HOW LE$$ CAN BE MORE
When Anthony Walker had to suspend his college education due to financial concerns, he began working for a local moving company. After learning the business over a short period of time he thought he could make more money by owning and operating his own company. Anthony began formulating a business plan that required very little capital investment, temporary labor and use of rental trucks. In 2006 he opened his own company, Move 4 Le$$.
Shortly after opening, Anthony realized he needed to revise and improve his plan. Learning about SCORE from business articles and books, he contacted the Greater Knoxville SCORE Chapter and began counseling sessions with counselor Chuck Christiansen. One of the first things they found was higher expenses than had been anticipated in the original plan, primarily because of the recurring costs of truck rentals. Chuck helped Anthony do a cost comparison between renting and purchasing a truck. Based on tax benefits from interest payments and depreciation, they found that it was less expensive to make payments on a purchased truck. The question now was whether Move 4 Le$$ could afford to finance the purchase. They created cash flow and profit loss projections and found they could meet the payments but needed cash for the down payment. Chuck advised Anthony that there were several ways to obtain financing - a loan from a financial institution, funding from friends or relatives, use of equity as collateral, or a Small Business Administration loan. Anthony was able to secure a loan from a family friend at a below-market rate.
After only one year in business, revenue at Move 4 Le$$ is growing, and Anthony anticipates his revenue will double this year. He has hired a full time employee and is considering the purchase of a second truck. To expand his market, he is also in the process of obtaining a license that will allow Move 4 Le$$ to make interstate trips.
Anthony's advice to others considering going into business is to work hard, be prepared to work long hours, be persistent, and seek advice from others.