Paper Business Blooms for Roses

 

After years of hard work and ingenuity, everything is coming up roses at Roberto Espat's Roses Southwest Papers Inc. But at one point, Espat's future appeared uncertain.

 

Espat, who came to the United States in 1981 and later earned citizenship, had a successful paper business in Belize, converting jumbo rolls into finished products such as toilet paper, napkins, and paper bags.

 

However, Espat dreamed of owning his own business in the United States, where he was educated. As he began looking into various business opportunities, including in the auto parts industry, he found that his status as an "unknown entity" was a hindrance. "Not knowing anyone and not having contacts in that industry made it impossible," says Espat. Finally, in 1984, he decided to go back to what he knew best-paper.

 

Securing initial financing was difficult. Espat says that he approached four or five banks over the course of a year to find the $1.1 million he needed in addition to his $400,000 investment. "I had no business history in this country and hardly knew anyone in the business world. Eventually, I found a banker who would listen to me." 

 

Espat also reached out to business organizations such as the Association of Commerce and Industry of New Mexico and the Albuquerque Chamber of Commerce, which directed him toward other financing options, including local and state government industrial revenue bonds.

 

Roses achieved $90 million in sales in 2007, up from $500,000 during its first year. Part of the company's success has come from government contracts, including one with the federal General Services Administration. Espat and his marketing team have also targeted restaurant chains, eventually landing a deal with McDonald's for bags after a two-year effort.

 

But the McDonald's contract required Espat to invest in a special type of machine that took a year to acquire. "Our efforts in marketing and the minority angle opened the door for us, but since getting the contract, we've had to compete on the same level as everyone else. We're still puppies compared to the big guys."

 

Recently, Espat bought a paper mill in Sanford, Florida, to ensure a steady supply of paper for its tissue products. "It's an added insurance policy for us," says Espat of the acquisition. "If a supplier lets us down, we have our own mill to bank on."  

 

As an immigrant who arrived in the United States with no business connections and little money-but plenty of entrepreneurial drive-Roberto Espat personifies the American Dream.

 

To share a Success InSight of your own, e-mail Greg Galdabini at ggaldabi@uschamber.com or call him at 202-463-5563.