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Small-Business Profile
Contractor Flow Cor digs deep to persevere
By Danielle Birkin / Contributing Writer

Chad Hess, president and co-owner of Flow Cor, is shown in a trench at a project in Boulder City last week. Employee Chris Brown operates a backhoe. The company specializes in pipeline and utility services.
Photo by Steve Marcus

Flow Cor President Chad Hess has been immersed in the local general contracting industry since he was old enough to pick up a shovel.

"I've lived in Southern Nevada my entire life, and my dad always has worked paving and grading, so growing up it seemed like as soon as we could walk we started going to work with him," said Hess, whose Boulder City-based company is a general A contractor specializing in underground utilities. "We started at the bottom, shoveling and raking asphalt and doing mechanical work, but we also got to run the equipment at a young age on weekends and after hours. So I have been around the industry my whole life, and when I was young I always knew I wanted to start my own business and see if I could make it."

After working for the last 15 years for his father's company, Hess did just that, launching Flow Cor with his wife, Taunya Hess, the company's vice president whom he credits as being the driving force for his foray into entrepreneurship.

"I had gotten my general contractors license and set up a corporation, which cost $4,000 to $5,000 including contractors school, then put it on inactive. One day my wife said 'Let's start this business,' and I said, 'No way. You're crazy. We have a steady income and we're comfortable,' but she talked me into it."

Flow Cor, founded in 2002, was originally run out of the Hess's residence with two employees, in addition to the hard-driven couple. Hess worked the contracts, while his wife ran plans and permits from the office. He figured the company would be home-based for about five years, at which time he would secure commercial office space. He was in for a shock: Southern Nevada experienced a growth boom, and contractors were in demand. A year after its inception, Flow Cor had some 20 employees on its payroll.

"I had been ready to quit because everybody was miserable, and the kids didn't get any attention, and it wasn't worth it, but then it got really busy in the valley, and we got out of the house and brought in an office manager," said Hess, who was so sure of his career goals that he and his brothers used to create imaginary contracting firms complete with staff and equipment when they were kids. "When we started Flow Cor, whose name my brother thought up when we were 8 or 9, it was mayhem for a while, but things have kind of settled down and we have found a comfortable spot."

The company now has 15 employees, with 75 percent of its business in the Las Vegas Valley.

Hess has recently directed efforts into securing more public works projects, as the Southern Nevada housing market has decelerated.

As a general A contractor, Hess said Flow Cor "can do anything from the ground down, but the license does not allow us to build anything. We do grading and paving, highways and bridges. The only way I could have gotten that license is because my dad has a general A license, and you have to have experience, so that opened doors for more opportunities."

He said the company's underground work includes installing water mains, sewers, services and storm drains.

Since its inception, Flow Cor has built its clientele, which includes Maile Concrete. Chad Whisenhunt, project manager of Maile, has worked with the company for almost two years, originally when he was with another company.

Flow Cor Inc.
Owners: Chad and Taunya Hess

Year founded: 2002

Address: 1005 Industrial Road, Boulder City

Type of business: General A contractor specializing in underground utilities

Workforce: 15

"They've done underground water, sewer and storm drains, and demo and grading," Whisenhunt said. "They're very responsive and sensitive to time schedules, and when you need them they are there. They are also very competitive with everybody else in the business."

Marnell Corrao has also been a client for about two years, according to Mike Meatovich, the company's superintendent.

"They are a good company and they respond quickly," Meatovish said. "Construction changes pretty rapidly and they are always there with it as far as schedules and are very responsive to direction and the needs of a general contractor. Chad is just a good young man and I would recommend him to anybody."

Flow Cor now has about 15 projects in various stages at any given time, with three to five subcontractors on each job. In its first year of business, gross revenue was approximately $750,000, a figure that now averages between $2 million to $3 million annually.

But achieving that success was not without its bumps in the road.

"As a new business it's hard to get a loan, but you have to have the equipment to move dirt," Hess said. "It's not that we had bad credit, but you're not looking to borrow $5,000 or $10,000 - you need a couple hundred thousand."

The Hesses sold their home and downsized, which gave them some working capital.

"We financed a backhoe and got a hydraulic breaker attachment and a water truck and a one-pipe truck - that's the truck with all the tools - and that was a couple hundred thousand right there," he said. "With one backhoe, you can't do as much work, but we only had two employees. We really needed a front-end loader, and that's a couple hundred grand, but we had a some friends - who really helped us out when they shouldn't have - who were looking to invest, so we got a front-end loader and things really picked up. One of the greatest things is the relationships you make through the business when you see the worst of times and the best of times."

Being an entrepreneur is also a challenge because a small-business owner must wear so many hats, Hess said. There is also no one higher up on the corporate ladder to turn to when the going gets tough.

"I had worked hand-in-hand with my dad and had a comfort zone and the friendship and I could always fall back on him - if I can't solve that problem, he will," Hess said. "Now I am that person and it's like, 'How many fires will there be to put out today?'"

As for the future of the company, Hess hopes to grow slowly and steadily and adapt to the changing climate in the valley. As a Southern Nevada native, he said he has seen too many local contractors expand too quickly, only to go under when the construction market gets sluggish.

Hess, who is grateful to his wife for pushing him to launch the company and thankful to his father for teaching him the trade, offered the following advice to fellow entrepreneurs.

"Work hard, run your butt off and keep your word," he said. "But if you stop long enough to look back you will scare yourself enough to hit the panic switch, at least in this business. When we got up to 20 employees I thought, 'Oh my word, what have I done?' I think my wife is the one with the guts."

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