Revising Business Practices

A Mathews County based pest control company that specializes in all aspects of pest management that includes, but is not limited to, termite, moisture, powder post beetles and general pest control provides services to contractors, real estate agents, commercial properties and local homeowners. The current owner who had accumulated over five years of experience in a nationally recognized chain started the company in 1996.

The firm managed to operate in a profitable manner, yet constantly showed a negative net worth on its balance sheet. The owner came to the Small Business Development Center’s Hampton office to seek professional assistance to enable him to obtain a loan for business expansion purposes.

Following a January 2003 meeting, the owner and the SBDC counselor worked diligently in analyzing the current state of the business and in drafting a business plan that could be implemented and followed. Recognizing that this would take time away from operating his business and generating income, the owner brought the company’s business manager into the picture and she continued the work that had already begun.

In the ongoing regimen of counseling and training, the business manager received information and assistance in four key areas. They included: (1) the development of a business plan, (2) how to compile a cash flow spreadsheet, (3) how to package a loan request, including a sample checklist and, finally, (4) how to manage the business in a more efficient and effective manner.

By taking advantage of the assistance offered by the SBDC, the company was able to achieve the following results:

- Maintain a positive net worth on an ongoing basis
- Fulfilled all existing and back debts and obligations
- Upgraded office equipment to better manage the company
- Maintain a ready supplies of chemicals and stock in inventory instead of relying
   upon day-to-day purchases
- Purchased an additional van for customer service.

Both the company owner and business manager state that the information and assistance provided by the SBDC counselor enabled them to make informed changes within the company’s structure and practices that enabled the business to grow and prosper rather than continue along its former unprofitable manner.