. www.goldstarmower.com
General Business Questions & Answers
· When did your business open? Please provide a brief history of operations to date.
Gold Star Mower began in March 2016 as a part time business servicing the local area in North Richland Hills TX., as Daltek Fleet. In March 2021 the name was changed to Gold Star Mower and filed as an LLC here in Texas in 2021. Originally a service and repair place offering free pickup and delivery within a localized area. Parts and materials were purchased at retail cost. Eventually I was able to broker deals with local outdoor power stores to receive a 20% discount on parts and supplies. This enabled Gold Star Mower to start generating a small profit on part sales. In March 2021, customer load increased exponentially due to our local reputation and some advertising.
At this time, vendor relationships had been formed allowing parts sales profits to greatly increase. Vendors include; Power Distributors (Briggs & Stratton, Vanguard, Ferris, Murray, Oregon, Simplicity), Marr Bros.(MTD, Generac, Hydrogear, Subaru and other brands), Lightborn Equipment (Honda), Gardner, Inc. (FNA Group; Simpson, Karcher) and Stens Corp (Popular Aftermarket parts supplier). We have added warranty repair services for the brands listed above.
· Tell us what your business does (be specific. Who are your customer and what services do you offer?)
We provide preventive maintenance services, failure diagnosis and repair, warranty claim assistance and repair. Equipment serviced includes, walk behind mowers, ride on mowers, trimmers, pumps, blowers, chainsaws, sprayers, portable generators, standby generators, pressure washers and other equipment used by residential and commercial entities.
On-site mobile service / repair truck and technician for larger equipment and stand-by power customers.
Expansion Vision:
We also sell whole goods, parts and accessories to the public, from trimmer line to commercial zero turn mowers of multiple brands through direct marketing and sales reps.
Provide basic care and operations classes with emphasis on safe operations for customers. This is also a time to market our retail products to the classes. Accessories and Protective equipment.
Online sales store which operates on a national market frame.
· Who are your primary customers? How do they pay you? (if on terms, please indicate what those terms typically are)
As previously stated, the majority of our customers are residential owners seeking repair and service for their outdoor power and replacing their existing failed or older equipment. Our Commercial and industrial customers purchase equipment to replace fleets, buy individual items and in bulk for the larger entities and repairs, which is a large part of our revenue.
Forms of payment include; cash and debit / credit card. Financing through Sheffield Financial, SNAP, Synchrony Business and Acima Credit.
Terms are available for Large accounts with a Monthly statement sent out in a Billing cycle of 14 days following initial purchase and is due 7 days following receipt. This allows companies to go through payment approval process and allows Gold Star Mower to receive payment in a timely manner.
· Who are your primary vendors/suppliers? How do you pay them? (if on terms, please indicate what those terms typically are)
Vendors are; Power Distributors (Briggs & Stratton, Vanguard, Ferris, Murray, Oregon, Simplicity), Marr Bros.(MTD Brands, Generac, Hydrogear, Subaru and other brands), Lightborn Equipment (Honda), Gardner, Inc. (FNA Group; Simpson, Karcher) and Stens Corp (Popular Aftermarket parts supplier). Echo, Stihl, Husqvarna, Kohler, Kawasaki, Cub Cadet, Bradley, Walker, Toro, Exmark and Troybilt. We provide warranty repair services for the brands listed above.
Vendors are paid at time order is placed by credit or debit card, with the exception of Equipment for sale (Whole goods). These are paid as sold on a floorplan system.
· How many customers to you serve in a typical year? What is your average sales per customer?
Projected Sales as will be following Expansion.
We serve 2- 3 thousand customers per year with an average sale of 115.00 for residential customers. This includes counter sales and service sales.
Commercial customers number from 3-500 with sales averaging 4700.00 per visit as they buy large ticket items, purchase parts and accessories in bulk and are frequent repeat customers for service and repair.
Vendor warranty revenue averages 245.00 per claim with an average of 200 claims per year.
· Does your business have any significant concentrations in terms of customers or suppliers? If so, please describe.
Our concentration is on the lawn & garden service vendors. These are the customers who need equipment to operate their businesses. Supplies and parts which support those types of equipment are kept on hand within our parts dept. in respect to our carried brands.
· Who are your primary competitors?
Our primary competitors are current outdoor power and standby power sales companies within the Dallas / Fort Worth footprint. Other online sales entities for the DIY customer.
Minor competitors include people performing shoddy repairs from their homes and storage units. They do not provide warranty service, nor do they provide whole goods, parts or accessories.
· What is your competitive advantage?
Our advantage is our customer service and our service processes, which simplifies the repair process and gets the equipment back to the customer faster than other shops while maintaining high quality repairs with virtually no returns. We also have a very high estimate to invoice conversion rate, due to our superior employee product and technical knowledge. Our empathetic and confident sales approach has proved consistent and effective.
· Describe your management team? What are their roles? How long have they been with your organization? What is their applicable/relevant industry experience?
Ron is the owner and keeps his knowledge up on both the technical and operations side of the business. His experience goes back 35yrs in maintenance and repair of a variety of equipment. Formally trained and educated by the US army Armor School and was later selected to return as an Instructor at Ft Knox, KY. Following Military retirement in 2011, Ron continued to work in the field of heavy equipment and facilities maintenance. Ron knows the importance in building trust in lasting relationships with vendors and customer and how critical communication between departments and inter-supporting efforts from each are required in order to form a team of excellence.
The last position held prior to opening Gold Star Mower, was Service Manager, for a now competitor, where shop revenue was increased from 115,000 to over 300,000 after his first year with the company. The previous record year for that company was 128,000.
Ron holds over 50 certifications from Honda, Briggs & Stratton, and Scag Commercial Mowers related to Service Management, Sales and technical skills. These certifications have been directly transferred over to a Gold Star Mower affiliation.
Ron is also educated in Business operations after education gained from the University of Phoenix, TUI University and Central Texas College. Concentrations in International Business and Technical Management.
*Service Manager / writer and Technicians are factory trained and vetted by the Chief (managing) technician prior to hire. Relevant checks of references and a probationary period is required. The Chief manages job progress and assigns jobs relevant to technician abilities, demanding top service excellence in result. The Chief is the First point of quality control. Addresses customer complaints. Contributes to team meetings. Prepares shop operations budget.
*Counter sales and parts management personnel (includes warehousing) are valued by their product knowledge and presentation (in-store marketing) to customers frequenting the store and on the phone. Ability to source parts and products for the customer as an expert in using our systems and other resources. Developing stellar relationships with our customers and vendors. Knows inventory control and demand analysis for stock forecasting. Contributes to team meetings. Prepares retail sales and labor budget.
*Dedicated Sales Manager ensures team knows their product and how it benefits and provides advantage to the end user in practicality and value. Knows the upper management expectations in setting sales and revenue goals. Contributes to team meetings. Prepares sales marketing and team budgets.
(* following expansion)
· Do you have a formal succession plan in place? If so, describe what that looks like.
Current succession plan would only go into effect in the event the owner would 100% retire or would no longer be able to perform due to incapacities.
Each employee would know two jobs in order to overlap responsibilities in the owner’s absence.
Office management will maintain business records and oversee each departmental head’s records for correctness and completeness. Will prepare all correspondence between Gold Star Mower LLC and it’s Customers, Vendors and relevant Governmental entities as directed. Office manager will also oversee payroll activities and basic Human Resources duties.
Ownership would revert to those with vested interest in detrimental event.
· Tell us about your financial trends over the last few years? What are your expectations going forward?
As our reputation gained status, so does our revenue. Once opening as a full time, full service shop, our revenue grew 1000% from an average of 1000.00 to 10,000.00 per month. This is from residential customers and a few commercial operators.
Trends toward electric powered equipment are growing in the handheld and residential mower market but lack luster to the commercial customer who is looking for the ability to speed processes. Stopping to recharge is not feasible when using equipment 6 day a week. Although technological advances in batteries may quickly change that. This causes us to monitor these markets for future opportunities.
Our owner has networked with larger commercial and industrial customers. (One such customer has a $30K repair budget per month) We only lack the ability to fully facilitate them due to space needed for storage and workspace needed to service these customers. When these restrictions are no longer a factor, revenues are expected to increase tenfold in a single location, with projections averaging 100,000 per month at net of 40-50,000 per month the first year. Within 5 years, we expect to bring in 4 – 5 Million per year in total sales, through direct sales and aggressive ad campaigns.
· Have there been any unusual or one-time expenses or one-time profit gains over the last few years? If so, tell us what that looks like.
No unusual or one-time expenses / profit gains.
· What are the biggest threats to your business/industry?
The threats that we are likely to face may come from a slump in the economy. Even though power equipment is still used during a slump in the economy, small commercial customers may fold as demand for their services would decline. We will concentrate on the larger customer that has weathered the lean times and have contracts for service in place with their customers who are always in need of their services. (Cemeteries, Governmental entities, Schools) When residential customers fire the lawn care, they will be looking to us to repair the personal equipment they have, which increases our residential traffic.
Also, we may deal with the threats of small home based and part-time small engine repairers who do not have enough experience and provide low quality service but will charge very cheaply, which we can counter with promotions and lure of professional services, which others lack.
· What is your business website?
· Tell us about your advertising/marketing approach.
Grand opening party that would create awareness and generate interest about our company. Brand Representatives will be invited to be present to promote their respective brands. The reps generally provide one time offers in the form of extended warranties or added accessories for the customer at this time. This would be advertised through signage and local mass media; radio and television ads.
Each Spring we will hold a one day event where reps will again be present with special offers and new knowledge of current equipment / products.
Engage in direct marketing and sales for residential and commercial markets. On site visits with commercial customers offering superior service, complete maintenance plans and Fleet pricing on new equipment purchases. Place advertisements in local hard media as well as on local radio and television stations. Ensure that our business is listed in offline directories as well as online directories. Use social media platforms – Google, Facebook, Twitter and LinkedIn to vigorously market our business. Hand out fliers and handbills introducing our business in various target areas and locations
· How will the funds you applied for help your business now and in the future?
Showing that we have the space, knowledge and tools displays our ability to provide a solid professional maintenance and sales service, offering quality products, will attract commercial and residential customers.
The funds will enable us to expand into a larger facility where we can project a professional appearance that aligns with our business practices, service a greater number of customers, provide an adequate, inviting, Professional showroom / retail area with sufficient warehouse storage and multiple technician work areas. We will then be able to showcase whole goods and accessories. Shop will be large enough for larger commercial and residential equipment services.
Purchase a delivery truck and trailer. Purchase basic shop equipment and supplies, signage and marketing.
Acquire additional hardware and software to increase efficiency in job tracking, keeping customers informed, inventory operations, managing estimates and invoices, accounts receivable and payable. Generate reports to identify trends, P&L, expenses.
Our vision is to launch into other cities based on the model of this store.
· Do you own or rent your business location? If you rent, do you rent from a related entity (ie. Real Estate Holding Company in which you have ownership?)
Property will be leased from a real estate holding company not related to Gold Star Mower LLC. In any way.
· Business and Personal location:
o Where is your business physically located?
Administrative Office is located at 5601 Denise Dr Haltom City, TX 76148
Storefront address is to be: 5102 Commercial Dr. North Richland Hills, TX 76182
o What is your business’ mailing address?
5601 Denise dr. Haltom City, TX 76148
o Do you currently reside in the United States?
Yes
o What is your personal physical address (no P.O. Box etc.)?
5601 Denise Dr. Haltom City, TX 76148
· Have you ever filed bankruptcy, or have you been a principal or guarantor of a business entity that filed bankruptcy? If yes, note the year(s) and attach explanation.
None
· Are you a co-signer or guarantor of any debt?
None
· Are you a defendant in any suit or legal action?
None
· Are you presently subject to any unsatisfied judgments or tax liens?
None
· Do you or the Borrowing Entity have any ownership in or power to control other commercial entities (i.e. Partnership, Corporations, LLCs, etc.)? If so, please list the entities below.
None