In my past articles on business resiliency during the recession, many of the entrepreneurs I talked to had been running their businesses for years. But recently I thought, what about entrepreneurs who have new companies or are new to their industries? I spoke to three such entrepreneurs and found a success factor they all had in common – connections with more experienced business owners.
Bruce Jed had worked in advertising for many years, but always had a dream to own his own food business. Following 9/11, he shared his dream with his family, and his son Jordan, a chef, decided to join him. It took them a couple of years to do the research and to find someone who had a business similar to what they wanted. At a convention, they met the owner of a drive-through coffee shop in Seattle and offered him an hourly fee to be available for consultations. Bruce and Jordan also worked with a SCORE Counselor, who helped them with business planning and, recently, re-financing options. With help from these experienced business owners, Bruce and Jordan started Longfellow's Coffee. They’ve since opened a second location and are looking to open a third.
Another business owner, Dan McHugh, also left a corporate job to open his own business. He spent years researching business ideas until a friend recommended he speak with a franchise broker. The broker brought Dan several opportunities that matched his criteria, and Dan chose Expense Reduction Analysts, which helps companies identify areas to reduce expenses.
According to Dan, joining this franchise gave him a network of “250 partners” to call on for advice. Additionally, he joined SCORE, who he said they helped him be more effective in his marketing and also reinforced his confidence. “It’s difficult when you’re starting out. You expect immediate results. The monthly SCORE meetings helped me see that I was achieving milestones toward success.” He started his company two years ago and has been profitable since his third month.
The third entrepreneur, Elissa Barbieri, started her company Loop in 2007, just before the economy started to dip. Despite the lull in sales for many retailers, though, Elissa has seen increasing demand for her eco-conscious paper goods. I asked what has helped her most, and she said talking to her customers, many of whom are also business owners. “I had originally thought of Loop as eco-luxe, with a small niche market. We’d sell to boutiques and museum stores and that would be it. But the more I’ve talked to customers, the more I’ve come to realize that there was a broader appeal.” Now Elissa is talking to mass retailers like Container Store and Whole Foods.
Elissa’s also reached out to business owners at trade shows. Paper goods being a creative business, she was concerned other purveyors would be threatened by her questions. “But what’s the worst that could happen? I found that sharing my business challenges made others open up to me about their own experiences and difficulties.” Talking to them has helped her in many areas – from marketing to financing – and has helped her overcome an issue that she and so many entrepreneurs have shared with me: “It’s hard when you work in isolation and don’t have the opportunity to turn and get someone else’s opinion. Making those connections has made a huge difference.”
I’m very interested in hearing more stories about connections, especially those made here on OPEN Forum. If you’ve met a customer or partner through OPEN Forum, please share your story with me at marcy@openforum.com. You can also find me on Twitter @marcyshinder.
More information on Elissa Barbieri (member since 2004) and Loop can be found at www.welcometoloop.com or her blog at http://welcometoloop.blogspot.com. For more information on Longfellow’s Coffee, visit www.longfellowscoffee.com. For more on Expense Reduction Analysts, see www.expensereduction.com.
