Kent Hanson had worked for Ron Sears of Lundt and Sears Plumbing and Heating in Spencer for more than 13 years and was considered the go-to person in the business. He understood that providing quality and timely customer service was the key to the continued success of the business.

Ron first approached Kent in 2008 about purchasing the existing business. Ron anticipated retiring in late 2008 or early 2009 and wanted to make sure his business remained locally owned. Several other companies had expressed interest in purchasing the business, but none of them had a local presence or ownership. Kent was very interested in purchasing the business, but he needed help finding the financial resources to do so.

Kent turned to Kelly McCarty, Regional Director of the Northwest Iowa Small Business Development Center in Spencer, for assistance. Kelly helped Kent and his wife, Julie, prepare financial projections, write their business plan, and complete applications for loan funds from various sources. Additionally, Kelly assisted them in finding adequate insurance coverage and financial recordkeeping services.

With the help of the Northwest Iowa Small Business Development Center, the Hansons were able to obtain the necessary funding to purchase Lundt & Sears Plumbing and Heating on April 1, 2009 and rename it Hanson’s Plumbing & Heating Inc. The Hansons secured loans from the Clay County Revolving Loan Fund and Farmers Trust and Savings Bank of Spencer to purchase vehicles, equipment inventory, and cover other costs and expenses.

Ten jobs were retained locally and even with the current depressed economy, the company was able to maintain its projected level of sales of approximately $1,000,000 for the first year; it is on track for growth of five percent this year. Hanson’s Plumbing & Heating provides plumbing and heating services for residential and commercial customers in a 35 mile radius of Spencer, Iowa.

Kent says, “Kelly did a really fine job in putting together the financial projections and securing enough financing to purchase the business. He also gave us good advice on what types of insurance would be needed for adequate coverage of our new business. Without the SBDC’s assistance we probably would not have been able to make this purchase.”

For more information about the company’s services, please call 712-262-1514.