Success Stories
Key Resources
Dream Realized
Roy Magsamen, RM Small Engine Repair, LLC
With SBDC assistance, mechanic realizes dream of business ownership
Roy Magsamen had been repairing small engines for nearly 20 years when he
decided to move his engine repair workshop out of his home and launch a
full-scale business. Before leaving his employment as service manager for an
auto retailer, Magsamen wanted assurance that he could earn a living as an
entrepreneur. He needed to learn more about how to predict the success or
failure of his proposed business.
A radio announcement of a grant-funded
Business Plan Boot Camp offered by the University of Wisconsin-Whitewater Small
Business Development Center (SBDC) inspired Magsamen to contact the center and
enroll in the program.
The Business Plan Boot Camp guides course
participants through the process of writing a business plan and introduces them
to business ownership fundamentals. It enables participants to evaluate the
viability of business ideas and provides the skills and knowledge needed to
start and run a business.
"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," Magsamen said.
As part of the Boot Camp program, Magsamen, with
assistance from SBDC director Ronald "Bud" Gayhart, completed financial
statements showing projected cash flow, income and expenses for the first three
years. Looking at these projections, Magsamen discovered that his business, as
planned, would not be profitable. Breaking into the market as a newcomer with
few customers seemed too risky.
It looked like Magsamen's dream of
running a small-engine repair business would not be realized. Though
discouraged, he felt relieved that he had gone through the Boot Camp and made
this discovery before quitting his job.
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 Ace's outdoor power
equipment sales and service. They wanted to get out of the business of selling
and repairing equipment and knew they could trust Magsamen to take good care of
their longtime customers.
Excited at this turn of events, Magsamen
returned to the SBDC. With Gayhart's help, he revised the financial projections
to reflect the benefits of having connections with Ace Hardware's equipment
suppliers and customers. The numbers looked good, and with the revised business
plan completed, Magsamen was ready to apply for an SBA guaranteed loan.
"Bud Gayhart really put things into perspective and helped me each step of the
way," Magsamen said when asked about the impact the SBDC had on his success as
an entrepreneur.
A few months later, with the loan received and RM Small
Engine Repair open for business, Magsamen expressed optimism about the future.
"As one of only a few small-engine repair shops in the area, I know I will be
busy," he said, "I anticipate hiring employees later this year. It's good to
know that I can call the SBDC any time I need assistance as my business grows."
RM Small Engine Repair website: http://www.rmsmallenginerepair.com
To request SBDC assistance for your business, click here and complete the online Request for Assistance form or call 262-472-3217.
