A repeat SmartBiz customer shared his SBA 7(a) loan application experience online recently:
5-star TrustPilot Review
“This is the second SBA loan I used to SmartBiz for. They were extremely easy to work with and made a difficult loan application relatively easy to complete.”
Michael Newbarger, Co-Owner, Outdoor Dreams
Outdoor Dreams, located in Richmond, Virginia, was founded in 2005. Co-owners Greg Koehler, Owner & Project Designer, and Mike Newberger, Owner & Operations Manager, work in tandem to bring beautiful outdoor spaces to the community.
The business helps clients with all types of outdoor projects from design through build. The top craftsmen, creative designers, and experienced outdoor construction managers on staff has earned Outdoor Dreams an excellent reputation. The business currently only works on projects $100,000 or more.
Greg founded Outdoor Dreams in 2005 while still in college studying Political Science. Mike joined him full time in 2017 after graduation from the University of Baltimore with a degree in Business Administration.
The pair knew that they didn’t want office jobs and looked to the landscaping business. Mike grew up in that industry with a mother who was an avid gardener and worked in a nursery.
The business started with “two guys and a truck,” reports Mike.
They self-funded the venture with credit cards at first, until they built up time in business and good credit. Once established, they came to SmartBiz Loans for an SBA 7(a) loan in 2015. They took out another SBA loan in 2018 and again in 2021. With low rates, long terms, and low monthly payments, the funds allowed them to shore up working capital and grow the business.
Outdoor Dreams now has 12 employees on staff and their top line revenue is 2.5 million. Mike reports that finding the right financing to grow at a reasonable rate is one of the biggest challenges he faced as a business owner.
“You have to understand that patience is important,” he says. “Hiring may take six months and that action needs to be supported by capital. An SBA loan, although a variable rate, helped us meet that challenge.”
Outdoor Dreams did not suffer like millions of other small businesses during the pandemic. Because they operate in the construction industry, the business was considered an “essential business”. They did not face the safety issues of others as their workers are outside most of the time.
“The home improvement environment has grown tremendously as the housing market has exploded in America,” says Mike. In fact, the U.S. home remodeling market revenue is anticipated to record a valuation of USD 450 billion by 2027, according to the most recent study by Global Market Insights Inc. “We’re finding that homeowners are refinancing and putting those funds back into their house.”
Outdoor Dreams is facing some issues related to the pandemic. “The supply chain is nuts,” says Mike. “There’s a three-to-four-month backlog for supplies due to increased demand and lumber went through historic highs.”
With the SBA 7(a) funds, Mike and Greg were able to hire new managers, a designer, a production manager, and field staff.
The partners have different skillsets that complement each other and help the business run smoothly.
“Greg is the creative partner. He’s the lead designer and he directs all branding efforts, photo shoots, social media, and content creation,” says Mike. “I focus on finance, process improvement, structuring roles and determining staff responsibilities which become more and more important as we expand.”
Mike worked with SmartBiz Loans Relationship Manager Hayden throughout the process. He says, "It has been a pleasure working with Outdoor Dreams throughout both loan applications we collaborated on over the last 3 years. Mike and Greg did an excellent job of outlining their goals, taking direction, and adhering to the principles of the SBA 7(a) Loan Program. One of my favorite aspects of SmartBiz is our dedication to helping small businesses obtain the best funding option, and then continuing to be a partner and resource after the funds have been deposited. As seen with Outdoor Dreams, we are best when we can truly partner with entrepreneurs to ensure the health and longevity of their small businesses."
When asked if he has any insight to share with budding entrepreneurs, Mike stresses that it’s important to create a work/life balance.
“In 2017 when I started, there was no balance. I’ve learned to delegate in order to grow intelligently. I got married three years ago and have two young children. I have plenty of time to enjoy family time now. The first three years are crazy, but I treat the business like a traditional job now.”
The business is committed to strong marketing to grow. They concentrate on website SEO and social media promotions. The Houzz Find Professionals directory helps connect them to potential clients. Check out Outdoor Dreams projects here including decks, pools, outdoor kitchens, water features, and more: Outdoor Dreams Project Highlights.