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R & J Custom Countertops LLP - Idaho Falls

 

When Wythe Jones and his nephew, Dustin Reed, began shaping and installing solid surface countertops in 2000 their efforts earned them a gross revenue of $15,000. Six years later, persistence, supportive wives, and a reputation for high-quality work and on-time service, has them anticipating revenues in excess of $700,000.

Their target market for the granite and quartz countertops is high-end residential new construction and high-end residential remodeling, which now comprises 70 percent and 30 percent of the company’s sales, respectively. Jones and Reed were R & J’s only full-time employees until late 2005 when they added two full-time positions. They are now seeking to add two more but are finding that there is a lack of skilled craftsmen in the area.

Their success has not come without challenges. When the events of Sept. 11, 2001 occurred, “we went from three to four new calls per week to no serious calls for six or seven weeks,” Jones said. Today, they field three or four new calls per day and have a seven-week backlog of work.

In 2004, R & J began to grow dramatically. Margin analysis showed that gross profit margins could be doubled if they did not have to sub-out the cutting of the stone. However, to cut their own stone, they would need to acquire a $50,000 saw and move into a larger space. The Idaho Innovation Center had been a great place to start and operate the business, but continued growth in sales, as well as capability, required a move. In July 2005, R & J moved into an 8,000-square-foot building.

R & J submitted a loan package to Regional Development Alliance for $72,000 and the loan was provisionally approved based upon Jones completing the NxLeveL business course from the Idaho Small Business Development Center and preparing a business plan.

“The NxLeveL course was very beneficial for the next level of our growth, especially the requirement to develop and complete a business plan,” Jones said. “The business plan process enabled me to see the future of my business, my industry and my community more clearly. It also gave me even more confidence of our certain success.”

In July 2005 the loan was approved; the saw, other tools and handling equipment were acquired and improvements were made.

The company’s sales are anticipated to double again.


SBDCs are a program supported by the U.S. Small Business Administration and extended to the public on a non-discriminatory basis.  SBA cannot endorse any products, opinions or services of any external parties or activities.

 

 

Updated 3/20/2012 12:14:22 PM
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