Opportunity to profit seized with help from UW-Whitewater SBDC

Roy Magsamen had been repairing small engines for nearly 20 years when he decided that he wanted to move his engine repair workshop out of his home and launch a full scale business.  Before leaving a position as service manager for an auto retailer, Magsamen wanted some assurance that he could make a profit in his new business.

That’s when he enrolled in the “Opportunity to Profit Business Plan Boot Camp” offered by the UW-Whitewater Small Business Development Center. The Boot Camp takes course participants through the process of writing a business plan and introduces them to business ownership fundamentals.

“The Business Plan Boot Camp was a real eye-opener in terms of letting you know that you can’t just turn the key and go,” said Magsamen. In fact, when he completed the three-year financial projections for his business plan, Magsamen discovered that his business, as planned, would not be profitable. Though discouraged, he was glad that he took the course and made this discovery before quitting his job. It looked like his dream of running a small engine repair business was not going to be realized.

But then Magsamen’s connections in the community presented him with a golden opportunity. The owners of the local Ace Hardware store approached him about taking over their outdoor power equipment sales and service. They wanted to get out of the business of selling and repairing equipment, and they knew they could trust Magsamen to take good care of their longtime customers.

Magsamen returned to the University of Wisconsin-Whitewater Small Business Development Center where he and center director  Ronald “Bud” Gayhart revised his business plan to reflect the benefits of having connections with Ace Hardware’s equipment suppliers and customers. The numbers looked good and Magsamen was on his way to applying for an SBA guaranteed loan.

Now, with his loan received and the doors to RM Small Engine Repair open for business, Roy Magsamen is optimistic about the future. “As one of only a few small-engine repair shops in the area, I know I will be busy. I anticipate hiring employees later this year.”

Magsamen’s willingness to take a risk and launch RM Small Engine Repair has provided the perfect solution to what may have been a significant problem in the radius around Fort Atkinson. He is providing a much needed service and living his dream, having found his “Opportunity to Profit” and acted on it.