One of the primary tenants of the SBDC program is the maintenance of client confidentiality, including the revelation of the client’s name and any proprietary information. Certain clients will authorize the release of their name, certain information about their business, and the assistance received from the Virginia Highlands SBDC. We are most appreciative of Mr. Jose Gomez allowing us to tell his story.

In July 2000, Mr. Gomez purchased the production machinery of the Terry’s Snack Foods operation at auction. During the course of his visit he decided to purchase the entire plant facility with the intention of manufacturing organic tortilla chips to serve the growing market in the eastern United States. Mr. Gomez first met with the Virginia Highlands SBDC in July 2000 to explore financing alternatives for the purchase of the Terry’s property and equipment and to provide working capital. He incorporated Prime Choice Foods, Inc. in October 2000, and began production operations in October 2001.

From the beginning, the company committed to being a natural, organic and kosher facility. Over 80% of the company’s sales are generated from the manufacture of snack foods for the “private labels” of major distributors and retailers. The company also produces and markets its own line of snack foods for the Hispanic market. Sales grew to over $10.6 Million in 2005. This growth in demand for his products necessitated the addition of equipment and facilities beyond the original plant purchased.

In May 2006, Mr. Gomez contacted the Virginia Highlands SBDC for assistance with developing a comprehensive business plan required by a consortium of lenders and grantors for the purchase of a 72,000 square-foot facility from the City of Bristol, Virginia.

During the initial strategy conference on May 31, 2006, with Mr. Gomez and his business accountant, Mr. Tilley suggested that the business expansion plan concentrate on the first two years of the project in terms of investment in equipment and personnel. This plan would also serve as a basis for the creation of a comprehensive long-range strategic plan. Time was of the essence and responsibility for the plan components was delegated to the company staff, the VHSBDC staff, and the accountant.

The Virginia Highlands SBDC coordinated the writing of the business plan narrative, including the description and history of the business, expansion plan, market analysis, marketing plan and competitive analysis, with primary emphasis on the market-related components. The client provided information and data from internal and industry trade sources to include in the narrative. The Center analyzed the information, prepared narrative drafts, and requested additional information and clarifications. A final draft was prepared, with a suggested list of supporting documents to include as attachments to the completed business plan.

On June 6, 2006, the final draft of the plan was completed and submitted to the City and funding partners.

The complete financing package included a Virginia Governor’s Opportunity Grant, an interest-free loan from the City of Bristol, a loan from the Mount Rogers Planning District Commission, and a commercial bank loan. Since the move into the new facility in 2006, employment has reached 55 full-time employees, with annual sales of $11,350,000.

Visit the web site http://www.primechoicefoods.com