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04.21.08 - Ex-Marine with a Mission

Leslie Kraft Burke

Entrepreneurship wasn't former Marine Mark Llano's first mission, but it's become one of his best. The Desert Storm veteran already had a successful career in investment banking when in 2003 he decided to "get back to his passion," founding Source One Distributors, Inc. in Wellington, Fla., to help U.S. servicemen and women by providing them with tactical products, equipment and services.

Initially operating from an office he created by converting his daughters' bedroom, Llano financed his $60,000 startup with equity from home, and credit cards. He's built the company into a $52 million business now headquartered in a 12,000-square-foot warehouse.

Source One's product catalogue, which began at less than 10 pages, is now more than 300 pages. The company distributes goods from more then 1,000 manufacturers, primarily to the departments of Homeland Security and Defense, NASA and law enforcement agencies.

Getting access in these government accounts by entering the Small Business Administration's 8(a) Business Development program in 2004 was the key to Source One's success. It allowed the company to qualify for contracts set aside for minorities, said Llano, 39, the son of Cuban immigrants.

The SBA's 8(a) program offers a range of assistance to minority - and women-owned firms, including access to federal contracts.

"The SBA's South Florida office was incredibly helpful - one of my best resources," said Llano, who went without salary for his first seven months. "They also helped me navigate and understand the government agencies that would buy my products. This was very important, because the government is so big, it's difficult to find the right procurement officers."

If Source One can't find what soldiers need, it will make products using U.S. - based subcontractors. One collaborative effort yielded a body-armour side plate to be worn under uniforms that solved the problem soldiers had being hit with bullets where they had no protection. The product saved the life of at least one Marine, according to a report in Marine Corps News.

Product development, manufacturing and sales under its own brand will be Source One's platform for it's growth as its initial momentum slows, Llano says. For 2008, the company expects a slight drop in revenue to 45 million, due to several non-recurring government contracts.

"It's difficult to maintain that sort of pace organically," Llano said. "We are looking to grow via acquisitions and synergies with other companies, and we already have new products in the pipeline for launch 2008."

Source One recently created a flame-resistant, infrared patch that soldiers can use to cover rips in thier uniforms. The patch, which Llano said has been approved by the U.S. Army's testing center, also has commercial applications - perhaps for hunters, campers and skiers.

"We have been impressed with Mark's vision and plan for the company from the beginning," said Lee Kaplan, senior relationship manager in Wachovia's Business banking group based in Fort Lauderdale.

"Usually we only work with companies that have 3 million in revenue, but we began working with Mark since he started the business because we believe in his success."

In mid-2003, Wachovia provided Llano with a $50,000 line of credit, which now is $6 million, Kaplan said. It helps Source One fill the cash flow gap between paying vendors and getting paid by the government, plus it allows the company to take advantage of trade discounts for companies that pay promptly.

Mentoring beginning entrepreneurs and specifically promoting veteran entrepreneurs are two if the many ways Llano gives back to the community. He also has donated equipment to Law Enforcement agencies, and hurricane relief efforts, and e volunteered to teach hand-to-hand combat to soldiers at the Marine Corps Base Quantico.

In recognition of Llano's community contributions and for sustaining a successful business, the SBA named him its 2007 South Florida District Small Business Person of the Year. In 2006, the Department of Commerce's Minority Business Development Agency gave him the Minority Supplier/Distributor of the Year Award for the Atlanta Region, and in 2005, Llano was given the Veteran Small Business Champion Award by the SBA.

Llano's drive and vision attracted Randy Webb to invest in the business and become Source One's chief operating officer soon after creation.

"He has no fear," said Webb, a former hospitality industry executive. "His military background must help him overcome challenges."

But Llano also looks further back than his military career for inspiration to take risks and set the achievement bar high.

"When my grandfather was teaching me to ride a bicycle, he told me, 'If you're not falling, you're not learning," Llano said. "I think about that."

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