Runners Delight

A life-long runner wanted to turn his interest into a retail store focused exclusively on the needs of runners. He needed guidance on how to proceed and he was referred to his local SBDC by several contacts with area banks.

The Center first advised him to construct a cash flow projection in order to determine if his idea could return him enough to make it worth his effort. Once the feasibility was established he was guided through a business plan. This process covered the last six months of the year. In early 2002 we started discussing how to approach a bank. The client had enough investment in real estate to collateralize the loan. In early 2002 the client had several bank proposals and we discussed the merits of each and he chose a bank. A year after coming in to the Center he opened his store.

He obtained a loan for over $60,000 and invested close to $40,000 of his own into the business. By the end of 2002 he had obtained gross sales in excess of $74,000 for his first six months of operation, which was a little ahead of his projections. Now a year and a half later he is still in business and has expanded his floor space to double what he originally had.