In any new industry, one of the more significant challenges is soliciting business and new clients. This is especially true in the trucking industry. Mike Brown, a life-long entrepreneur and Student Activities Director at Western Iowa Tech Community College (WITCC) in Sioux City, Lorenzo Chavis, a pharmaceutical sales representative, and Steve Smith, an insurance broker, recognized a business opportunity in the trucking industry from their connection with Tyson Foods. They decided to form MLS Trucking, a company that would broker drivers and loads. They turned to Dan Wubbena of the Western Iowa Tech SBDC for help in making it happen.
Dan first began working with the MLS Trucking partners in August 2007, in the middle of their business plan writing and brainstorming sessions. For the next four months, Dan assisted the partners in creating the business plan, doing industry research, and completing financial projections. Jeff Vore, Program Manager of WITCC’s Education, Economic Development and Entrepreneurship (EDECEN) Department, was recruited to assist with business model research. The result of this joint effort was a new business model that indicated MLS Trucking should purchase trucks rather than attempting to broker loads.
As the business plan and financial projections were revised to reflect this change in the business model, the partners looked for a funding source to purchase the two tractor trailers needed and supply them with the various start-up and operating costs. Dan and Jeff assisted the partners in the presentation to a private investor. Dr. Jerome Pierson, a heart surgeon, came aboard as the primary investor and silent partner of MLS Trucking.
Mike Brown stated, “Without Dan’s help and the help of WITCC’s EDECEN Department, we would never have gotten this project off the ground. It took several months and many long meetings, but Dan and Jeff finally convinced us that we needed to look at changing our business model. Dan helped us create a business plan and financials that sold our investor during the first meeting! It simply would not have happened without the help of Dan and the SBDC.”
The MLS partners worked tirelessly to build relationships with potential clients while finalizing the business plan and were successful in landing their first client before the trucks were purchased. The business began operations in February of 2008; it has since acquired three new accounts and hired three full-time employees. MLS Trucking is currently in the process of purchasing three additional tractor trailers to support their new partnerships and will be hiring an additional three full-time employees.
MLS Trucking is also currently negotiating with the WITCC Truck Driver Training program to begin offering a scholarship for one full-time student to enroll and complete the program at no cost to the student. The partners are giving back to the college that helped make their business a reality.