SBA

In February of 2000, two hard-working, honest men, with 30 years of construction experience between them, decided to form their own contracting firm to provide trenching services for the installation of underground utility systems. They did so at the urging of a potential client who knew of their abilities, because he needed someone to ". . . get the work done." Steve Abbey and Andrew Lamoureux knew they had a challenge ahead of them, but felt confident in their abilities to meet the needs of their construction clients.
 

Upon the recommendation of their banker, Alerus Financial, they visited the local SBA office for assistance in formulating a business plan and registering the business with the state as a contracting entity. During this early planning period they focused on choosing a name that is both memorable and not tied down to a specific geographical area. As a result, early names involving their own initials and incorporation of the "Red River Valley" were rejected. They chose the name "Rhino Contracting" because of the similarity between the powerful animal and the type of equipment they use to do trenching for placement of utility lines. The concept of using the rhinoceros actually occurred to Abbey while watching a nature show on television. They worked with a local artist to graphically depict a company logo reflecting the image of a confident, determined, and powerful rhino with a boring auger for a horn.
 

Starting with a small SBA-guaranteed loan from the bank, they began operations in the spring of 2000. They used the loan money to leverage lease programs to obtain needed equipment for trenching services. Their financial strategy for start-up was simple: they would grow slow and reinvest all profits from the business back into the business, even to the extent of foregoing their own salaires. This plan of action required the support of both their spouses as each family budget had to be adjusted to account for a single income. "Things were tight for the first couple of years," recalled Abbey, "but we had confidence in ourselves and knew we would be successful."
 

Rhino Contracting also incorporated a customer first philosophy into their operations. Since the delivery of utility lines to a single construction site normally involves gaining access through any number of unrelated property owners, all Rhino employees were expected to be sensitive to the concerns of these property owners and to treat them all as customers of the firm. "It is important to gain the trust of these property owners regarding placement of utility lines," said Lamoureux, "and a big part of this is to have our employees project a professional and confident appearance."
 

Rhino Contracting has experienced strong growth through the years and ended the 2006 construction season with revenues eight times that of their first year. In 2006 Rhino employed a work force of thirty-three employees working job sites in the Red River Valley and also in the Southwest United States. Today the company provides a variety of services including: pipe bursting, directional boring, water and sewer, power, CATV, fiber optics communication, and utility construction. Customers include the United States Air Force, Xcel Energy, Qwest Communications, Midcontinent Communications, local electric co-ops, and dozens of private contractors. "The success of Rhino Contracting is due to the fact that we bid quality materials for all of our jobs and follow through with quality installation true to our bid," summarized Lamoureux.