Next Door

 

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“I had never bought a business before, and I really had no idea how to make it happen. SBDC was with me every step of the way … they helped value the business and found the best way to finance the deal, and they even coached me through the negotiations. Now we’re off and running! Their support was invaluable.”

-Jack Major, President

Client Impact:

Areas of Assistance:

  • Capital Infusion: $130,000

  • Obtained Financing

  • Jobs Created/Retained: 3

  • Negotiation & Deal Structuring

  • Business Saved from Closure

  • Business Valuation

  • Purchase Agreement/Promissory Note

Jack Major’s favorite place to have a nice glass of wine with his wife Cheryl was only a 3-minute walk from their home. When he learned that their favorite local spot was going to be closing its doors, Jack jumped at the chance to save the business.

But he had a problem. Like most people, he had never purchased a business and was unsure how to proceed. That’s when he contacted the SBDC. After many weeks of working together on business valuation, financing options, and negotiation strategies, the end result was the successful purchase of Next Door (…and at a very favorable price no less).

Description of Business:

Next Door (www.NextDoorSD.com) is a craft wine bar that has been a neighborhood favorite for nearly 10 years. It caters to the more discerning wine-lover looking for an excellent selection of world-class wines in a small, intimate atmosphere with a true sense of community.

Use of Capital Infusion Funds:

The financing was utilized to purchase the business, and it was provided by the sellers.

Location:

San Diego, CA

CM Solar Electric

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“My company has been completely transformed with the incredible support and guidance I received from the SBDC. In just two years, we’ve grown from a small, marginally profitable business into a strong, stable, highly profitable $3M company, and counting.”

-Carlos Melendez, CEO

 

Client Impact:

Areas of Assistance:

  • Capital Infusion: $70,000

  • Obtained Financing

  • Sales Increase: $1.5M

  • Loan Applications

  • Jobs Created: 10

  • Credit Repair

  • Cash Flow Analysis

  • Strategic Planning

CEO Carlos Melendez kept running into the same hurdle. Without financing, the company’s up-and-down cash flow cycles would continue to put a stranglehold on the company’s growth.
Unable to obtain financing, Melendez turned to the SBDC for help. Fast forward 18 months later and financing is no longer a problem. With the cash “hurdle” now overcome, the results are phenomenal: sales have doubled from $1.5M to $3M, the company has 10 new employees, and so long as the sun keeps shining, CM Solar Electric’s future is as bright as can be.

Description of Business:

In 2012, after 15 years working as a solar and electrical installer, Carlos Melendez left to start his own company. CM Solar Electric provides solar and electric service to residential and commercial customers throughout San Diego County (www.CMsolarelectric.com).

Use of Capital Infusion Funds:

With its new financial leverage, the company was able to purchase solar panels far in advance at steeply discounted rates compared to its previous “Just In Time” purchasing. The resulting cost reductions and greatly increased profitability were catalysts to the company’s $1.5M sales increase and the creation of 10 new jobs.

Location:

San Diego, CA