Ka Wai Ola - Office of Hawaiian Affairs, Volume 14, Number 4, 1 April 1997 — Loan fund recipient buys out boss, beats his business plan goal [ARTICLE+ILLUSTRATION]

Loan fund recipient buys out boss, beats his business plan goal

by Barbra An Pleadwell Paul Muranaka had been working for Tropic Equipment Center selling and repairing farm equipment for 14 years when he was offered a ehanee to buy out the owner. Muranaka is now his own boss, sole proprietor of Hawai'i Farm Services in Hilo, the only MasseyFerguson tractor dealership on the east side of Hawai'i Island. In the first 1 1 months of operation Hawai'i Farm Services exceeded its gross sales goal by a third. "It's great, but tiring," Muranaka said, "It means early mornings and late nights." Owning your own business also means a lot more paperwork, Muranaka says but he admits he likes to see how the money comes and goes. For now Muranaka and fiance Janice Iwashita are Hawai'i Farm Services' only employees. Muranaka's business plan allows for hiring employees in a year's time. "When I moved, I wanted to keep my expenses low," Muranaka says, "When I did my business plan, I made it real conservative. I was scared. I didn't know if I was going to make it, if I could survive." When Muranaka applied for a bank loan with First Hawaiian and American Savings, he was told that he was "high risk" and turned down. That's when Muranaka called Noel Fujimoto, loan officer with the Office of Hawaiian Affairs (OHA), and asked for help. Fujimoto told Muranaka about OHA's Native Hawaiian Revolving Loan Fund. Muranaka applied early last year and was approved for a $70,000 loan. OHA also helped with a three-year business plan for Hawai'i Farm Services. With the loan he rented warehouse space on Manono Street in Hilo next to the community eollege. Already, Muranaka says he needs more space. "This plaee is way too small — a thousand square feet," he says, "I really have to expand."

In the shop sit two tractors under repair, waiting for parts. New tractors waiting to be bought sit in front of the shop. Muranaka used some of his loan to buy a forklift, a truck, tools and inventory. With his profits, he invested in a computer system that runs industry software diagramming equipment parts. Computer CDs replace thick manuals that take up shelf space. "I'm really happy that I'm doing well," he says, "I've used less than half of the loan. The rest is sitting in the bank." Muranaka says one of the reasons he's doing well is because of the personal attention he gives his customers. He says he has a hard time referring to peo-

ple he's been dealing with over the years as "customers;" so many have become friends. "I'm not here to push anyone to buy. I'm not a salesman. I've seen a lot of salesmen — they're examples of what I don't want to be. Before they ask 'How are you?' they ask 'What are you going to buy today?'" "The bigger operations send their customers to the service department when there's a problem. Or they don't help you if you didn't buy your equipment from them." Muranaka says he spends about 65 percent of his time doing repairs and 35 percent working on sales. Service calls are a big part of Muranaka's workload. He says he likes going out in the field because it breaks up the day. He remembers being called out to the middle of a taro paddy to service a tractor that fell into a dip filled with water and wouldn't start. "I had to take a boat to get to the tractor. It was raining and the engine was underwater. There was a problem with the ignition system. That was a whole day project. "These farmers depend on their equipment. They need someone to rely on. That's why I eome in early and stay late; that's when the farmers eome in

from their fields." But Muranaka is humble about his success, crediting his former employer. "I didn't start something new. It was already there and people keep coming back." Muranaka says he deals with a lot of different people with diverse needs, like new immigrants who need help with language. "There is a language barrier, but they feel comfortable with me. If we have to, we draw pictures." Muranaka sees continued success for Hawai'i Farm Services. "There is a future for farmers. More people are looking into farming, or looking to expand." Muranaka's been approached to be a guest speaker for other Native Hawaiian Revolving Loan Fund recipients. He says he'll tell prospective business owners to expect long hours. But despite the long hours, Muranaka says he really enjoys his work. "He loves it," his fiance Iwashita will tell you. The eouple plans to wed in October.

Loan Fund Recipient Paul Muranaka in front of his year-old business, Hawai'i Farm Services.