Arizona Small Business Development Center Network
2008 Success Award Winner
Northland Pioneer College SBDC
Barton Southwest Builders, Inc.
1. Who are the small business owners?
Robert and Margie Barton
2. Where do you live?
1006 North Highway 87 at Chimney Butte
Dilkon, AZ.
3. What did you do before you became an entrepreneur?
Bob – I was Superintendent on numerous construction projects for various construction companies, prior to that, the construction foreman.
Margie – I was the Director of a community development non-profit agency.
4. Why did you decide to become an entrepreneur?
Bob – When I was a superintendent, I figured out a lot of things, such as, structural and concrete work, project work plans, etc. A lot of subcontractors and general contractors didn’t know how to figure out or calculate materials or put a project together, and yet they were contractors so I said “why not?” Most of the general contractors I worked closely with, specifically BMJS Contracting of Winslow encouraged me to get my license. That is what got me into the business.
Margie – With my husband’s skill and knowledge of the construction trade and my knowledge and experience running an organization, we put our heads together and decided to go on our own.
5. Why did you select this particular type of business?
Bob – Well I’ve always been interested in carpentry work so when I got out of high school, I joined the Flagstaff Carpenters Union. I trained 4 years as an apprentice learning from professional tradesmen on commercial projects then received my journeyman certificate. I eventually started in residential and commercial construction at this point. I worked for contractors all over the states of Arizona, New Mexico, Utah, and Nevada from building homes to building bridges. Construction is something I knew and my wife’s work in community development went hand in hand. That is why we selected Residential and Commercial General Contracting as our business.
6. How long did it take to start the business from the “first thought” phase to the day you opened the doors?
2 years. The thought came; we discussed it then started researching to find out what we needed to do. We first structured our business as a corporation then proceeded to specialize in general construction contracting. For example, there was the licensing process. A big step was in passing the exam. The next steps were to get insurance for the company and employees. We got the license, hired an accountant, hired office staff, and then opened the doors. Shortly after that, we got a big break and landed our first contract with Flintco, Inc. This was a blessing because Flintco, Inc. helped us grow. This is a firm that believes in helping small businesses. We certainly enjoyed working with them.
How long was it until you made a profit?
9 months
What is the basic chronology of events?
We developed the business plan (with the SBDC) in 2006, and in October of ‘06 received our first contract. That contract was finished in March of ’07. Within ’07 we continued the business and we hope to have a successful year in 2008.
7. What challenges/obstacles have been overcome to start/grow the business?
a. The first was the KB1 General Contracting examination. I needed to know specifics of all trades: such as, measurements of steel, cinderblock, concrete, carpentry; the concepts of business management, construction laws, rules, etc. It was really tough!
b. The second was fitting into a new way of thinking; we’re just common people (ranchers at heart) living on the Navajo reservation. After we opened our doors, we began dealing with a whole new set of people, a whole lot of money, a new language, and laws, laws, laws. Contracts and project schedules were adhered to and if there’s a problem or change, a process was followed. You have to know what you’re talking about and understand your responsibility to get the job done no matter what kind of conditions you face in the field or in the office. You have to adhere to local, state, and federal laws dealing with employees, meeting deadlines, ensure the payroll is met, all taxes and benefits are paid, and all required reports are completed.
c. Another challenge was having the finance to keep you going because everything costs money. Going back and forth to Phoenix to take the exam and meeting with the Registrar of Contractors was costly. We had to pack up and stay overnight because we lived so far from the valley. However celebrating Bob’s passing of the Trade Exam was well worth it. There’s a lot of cost marketing your business and searching for work; attending pre-bid conferences, obtaining construction documents, fuel and communication cost.
8. What do you think made you/your company successful?
I had the experience already, knew how to put a project together, and knew local construction workers who were professionals in their field of work to employ. On the business management part, my wife helped me out. We work together; we talk and discuss the issue before we make a decision. There are a lot of hungry people out there, so learn your business, don’t jump the gun, and tread lightly.
9. How did you fund the business?
In the first year and half, my wife and I were still working and we managed to put our own funding into it. A loan from the Navajo Nation created our start-up costs and we utilized the SBDC assisted business plan. The loan paid for fees such as bonding, general liability, workmen’s compensation, etc.
10. Have you started any other businesses in the past? No.
Did they succeed? N/A
11. How did you hear about the SBDC?
We saw fliers at the Show Low NPC and followed up through the Internet for more information.
12. What was the SBDC’s involvement?
We received a lot of training, support, and counseling with regards to how to structure our company and what resources were available to help us make our decisions. With you (Suzy), you helped us put together the actual business plan and financials, and the application for a loan.
13. What other resource agency provided help?
The Small Business Administration Show Low office assisted us with the HubZone application and provided resources. The Navajo Nation Regional Business Development Office of Whipporwill, Arizona assisted us in processing our loan application and supported our plans when it was brought before the selection committee. The National Center for American Indian Enterprise Development provided training and is currently assisting us with the 8 (a) application. In essence, we took advantage of trainings, conferences, and any business development resources that were available.
14. How did SBDC consulting make a difference? (Want Quote)
Truthfully, at first we looked at our business real basically, we thought “we work and we get paid for that work”, simple! But when we started working on our business plan we began to think outside the box, we started developing plans on how to sustain our business in the future. “Where is your market area?” and “how will you market your self?” was no longer a simple task. We began to think and talk outside the box and think bigger. SBDC helped us to see “bigger”.
15. How much growth (employee, sales, new location, etc.) has the business experienced?
In the beginning it was just the two of us, and then it increased to 38 employees. We bought equipment and machinery from our profit. Last year’s sales tripled in 2007 so we paid off our loan from the Navajo Nation.
16. What are the contributions you and the business make to the community?
We have sponsored a baseball team for little league and rodeo events.
17. What advice would you offer a nascent entrepreneur? (Want Quote)
You have to be positive, keep learning, and be open to changes. Find those opportunities and market yourself well.