In October, 2007, Wayne & Annette Wright purchased a 25-year old, million dollar/yr. commercial painting company located in Denver. The purchase was made with a personally guaranteed SBA loan, a HELOC loan on the family’s home and nearly $100K cash from their savings account. After six months of attempting to get a handle on the business, Wayne saw the business in a free flight toward failure. A friend suggested contacting SCORE for help.
Wayne’s background included successful sales and management positions with well known paint manufacturers. He was confident that he could transfer his success from the corporate world to a small business like this old line Denver painting company. Wayne had the confidence that he could grow the business to several million in a few years but little did he know that his blinders, the recession, and his burning desire to acquire his own business were going to be such a challenge.
It was apparent to the SCORE Counselor during their first meeting that extensive “due diligence” was not acted upon by Wayne even though he had the assistance of an attorney, business broker and CPA . Most of the equipment and inventory that was included with the 10,000 sq. ft. warehouse was either broken or unusable, and the warehouse was an unnecessary burden for the business.
After more than 100 sessions with the SCORE Counselor, he found Wayne a very cooperative and willing client that was able to take suggestions and make them a reality. The SCORE Counselor engaged other Counselors at times for assistance with specific issues.
Wayne’s business now is operating with a new business model: the office operates from a much smaller facility, the office staff has only four professionals instead of 30 non-professionals, and of course last year’s bottom line net profit margin was well above the national averages for this industry.