The Entrepreneurial Journey
Starting with an Idea, a Prayer and a Plan
So you want to own your own business? I am often asked how we were able to build a successful company that is excelling in the most uncertain of economic times. The response I provide is that succeeding in entrepreneurship means traveling down one of the most rewarding, and at times, one of the most trying paths of your professional life. Although each business will take a different journey to eventual success, many of the standard entrepreneurial elements can be found in Luke & Associates’ early roots. Simply put, Luke began with an idea, a prayer and a plan.
Luke & Associates, headquartered in Merritt Island, was founded in 2004 to provide medical services for the U. S. military. We have gone from revenues of $223,000 in 2006 to nearly $100 million in 2010. Luke now employs over 900 healthcare personnel at 64 military bases located in 32 states and Europe. We are expanding and diversifying into other markets and we expect continued growth over the next few years.
Values That You Live By
How did we get here? We founded the company on sound principles and values based upon our Christian faith. Corporate values are nice on paper and look good on a website but the true character of a company comes out when times are tough. Although we carefully planned the company, we still made mistakes. We quickly learned that mistakes or bad calls offered a tremendous opportunity to show the character of the company and its leadership. I firmly believe that by living our values every day, our company will succeed. However, I am uncomfortable in acknowledging that we have succeeded – we are simply following a plan. There is a saying that wherever you look is where you go. Success requires looking back; we choose to look forward.
Part of our success came from identifying an unfulfilled need. We believed that with simultaneous wars occurring in both Iraq and Afghanistan, there was a need for contractor-provided health care providers to staff military clinics in hospitals in the United States. Military medical personnel were being deployed to the battle zones leaving a void at military bases here on the home front. Our plan was to begin by providing medical services and expanding into other areas within the military and other agencies.
Creativity and Flexibility
Luke was awarded its first contract in 2006 by the U.S. Air Force to provide Clinical Support Services at up to 60 Air Force bases. Then, in June 2009, we were awarded 12 more contracts to provide direct care medical services at all Army posts within the United States. These awards were large and presented major challenges to our company in a relatively short period of time. In spite of this growth, the biggest challenge that existed for us was how to finance our cash flow. While the government typically pays invoices every 60-90 days, we still had a bi-monthly payroll obligation to meet. We needed to develop a solution and fast.
Our only resort was factoring companies. Factoring companies provide short-term loans based upon receivables and charge interest by the day plus administrative fees. We factored for over two years until a local bank approached us that fully understood the government contracting process and provided financing at reasonable rates, and saving us over $20,000 a month in interest. By far, the biggest challenge to entrepreneurs is financing payroll. Don’t be afraid to seek creative ways of financing, especially if it ensures your survival for a defined period.
Growing Where You’re Planted
Our rise as a company would not have been complete unless we operated in a business-friendly setting. Brevard County has turned out to be that gem. I frequently travel across the country and when I meet with other companies and customers they often inquire as to why Luke is not based inside the Washington D.C. beltway. The answer is very simple: Brevard is home. My home is where Luke can flourish alongside some of the greatest technological advances in the entire world and I can consult with like-minded business professionals who are not only interested in improving their bottom line but also improving our community. Organizations like the Economic Development Commission and our local chambers are working hard to market the Space Coast as a world class business destination and that can only help Luke as we continue to set and reach our goals.
I like to return a question with a question for those naysayers who wonder what Brevard County could possibly have to offer businesses: “How is Washington D.C. working out for you?” I rarely get an answer.
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