BUSINESS MATTERS

Agency's seminars a factor of success, small business owner says

For three years before he opened his own business, Greg Modica was a regular at seminars and matchmaking events put on by the Arkansas Economic Development Commission and other state agencies.

Modica, a retired first lieutenant in the U.S. Army and Army Reserve, set out to learn as much as possible about running a small business. Government Supply Systems, still based out of Modica's home in El Dorado, was founded in 2009 after a lengthy, self-prescribed learning process.

"People laugh at me for it today. They kept seeing me around and just thought I already had a business," Modica said. "All these people knew this guy from El Dorado kept hanging around, and they just figured I was a business owner already. I wanted to learn as much as I could."

Modica, who qualifies as a minority business owner because he is black and a disabled veteran, took what he learned and opened Government Supply Systems, which sells more than 30,000 business and industrial products. State and federal contracts have been particularly fertile ground for the company.

Government Supply Systems offers approximately 30,000 business and industrial products. Those range from furniture to janitorial and sanitation supplies. The company has four full-time employees and three contract workers.

The economic development commission will again host a business matchmaking event for small and minority businesses from 7:30 a.m. to 3:30 p.m. Sept. 8. Monday is the deadline to register for the conference, at the Clear Channel Metroplex Event Center, 10800 Colonel Glenn Road in Little Rock.

It is, essentially, a speed-dating event for about 300 small and minority business owners in Arkansas. They're given 12-minute, face-to-face meetings with government agencies looking for suppliers.

This year's event is being sponsored by the Arkansas Department of Workforce Services, Lockheed Martin, Delta Regional Authority, the Arkansas State Chamber of Commerce, the Electric Cooperatives of Arkansas, and the Newport Economic Development Corporation.

"If it wasn't for the matchmaking sessions, I wouldn't have had the opportunity to do business in the state that I've had," Modica said. "They are totally vital in bringing procurement people to you. It's a great networking and learning opportunity."

Not every meeting -- businesses are guaranteed up to 10 -- will result in a contract, but each presents a chance to build relationships. There are times a visit leads to contracts down the road.

It's a process Modica knows well.

Modica's first contract came in 2010 and revenue that year was $10,000. Securing a contract with the Department of Human Services grew revenue to $200,000 annually, an increase of 1,900 percent.

Government Supply Systems is on track for more than $1 million in revenue this year. Modica directly attributes the company's growth to learning about the government procurement process at that first economic development commission event.

Despite a more than 400 percent increase in revenue the last five years Modica was, he said, within four days of shutting down his business in 2014. Unpaid contracts with suppliers were piling up, the result of growing too big, too fast.

The commission was able to help Modica through its loan mobilization program. It guaranteed 90 percent of financing that Modica secured through a local bank. Business owners are responsible for paying off the loan, but have the backing of others to help secure capital.

Modica still doesn't earn a salary. His business plan called for him to live off his monthly military disability check for seven years as he grew Government Supply Services, recognized by the state as a Certified Minority Business Enterprise. The distinction allows Government Supply Services to be more easily identifiable to agencies looking for minority business partners.

Certification for minority businesses will be covered at the Sept. 8 meeting.

As his business grows, Modica, the youngest of 11 children, is hoping to help others grow their business. Particularly close to Modica's heart is Act 1222. The state statute encourages agencies to "attempt" purchasing at least 10 percent of products from minority-owned small businesses.

That program is what helped Government Supply Services land that first Department of Human Services contract. Modica has grown his business with state agencies, plus landed federal contracts.

"I'm a champion for small business. I really believe in small business and what a large stake they have in each community," Modica said. "I've been fortunate to succeed. We need to do what we can to help encourage more people to start businesses."

If you have a tip, call Chris Bahn at (501) 378-3518 or email him at cbahn@arkansasonline.com.

SundayMonday Business on 08/14/2016

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