Rug Rat Flooring - Chubbuck
Ron Ward started covering floors in 1970, and served a four-year apprenticeship to learn the business. Six years later he started his own part-time floor installation business, which he operated for ten years before accepting a position as a purchaser and salesman for "Wall 2 Wall Carpeting." Having accumulated a wealth of knowledge about all aspects of operating a flooring business, Ron returned to installing floors and, in 1997, restarted his own business. In 1999 he launched a full-service retail and floor-covering installation business, Rug Rat Flooring.
Sales increased from $195,000 in the last half of 1999 to $300,000 in 2000 and nearly $400,000 in 2001. At that point Ron sought help for his rapidly expanding business. He contacted the Idaho SBDC in Pocatello and immediately enrolled in the NxLeveL Entrepreneurs course. During the ensuing year the Idaho SBDC helped Ron with his business planning and accounting, introduced him to a QuickBooks® training program, and helped him restructure his business as a corporate entity.
In early 2002, with Idaho SBDC assistance, Ron applied for an SBA loan to help him purchase land and renovate an old nursery building to accommodate his growing business. By mid-year 2002 the SBA approved the application and Ron immediately started work on the project. He held a Grand Opening in December 2002.
In the first seven months of 2002, sales increased to $482,000, more than total revenue for 2001. This strong sales growth soon caused pressures on inventory, so Ron again sought Idaho SBDC assistance to help resolve a tight cash flow. The Idaho SBDC helped him obtain a "USDA Intermediary Relending Program (IRP)" loan to purchase additional inventory. With a greater selection of products, 2004 sales totaled nearly $1.3 million.
The growing business has also created jobs in the community. Employment at Rug Rats has grown from three full time and two part time workers in 2001 to 11 full time and five part time workers in 2004 - an excellent contribution to a rural economy.
