Sustainable and humane farming

Marc and Annie Filion are the proprietors of Keegan-Filion Farm, a 100-acre parcel of land in Walterboro first farmed by Annie’s great-grandfather in the 1930’s. Today, the Filions use the same methods employed by its founder: pasture feed all animals, use antibiotics for medicinal purposes only, practice sustainable farming and adhere to Certified Humane practices. For them, farming is more than a business; it’s a traditional lifestyle that values family and honors the animals that sustain their livelihood.

Industry: Agriculture

Initial Challenge: Client sought to grow revenue by increasing the value of his products and expanding farm operations.

Approach: Consultant helped his client apply for a USDA Value-Added Producer Grant (VAPG), and adapt his business model to include new revenue streams.

Results:

• PPP Loan: $18,500

• USDA Value-Added Producer Grant: $250,000

• Operating Loan (Ag South): $150,000

• 2022 Annual Sales: $1,020,000

• Jobs Created: 2 part-time

• Jobs Retained: 8 full-time

“I wear the mantle of two demanding jobs: small business owner and farmer,” Marc Filion said. “There is no ‘down time’; and many nights I wake up at 2 am wondering how I’m going to accomplish everything that needs to get done.”

So, when SC SBDC Region Director and Business Consultant Jim Johnson encouraged Filion to apply for a Value-Added Producer Grant sponsored by the USDA, Filion welcomed the suggestion. “If approved, the Filions could be awarded a $250,000 working capital grant to help them generate new products and expand marketing activities,” said Johnson.

Johnson guided the couple through the grant process, helping them develop their business plan, P&L statement, three-year pro forma and submit their application prior to the pandemic.

When COVID-19 forced restaurants to cease dine-in options, the Filions filled the void with their home delivery service. The result: weekly orders soared from 25 to 120 and generated much needed income. In 2020, they used their $18,500 PPP loan to retain staff and hire two additional part-time workers to keep up with demand.

With Johnson’s help, the Filions finally received a $250,000 VAPG loan valid for three years—money they desperately needed to sustain the pillar of their business; pork processing. Two loans from Ag South were later awarded.

Services Provided:

> VAPG Loan Application

> Business Plan Development

> Ecommerce

> Marketing Strategy

> Succession Planning

Today, Keegan-Filion Farm has a more agile business model that generates revenue through five channels. By adapting his business, Filion surpassed his 2022 revenue goal by 128 percent, exceeding $1 million.

The Filions plan to pass the business to their son and his wife, and continue working with the SC SBDC on enhancing their business model in order to support the next generation and remain profitable.

Jim, there is no way I would have attempted, let alone completed, such an extensive undertaking.”

Marc Filion, Owner Keegan-Filion Farm

A prescription for success

After 20 years in the pharmaceutical industry, Stephanie Wise, PharmD, M.S. has developed a passion for helping people achieve better health. Wise has remained steadfast in this mission, but it wasn’t until her previous employer was bought by a larger organization that she realized the Midlands needed a local, longterm care establishment. It was ultimately this unplanned career transition that inspired Wise to establish Oasis Pharmacy Services, LLC.

Industry: Pharmaceutical

Initial Challenge: To apply for SBA funding, the client needed help with developing her business plan— specifically the financial portion.

Approach: Consultant helped his client organize financial projections, including start-up costs and a payout schedule. He also assisted with licensing and insurance paperwork, as well as industry and competitive analyses.

Results:

• New Business Started

• Financing Obtained: $755,000

• SBA Loan: $667,000

• Jobs Created: 4 full-time; 3 part-time

Although Wise already had the technical skills to operate her own pharmacy, she was unfamiliar with the lengthy process (and extensive requirements) associated with launching a new business. Completing financial projections and a business plan were just some of the many challenges that she faced—and even working with a pharmacy-specific CPA still left Wise feeling uncertain about how to move forward. Fortunately, she had an experienced entrepreneur in her family who suggested she reach out to the Columbia Area SBDC for help; and that’s how she connected with Business Consultant Allen Brown in late January 2022.

With her consultant’s support, Wise was able to tackle numerous obstacles head-on. Primarily, Brown assisted his client with organizing the financial portion of her business plan—a critical step if she wanted to successfully apply for funding. Not only do pharmacies have significant start-up costs, but there are only two pharmacy-specific start-up lenders in the country, so Wise knew her financial projections would need to be both detailed and accurate if she wanted her applications to be taken seriously. And she was—with Brown’s guidance, Wise was approved for an SBA guaranteed loan through First Financial Fayetteville, Arkansas, enabling her to fund the building lease and purchase the needed equipment for her pharmacy by August of 2022. Brown also helped Wise conduct industry and competitive analyses, and complete licensing and insurance paperwork.

From the beginning, Wise’s intention was to build a business that would offer new and innovative ways to enrich the lives of patients, and thanks to the Columbia Area SBDC, she is moving closer everyday to reaching this goal. In the future, Wise is planning to increase the capacity of patients she can serve, and also hopes to offer in-house lab work, among other critical services. With her consultant Allen Brown by her side, the business outlook for Oasis Pharmacy Services is bright.

Services Provided:

> Business Startup Assistance

> Business Plan Development

> Marketing Research

> Financial Projections

> Loan Application Preparation

$486,000 2022 TOTAL REVENUE $65,000 TOTAL EIDL LOANS

PRE-CORONAVIRUS BUSINESS SITUATION:

When Mike and Nancy Reilley moved from Kansas City, Missouri to Beaufort, South Carolina in 2015, Mike started selling his signature Brunswick Stew at local markets and street fairs as a semi-retirement passion project. But, as KC Mike’s’ dishes quickly turned Beaufort foodies into loyal customers, the Reilleys decided to turn the successful side hustle into a stationary restaurant.

The Reilleys’ business quickly boomed; and by late 2019, they were managing three locations. They contacted Beaufort Area SBDC Business Consultant Martin Goodman for guidance; and he advised the business-savvy couple to close their original roadside stand. This ultimately allowed the Reilleys to invest more time in their newest location, where sales were growing 7-10% weekly. With help from the SC SBDC, the future of KC Mike’s Smokin’ was brighter than ever—that is, until the COVID-19 pandemic forced the restaurant to close.

$25,000 SC CARES ACT GRANT 17 TRAINING EVENTS ATTENDED

CHALLENGES ARISING FROM THE COVID-19 PANDEMIC:

The pandemic forced KC Mike’s to rely solely on carry-out sales to stay afloat, and even when the restaurant was allowed to re-open, many customers were too nervous to dine in. Cancellations of in-person events also cost KC Mike’s its catering business, and the general decline of tourism in Beaufort meant the restaurant was seeing far fewer customers than expected in the summer months. The ensuing financial strain was taking a massive toll on Mike and Nancy’s business, and the couple feared they would soon have to use their personal retirement savings to pay bills, rent and payroll. So, they returned to SC SBDC for assistance.

RESPONSE AND RECOVERY:

15 JOBS RETAINED

To help his clients successfully apply for disaster relief loans, Goodman encouraged them early on to assemble essential documents. His foresight led to the Reilleys receiving a $30,000 EIDL loan and a $25,000 CARES Act grant. The Reilleys were awarded these two loans without hassle, but when Nancy Reilley attempted to apply for an EIDL increase in 2022, she ran into several roadblocks. Goodman then referred her to fellow consultant John Gethers, the SC SBDC’s CARES Act specialist. Gethers used his expertise and network connections to resolve the issues, and the Reilleys finally received a $30,000 EIDL loan increase in January 2022.

“Working with both Martin and John during the pandemic has enabled our business to survive and begin to grow again as we move to a new normal,” said Reilley

BUSINESS OUTLOOK:

$1 MILLION 2021 ANNUAL SALES

PRE-CORONAVIRUS BUSINESS SITUATION:

$531,000 TOTAL (2) EIDL LOANS

When Tom and Octavia Edwards first established Acute Heating & Cooling in 2016, the couple operated the business exclusively from their home. However, a growing list of clients eventually increased their need for office space, so the Edwards’ contacted the SC SBDC for guidance. With help from former USC Region Director Darrell Jones, the couple revamped their existing business plan to reflect their company’s expansion and forward goals. Jones also helped his clients secure a $50,000 loan, which enabled Acute Heating & Cooling to move into a new 1,200-square-foot location. With this infusion of cash supporting the business’s rapid growth and the anticipated revenue increase, the company’s future seemed bright.

CHALLENGES ARISING FROM THE COVID-19 PANDEMIC:

Jobs Retained

The COVID-19 pandemic pushed most of the Edwards’ “non-emergency” projects to the backburner, costing the company nearly 25% of its business. Nuanced government regulations also made it difficult for Acute Heating & Cooling to obtain financial assistance, so the couple used their personal savings to keep their business afloat. This was stressful for both Octavia and Tom, so again they contacted the SC SBDC. The couple was relieved when they met Business Consultant and CARES Act funding specialist John Gethers, who was eager to help the Edwards’ obtain the additional grant money they needed.

RESPONSE AND RECOVERY:

Because of his rapport with members of the SBA’s South Carolina district office and his vast experience with the process, Gethers was able to expedite the preparation of his clients’ loan application. In February 2022, the Edwardses received an EIDL loan for $357,400 and were approved shortly afterward for the maximum loan amount—increasing their award by another $173,600. This infusion of cash allowed the couple to retain their workforce and recover most of the money they had personally invested.

“John came into our lives not a moment too soon,” said Octavia Edwards. “He became our advocate and kept our hope alive.”

BUSINESS OUTLOOK:

Since its remarkable rebound, Acute Heating & Cooling is once again focusing on expansion. The Edwardses are hiring additional staff to meet an increasing demand for their services, revising their marketing strategy and hoping to diversify their clientele by pursuing commercial accounts. The couple is optimistically projecting annual revenue for 2022 to reach $1.7 million and plans to continue relying on the SC SBDC for support.

“Octavia is persistent, professional and definitely has her finger on the pulse of their business and industry,” said Gethers.