The Journey Ahead

To Be or Not to Be

The most feared question in a future shop owner's life is:  should I do this or not? Really what I am asking myself is: "Do I follow my new dream or not"?   I was already a successful designer and artist, but what makes me think I could run my own store front?  I know nothing about running a store....but, when I thought a bit longer about it and talked with my "Texan Hubby", he reminded me that I had already been running my own design company, and was helping to run the family business and most important....I was the CEO of a large family!

So I told myself that the business "principles" are  the same...just different customers and raw materials.  I can do this!

The next 2 questions are some of the most important  ones that come into play before coming to a conclusion on "to be or not to be".

1.  How much money is this going to cost? And where am I going to get it?

2.  Where am I going to put this new store....LOCATION, LOCATION, LOCATION!

These are some pretty tough ones and the first one will be your major hurdle.  Let's think about this though. Why is it that anytime we have a dream for ourselves, even something as small as treating ourselves to a day at the spa; we always find some excuse not to do something for ourselves?  Of course we always come up with legitimate reasons; such as, I need to run errands, I need to get the kids from school, I need to have dinner ready, I  really should pay this bill, the kids and hubby need something more than I do.  Face it, we are notorious for putting ourselves last.

Remember when we first thought about buying our first home, a new car or even deciding if the time was right to have our first child?  We asked all those same questions. "Can I afford it?  Do I really need it? The timing is not right."  You know the conversation!

Well, I can tell you, being "50" now and turning "51" in a few weeks~~~~no time like now! 

If we truly wait till "everything is just right and in place", we would NEVER do anything beyond our "safety zone". 

A true entrepreneur NEVER waits till everything is "just right" and all doubts are answered.  They are risk takers who sometimes succeed and sometimes not.  But they NEVER quit~~~~they just change their paths.

My biggest regret for anyone, myself included, is that I do not want to "look back" and say "what if"? 

I know we have all heard from the "experts" and everyone else that we can think of, telling us to follow our dreams.  Of course saying it and doing it are two totally different concepts.  Then there are those in our life's that will freely tell us all the negative that comes into play....heck, as if we had not already thought about all that!  So, ladies if you have a friend that is wanting to follow their dreams; be a true "yaya" and support them.  Trust me...they have already beat themselves up figuring out all the negatives...give them a little "positive" feedback.  I can guarantee that they themselves will bring up the "nagging" question..."to be or not to be" with all the reasons why they shouldn't be!

I can't really tell you what to do...but, if you really want to open a store or any type of business; then come along with me on this wild ride and I will hopefully be able to give you some insights into what has succeeded for me and where I have made my mistakes.

My Papa use to tell me...."The first time is not a mistake, it is a lesson learned.  But, if you repeat it...then it becomes a mistake."! 

So, hold on my yaya sistas...we are in for a ride of a lifetime!

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Now What?

Okay, I have now come to the conclusion to open a store front! 

 But, oh my gosh...it took me over a year to make the final step towards that journey.  I cannot tell you how many days and nights I would be excited and really "pumped up" about opening a new store.  I would talk excitedly, to anyone who would listen, about my ideas, products, concept of the store, how I wanted it to look, etc.  Then like a light switch being turned off....so, would I. 

First, I thought...okay I already have a showroom (my cottage), but it was not a store front.  Hey, it's already paid for and I own it.  I have no bills...but, how in the heck are people going to find me?  Yes, I was in the center of the city...but, still was not a store front.  You really had to know me and my work in order to find me. 

Then, I thought...okay; I'll just do shows. Yeah, right...not for me.  Been there, done that.  Hate it!  

Hey, I'm "50" now, and have been a successful business owner for over 30 years.  Why not retire? yeah right....I'm a Cajun remember...no such word in our vocabulary!

My poor family & friends could not keep up with me on what I truly was going to do.  I went months going back & forth, back & forth....do I take the risk or not?  Fortunately for me, my family & friends supported what ever path I wanted to take.  Trust me, it was like riding a roller coaster that I felt I was never going to get the chance to get off.  Till I finally came to the conclusion...by myself...why not?  Go for it!  There was really never any "final reason" that pushed me to the conclusion, I guess I just decided I wanted off the roller coaster and no longer enjoyed the ride.  I was ready to have my feet planted firmly on the ground.

Then the question came up....Now what?  I made the decision, now how do I carry it out?

Obviously the first question for me was: WHERE?  back to the old saying...location, location, location  (I will talk about this subject in another posting.)

But, I truly had no clue where to now take this decision.  But, I did know I was NOT getting back on that roller coaster!  Then I thought back to my dear "yaya sista" Elizabeth Maxon telling me "Dream, Plan, Do". 

Okay...so I have done the part of "dream" so obviously my next step is to "plan".  But "plan" what?  Too much to think about and the holidays are coming, anniversaries, birthdays, etc....okay here we go again...putting all the reasons in front of us, WHY we can't go forward right now. 

My "Texan hubby" helped me through this part of my confusion & frustration.  He would patiently listen to me and all my gripes.  He would hold me when I cried or when I would question my abilities.  I would constantly ask him (really asking myself): "Am I crazy?  Why am I doing this?"  He would just smile, hug me and say...."Honey, go forward and don't look back, but most of all  HAVE FUN!"

Heck, I knew what the next step was, I guess I just wanted someone else to validate it....THE BUSINESS PLAN!

I knew I had to have a business plan and I knew how to write them,  but I HATE paperwork!  Fortunately though a business plan does help keep your thoughts and research "organized".  I finally got to see my dream in writing!  Even though writing 'business plans' sounds boring (I will post about this later on), it will be the MOST important step you take prior to opening any business!

So that was my first real step towards "Now What?"  and the "PLAN" had begun!

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The Plan!

The Business Plan is the most important item you will need to learn to write in order to open any business!  Even if you don't want to have a store front and just want to do shows or be a part of an antique mart,  it is vital that you write a business plan. 

Most people think that a business plan is only if you are going to need to get financing from a financial institution...WRONG...this plan will help you stay focused and truly guide you to what you need to do.  Think of the business plan as your partner in success, because without it~~~~you are going to start to flounder like a fish out of water.

These are the main objectives in a business plan, and you need to adopt them to fit your style of company.  But, make sure you know how to complete every section.  Even if no one else ever sees it~~~it will always be there for you to refer to when you seem to be getting off track.  Don't forget, the business plan is not set in "concrete"...it is there as a "guide only".  But, at the end of each year it will show you if you were true to your original concept or that you had to do some adjusting.

• Description of Business:  
  What type of business is it?
  What does it do? 
  When will it open?  What are the hours of operation?
  What is the concept of the business? What is it's vision?
  What are the primary products?
  What services (if any) will be provided?
  What is the "Ambiance, image, appearance, etc" of the business?
  How & from which suppliers will the goods & services be obtained?
  Who are your customers?
  What are the customer's needs & how will the company meet those needs?
• Management Plan
  What are the duties of the owner?
  What is the organizational structure of the business?
  What are the operating rules? (purchasing, sales, advertising, marketing, accounting)
  When & where will new employees be recruited?
  What criteria will be used for hiring, training, etc.?
  What other resources are available to you? (CPA, Attorney, etc.)
  Who are the Board of Directors (if any)? and what are their roles
  What insurance is in place for fire, theft, flooding, etc.
  What is to be done in case of a death or disability of the owner?  What is the plan for successor?
• Marketing Plan
  Who will purchase the products/services?
  What is the size of your market?
  What is the markets growth potential?
  What are the demographics of your target market?
  What is your target markets buying habits?
  What is important to your target market?
  What are the trends in your industry in the next 5-7 years?
  What types of other businesses are in your area?
• Marketing Strategies:
  How will the business communicate with its customer base?
  What will be the average size of each customer's order?
  How often will the customer be likely to repeat a purchase?
  How will the products/services be sold to the market?
  What advertising & promotion media will be used?
  What is the pricing structure and profit margins?
  How are credit & collection policies structured?
  What services, warranties & guarantees are offered to a customer?
• Products & Services:
  What is the business selling?
  What are the unique characteristics of the product?
  What makes your products  different from other products already available in the area?
  What will the products/services do for the customer?
  How does the product/service compare with what is already offered by competitors?
  Why would the customer buy from your company and not your competitor?
  What makes your company unique?
  What additional products, if any, will be made available in the future?
  What liabilities are involved in your products?
  What legal protection applies?
  Where will your vendors be found?  Are they able to restock in a timely fashion?
• Operating Plan:
  What are the advantages & disadvantages of your location?
  What renovations are planned? How much will it cost?  Are there any zoning issues?
  What other business are in the area?  How do they "complement" your company?
  How will the interior facilities be laid out? Does it meet fire code requirements? Handicap?
  Does the building meet all codes?
  How will your product be produced?
  How will inventory be controlled?
  How will supplies or raw materials be ordered & controlled?
  Who are your suppliers?  Do you have backup suppliers? How will these costs be controlled?
  Financial Plan
  What are the current financial arrangements?
  What debt obligations does the business already have?
  Need a balance sheet (which are projections...showing capitalization, income, expenses & fixed assets)
  Prepare a capital equipment list
  Who has access to the cash flow?
  How is the financial information kept?
  Prepare a profit & loss statement
  Prepare a break-even analysis
• What is your mission statement?
  
  Okay now you know what kind of homework you have in front of you!  A lot of planning and research...but, trust me it will all be worth it.  And you will feel much clearer about your path and how you are going to get there. 
  
  If you have any questions about the business plan, and would like some other information on how to apply it to your business feel free to contact me, and I will help guide you through it as much as I can.
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  The Sacrafice
  

  Okay, we have now decided to open a new business and have written our business plan.  Now comes the part of the path that can pull the dream away.....the sacrifice!

  When you decide to open a business, even if it is just selling at a few shows a few times a year...there is going to be a sacrifice.  And normally, that sacrifice is the family. 

  You need to truly sit down with all your close family members to truly discuss what can happen and what WILL happen!  They may have been supportive, but it is one thing to say they are supportive...it is another when this dream of yours steps on their rights.  Trust me...I have been there!

  For example, let's say you have worked steadily, in your home, for 6 months getting product ready for the show coming up.  The show is the next day, and one of the children comes down sick.  Or the hubby has to go out of town for an unexpected business trip or the car is in the shop. You get the picture...the list can go on forever of "what if's".  But, trust me they do happen, and around every corner is something that is going to try to get in the way of this dream of yours.  You are going to get frustrated, you are going to feel no one is taking you seriously about what you do..."this is not just a HOBBY" you scream.  And they all just look at you and say..."We know that."  But DO THEY REALLY???? 

  Remember, they are use to you always being available at anytime they need you....now your priorities are changing.  And after 30 years of owning my own business and my husband owning his, these issues do come up.  Someone ends up having a game, or they want to go to a birthday party or they are sick, etc.....and there you are knowing that your show is this weekend that you worked so hard for.  Or your lovely shop awaits you to open the doors, and  you are the only one that can...because your staff called in sick or is on vacation. 

  I don't want to sound so negative....but, ladies...these are very real situations and they will happen!  Question is, what are your "back up plans" when they do? 

  Before you proceed forward with your dreams, please take time to discuss these "what if's" with your family and make sure EVERYONE knows that you are dedicated to your company and everyone has to be on the same path! 

  It won't always be this way and most of the time....the family is willing to help, but remember....there will be sacrifices; just make sure that you are not the one doing all the sacrificing!
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  Location, location, location!
  

  I am sure that you have all heard that "location, location, location" is vital for everything major we do in our life!  Rather that be our homes, where our children will go to school, food stores, etc...well, it is just as important for your business!   Rather you are planning a store front, shows, antique marts, or even from your home....you must really do research about how your location will affect your business.

  If you did your business plan, then it can help you make a final decision on your location; particuarly the marketing analysis.  Don't ever settle for the first one that you think will do the best...continue to do your homework and truly search out the area so that you can "narrow" it down and be able to see "pros" and "cons" of all the places you have chosen.

  For example....I had "2" places I had narrowed my shop down to, and the main criteria for me was no "rush hour traffic" (remember I live in Houston, the 4th largest city in the US) and was in a major shopping area on a major road.  Not too hard to find in Houston.  But, sometimes even if the road is a major one....are people flying through the area and not really "noticing" what is around them?  Not like your typical small town.

  Both of these stores had great points!  The first one was in the same shopping area as Pier I and Michaels...talk about traffic!  Down side....the store was long and narrow, was sandwhiced between Zales jewlery and a French (China made) clothing boutique.  Beautiful store front though, not much window space...but, hey...I can be around the 'big guys".  I would also be paying over $6,500 a month for 1,800sqft.  Now, if you put the numbers to that for inventory....$40,000 per 1,000sqft.  How in the world am I going to stuff $80,000 worth of inventory in a long and narrow store?  Just couldn't see it (Also required a 5 year lease).  The landlord knew a lot of people would want the area because of the traffic...not ALWAYS a great thing.  Heck, I have shopped in those same stores (Pier 1 and Michaels') and never even noticed the Zales or the French boutique until I was looking for space.  And that has been at least 7 years of shopping in that area.  Obviously, I was on a mission to do my shopping at my particular stores and move on.  I wonder if everyone else is doing that?

  Other choice....2,600sqft. for $3,200 a month with a 3 year lease next door to JoAnne Fabrics and a 24 Hour Fitness.  Not near the traffic right now as the other place, but will definitely be seen.  And the store had already been a boutique for over 7 years.  It had closed because the owner wanted to retire....so, hummm....seemed to work for her in that area. And it was even closer to home...3 minutes away!  So, obviously I chose the 2nd one. 

  Did I make the right choice?  Obviously the other location did give me traffic, no question.   But, will I be able to draw traffic towards the location I choose?  Only time will tell.  I am in the same area as Best Buy, Barnes & Noble and Linens & Things...they are around the corner from me.  All I can say is that I did go back and forth and was willing to "roll the dice" on the 2nd store.

  Only time will tell....but, I do feel confident in that I did my homework and did a lot of research.  I even asked several of the owners and managers of the other stores around both of the areas to see what the landlord was like and traffic into their stores.  It did help that since I shopped in these stores, the managers knew me and were willing to talk to me.  Not all store owners would be willing to talk about the landlord and how their business is doing....especially if they feel your company might be a threat.

  Main point to remember is to do your homework and don't make any rash decisions until you have studied the location from all angles.
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  The Waiting Game!
  I have now chosen my spot and now we move to working with the landlord.  I must say, this was a whole new path for both my Texan hubby and I.  We have always owned our own property and buildings, so have never had to deal with a lease or with a landlord.  So, we both had a lot to learn.

  The first part of the negotiation started with the bidding war of cost per sq.ft.....now, being the first time I did have enough knowledge to ask her if the price she gave me "included everything"...such as taxes, maintenance, insurance, utilities, garbage pick-up, etc.  Well, of course she said "yes".  (Yeah right...) 

  The next day she sends us a "letter of intent" with a much higher price than she had told us when looking at the space.  So, this is when I learned about "pro rata".  Let's say you are told the cost per sq.ft was $18.00...oh but wait that is just the sq.ft.   Then landlords will throw in either a 2-part "double-net" or the infamous "triple net".  What that means,  is that you have to pay a percentage of the maintenance, a percentage of the insurance and a percentage of the taxes.  And now my rent is $22.00sq ft. (I am told the normal triple net is usually around $3.00 to $4.00 more a sqft and sometimes even more depending on the area.)  Being me, I wanted to know why I had to pay for the landlords taxes and insurance?  He should have had that already covered in the main price of the lease.  Oh no way....because you see the taxes, maintenance and insurance go up every year....therefore so does your rent!  Now of course, this "triple net" does not include your utilities, phone, or your own insurance (which by the way, most landlords are going to require a minimum of $1,000,000 annual policy).

  Regarding the insurance policy I couldn't understand why I need a million dollar policy...I wasn't going to have that much in inventory.  Oh no...this policy is for in case someone gets hurt in your store or even in the area in front of your store.  HEY wait a minute why should I have to pay for what happens "outside my store".  Aren't I already paying my "triple net" that helps me pay my landlord's insurance policy????  Needless to say, my attorney got this one changed!

  Anyway....just a good thing to know about renting commercial property.  Needless to say when you try to look over this lease that happens to be about 1" in thickness, now is the time to get a good attorney (another nice size expense).  But, the attorney is worth it...because he is the one that will protect your rights.

  We did negotiate the price of the sq.ft per month, but...it did take a lot of compromising on both mine and the landlords part.  We finally came to an agreement on the price and sent in the letter of intent.  You don't have to send in any money yet...this letter just shows you are serious, and now their paralegal can write up the lease.  They just don't hand out leases to anyone, until they know that you are serious about renting their property.

  Well, the lease went to the attorney and came back and forth between him, us and the landlord.  Let's just say my attorney summed it all up when he told me...."A lease gives the landlord rights and you duties." 

  This was the hardest and longest part of the whole process.....I call it the "waiting game".  Because you wait forever while the landlord's attorney and your attorney struggle for the upper hand.  There is a lot of negotiation....so, this is where you dig deep for patience and hope and pray that the landlord will compromise.

  So, now we wait.....
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  Time to Shop!
  This is one of my favorite parts about being a shop owner....the buying!  At least that is what I thought.

  I know "my look" and I know the type of products I want and the categories (again going back to my business plan).  Remember, I also own my own design line and have been having to work on the lines and get my boutique owners taken care of; all the while getting the shop set-up and going.  So, obviously I am trying to burn the candle on both ends....not too smart.  But, I had worked too long and hard for my trademark and I am not about to give that up totally.  I am just going to have to learn how to "balance" both worlds for awhile.

  Since, I decided not to do "Dallas Market" (because every store in Houston does) I knew I needed to look at other markets.  What helped me was having been a designer and selling to other boutique owners....I would "pick their brains" on where to go and how to find my new vendors.  I thought this would be easy buying $80,000 in products in a few months.  Heck, what lady do you know would LOVE the opportunity to spend $80,000 on "treasures" to sell in their shop!  Trust me, it is not as easy as it sounds.  Especially if you are as picky as I am....I knew I did not want items from "China" and did not want what everyone else and their uncle is selling. 

  This is where I really had to spend HOURS and days and nights researching vendors, their products, how many stores did they already sell to in Houston, what were their price points, order requirements, shipping/handling charges, etc.....and the list goes on.  Because I knew my "market area" (back to business plan) I knew what my price points had to stay around.  So, when I would look at the product and mark it up, and then add the shipping/handling "per item" along with overhead costs....even if I LOVED it, I would have to first ask myself...."is the price at my target  market"?  Sometimes it would be "yes" other times "NO" and even other times "Hummm.....maybe, depending on the product and its "look".

  Although I did continue to buy and find some great products thus far....I still have a long way to go before opening the store.  I also had to think of the "display items" I would need for showcasing the products.  Fortunately, because I already have a showroom and studio, I already have most of this taken care of.  But, until I really get into the shop and lay it all out...I am sure that I am going to find that I need a lot more than I originally thought.  (this subject will come up later on in another posting).

  Working with vendors in any business has to be treated as a "partnership"!  Your vendors can end up making or breaking you.  If you take good care of your vendors (paying them on time, talking nice to them even when they screw up your order, etc...) remember that you are going to get more out of them if you treat them kindly.  My vendors have come to know me very well...in fact, a lot of them will call me when a new item is coming out that they know "looks like Debi".  I never put my accounts on 30 day terms.  I don't want to be in a situation where I might forget to get a bill paid...especially if it is to a vendor.  Since I pay on my company credit card...I really already get a 30 day term.  So, ladies if you can look at your vendors as your partners...they will ALWAYS go out of their way to help you and get you the best prices they can...for which you can then pass it forward to your customer. 
  
  Hugs...debi