I'm sitting here thinking about what I should write. What I REALLY want to write about is not REALLY what I should write about because it's too raw and truthful....but in essence, isn't that EXACTLY what I should write about?
I started this blog to tell YOU (the Bakery Wannabes) how it REALLY is runnin' your own place, so that MAYBE you'll kinda understand before you open your doors that it's NOT all sugar and sunshine owning a cupcake shop....SO here it goes:
I am at a place in my life where it really is MONEY vs. EVERYTHING. These are my PRIME, money-earning years. I chose to open my OWN business WITH my husband, so there goes any sort of corporate ladder protection...we're on our OWN. Right NOW is when I should be earning the MOST I can to protect a future of NOT working because I REALLY don't want to STILL be working 13 hour days, six days a week at a bakery when I'm 65. So shouldn't I make our business big enough to capture every dollar that is available NOW?
So here is the ultimate question AGAIN: GROW OR STAY?
"Business that aren't growing are dying." This is a quote I heard SOMEWHERE and it is SO STUCK in my head that it keeps me up at night....because right now I'm NOT technically growing. Sales are good...REALLY good....but up and down depending on the season....However, I'm still turning away sales that should be mine. It's either lack of space or lack of manpower that makes me send an order to another bakery in town because I can't physically handle it in the space that I have now. Which brings me back to: GROW OR STAY?
We have the potential to stay and grow in our current spot, but it LITERALLY means tripling our space (when really all I need is double). That sounds REALLY great. Have three times the space to spread out...maybe have some room to bake new things, maybe a walk-in cooler for cakes, LOTS of table space for decorating....there are LOTS of positives. There are also a LOT of negatives: 1) hiring at least 4-6 new people (this scares me the MOST), 2) training and making SURE they have regular hours, 3) our parking lot SUCKS (if you've been to Retro you KNOW it is the SMALLEST lot in the city of Las Vegas), 4) MONEY for a build-out (gotta get the space up to commercial kitchen standards) and purchasing equipment/supplies...AND 5) maintaining a new TRIPLE-LEVEL of business to let me now pay the triple RENT, utilities, and TAXES that triple the space brings me.
And what happens when people QUIT, call in sick, no call/no show...or worse yet, the PHONE stops ringing? It's ALL ON US.
Is it worth it? Because after ALL this the PROFIT isn't REALLY as great as it could be because of ALL the new expenses...so that MONEY I'm trying to SAVE for retirement??? It just goes to the new vendor/employee/tax bill.
I don't know. I really don't know if I'm telling myself all these things to psych myself out of it...or if I'm being realistic. Would moving be better??? I REALLY don't want to leave my neighborhood. I LOVE it here, and I LOVE my regular customers.
I'm asking for YOUR feedback. Some of you ARE customers of Retro. Some of you own your own businesses. What would YOU like???? What would YOU do?
*FULL DISCLOSURE: We have considered and decided AGAINST two locations or even a satellite store. It's just not for US....so, I need your help with this one....I've carried it alone for too long. Leave me a comment and let me know.
I'll take a rest here while YOU look at the Cakes O' the Week!
Married in Vegas Spade wedding cake:
Roulette Vegas cake:
and the BIG DADDY of the WEEK:
Lollipop Fun cake!
This week was so busy I BARELY got THESE pictures!! Now if I were a BIGGER bakery, do you think I'd have any MORE time to take pics of all our cool cakes??? I don't know...YOU tell me!
Laytah.
14 comments:
You are so right. Your parking lot is EASILY the smallest in Vegas and the most difficult to park in. However, as a neighbor I would hate to see you guys move. There is my 2 cents for you :)
This is it - the BIG CORNER that lucky small business owners have to turn (or not). Lucky because you have hung in there long enough to be in this position. Not so lucky because it's a very tough decision. Lots of soul searching is required. You're a smart cookie (or cupcake) but this time you might need some advice from somebody who isn't close to the business.
I think expanding would be amazing. Give you opportunity to do so much more.
Have you ever heard of SCORE ? Its an amazing nonprofit that will help you with all these questions, run by current or retired successful executives. And it's all FREE! Google score las Vegas, set an appointment and see what they say!!
I'm with the SCORE suggestion, 100%.
but when you go make sure you get someone who is Vegas knowledgeable, not someone who moved here from somewhere else after retiring and wants to fill their day. The employee & "good old boy" system here is like no other place in the country.
Hiring: As a recruiter for 15 years,I can tell you the best employees come from current employees. This is not 100% but about 65-75% reliable. Also the company I worked for (REI) had a policy of not hiring until they have a certain level of profit. For example, if you can increase your profit by 25% it's time to hire someone.
Another way to approach things is by job sharing. You partner 2 people and tell them the hours you need to cover. They work out between them who is working when. If one of them calls in, the other knows they are on stand by.
If ever there was a time to expand in Vegas, it would be now. There is a glut of empty space and landlords are chopping prices to fill that space like never before. BUT you have to balance your location with your life. You don't want to put a place that you have to drive 30 minutes to get to. OR you have to determine that you need to upend and move both Home and business. As long as you are accessible to the public via 215 or I-15/95 and still do delivery, I think you would do well. Having said that you might want to look at the downtown area, as there are so many changes going on and big plans for the future. I call it the Zappoing of downtown but it has really galvanized the area however there is still a lot of empty space.
Lastly, and this comes from personal experience, as owners you need to keep in the forefront of your head that your main job to have a successful business is to work ON the business not IN the business if you are going to continue to grow and not be baking cookies at 75, except for your great grandchildren.
Which ever route you choose, I am sure you'll be successful because of your passion & commitment to your product. As was stated before you are a smart cookie!
Robyn is right. I have heard amazing things about SCORE. I also believe that things come into your lives for a reason. You are amazing people, with an amazing product. I don't have the knowledge to give the advice that you need but I do know that you will take the path that is in your heart. It's there. LOVE YOU!!!
food truck food truck food truck!
Without seeing your financials and market plan, this isn't really something we can answer. But, your CPA and/or banker know your financials, so check with them to make sure you are running as profitably as it appears you are. If so, then you have to follow your heart. Taking chances is scary -- there's no doubt. You've proven to us and the world that you have the backbone and ability to do this -- you just need to want to do it.
Kari,
I don't have anything new to add to the conversation. I'm just adding my support. You have received some excellent business advice, and I especially agree with the post from unknown and anonymous. Getting outside perspective and help from a financial professional is a great idea. As a friend, I agree with Carrie. You will search your heart (and Brian will crunch the numbers!) and together you will make the best decision for your future. Love to you!!
Emily
What does your gut say? It's taken you far already . . get really, really quiet and listen . . what does it say?
You have also answered your own question. If you are turning away orders and customers, you are allowing them to become loyal customers to another business. Most businesses would kill for that kind of demand.
Good heavens, when you figure this out please let me know. I too have a cake/cupcake shop. Was doing good, opened a second location. Now sales are down. Don't know what to do.....can't figure out whether to go forwards (expand product offerings) or backwards (back to a closed kitchen with only 1 or 2 staff like when I started out). Will be watching with interest and keeping my fingers crossed for your success.
It may be the time you release yourself from the full baking responsibility and move into planning your business future. Does your local colleges have a cooking school? you maybe able to get students to come work with you learning for free and then potential employee when completed college. Offering job placement is a good way to get a employee in for free to test out. You have to realize you cannot do it all and a time comes when you move to a different area of the business and run it.Wish you the best of luck and I love your sunday blogs
WOW! You guys are GREAT! I contacted SCORE before we opened, so that has always been a great resource for me. I hate that I am so paralyzed by this decision, but the more I stare into our tight, dirty, LITTLE parking lot I think I KNOW my answer. I'm going to take some short drives and see what ELSE is out there....I have a little time.
Have you met with the UNLV business outreach center? They are fabulous and can hook you up with SBA.
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