Alternative Financing for International Sales

ENTREPRENEURIAL PROFILE: Lisa Howlett: Auburn Leather Company

Auburn Leather Company, located in Auburn, Kentucky, manufacturers leather laces for footwear and sporting equipment.

Auburn Leather expanded its international sales with the help of a small business insurance policy received from Ex-Im Bank assigns and insures Auburn Leather’s export accounts receivable.  This insurance gives lenders the confidence to provide working capital financing.

Growth in international sales created more than 30 new jobs at Auburn Leather and increased its annual revenues from $7.4 million to more than $11 million. Export sales have grown from 33% of total sales to 45%.  Auburn Leather’s President, Lisa Howlett, says that this growth has created 20 new jobs at her company.[i]


[i] “Kentucky Lace Company Boosts Sales and Increases Workforce with Ex-Im Bank Financing,” Export-Import Bank of the United States, n.d., www.exim.gov/about/whatwedo/successstories/Auburn-Leather-Company.cfm.

My Thoughts on the State of the Main Street Economy

I had the opportunity to sit down for an interview with the folks that blog at Insurance 321.  I shared my continued concerns about the recession plaguing Main Street and small business owners:

Small business owners and entrepreneurs face an endless stream of challenges, and one of the biggest that’s been nagging them since 2008 is the weak economy, says Dr. Jeff Cornwall, Jack C. Massey Chair and Professor of Entrepreneurship, Belmont University.

You can read the entire interview here.

An Alternative to the Uncertainty of Outcoursing

ENTREPRENEURIAL PROFILE: Peter Marcum: DevDigital

DevDigital has offices in Nashville, Tennessee and Baroda, India.  DevDigital began as company that bought used Internet network assets, such as routers and switches, from distressed companies at a steep discount.  The company would refurbish this hardware and resell it to small independent network companies.

Eventually the company moved into the actual operation of digital networks.  As profit margins for network operators became razor thin, the company made another major strategic shift.

devdigital india team

(DevDigital’s India team)

DevDigital purchased a small Web site programming shop in India that was being sold by one of their customers.  “My theory was that the larger companies, Google, IBM, and Apple were and had been diversifying globally in their software production,” says Peter Marcum, co-founder of DevDigital. “The problem for a smaller US based operation, is who do you call, or trust, or where do you go to get started, in an overseas location?”

DevDigital made the move into Web site development for smaller companies.  It took about four years to fully integrate the two locations.  Due to its cost advantage and stable employment, the company has been able to grow in the highly competitive market of Web site development.

DevDigital does about 80 percent work for hire and 20 percent projects in which they take equity in exchange for Web site development.  “My strongest advice to anyone wanting to set up off shore is find a local way in,” says Marcum. “By that I mean you need a core group that will stay long-term as you build a team, just as you would here in the US.”[i]

[i] Peter Marcum, personal communication, May 23, 2014.

Company Looks Globally to Smooth Out Seasonality

ENTREPRENEURIAL PROFILE: Dr. Roy Archambault: DryCorp

DryCorp, located in Willmington, North Carolina, manufactures products that help waterproof other products.  DryCorp, which was founded by Dr. Roy Archambault, developed its first line of products to waterproof casts, bandages, ostomies, and prosthetics using a rubber sleeve.  The product allows patients to swim, bathe, shower, and to receive hydrotherapy without any damage to the medical product protected by the sleeve.

DryCorp also is developing a line of products that are crystal clear bags that vacuum seal electronic devices while still allowing them to be fully functional.  Products include cases for tablets, earphones and backpacks.

Since DryCorp’s products are highly seasonal, its distributors focused on markets such as Australia that have opposite seasons to the U.S.[i]


[i] “DryCorp/DryCase,” Small Business and Technology Development Center, n.d., www.sbtdc.org/programs/export/success-stories/drycorp-drycase/.