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KB Insurance Group

Ken Brengle is the owner of KB Insurance Group, headquartered in Cortez, CO.  He studied business at Fort Lewis College.  Outside of class, Ken did a lot of self study and sold cell phones at a local store.  He was inspired by his business professors who became successful and moved to Durango for a better quality of life.  Ken learned he was a good salesman, and with a sufficient income he thought, “Why should I pay thousands of dollars for college when I was making good money?  I decided to leave school and continued to learn on my own.”

Ken moved on and acquired business skills he believed would be useful.  He obtained a real estate license, worked for a credit card processing company, and sold cars.  His desire was to be his own boss and work in a professional setting.  His cousin, Aspen, owned an insurance business in Durango.  One of her job requirements was to recruit insurance agents.  Aspen recognized Ken’s skill set and potential.  She told Ken the insurance industry would be a good fit for him.  Ken took her advice.  He saw that he could utilize his entrepreneurial spirit, sales experience and become his own boss.  Ken obtained his insurance license two weeks after Aspen’s recommendation.

Opportunity soon followed.  An acquaintance of his was a member of the Rocky Mountain Farmers Union.  She was in Washington, DC for a Farmers Union conference.  A district manager for the insurance company asked her if she knew of someone who would be interested and capable of operating a satellite office in southwest Colorado.  She recommended Ken.  He called Ken and told him about his plans to open an office.  In short time the manager flew to Cortez and the two met.  Their meeting ended with Ken accepting an offer to open the new office.

A second opportunity came one week later when Ken read an ad in a local paper.  The Small Business Development Center advertised a ten-week course for entrepreneurs starting a business.  The course was called the Leading Edge program and would be taught by Cindy Dvergsten.  “For me, the course was a great refresher from the college business classes.  It was phenomenal.  I knew what a business plan was, but the class provided depth and knowledge unknown to me before.”  Ken added that Cindy was great at teaching how to think outside of the box.  “There are different ways to look at problem solving.  There may be a more efficient way to approach things than what was done in the past.”  Target marketing, making sure the time and money spent on marketing attracted prospects were also qualified customers, was Ken’s greatest lesson.  “If you can bring in more customers, then you can pivot other areas of the business that are failing, including operations.  But without sales, business dies.”

The hardest part was to take the business practices taught in class and apply them.  “I was starting insurance at the ground level and wanted to do it right, from the beginning.  For new entrepreneurs, it isn’t easy.  There is lots of hard work and things you don’t know how to do, but if you keep putting one foot forward, it will all come together.”

Ken completed the class in the spring of 2014 while his business was operating.  His business was valued at three hundred thousand dollars in premiums in the first year.  Almost five years later, business is now on track to reach a million and a half in premiums this year alone.  That growth is five times what was earned in his first year.  Ken went from a work force of one, himself, to currently employing four people.  In addition, KB Insurance Group has a second office in Durango.

“The Small Business Development Center has great resources.  They offer lots of opportunity for personal growth and have systems to put in place to be successful.  Keep investing in new knowledge and SBDC can help with resources.  Never stop learning and never give up.”

Pathways Physical Therapy

Cindy Schmidt has been a physical therapist (PT) for over twenty years and had worked over a decade in Grand Junction in various traditional settings.  At the same time, Cindy created her own part-time holistic PT practice and founded a non-profit organization to support holistic health care practices and improve communication amongst holistic and conventional practitioners.  She accomplished that with the assistance of the regional Small Business Development Center (SBDC).

Cindy moved to Durango in November of 2013 with the thought to take her career in a new direction.  She would continue as a PT, but wanted to work with a different business model.  Would she stay within the traditional setting or plunge into entrepreneurship?  Hospitals and clinics offered good care, but Cindy wanted more time and holistic attention given to her clients.  Cindy was curious if she could launch her own business under a holistic business model.  She knew SBDC had an office in Durango and attended their half day workshop on how to start a business.  That workshop introduced her to SBDC’s Leading Edge (LE) program.  LE is for entrepreneurs who want to learn the intricacies of business and write a complete business plan.

During this transition Cindy recognized the opportunity to open her own business was there.  She believed the Durango community would support her practice.  “I was inspired to do this and see if the LE class could give me a clearer vision.  When the class began, I wasn’t sure which business model to follow.  Would I integrate with other professionals, decide to be a sole practitioner or have employees?”

As the LE program commenced, she preferred topics on marketing and organization as opposed to the financial aspects.  Jasper Welch was one advisor who helped her realize how to best market her business.  He asked her what value would the business offer and what made her stand apart from other physical therapists.  Terryl Peterson was an SBDC financial advisor and one of the class instructors.  “Terryl wrapped my head around financial projections and what was feasible.  A link on SBDC’s website that offered financial spreadsheets was useful as well.”

The LE class also hosted guest speakers to supplement course content.  Representatives from Region 9, a regional non-profit that promotes and coordinates economic development in southwest Colorado, spoke at one class.  Cindy would need a loan to pay for professional development classes, training, and specialized equipment.  She called and connected with Ed Morlan and Jenny Stoller.  “Ed and Jenny walked me through the entire loan process.”  Cindy added, “Without the business plan I wouldn’t have received the loan.”

Cindy decided to practice as a sole practitioner towards the end of the LE program.  She initially shared offices with several professionals three days a week until she opened her own clinic, Pathways Physical Therapy & Holistic Health (PPT&HH) in August of 2014. The following year Cindy was one of the guest speakers for the LE class. “I wanted to share with students the reality of starting a business.  I had to contract jobs, juggle a hectic schedule and work extremely hard until I was able to get it off the ground.”

Cindy added, “To be a business owner it takes a lot of drive and focus.  I work more hours than I did as an employee but am much happier.  Now my focus is on how I can make my practice more sustainable and expand without overworking myself.”  She also revisits the ideas of what she wants PPT&HH to look like in the short and long term.  “I highly recommend SBDC.  I can’t see how I would have accomplished this without their insight and assistance.  I’m extremely grateful I took that leap and there was help available to guide me.  I’m also grateful I didn’t know exactly how hard it would be to start a business in the beginning.”

Rock Lounge

Marcus Garcia has been the owner of the Rock Lounge (RL), an indoor climbing gym in Durango, since 2014. Marcus had transitioned from being a RL employee, a rock climbing guide, and owner of a small construction company before then. The RL was profitable in his first year, yet he thought there was more potential to be realized.

Marcus had sent his business manager to a locally sponsored event which introduced them to the Small Business Development Center (SBDC) at Fort Lewis College. SBDC is a free resource for entrepreneurs wanting to start, grow or sustain their business. Marcus contacted SBDC and was put in touch with Carl Malmberg, an advisor whose specialty is business operations. Carl instructed Marcus to create a profit/loss system to find where the RL made and lost money. In addition, Carl provided insight and structure on financial costs and overhead projections. Marcus saw positive gains over the course of that first year into the next two years. “Carl helped me understand how the business worked and what made this business unique.”

In March 2017, the property owners sold the building where the RL was located and they had to be out by the end of April. Marcus contacted Region 9 (a non-profit that promotes economic development in southwest Colorado) for a small business loan, but was rejected. This left him unsure of how to proceed. He reached out to Carl for guidance. Carl contacted Region 9 on his behalf and learned Marcus would need to provide a sales forecast for the next three years to show future profit. Since the RL was profitable during Marcus’ three years as owner, Carl gave instruction on how to create a financial spreadsheet which would provide the details Region 9 wanted.

During this time, Marcus had friends who had offered him a building location to relocate the RL. The loan Marcus had applied for would be for interior reconstruction. As the building codes and requirements were being sorted out, Carl spoke directly with the loan officer to justify RL’s business model and explain their financial projections. Marcus said Carl’s involvement was an important reason the loan was secured in November 2017. Construction soon began with the help of Marcus’ friends and members of the community. The RL reopened in February 2018.

“I learned the importance on how to account for all expenses, including the small ones. From the cost of a computer servicing, paper towels, to knowing the exact point of sale that comes from the swipe of a card.” Due to the loss of time between closure to reopening, the RL is not yet where it was financially from early 2017. “We have been reaching out to the community to let them know our new location (111 East 30th St., Durango). I want the RL to be a climbing community center and a place where the youth of Durango can find who they are through climbing.”

Marcus will revisit SBDC at six months’ time from the reopening to review the financial information and stay on course with the projections. The RL currently has one full time and six part-time employees. His present focus is to raise $120,000 to expand by constructing a rope climbing area. “SBDC being free to the public was the biggest thing for me. They helped get me in the right direction and guided me along the way.”

Countryside Disposal

Herman Rosas has worked in the trash disposal business in Cortez for twenty years.  He had developed a stellar reputation amongst the customers he served over that span.  In 2016, one disposal company Herman used to work for sold their business to their corporate competitor, which made them the only disposal business in town.  He and his wife, Kim, started to receive calls soon after from former customers.  The people asked them to start their own business.  They were unhappy with the lone disposal company’s service and billing.  To serve the community need, the Rosas decided to open a business.

A friend had suggested they contact the Small Business Development Center (SBDC) in Durango, which they did.  The Rosas were told about the Leading Edge (LE) program, a course designed for entrepreneurs to construct a business plan and learn from professionals about the various aspects of business. Herman knew all disposing of trash, but little on how to operate business within an office.  They registered and took their first class soon after.

The Rosas found the class arduous.  The Rosas describe themselves as “hands on business people.  We learn by doing.”  The business terminology and concepts were new information for them.  Without having the experience for what the work entailed, there were moments when they wanted to give up.  Also, the LE class in Cortez was geared primarily towards agricultural businesses.  The Rosas were the only business not involved with farming.

They persevered and gleaned some useful information.  Their instructor, Cindy Dvergsten, helped direct their focus to begin service in the neighboring town of Dolores.  A guest speaker for one class was a certified public accountant.  He and his staff member showed them how to properly set up bookkeeping software with QuickBooks and Excel.  Lastly, there was support from classmates who provided encouragement as the program went on.

Countryside Disposal became operational in August 2017.  They presently have over a thousand customers and receive approximately thirty calls a week from people wanting to switch to their disposal company.  The Rosas have seven employees and operate four trucks.  One of their employees is office manager Ellie LaLonde.  She has thirty years of office experience with disposal companies.  Ellie has taken the foundational lessons the Rosas learned from LE and take business operations to the next level.  “With a working business, we have a better understanding of the concepts the LE program taught us.  We have recommended SBDC to people we speak with.”  The Rosas are thankful for the community support, wanting their customers to be happy and have a good experience.  “Our customers want to work with local businesses.”

Botanical Concepts

Botanical Concepts Garden Center (BCGC) is 1.3 miles east of north Main Avenue, at the intersection of County Roads 251 & 250. Janine Collins loves this location. She is the owner, and botanist, of BCGC. Janine views BCGC as a community where people come to immerse with nature. “I’m in a place where I am a part of the bigger picture.”

Janine’s passion for botany began when she was an archeologist. She had more interest in the indigenous plants than the archeological sites themselves. Janine left archeology to purchase a landscape business with a focus on botany. Her most recent career change came in 2016 as she began the purchase of an existing nursery (owned by a botanist), which is now BCGC. The transitions brought her closer to doing what she loved.

Janine’s friend recommended the Small Business Development Center, (SBDC) at Fort Lewis College, for guidance to obtain a loan. SBDC could also teach her how to construct a business plan. How a loan applicant presents information to a bank’s loan officer is very important. Janine followed through on the recommendation and signed up for SBDC’s Leading Edge program. The program was just about to start as Janine was in the initial stages of buying the nursery. The LE program provides a model for entrepreneurs learning how to take their idea, develop it, and finish with a complete business plan. “I learned things about marketing, accounting, and insurance that were extremely helpful. The class was invaluable with information. I learned how to negotiate the customer price (a monetary amount a customer base provides a business, which is included in the sale price) when calculating my offer for Botanical Concepts.”

Janine finished the LE program with a completed plan and qualified for a loan. She keeps abreast on the programs and classes SBDC offers. Janine has taken classes on marketing and QuickBooks. QuickBooks helped simplify her day schedule. Janine spends less time in the office and more time with the plants. “That’s where I want to be, outside with the plants and customers. I can’t just hire out jobs. I can learn how to do this myself.”

Janine is very happy SBDC is available to her. “If I have a question about anything, all I have to do is pick up the phone and call them. SBDC works as a hub; connecting people with businesses and community. They just want to help you.”

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