Wednesday, June 08, 2016
Small Business Success Story -Medical Gas Technology
Each year the New York Small Business Development Center recognizes outstanding small businesses in a variety of ways. This Success Story from the Watertown SBDC appears in our 2015 Annual Report.
David Farrell was working with a private contractor doing work on Ft. Drum when he learned that the contractor had lost his contract. Meanwhile, his friend Bryan Benson, was working part-time with a local company, Medical Gas Technologies, Inc. (MGT), that services, tests and performs maintenance on medical gas and vacuum systems. The market for the company’s services includes hospitals, doctors’ offices and even veterinary clinics. MGT’s owner wanted to retire, and Bryan needed a partner to help purchase, operate and expand the business.
David entered the NYS Department of Labor Self Employment Assistance Program to retain his unemployment benefits and attended the Watertown SBDC’s seven-week Entrepreneurial Training course. With the assistance of SBDC Director Eric Constance, the business plan came together, supported by financial forecasts and research information. The business needed an employee with a Federal license to verify the service process, and Bryan was able to acquire a license based on his experience working with the previous owner of MGT.
They purchased the business with a combination of owner financing, private investors and client cash investment totaling $361,500. The partners are on the road several days a week and have added several facilities to their customer list. While the business currently operates just within New York State, its owners are looking to adjoining states as a future market. The new company has seen success as it continues to grow its client base and may be adding employees in the future.