HispanicBusiness

Name: RHO Logistics Inc.
Rank on FG 100: 64
Revenues (2006): $11.59 million
Founded: 1998
President and Owner: Ray Hernando

Starting a business could be an exciting, yet risky endeavor for many aspiring entrepreneurs. More than 50 percent of small businesses fail in the first year and 95 percent go out of business within the first five years, according to the U.S. Small Business Administration.

Despite these staggering statistics, many entrepreneurs continue take the leap and start their own companies.

President and owner of RHO Logistics Inc., Ray Hernando, is one of those entrepreneurs. In 1998, when he began his trucking and warehouse company in El Paso, Texas, he remembers feeling some trepidation.

"I was really afraid. But I knew that I was pretty good at what I did," recalled Mr. Hernando, a graduate from the University of Texas at El Paso. "They say that the best revenge is success. So, I worked really hard."

After working 10 years in the transportation field as a logistic manager, Mr. Hernando noticed there was a lack of customer service both in sales and operations.

"In my opinion, there was a need for knowledge in the trucking market in dealing with new business ventures, customer service, and general office management," said Mr. Hernando. "My goal was to bridge the gaps between shippers and local trucking companies."

Headquartered in El Paso, with offices in Dallas and Chihuahua, Mexico, RHO Logistics is a third party logistics company. The company does not own any equipment, such as trucks and trailers, but it brokers the trucks to move freight.

An asset based company is limited by the size of equipment and customers they have "whereas, we have the tools to practically move all the freight offered to us," said Jesse Mendoza, director of sales/operations at RHO Logistics. "We have a truck base of over 450 carriers, that's not including the number of equipment they have."

Mr. Hernando started the company with $6,000 in savings and has built it into an $11 million company. He expects RHO Logistics to reach $50 million in annual revenues by 2012.

"People who visit our company can see that we love what we do, from the top down," said Mr. Hernando, who credits his passion, drive, and team of 15 employees to his company's success.

RHO hopes to expand its services to California, Chicago, and other Midwest markets. Currently, 20 percent of the company's volume is in Mexico.

"We are in a unique situation down here on the border," said Mr. Mendoza. "Major companies set up 'twin-plant' operations where they ship raw materials for production in Mexico and finished goods that get dispersed from their distribution centers in El Paso or other cities in the United States."

"We have the ability to provide the service in the United States as well as in Mexico," he added.

When Mr. Hernando is not running his multi-million dollar company he is active in his local community. He currently serves on the El Paso Hispanic Chamber of Commerce, the El Paso Chamber of Commerce, and the Central and South Texas Minority Business Council.

As for advice to someone starting a new business, Mr. Hernando offers these words of wisdom:

"It is a marathon, not a sprint. Pace yourself, keep good records. Get a good bank behind you. Get a good accountant. Make sure to have drive, passion, and courage. But most importantly, a solid project."