Nathan Bartels began his career as an apprentice heating and air conditioning specialist upon completing high school in 1998 and during the ensuing 12 years he completed his heating and air conditioning certification and began to think about starting his own business.
Nathan became very integral to the success of his former company, Mechanical Air Systems, and his level of confidence in managing and operating his own company increased. Customer relations and providing excellent outcomes for clients validated his feeling that he would be successful implementing his personal vision and work ethic within his own company.
Barriers for Nathan to move forward with forming his own company included amassing adequate capital necessary to provide the type of service that customers in North Iowa demand. Slowly over time, Nathan began to formulate his business plan and accumulate the necessary tools and cash to launch his own company in 2010.
Knowing that he needed additional help, Nathan contacted Ted Bair, Regional Director of the North Iowa Area Small Business Development Center (SBDC), to evaluate his business plan, help determine cash flow needs, and discover options for financing of additional capital needs such as a larger service vehicle and starting inventory. While meeting with Ted, Nathan secured the services of an attorney and formed an “S” Corporation to provide the legal structure of his business. He also initiated discussions with U.S. Bank for financing.
North Central Mechanical Services Company opened for business on August 18, 2010 with the help of a $25,000 SBA-guaranteed loan and a $15,000 guaranteed credit card, both through U.S. Bank in Mason City. Nathan also obtained a $38,000 truck loan from a dealer offering internal financing. Nathan also personally invested $40,000 in tools and cash, which allowed him to initiate operations.
North Central Mechanical Services Company provides both commercial and residential heating and air conditioning services and parts. Nathan’s great reputation and good customer relations skills are helping his company to prosper, having already secured contracts and service agreements. Even though the company has only had two quarters of revenue, it is well surpassing its near term goals and Nathan hopes to hire his first employee in early 2011. The company is experiencing good profitability, consistent with what was anticipated but at a higher level.
Praising the assistance he received from the Small Business Development Center, Nathan says, “Ted Bair and the SBDC have been very helpful in validating my concept and pulling all of this together, and I look forward to our continued relationship on a monthly basis to assess progress and also fulfill the SBA Community Express Action Plan.”
Ted Bair adds, “Nathan will be very well focused and he is positioned to succeed, demonstrated by his desire and commitment to excellence. I will be quite surprised if Nathan doesn’t expand and bring on employees that share his vision very quickly.”