Kustom Graphix | Application Preview
1. PROJECT COVER INFORMATION
Project Title:
Berlin Feed Mill Continuity and Safety Upgrade Project
Applicant Organization:
Kustom Graphix (new ownership entity assuming operations of Berlin Feed Mill)
Project Director / PI:
Business Owner/Managing Member (incoming operator-owners of the Berlin facility)
Project Period:
Two-month transition stabilization period, followed by immediate facility upgrades and safety improvements
2. EXECUTIVE SUMMARY / ABSTRACT
Problem / Need:
Kustom Graphix is acquiring an established, self-sustaining feed mill operation in Berlin. The core issue is a temporary cash-flow gap during the ownership transition: accounts receivable and customer payments will take time to begin flowing under the new entity name, while fixed obligations such as payroll, utilities, insurance, taxes, vendor accounts, and bank-note payments continue without interruption. At the same time, the facility requires targeted upgrades to improve safety, efficiency, and reliability, including mixer improvements, better lighting, safer heat, and general maintenance.
Target Population / Sector:
The project supports local and regional agricultural producers, hobby farmers, homeowners, and small animal owners who depend on reliable access to feed, custom mixing, bedding, seed, pest control products, and seasonal supplies. It also supports the local Berlin-area workforce by preventing an operational shutdown during ownership transfer.
Proposed Solution:
Provide bridge funding for approximately two months of essential operating expenses to ensure uninterrupted mill operations while receivables transition into the new ownership name, paired with a focused set of capital and safety upgrades that reduce risk, improve efficiency, and enhance customer visibility and access.
Key Activities:
- Stabilize operations during ownership transfer by covering payroll, utilities, insurance, taxes, vendor payments, and initial bank-note repayment until receivables normalize.
- Upgrade or refurbish mixers and address critical maintenance items to improve throughput and reduce downtime.
- Improve facility safety and customer-facing access through better lighting, a safer heat source, and exterior improvements including a lighted sign with products and hours.
Expected Outcomes:
- No interruption in service to farms and households; continuity of a key local agricultural supply chain asset.
- Reduced safety risk and improved operational efficiency through equipment and facility upgrades.
- Improved customer awareness and walk-in sales via clearer exterior signage and safer, better-lit operations.
Funding Request & Duration:
Bridge funding primarily covering a two-month transition period, plus targeted expenditures for safety and facility upgrades implemented immediately thereafter.
3. STATEMENT OF NEED / PROBLEM STATEMENT
Problem Description:
The Berlin feed mill is an operating, revenue-generating facility that can sustain itself under normal conditions. The challenge arises during a change of ownership from a private seller who is retiring. Even healthy businesses can experience disruption during transitions because receivables, billing cycles, and vendor relationships often require re-papering, new account setups, and processing time. During this gap, the new owners must still meet payroll and keep the plant running safely. If the business pauses or reduces service, customers may shift purchasing to competitors, and restarting a mill after downtime can be costly due to staffing instability, delayed vendor shipments, and lost contracts.
Who Is Affected:
Local farms, small livestock operations, homesteaders, and rural homeowners in and around Berlin who rely on convenient access to bagged feed, custom mixes, bird seed, garden seed, pest control products, grass seed and deer food plot seed, and heating fuel pellets. Local employees and vendor networks are also affected if operations are interrupted.
Current Gaps:
Conventional financing has been pursued through local banks, but a short-term bridge is still needed to cover operating obligations until accounts receivable begin arriving under the new ownership name. Separately, the facility has specific safety and modernization needs (mixers, lighting, safe heat source, and general maintenance) that are difficult to fund during the transition window without outside support.
Consequences if Unaddressed:
Without bridge support, the business risks delayed payroll, late vendor payments, reduced production capacity, or temporary shutdown. Any interruption could lead to customer loss, weakened vendor terms, increased safety risk, and long-term damage to the viability of one of the few mills offering these services in the area.
4. PROJECT GOALS & OBJECTIVES
Overall Goal:
Keep the Berlin feed mill operating continuously through ownership transfer while improving facility safety, efficiency, and customer access, preserving an essential rural service and local jobs.
Specific Objectives (SMART):
Objective 1:
Within the first two months of the ownership transition, maintain uninterrupted operations by meeting payroll, utilities, insurance, taxes, vendor obligations, and required debt service while receivables transition to the new entity.
Objective 2:
Within the first project implementation window following stabilization, complete priority safety and reliability improvements, including lighting upgrades and installation of a safer heat source, reducing operational hazards and improving working conditions.
Objective 3:
Within the initial improvement phase, complete targeted equipment and facility maintenance (including mixer upgrades and general maintenance) to reduce downtime risk and improve production consistency for custom mixed batches.
5. PROJECT DESCRIPTION / PROGRAM NARRATIVE
Project Overview:
This project combines short-term working capital support with practical capital improvements. The mill will continue its existing services while Kustom Graphix transitions the business into new ownership. The funding is structured to prevent a cash-flow disruption during the receivables changeover and to address immediate safety and operational priorities that strengthen the mill for long-term community service.
Approach / Strategy:
The strategy is to stabilize first, then improve. The first priority is continuity of operations because customers rely on the mill for time-sensitive agricultural needs and seasonal purchasing patterns. The second priority is to reduce operational risk and improve efficiency through upgrades that directly impact safety (lighting and heat source) and production capability (mixers and maintenance). The third priority is visibility and accessibility through exterior improvements, including a lighted sign listing products and hours, supporting steady retail traffic and reinforcing market presence.
Key Activities:
- Transition stabilization: maintain staffing, keep vendors paid, cover utilities, insurance, taxes, and begin debt repayment while AR shifts into the new ownership name.
- Facility and equipment upgrades: improve mixers, upgrade lighting, install a safe heat source, and address maintenance items that affect safety and efficiency.
- Customer-facing improvements: add a lighted exterior sign with products and hours, improve exterior conditions where needed, and address any areas that can be made safer and more efficient.
Innovation / Best Practices Used:
Rather than expanding into untested services, the project strengthens an existing, proven rural enterprise by investing in continuity, safety, and operational reliability. This approach is consistent with widely used rural economic development best practices: preserve critical local infrastructure, prevent service gaps, and make targeted improvements that reduce risk and enhance productivity.
Alignment with Grant Priorities:
The project aligns with common state and local economic development priorities, including small business retention, job preservation, rural supply chain stability, public safety improvements in working facilities, and maintaining access to essential goods and services in smaller communities.
6. METHODS / WORK PLAN
Implementation Steps:
Phase 1 - Setup (Ownership Transition and Stabilization)
Operations continue without interruption while customer accounts, billing processes, and receivables are established under the new ownership entity. Funds are used to ensure timely payroll, utilities, insurance, taxes, vendor payments, and commencement of bank-note repayment.
Phase 2 - Execution (Safety and Operational Upgrades)
Once the business is stable and receivables are flowing normally, priority upgrades are implemented. Work includes mixer upgrades or refurbishments as needed, improved lighting, installation of a safer heat source, and general maintenance focused on reducing hazards and preventing downtime.
Phase 3 - Delivery (Customer Visibility and Efficiency Improvements)
Exterior improvements are completed, including a lighted sign listing key products and hours of operation. Any additional safety and efficiency enhancements identified during the transition are addressed to improve workflow and customer experience.
Timeline:
Primary bridge period of approximately two months for stabilization, with upgrades initiated as soon as practical and sequenced to avoid operational disruption.
7. TARGET POPULATION / BENEFICIARIES
Who Will Be Served:
Area farms and livestock operations requiring custom feed mixing and bulk or bagged feed, as well as homeowners and hobby farmers purchasing small animal feed, bird seed, garden seeds, pest control products, grass seed, deer food plot seed, heating pellets, and pre-bagged feeds.
Recruitment / Access Method:
Customers are served through the existing storefront and ongoing delivery routes using the mill's trucks, supported by improved on-site visibility through exterior signage and consistent hours of operation.
8. ORGANIZATIONAL CAPACITY
Systems & Infrastructure:
The business includes a large storefront area carrying a broad product selection and a production area with five mixers capable of handling a wide variety of custom batches. The operation also includes delivery capacity via company trucks, enabling service to farms and other customers who require delivery rather than pickup.
Operational Readiness:
The facility is currently functioning and self-sustaining, indicating an established customer base and proven demand. The incoming owners are focused on maintaining continuity while investing in practical upgrades that directly support safety, efficiency, and customer service.
9. EVALUATION PLAN
Success Measures:
Operational continuity through the transition period, measured by uninterrupted operating days, on-time payroll, maintained vendor accounts, and continued fulfillment of custom mixing and delivery schedules. Facility improvements are measured by completion of lighting upgrades, installation of a safer heat source, mixer upgrades or maintenance completion, and completion of exterior signage. Business stabilization is reflected by normalizing receivables under the new ownership name and consistent vendor payment cycles.
Data Collection Methods:
Internal accounting records (payroll, utilities, vendor invoices, debt service), operational logs (production and delivery schedules), and documentation of completed upgrades (invoices, photos, inspection notes if applicable).
Reporting Frequency:
Progress tracked during the two-month bridge period and documented at completion of major upgrade milestones.
12. BUDGET SUMMARY
Bridge Operating Costs (two-month transition period):
Payroll, utilities, insurance, taxes, vendor payments, and initial bank-note repayment to maintain uninterrupted operations until accounts receivable are received under the new entity.
Capital and Safety Improvements:
Mixer upgrades or refurbishments, lighting improvements, installation of a safer heat source, general maintenance, and an exterior lighted sign listing products and hours.
13. BUDGET JUSTIFICATION (NARRATIVE)
Operating Expenses:
These costs are necessary to prevent service interruption during the ownership transition. Payroll supports workforce retention and consistent operating capacity. Utilities, insurance, and taxes keep the facility legally compliant and operational. Vendor payments protect supply continuity and maintain favorable purchasing terms. Initial debt service demonstrates responsible financial stewardship during the transition and supports long-term credit stability.
Equipment and Facility Improvements:
Mixer upgrades and maintenance support the mill's core service line: custom mixed batches produced reliably and efficiently. Improved lighting and a safer heat source reduce workplace hazards, improve working conditions, and support safe operation during darker hours or winter conditions. Exterior signage improves visibility, helps customers quickly identify available products and hours, and supports storefront sales that complement production revenue.
14. SUSTAINABILITY PLAN
Post-Grant Funding Strategy:
After the short transition period, ongoing operations are sustained through the mill's regular revenue streams, including retail storefront sales, custom mixing services, and delivery-based sales. The business is described as self-sustaining under normal operations, and the grant functions primarily as a bridge to ensure the new ownership can maintain continuity until receivables are fully established.
Revenue or Cost Recovery:
The product mix (small animal feed, bird seed, garden seeds, pest control products, grass seed, deer plot seed, heating pellets, and pre-bagged feeds) provides diversified retail revenue. Custom mixing and delivery services create additional income streams and customer retention. Safety and efficiency upgrades reduce downtime and risk, supporting stable margins and predictable production.
15. RISK MANAGEMENT
Key Risks:
Short-term cash-flow constraints during the receivables transition, potential operational disruptions if critical equipment fails, and safety risks from outdated lighting or heating systems.
Mitigation Strategies:
Use bridge funding to cover fixed operating obligations during the transition, preventing payroll or vendor disruptions. Implement prioritized upgrades to mixers, lighting, and heat source to reduce downtime and hazards. Maintain customer access and awareness through reliable operating hours and improved exterior signage, reducing the risk of customers shifting to competitors during the ownership change.
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General Information
Business Registration Number: 517822746
Location: Ripon, WI, United States
Length of Operation: 11plus
Number of Employees: 1-10 Employees
Annual Gross Income: $500k to $1M
Annual Gross Expense: $250k to $500k
Open to Loans: NO
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Funding Usage
Most of it will be used for 2 month expenditures as we switch ownership to ourselves from a private owner. The mill is self-sustaining as it is, but until accounts receivable begin in our name, we will still have to make payroll, pay utilities, taxes and insurance as well as begin repaying bank note and keeping vendors paid
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Business Plan
The first things that we feel need to be done is to upgrade mixers, install better lighting, a safe heat source, and general maintenance. Exterior changes to include lighted sign with company products listed as well as hours of operation. And any areas that could be made safer and more efficient will be addressed We feel that keeping this mill running in Berlin is instrumental to the community and is one of the few in the area that offer the services we do. The present owner is older and would like to retire, so we have gone to local banks for funding, but will need help with needed updated and safety items. The mill itself can sustain itself, but we won't be able to make necessary payments until accounts receivable begin to come in.
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Self Identified Competition
There are very few mills in the area, Olsen's Mill, located about 20 minutes away, is co-owned by person we are buying Berlin Feed from. They offer similar services but on a much smaller scale. United Co-op in Waupun about an hour away just started and will offer some of the services that we do We have a large storefront area selling a large variety of small animal food, bird seed, as well as vegetables in seed form for gardens. Pest control products, grass seed deer food plot seed, fuel heating pellets, and pre-bagged animal feeds for farms and homeowners. In the back there are 5 mixers that can handle a wide variety of custom mixed batches, delivered by our own trucks.
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Contact Applicant
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