New owners acquire three Fantastic Sams shops

David and Lynette Weatherford, the new owners of three Fantastic Sams franchise stores in Springfield, are an example of what it takes to get ahead in entrepreneurship in the new millennium.

Lynette Weatherford, owner of Human Resource Advantage, is an experienced human resources specialist and entrepreneur, while David Weatherford has a background in business operations and works as a regional sales manager with Wells Fargo.

Their career experience was important, but the fact that both continue to draw income from sources outside their new business was key to their creditability for lender Great Southern Bank.

“On the small-business side, we’re definitely looking for outside income above and beyond your startup,” said Kent Lammers, vice president of commercial lending at Great Southern. “That was always a concern; now I’d say it’s becoming a major concern or a guiding factor – much more than it used to be.”

Speculation is out, and solid business fundamentals and borrower solvency are in for businesses of all sizes.

“We, like almost all financial institutions, are scrutinizing each deal more closely,” Lammers said. “Whether it’s a small-business loan request or a multimillion-dollar loan request, everybody’s looking at things quite a bit more tightly.”

Yet, while banks’ risk aversion is shrinking, those with the right combination of canny smarts and capital can still attain the dream of small-business ownership.

Cut-and-dry opportunity

The Weatherfords purchased the hair salons in Springfield from longtime owner Mark Burgess of Burgess Enterprises for an undisclosed amount May 1.

The Weatherfords’ locations are at 450 W. Battlefield Road, 1845 E. Turner St. in the Kmart Plaza at Glenstone and Kearney, and 1907 S. Glenstone Ave. in the Plaza Towers Shopping Center.

“Mark did an awesome job as far as getting it established and making it a presence here in the community,” Lynette Weatherford said of the previous owner.

David Weatherford discovered that the business was for sale online and contacted business broker John Farris of Sunbelt Business Advisors about the listing. Farris discussed the details with the Weatherfords confidentially, going over “the basic history of the business, the financials, the operating history and what the opportunities are going forward.”

The business’ solid track record – continuously operated under the same management for 24 years – was attractive to the Weatherfords, but it also scored points with their lender. It pays to be able to show “your core business makes ‘X’ amount of money per month,” Lammers said. “Somebody wanting to start something up totally from scratch, or build a totally spec retail center or something like that, it’s going to be much more difficult to qualify for.”

The Weatherfords liked what they heard and, after consulting with their accountant and lender, they decided to go for it, assisted by a U.S. Small Business Administration loan guaranty – another factor that resonates with lenders – especially now.

According to the SBA, the Weatherfords used an SBA-backed $240,000 loan in the transaction.

“I would say the role of the SBA is going to be increasing until the economy begins to pick back up,” Lammers said.

The Weatherfords’ three locations employ 25 and provide full salon services, including cuts, coloring, permanents, straightening and styling for special occasions, such as prom and homecoming, Lynette Weatherford said. Targeted to a family demographic, Fantastic Sams’ strives to offer affordability, with haircuts starting at $9.95 for children 11 and younger, and a full line of retail hair care products.

Fantastic Sams’ low price point for its services was another factor that made it a bankable risk for Great Southern, Lammers said, noting that its price structure makes it less vulnerable to economic woes than, say, a luxury salon that’s charging $150 for a hairstyle.

Store looks

The Weatherfords plan to make gradual changes to their existing stores in keeping with Fantastic Sams’ modern, upbeat image, and they recently added a state-of-the art computer system that will enhance customer contact via e-mail.

Staff development is another emphasis for Fantastic Sams’ new owners.

“We do hands-on training and education for them, benefits and we don’t require them to pay booth rental; we pay them a set hourly/commission rate,” Lynette Weatherford said.

“We’ve got a lot of long-term employees, and I think it really presents them with a great opportunity for growth,” she added.

The salons also are expanding their community involvement with Locks of Love, Toys for Tots and are in the midst of a back-to-school drive offering discounts to patrons who donate school supplies.

Fantastic Sams also will participate in Crosslines’ free Cuts for Kids event 9 a.m.–3:30 p.m. Aug. 18 at the Academy of Hair Design, 1832 S. Glenstone Ave.

Looking ahead, the couple hopes to add new locations in Christian County.

“We reside in Christian County, in the Ozark-Nixa area, and we’d love to expand into the area,” Lynette Weatherford said.

“With so much development and growth, we feel that it will be a great opportunity,” she added.[[In-content Ad]]