Immigrant sees potential for year-round pool firm

Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 15 people through a 12-week business planning course for Latino entrepreneurs at the R.I. Small Business Development Center. This is the eighth article in the series.

Fidel Calcagno wants to buy a Woonsocket-based pool maintenance and supply company. It’s a perfect fit for him, he says, because before moving to Providence two years ago, he owned a similar business in the Dominican Republic, and he has 20 years’ experience.

Being an entrepreneur comes naturally to him as well. Upon moving to the United States, Calcagno started a domain registration and Web site hosting business called Web Service America. He also works as a freelance translator for local health care and education clients.

But the real reason he wants to buy the pool supply company is independence. “I realized it’s a better way to make more money than being an employee for someone,” Calcagno said in an interview.

Purchasing a business is easier than starting one, he said, because an existing business has an established customer base, equipment and market knowledge. Calcagno said he would use the company’s existing attributes to expand the business. By offering new services, such as water filtration, reverse osmosis and water softening systems, he plans to turn the pool supply company into a year-round business.

But in order to obtain funds to purchase the business, Calcagno needs a business plan. He said he is attending the 12-week Primer Paso FastTrac business planning workshop at the R.I. Small Business Development Center because he will need a loan and a line of credit to cover the $200,000 to $300,000 purchase and startup costs.

At a recent class, marketing consultant and guest teacher Leon Mesa reminded the group of Latino entrepreneurs to focus their marketing on those potential customers for whom their products or services would fulfill a need.

Calcagno sees his market as not just swimming pool owners, but anyone who uses running water, whether at home or in a business.

“Water comes with a lot of impurities,” he said. “And hard water, when used in a washing machine and dishwasher, doesn’t react well with the soap. In the shower, it can damage the skin. And soft water is better for water heaters.”

Calcagno said he gained much of his knowledge and marketing skills through the experience of owning a water treatment company for three years.

If he is able to purchase the pool supply company, he said, he plans to spend much of his time on marketing – from cold-calling, to direct mail, to e-mail blasts, to door-to-door visits.

“I have expertise in this area,” he said. “I know about water treatment technically and I know how to sell it.”

As far as pricing and costs, Calcagno said, he has a basic idea of how much the products, equipment and services will cost, and of how to price them, but hasn’t established a financial statement that outlines the monthly income and expenses.

When asked how he would differentiate his product from others, Calcagno said he would focus on customer service as the No. 1 differentiator from the competition. He plans to offer full-year packages for pool maintenance, supplies and water filtration systems, and he will be on call 24 hours a day, he said.

He also plans to survey customers and find the best prices from suppliers. He plans to employ three people, including his 22-year-old son and 18-year old daughter, both of whom have prior experience working with him in the industry.

His dream, Calcagno said, is to be “successful and happy, to enjoy the job and make money while doing it.”