unleashing
national impact
igniting local
transformation
Jovany acquired a small automotive body shop that was closing its doors during the COVID-19 pandemic. At just 20 years old, he utilized his personal savings to invest in the business. Upon purchase, the shop had no customers and no employees; it consisted solely of a building equipped with tools and equipment. Jovany is pioneering a path as the first entrepreneur in his family. The business faced several challenges, including limited access to essential capital for growth and expansion, inadequate cash flow management, the opportunity to leverage loans for increased revenue generation, and the need to implement effective marketing strategies to enhance visibility and drive sales.
"I am still not where I want to be, but I see a healthy financial future for my company."
The SBDC assisted Jovany Chavira address cash flow problems by adopting a comprehensive cash flow management strategy. This approach focused on improving cash flow forecasting and budgeting, ensuring timely invoicing and payments, and exploring various financing options. The SBDC assisted Jovany with recognizing and mitigating the disadvantages, like inconsistent revenue and limited credit access, while capitalizing on the advantages of financial stability and planning capabilities. This balanced strategy helped Jovany maintain relationships with suppliers and fostered growth without incurring excessive debt or losing control over business decisions.
The business has demonstrated consistent annual growth in sales, with figures rising from $18,109 in 2020 to $250,704 in 2021, and reaching $447,600 in 2022. Many individuals in the region have refrained from purchasing new vehicles due to economic conditions, prompting clients to focus on repairing their current cars. As a result of this increase in sales, the client has successfully expanded their workforce from one employee to seven.
The client aims to broaden her business operations beyond the oilfield sector to include potential opportunities in water treatment plants and cryovalves. She is looking to expand her presence into Montana and Wyoming. Additionally, the client recognizes the importance of enhancing her sales team while formulating an effective sales strategy. To this end, she has contacted an advisor to explore the transition towards wastewater and water treatment solutions for the company's valves and controls. Furthermore, the client has recently appointed a Procurement Specialist, whose primary focus will be to secure government contracting opportunities.
"Only 6% of CEO positions in this industry are held by women. It is just very humbling to think that I am part of that 6%."
The Small Business Development Center (SBDC) recommended a diversification strategy that allocates 60% of resources to the oil and Gas sector and 40% to other industries. The SBDC conducted thorough research to support this strategy, while the consultant will focus on enhancing the capabilities of the sales team. Furthermore, the SBDC identified key factors for researching potential customers and has compiled a list of Texas-based companies that specialize in the construction and repair of water and wastewater treatment systems. The SBDC also referenced the Procurement Technical Assistance Center (PTAC) in their findings.
The client indicated a desire to reorganize the company into three distinct entities: maintaining ARPCO Valves LLC, establishing Arpco Sales LLC as a dedicated sales division, and launching ARPCO Express LLC to offer shuttle services. The SBDC recommended that the client consult with her attorney to evaluate potential actions moving forward.
During the COVID-19 pandemic, Bobbie took the initiative to engage with the SBDC in Longview, Texas, where she secured Paycheck Protection Program funds and a $500,000 line of credit to support both operations and expansion. Her dedication to community service is showcased through her annual financial contributions of approximately $30,000 to various organizations, including the Kilgore Chamber of Commerce, the REEL East Texas Film Festival, and Kilgore College.
Since its founding in Overton, Texas, with a team of four, Arpco Valves & Controls, LLC has significantly grown its operations and market presence. The company has relocated its headquarters and warehouse to Kilgore, Texas, and established additional locations in Bossier City, Louisiana, and Midland, Texas, resulting in an increased workforce of over 40 employees.
Arpco's strategic marketing initiatives have played a crucial role in enhancing its national brand visibility. By utilizing digital platforms and targeted outreach, the company has effectively communicated its commitment to safety and innovation within the oil and Gas industry, thereby attracting a broader client base across the United States. This growth trajectory highlights Arpco's dedication to excellence and its evolving position as a trusted leader in providing safety solutions nationwide.
As the co-founder and CEO of Arpco Valves & Controls, LLC, Bobbie Hurley O'Dell has successfully guided the company from its beginnings in Overton, Texas, with a team of four employees, to a multi-location organization that now employs over 40 individuals across Kilgore, Texas; Bossier City, Louisiana; and Midland, Texas. Under her leadership, Arpco obtained a $2 million SBA startup loan in 2009 and achieved Veteran-Owned Business status, demonstrating her commitment to utilizing available resources for business development.