business,” she says. “Aftertaking the class, we knew how to use it to build our brand andmaintain stronger relationships with our customers. It works!”

The takeaway from Maximum Marketing for Mike McCall,director of golf for Innsbruck Resort in Helen, was learning thevalue of the phase “prospects versus suspects.”

“We taught him how to better define his market demographicso that he could reach his audience more effectively,” saysSimmons, who gave McCall perspective on finding and targetinghis best markets with tools like Google analytics.

Simmons and Gossage also showed McCall how to managehis database and target lists and how to categorize his targetcustomer groups to help him develop the most effective messagingfor each, how to query for customer sales and profitability, andbecome more focused on his margins.

SUCCESSstories

Sheilah Welsch of InsideOut Sautee

Photo by Jerem

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McCall incorporated the margin information into his profitand loss statement, which allowed him to focus on increasing hisgross ticket per player and increase the company’s net earnings.

Market year-round for best impactKingdom Kids Learning Academy of Cleveland was about a

year old when Tom Harbst attended the Maximum Marketingclass in Helen.

“We built a brand new pre-school and offered the best services– education, safety, Christian-based child care – in the area. Sowhy didn’t the families come? Newspaper advertising wasyielding zero results. When the Chamber of Commerce contactedus to promote this class, I accepted, hoping to find better waysof reaching our prospective customers and encouraging themto come to our business,” he says.

The course taught Harbst and his wife Amy to scheduletheir marketing activities on a yearly basis and to plan ratherthan react. “It forced us to be more creative in our marketingefforts and not to rely on just one method or medium, as wewere doing with the newspaper,” he says. Their marketingefforts now include community activities, like decorating theirbus for an Easter Parade, special events, social media, weeklyupdates of their webpage and direct mail.

Harbst reports the enrollment at Kingdom Kids has remainedlevel even while competing institutions have lost enrollment.“This gives us incentive to only try harder,” he says, “and as wecontinue to build brand awareness and our reputation, we willbe in a better position to grow.”

SUCCESSstories

T h e G e o r g i a S B D C N e t w o r k www.georg iasbdc.org

State Office (University of Georgia)706-542-2762Albany (University of Georgia)229-420-1144Athens (University of Georgia)706-542-7436Atlanta (Georgia State University)404-413-7830Augusta (University of Georgia)706-721-4545Brunswick (University of Georgia)912-264-7343

Carrollton(University of West Georgia)678-839-5082Columbus(University of Georgia)706-569-2651DeKalb(University of Georgia)770-414-3110Gainesville(University of Georgia)770-531-5681Gwinnett(University of Georgia)678-985-6820Kennesaw(Kennesaw State University)770-423-6450

Macon(University of Georgia)478-757-3609Morrow(Clayton State University)678-466-5100

Rome/Dalton(University of Georgia)[New location! Call StateOffice or visit website]

Savannah(University of Georgia)912-651-3200Statesboro(Georgia Southern University)912-478-7232Valdosta(Valdosta State University)229-245-3738

Forrest Graves recently taught a social media class for theWhite County Chamber. He used what he learned in his SBDCtraining in 2010, to which he attributes his continued success.

“When you take Maximum Marketing, you walk out witha better awareness of who your customers are and how to reachthem effectively,” he says.

Deana Adams of The Clipping Post

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these serve as solutionsthat ultimately reducea customer’s expensesand maximize income.

Bank of NorthGeorgia encouragesteam members to takean active interest in thecommunities where theylive and work and manyserve in leadership roleswith local non-profit andcivic boards. For example,in North Fulton, the teamtakes great pride intheir involvement withorganiza tions like the Greater North Fulton Chamber ofCommerce, Historic Roswell Convention & Visitors Bureau,Habitat for Humanity North Central Georgia, GeorgiaEnsemble Theatre, Senior Services North Fulton, enAble ofGeorgia, Inc., Child Development Association, North MetroMiracle League, and many others.

In fact, collectively the bank’s 480 team members con -tributed more than 6,900 volunteer hours in the communitiesthey serve in 2011 alone. The bank also takes great pride inpartnering with local schools and food banks by collectingover 4 tons of peanut butter and jelly during the annualPB&J Food Drive held each April and collecting more than2,500 toys during the Holiday Toy Drive in December.

Bank of North Georgia will always maintain its commu-nity bank philosophy and will continue to partner with localresidents and businesses to help them meet their financialneeds and goals.

Bank of North Georgia’s team offers more than justfriendly service with a smile; they genuinely care about theircustomers. They take great pride in embracing a uniquecommunity bank philosophy and culture while having theability to offer their customers a full spectrum of financialservices. These personal touches – in addition to the friendlystaff – create a special environment where customers oftendrop in just to say hello.

With corporate offices located in the heart of Alpharetta,Bank of North Georgia, a division of Synovus Bank, has 40branches located in 16 counties in metro Atlanta. The team isproud to serve local businesses throughout metro Atlanta andbeyond, offering a full array of banking products and servicesto meet the needs of the smallest to the largest businesses.Plus, they are empowered to make immediate decisions onimportant issues such as quick turnarounds on loan approvals.

Led by President and COO Rob Garcia, Bank of North Georgiaembraces their longstanding, core ideals in serving the complexneeds of business owners by delivering a solutions-basedapproach to banking versus a product-based approach.

“What you do with your products is really what differen -tiates you in the market,” says Garcia. At Bank of North Georgia,our bankers are committed to delving into all components ofeach customer’s business in order to gain a clear understand-ing of every facet of the business operations.”

“We work very hard to get to know our customer’s business,and then we customize a plan utilizing the best products andservices that match their needs,” says Garcia. “So products forus are just the ‘tools’ that we utilize to give our customers aneffective and customized banking solution.”

Bank of North Georgia receives most of their new busi -ness from referrals and repeat business from customers whoappreciate that the bank doesn’t look at them as ‘just anotheraccount’, but rather is focusedon forming lasting relation -ships with their customersand the community.

Some of the productsgeared to their business cus -tomers include asset-basedlending, SBA lending, commer -cial mort gages, equipmentloans, lines of credit, and more.These lending products, com -bined with the bank’s treasurymanage ment products andservices, allow Bank of NorthGeorgia to effectively managetheir customers’ money andworking capital. Collectively,

Community banking is still alive at

Bank of North Georgia

Small Business Partners special sponsored section

Rob Garcia, President and COOof Bank of North Georgia

SBG-Advertorial-p.35-37.qxd:GT.April 4/16/12 2:13 PM

special sponsored section Small Business Partners


International trade is good for Georgia, and even betterfor small businesses. Georgia’s growth in international tradein recent years has been significant, and that’s largely due tomore and more small business es becoming aggressive par tic -ipants in the global market place. Just this year, the GeorgiaDepartment of Economic Development received federal funding

to help build aware -ness of the importanceof export ing and theavailability of existingand new services forsmall businesses inGeorgia.

This new program,Georgia Reaching Out

Worldwide (G.R.O.W.), is administered by the team inGeorgia’s International Trade Division. The G.R.O.W. initiativeis aggressively working to motivate Georgia small businessesinterested in exporting to take the next step. The program’sultimate objective is to inform small businesses of the varietyof services Georgia provides, increase the number of Georgia’ssmall businesses exporting and reinforce the value of exportingto small businesses already exporting.

The G.R.O.W. program provides new export services andreduced fees for existing export services to qualifying busi -nesses. Statistics indicate that exporting creates twice asmany jobs as domestic trade. Trade helps Georgia small &medium businesses:

• Reduce their business risk by getting connected todiverse markets.

• Increase their products’ life cycle by introducing themto new markets.

• Increase their profits, as added sales volume throughtrade will lower production costs.

• Stay on top of competitive intelligence throughexposure to innovation and competition abroad.

For more information and to apply for the G.R.O.W. program,companies should visit http://trade.georgia.org.

Small Business:

Leading the way through

international trade



Outreach and service are deeply ingrained in theUniversity of Georgia’s history. Established as the first publicuniversity in 1785 and later designated as a land-grant univer -sity under the Morrill Act of 1862 and as a sea-grant universityin 1980, UGA’s commitment to service is long and deep.

Today, UGA is a national leader in university outreachwith faculty and staff throughout the university contributingto Georgia’s short- and long-term prosperity. In addition,eight Public Service and Outreach units focus specificallyon serving Georgia:

• Archway Partnership• Carl Vinson Institute of Government• Fanning Institute• UGA Center for Continuing Education • Marine Extension Service• Office of Service-Learning• Small Business Development Center • State Botanical Garden of Georgia.

Through the work of these units, faculty and staff serveevery county in Georgia and well beyond, helping to positionGeorgia as a competitive force regionally, nationally andinternationally.

Helping Georgia Prosper Whether it is helping a government become more effici -

ent, a small business to thrive, a fishing industry to adjustto the effects of sea-level change, or an individual to becomea better teacher, leader or even gardener through professionaland personal development opportunities, Public Serviceand Outreach contributes to Georgia’s well-being.

Strong quality of life is important to a community for itsown sake and also as a key factor in attracting businesses.Through strategic partnerships with governments, busi -nesses and communities, Public Service and Outreach helpsidentify and accomplish goals that ultimately improve thequality of life for Georgians.

UGA Public Service and Outreach:

Making a Difference in Georgia

We help communities prepare for prosperity in moredirect ways as well, from assisting a community witheconomic development plans to helping a business orindustry adjust to demographic changes. In the same waythat we bring resources together from across theuniversity to address specific issues or needs, we knowhow to build an effective team of community stakeholderswho can work together toward achieving common goalsand making decisions that affect economic well-being.

Even more directly, Public Service and Outreach programsthemselves have an economic impact throughout thestate—$333 million annually according to a recent study.In addition, UGA’s Public Service and Outreach programssupport 3,370 jobs.

Developing Tomorrow’s LeadersAssisting communities with economic development

planning is just one aspect of helping Georgia prosper.Everything depends on preparing Georgia’s leaders for theglobal knowledge economy.

UGA works diligently to prepare today’s students tobecome tomorrow’s leaders. Public Service and Outreachunits enhance the academic education of students by involv-ing them in real-world experiences locally, nationally andinternationally. More than 8,000 students participated inservice-learning courses, internships and other serviceprograms last year. These are the students who will emergecarrying values that will make them effective leaders andengaged citizens.

Public Service and Outreach carries education outsidethe classroom in other ways as well. Through a wide rangeof educational programs, Georgians of all ages can learnskills and knowledge that help them in their careers andtheir personal lives as well as benefit their communities.From programs engaging school children in horticulture ormarine life education to professional development programsthat help government and community leaders becomemore effective, Public Service and Outreach extends theteaching mission beyond the university campus to everyGeorgian.

Making a DifferenceIt has been said of UGA that all roads lead to Athens.

Better said, the road runs both ways. The university’s manyand varied Public Service and Outreach programs takeUGA to all of Georgia, and they bring back first-handknowledge of issues and opportunities facing the statethat helps inform teaching and research. Through PublicService and Outreach, UGA is making a difference thatmatters.

Small Business Partners special sponsored section


special sponsored section Small Business Partners


businesses around the state an increased support networkthat provides helpful services in a broad range of issue areas.”

Key components of the new small business programinclude: advocacy for legislative issues directly impactingsmall business; an educational program including webinarson key business topics; an online community to network andconnect with other businesses to share ideas, best practicesand gain exposure; and, a resource center for companies seek-ing information on topics such as financing and permitting.

The Council enhances member benefits currently beingoffered, including: access to a complimentary HR / LegalHotline; discounts on HR manuals and federal regulationposters; a complimentary listing in the membership direc -tory; promotional opportunities for member businesses;reduced prices on memberevents and webinars; and,office supply discountsthrough Office Depot.

For more information,visit www.gachamber.com.

With 98% of businesses in Georgia considered smallbusiness, this growing sector plays an integral role in thestate’s long-term future. To help these companies succeed,the Chamber has formed a Small Business Advisory Council.Comprised of entrepreneurs and small business owners,the Council designs programs and identifies resources tomeet the needs of the small business market in Georgia.

“Georgia’s small businesses are the companies thatwill ultimately generate the jobs and economic growth ourstate needs for a long-term recovery and a strong future,”said Doug Carter, the Chamber’s 2011 Board Chairman andhimself a small business owner. “We have designed ourSmall Business Advisory Council to be a support networkfor members that offers timely resources to help them sustaincurrent business and take advantage of new opportunities.”

“These last few years have been extremely tough andhave forced many entrepreneurs to either delay plans forexpansion or end them altogether,” said Small BusinessAdvisory Council Chair Brett Virgin, President of PeachtreeBenefit Group. “This Council has been designed to give small

Georgia Chamber Focuses on Small Business

Small Business Resources Guide

First StopThe First Stop Business InformationCenter in the Georgia Secretary ofState’s office provides the smallbusiness owner and the prospectiveentrepreneur with a central point ofinformation and contacts for stateregulatory requirements foroperating a small business. Individualsand businesses can use the center todetermine what licenses and permitsmust be obtained and maintainedto operate in Georgia. For information, visit the First Stopwebsite atwww.sos.georgia.gov/firststop orcall 404-656-2817. Georgia Entrepreneur & Small Business ProgramsThrough the Georgia Department ofEconomic Development (GDEcD),the state offers a number of servicesspecifically to help small business andthe aspiring entrepreneur. GDEcDprovides small companies withresources and connections toindustry, financial and technologyexpertise. The department worksto provide these businesses withinformation on tax credits, exemptionsand incentives. Small businesses inGeorgia can also leverage GDEcD’sglobal resources, including exportassistance that includes market

diversification, international market -ing, and trade show and trademission opportunities. For information, contact:Georgia Department of Economic Development Entrepreneur & Small Business Development 404-962-4820www.georgia.org/smallbusinessSBA — Loans, Counseling & MoreThe primary federal agency for smallbusiness is the U.S. Small BusinessAdministration (SBA), which providesguaranteed small business loans andhas mountains of information for theaspiring small business owner. SBAalso supports two organizationsproviding one-on-one counseling andlow-cost workshops: the GeorgiaSmall Business Development Center(SBDC) network, with officesthrough out the state, and SCORE, avolunteer small business counselingassociation. The main Small BusinessAdministration website, SBA.gov,provides small business owners andentrepreneurs with the resourcesthey need to help them succeed inbusiness, including a variety ofonline trainings.

U.S. Small BusinessAdministration (SBA)Georgia District Office404-331-0100www.sba.gov/gaGeorgia SBDCwww.georgiasbdc.org(For a list of Georgia SBDC offices,see Page 34.)

SCORESCORE provides free, one-on-onecounseling to potential entrepreneursand mentoring to those who decideto start their own business. For thosealready in business who are havinga problem, SCORE volunteers areavailable to help. Counseling is avail -able in person, by phone, via emailand on the Web. To find out moreabout SCORE, call one of theSCORE offices or check the SBAGeorgia website atwww.sba.gov/ga or the SCORE Atlanta website atwww.scoreatlanta.org. SCORE canalso be found on the Internet atwww.score.org. SCORE Offices in GeorgiaSCORE Atlanta has some 75experienced business mentors inthe metropolitan Atlanta area. Themain office is located in downtownAtlanta at Harris Tower, Suite 1900,233 Peachtree St. Other metro

Atlanta SCORE offices are locatedin Cobb County/Marietta, FayetteCounty/Fayetteville, Forsyth County/Cumming, Fulton County/Alpharetta,Gwinnett County/Buford, HenryCounty/McDonough, RockdaleCounty/Conyers, Spalding County/Griffin, Sign up for an appointmentat any of these offices, and the FanninCounty/Blue Ridge office, at theSCORE Atlanta website.404-331-0121www.scoreatlanta.org Other SCORE offices in Georgiaare located in:ALBANY Albany Area Chamber of Commerce229-434-8700www.albanyga.com/score.htmlAUGUSTA 706-793-9998 www.scoreaugusta.orgCOLUMBUS 706-596-8331 http://columbusga.score.org/MACON / BIBB COUNTY Greater Macon Chamber of Commerce 478-621-2000 SAVANNAH 912-652-4335 http://savannah.score.org/

If you’re ready to start your own small business, or looking to expand your existing business, there are many resources available in Georgia to help.


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