Entrepreneur Spirit of SBA Week Embodied In Val-Pak

Each year for the past 38 years, the president of the United States has issued a proclamation calling for the celebration of Small Business Week. Val-Pak franchise owner Rick Rash, a 15-year veteran of radio and TV advertising sales in El Paso, Texas, is a prime example of the significance of this week.

Largo, Fla. (PRWEB) May 9, 2001 -- It was about six years a ago when Rick Rash, a 15-year veteran of radio and TV advertising sales in El Paso, Texas, decided to approach a bank about getting a Small Business Administration (SBA) loan to start his Val-Pak franchise.
This week, as President George W. Bush issues an annual proclamation celebrating Small Business Week, Rash recalls his decision to join the Val-Pak franchise network and the impact the SBA had on his decision.
Rashs original thought about coupons was no way." He soon found out that Val-Pak is a very responsive media for advertisers looking to connect to the right audience.
According to Cox Target Media research 85 percent off all adult consumers (18+) use some form of coupons. Of adult coupon users, 48 percent represent annual household incomes of $50,000 or more. Women account for more than 70 percent of all purchases today. Of the 84 percent of people who are aware of Val-Pak, 9 out of 10 open and look through the envelope.
As I looked at his numbers I realized he had a very solid business. Any snobbery on my part disappeared when I looked at his profit statement," Rash said.
Always wanting to have his own business, Rash further investigated Val-Pak. His research showed it was a very good product, backed by a good company, Cox Target Media. His findings and a look at the franchisees financial reports validated his decision.
Next stop. His banker for an SBA approved loan.
The bank required the SBA as a guarantee in order to do the loan. At the time I had limited business experience, above and beyond my sales career," recalls Rash. I was part owner in some successful moonlighting ventures, but was not sophisticated as far as banking and so on."
After the bank loan committee approved it, the SBA did their due diligence. They too, saw the value in the franchise. Rash feels being prepared makes a huge difference.
We didnt have to get back to them later on with a bunch of numbers and forecasts. We walked in with those the first time around. Its one thing when you sit in front of a banker who has no idea at all about the direct mail, coupons or the advertising business. Youre trying to paint a picture in his mind about what the business is and why it is profitable," he said.
Rash said what they relate to is numbers on a page.
It helped to have a combination of historical data from previous owners. Like tax returns and so on. Then have a pro forma for projections that extend out from those historical documents, the numbers will seem to be consistent and make sense," Rash said.
After the initial loan, confidence in the Val-Pak dealer rose. A good payment record and a steady growth in sales and profits made Rash a prime candidate to successfully acquire a second loan.
About two and a half years into the program the bank and SBA made a second loan to Rash to buy out a silent partner who helped raise the original venture capital.
Each year for the past 38 years, the president of the United States has issued a proclamation calling for the celebration of Small Business Week. The celebration honors the estimated 25.5 million small businesses in America that employ more than half the countrys private work force, create three of every four new jobs, and generate a majority of American innovations.
For more information on Val-Pak franchises call (800) 237-6266 ext. 3568.

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