Deb's Oils

Organizing receipts

2010-04-29T10:18:00.000-07:00

I know, I know--organization should be on-going rather than intermittent, but I'm a slow learner. This morning was time well spent in organizing the first quarter's receipts and breaking down the categories. Just before tax time, I used the better part of a day just going through each category and adding the numbers.

This time, I figured I would take each quarter and tally how much I spent on oils, bottle, merchandise that go directly onto shelves, and--interesting to me--how much I spend on shipping and handling. Amazing how much that adds to the cost of doing business!

Meeting other small business people

2010-04-29T10:12:00.000-07:00

Joining the Sachse Chamber of Commerce is just the first in many small steps to meeting other small business owners in the area. This organization really has the interests of entrepreneurs at heart and offer so many resources and opportunities for us to meet, greet, and learn what others have to offer.

We have a breakfast to go to tomorrow where we will introduce our business to others for the first time. I made a brochure specifically for this breakfast. The mall property manager also sent me information about another event for women in business, so I will be going there as well later in May.

There are so many people out there ready to help the small business owners--it's important to take advantage of their willingness to give their advice!

Networking

2010-04-26T10:41:00.000-07:00

We joined the Sachse Chamber of Commerce this month and hope that it will open new doors in both customer building and networking with other small business owners. In this world of "big box stores," those of us who refuse to give up or give in must stick together. We meet new people every day; they do not always buy something, but they give us a chance to explain what we do and why we are a good alternative for fragrance needs.

This Friday Don and I will attend our first Chamber breakfast, where we will have a chance to explain our business. To that end, I made a brochure to hand out. Our friend Chris who owns the Sachse UPS store takes care of our printing needs, so I will get this emailed to him. I can always count on Chris to give our printing the professional look we want.

Right now, I have a stack of information from the Chamber to read. They offer some great advertising and networking resources! Next Thursday, May 6, we will have a ribbon-cutting ceremony at Deb's Oils at Firewheel Town Center. We will also be open late that night to help celebrate National Mom's Night Out. Here's hoping the summer is good to us!

Update about lease

2010-04-26T10:39:00.000-07:00

After waiting almost six weeks, we finally came to terms with the mall folks and signed a two-year lease. We will thankfully stay in our current location. We do think about no vacation or off time for the next twenty-four months, but the last six months have just flown by, so I'm thinking that this is just the next logical step for Deb's Oils to take.

A "new" idea

2010-03-31T11:14:00.000-07:00

My son's girlfriend returned from a ski trip to Utah with an idea she experienced in a Park Cities' bath and body shop: Create a do it yourself Spa Deli. Taking that suggestion to heart, I started researching exactly how to do that. It was not easy or cheap to make the changes and bring in products that would fit the concept.

I think I was making the idea too complex for what it really is. I had almost all the bulk products anyway; I simply had to decide how to market it. In comes Don, the master designer of all displays! He took the idea along with my thoughts about how I wanted to place merchandise, and made a display table that would hold bucket inserts. Then I went to the restaurant supply store for containers to hold the salts, lotions, crushed herbs, clays, and oils. Voila!

There are some things I still have to work out (like a paper towel holder for messes), but for the most part, the spa is working and offering customers the opportunity to make their own product. In the process, they also learn about the different bases and carrier oils and how they work on the skin. I love this business!

From temporary to permanent

2010-03-31T11:10:00.000-07:00

It looks like our contract for staying in our current location for the next two years has passed the bottom and most difficult rung of the corporate acceptance level. We have been negotiating for about six weeks; not all management's fault that the wheel runs so slowly. We knew the proposed space was not for us--too slick and modern--but we were having difficulty expressing our needs with available storefronts. Finally we determined that staying where we are is best for us. There is so much expense in moving; plus the folks who have found us would have to rediscover a new store--many people are too fickle to do that. So we are glad to say that for the next two years (barring any unforeseen disaster in the next couple of weeks) we will be at 340 Coneflower Dr. Garland, TX 75040.

Decision made

2010-03-17T09:42:00.000-07:00

We finally heard back from "corporate" about a lease space. The offer previously made is off the table--it seems that the market is up (oh really?) and they cannot let us have the store for the original price. That's okay because we did not want it anyway (feet stamping). So, we have agreed to the current location (at a higher amount than we want, but oh well...) and are now considering a three year rather than a two year term. If the market is indeed improving, then going for a longer lease makes sense as the main office is limited to raising rent. While the rent is high (ten times more than we paid at the flea market), we do agree that this move is the best way to move forward and create a niche for oils and natural bath and body products. Here's to good decisions on this glorious St. Patrick's Day. Irish blessings all.

Sales Reps by Appointment Only

2010-03-14T14:52:00.000-07:00

I know everyone has to make a living, especially in these economically shaky times; however, enough with the reps already. I already have the internet, a web page, cold water, clean windows, a media plan, and I don't need any bumper stickers. I will never be rude, but we did finally have to put a notice (which no one reads) on the door. While it is endlessly entertaining to watch a 70 year old person try to extol the virtues of the "interweb," I feel the need to serve my customers and stock inventory rather than be bombarded with pitch after pitch. Okay, enough griping. Enjoy the beautiful day that comes with daylight savings time. :)

Thank heavens for Family

2010-03-14T14:47:00.000-07:00

Last week was a very busy time for our house, not to mention the store. Don and I were pulled in several different directions, but when all was said and done, we made it intact, and it ended up being a great week for sales.

I was out of town early in the week and presented workshops both Thursday and Friday, so once again, I counted on Don to open the store and keep us going. He did a good job and even started on our building sign...what a guy!

We had the grandkids during the middle of the week, so we added that fun as well. Gavin and Reegan spent Thursday with us; we stopped to get hamburgers and fries so they could eat at the store with us. The more time they spend here, the better behaved they are.

When a person opens a business like we have done, it is difficult to factor in the need to cover the store open to close. Don put his current job on hold so he could be here--as I have commented before, we make a great team, and I am grateful to have his help.

Leasing quandary

2010-03-05T04:03:00.000-08:00

Here's one for those of you far more savvy than I am about leasing retail space: How can a property owner have two stores approximately the same size (give or take 100 sq.ft) and yet have two different lease prices in excess of over $8 per sq ft, with the smaller store being the more expensive? The store we are in temporarily has half the usable retail space (the rest is a huge back room for storage, merchandise, etc.) and yet was quoted at $5 more psf. In addition, promo fees are higher at our current location...actually, according to the way we have seen prices tiered, where we are now should be considered the "cheap seats" in this mall--so why the hike?

I put the two proposals side by side to compare--and I am more than confused--I am left wondering why anyone would want to go permanent when there seems to be such a discrepancy in how prices are quoted. Perhaps in my naivete, I thought when the property owner gives out the price per sq. foot, the math was simple--but not so apparently. I get that the "main street" stores have more marketability, but we are on what could be called "restaurant row," and most people on this far end of the mall come to eat or go to the AMC theatre. In fact, there are only two other retail type stores on our little block-memorabilia and games. Am I missing something in the equation, or am I an easy mark? While I do not feel the second option is the better one for our type of store, it seems the one we are being forced to take. Do we move and make it our own, or do we take a chance and move somewhere and start all over?

Networking

2010-03-04T13:27:00.000-08:00

One of the courses I teach for an online University is Business Communications, so you would think I would have all the answers. I am a newbie at Facebook, and my daughter signed me up for a MySpace, but many other options face a business owner as far as networking is concerned. This blog offers one opportunity to let people know what I am about, and I belong to two other organizations that purport to help business owners connect with like-minded businesses. All that said, one of the simplest ways we can connect is through good old-fashioned meetings and sharing of sound practices and ideas.

This morning I talked for a bit to the restaurant owner from across the street. This afternoon I met another new tenant, the owner of Zoomies, a skateboard company (I'm sure there's more to it). Both individuals have unique forums for sale--the restaurant sells bubble tea and crepes, while the other has products designed to attract a particular segment of consumer. We all work for the same dollar, but we all also have interesting--and more important--different venues. What I like is that we want to help one another also. Don has made a board that we put in one of the windows that holds ads for different businesses. That's one step. Another is to link our businesses through discounts. Bring your Deb's Oils receipt to Icey or Zoomies and get a 10% discount on XXX purchase (shop owner determines minimum order, within reason). Also, we have offered to put coupons or ads in our customer bags. That will spread the word.

Blogs are fine, and websites help, but give me word of mouth and personal testimonials any day. To me that is the quickest route to spreading the word.

Planning ahead

2010-03-02T13:47:00.000-08:00

I must admit, it's very difficult to plan spring product lines and ideas for remodeling and offering a new look when we do not know where exactly we will be in two months time. We have decided that we want to move to the suggested store within the mall ONLY as a last resort. I asked to stay where we are as our customer base is growing and people are comfortable coming to our current location. It is with this thought that I am waiting to learn where management wants us to be for the long term.

In the spirit of thinking spring, I have ordered new products to supplement our smudge sage and amber collection, and we're including new resin burners as well as a variety of resin. These things will bring in a different type of consumer, one which does not have many options for scenting the home. My older sister sent me a suggestion for a new type of candle, so I've looked into the materials for creating it and will make it a go in a couple of weeks. In addition, we look forward to moving the electric fireplace into the back room and replacing it with a rock waterfall to showcase summer soaps and scrubs.

What this means is that we are moving out of the winter doldrums and looking forward to a spring replete with hope and rejuvenation. The sun is out today, I have kept myself busy doing odd things here and there, and I have applied to five different online universities for instructor positions--all to keep the doors open and our name out there. No time for movies today!

Doing it all

2010-02-28T14:02:00.000-08:00

Last day of February, and we have made it for three and a half months! The time, I must admit, has flown by, but I do wonder how we manage to juggle all our responsibilities. With spring right around the corner, Don's home repair business is picking up again, and the oil shop is attracting more new customers every day. Add to that my part-time gig as educational consultant where I travel to different school districts to work with both teachers and students, and Don's "higher calling" of taking care of the grandkids--no wonder we are tired!!!

Is it worth what some might call not having a life? I would say at this juncture that our life is pretty darn good; hectic, yes. Confusing, sometimes. We have a full life that combines many passions, and right now, we have the best deal going.

One way or the other, we are here to stay...now I have to order supplies for next week. Don says he's already got an idea for the building sign, but he won't tell me what it is. I like surprises (that don't fall off the building :)

The Real World

2010-02-26T15:42:00.000-08:00

An email from a new customer today forced us to do a little research and restructuring (we've been losing our asses on Myrrh for over two years)...

After 20+ years of maintaining fairly level pricing across our essential and synthetic oils, we have finally had to face reality (and the growing disparity of essential oil pricing) and price some of our more costly essential oils accordingly. While this does not affect most people, some of the true essentials simply do not fit the old pricing structure. We will strive always to stock a synthetic equivalent to the more expensive essentials, but sometimes a special order will have to be made. For example, Blue chamomile currently sells for $250.00 an ounce, but Roman chamomile is still available here for $9.00/oz. Don't even ASK about ROSE!!!

At any rate, while the general public inquires about "essentials," most do not know the difference or care--they just want a great smell! Our intention is to give our customers what they want; if that means ordering some essential oils that are a little pricier, then so be it.

Are you hiring?

2010-02-25T08:22:00.000-08:00

I would have to say that this is the most often asked question when someone random walks in the door. What interests me is that they do not take time to look around and see what we do. I would want someone who knows and has interest in fragrances in general and oils in particular to work with us. Unfortunately, as a small, start-up operation, hiring is not even in the neighborhood of considerations. The other thought that comes up is the number of people out there looking for a job. The store across the street from us has a "Now Hiring" sign up, and I have sent five or six people over there, but so far, it seems no one has fit the bill for them.

Here are my thoughts: Even knowing the current minimum wage for employees, I would also have to think about taxes, withholding amounts, paperwork to the IRS logging hours and part-time or full-time pay, and with time and a full-time employee, benefits. I don't even pay myself a salary, so thinking of paying someone else makes me stop and wonder. I know, I know--I am supposed to pay myself first. I've read all the books; but first I have to make sure the store has everything it needs. For example, here we are with only four days left in the month, and I wanted to make it without ordering supplies. The good news: I got a big custom candle order from my UPS guy, and I am almost out of wax and the fragrance he wants in all of them. So, I ordered from two different places to get the most out of my dollars. That leaves precious little for rent and other bills. If I hire someone just so I can take off a day or two--or even an afternoon-then I have to take that money from somewhere else.

The other challenge I have to overcome is trust. It is very difficult for me to trust my livelihood, oils, and cash register to a complete stranger. How do people do it? I know some people use cameras and have special keys on the register, and the credit card machine helps track some sales, but still, I wonder how some store owners cull out the trustworthy from those who might cause problems. This goes beyond money, also when I consider the relationship I have with my customers, old and new. Don and I have built a family feeling, and it would take a specific personality and willingness to welcome everyone who walks in the door. Are there folks out there capable of being the perfect employee? Of course! I just have to find that person over time...or close one day a week to recoup my sanity :)

Business or hobby?

2010-02-23T03:17:00.000-08:00

My brother-in-law and sister got me started learning about oils when they moved back to Texas in the late eighties. Gary and Wendy were masters at showing people how to use oils, and they paid attention to the needs and wants of their customers. In the heydey of Vikon Village, people could find everything they might want, from antiques to country memorabilia, to blown glass, and of course, to fragrance and perfume oils. Many customers remember the hustle and bustle of the market--standing room only--as crowds went from booth to booth to see what treasures they could uncover. I worked with them in their booth at the flea market, and for five years, I watched, listened, and began to understand the way they ran the business. Gary told me it was time I started accumulating my own oils and try setting up a show. My first attempt was at my house, and it was not a good experience. I have tried other independent sales venues (Mary Kay, Herbalife, Tupperware, Amway) unsuccessfully, so my track record suggested that I did not have an aptitude for this. I did not give up though. Again, my sister helped me with a tarp and tables, and Don built a traveling oil rig, and off I trekked to the McKinney Third Monday Trade Days. In the mid-nineties, the trade fair was still small; we did a little better than break even, so I thought maybe I had a chance after all.

Subsequently, Don and I traveled to fairs across Texas and into Oklahoma as I learned more, gathered together a wider variety of oils, expanded my essential oil supply, and learned about the newer designer type oils. We found customers from all walks of life and still have many of them today. I also discovered that some fairs do not fit us well at all--My Fair Lady is great, but not for oils. On the other hand, the Denton Jazz Festival remains as one of our favorite places to vend. By far, Hawkwood Fantasy Fair in Roanoke TX established us as the "oil people." For seven weeks each year for three years, we transformed our traveling rig into a shop that people loved. But, we still considered ourselves operating a hobby, and something had to change if we were going to move forward.

Twice I almost gave it all up--sales were down, Don and I were busy with full time jobs and raising children, and it seemed easier not to travel--oils never got lighter. One person approached me wanting to buy the business, but she offered what I thought too low a price, and I had so much money tied up in product that it seemed silly to give it away. Then, we had the opportunity to take over the business my brother-in-law and sister had started. Vikon had a new owner, vendors left and found new places to sell, and the vendors who were leasing space sold dollar-store items--nothing unique at all. Visitors who had heard about Vikon Village, once the biggest flea market in Dallas, were not discovering the special finds they once did. Slowly, people disappeared, and the flea market began its decline.

We decided, however, to stick it out, and this is where my mindset changed from hobby to business. By this time, I had diversified into making candles and soaps, and I was more knowledgeable about ancillary merchandise that complemented the oils. I started taking credit cards (a big step) and paid my fair share of sales tax. It was also then that I discovered that I was making a profit--small though it was--at this business. Yes, it started as a hobby, and for many years, it was much like a yo-yo as far as sales went. Ownership changed everything though, and I enjoyed establishing my own thing. The seriousness of it became apparent when I started teaching others what I know about oils. My passion for this part of the business continues, and I hope to see Deb's Oils become a place people visit often, refer to their friends, and trust for quality.

www.debsoils.com

Apothecary meets Star Trek

2010-02-22T06:31:00.000-08:00

One of the quandaries facing us in the next two months is how to create a space that reflects our personality and the personality of our store. A great compliment from someone who walked in-curious about what we do-said that our store reminded him of the apothecary shops in Germany. That was a very cool compliment! Unfortunately, the new location already has floor to ceiling, wall to wall shelving that is shiny, upscale, and modern. The color scheme is brown and pink with a pink painted metal ceiling (yes, yikes!). The wall behind the central desk is brown with pastel polka dots--so painting is definitely in order and the one thing that will bring the greatest change in looks. As shelving goes, the ones in the store are beautiful and very expensive, but their trendy look sends a different message than what we intend. Therefore, we are considering options that changes the shiny exterior to one more weathered.

We are thinking of fronting the shelves with rough wood or metal strips--again, it is something that we cannot really visualize until we can get into the store for a long enough time to really look at the layout. Although we love the grey concrete floors, we want to soften the look with either area rugs or carpet. I scour Craigslist for possible materials that might serve as functional display and fabric. As we wait for the contract (it does take the property a long time to do this) all we can do is come up with ideas and eliminate them once we discuss practicality and cost. This post seems a little disjointed, but as I get my thoughts down, the ideas are coming together and I will call the property manager to get into the new store to take pictures. Thanks blog! :)

An outdoor mall, the weather, and the end of the month

2010-02-22T06:21:00.000-08:00

Well, the title says it all: Inclement weather forces itself again on our area, and we are looking at perhaps three days this week of rain, ice and snow. This affects us because we are at an outdoor mall, and the chances of consumers trekking around in the cold are minimal at best. That compounded by the already slow Monday (no takers yet on the aromatherapy classes) means that as we enter the last week of February, we are tightening the proverbial belt and watching the bottom line of the monthly sales report. We have made enough to cover basic expenses for this time period, but as we continue to look forward to moving, we know that this is not even near enough to break even and then some.

That is not to say that we are pessimistic--quite the contrary. We are looking at developing new products and have chosen the next couple of days doing trial and error. I don't know if you all are familiar with SoapRocks by T.S. Pink (this is a trademarked product). They are very cool soaps that look like their geological counterparts. I am fascinated by their look, but up til now have been unable to understand how they do it. Don has convinced me that he can take the general idea and make a veritable facsimile of this only with our special twist. In addition, a customer showed me a solid lotion bar in a small natural tube that fits nicely in a bag, purse or pocket. I was able to find the tube at a reasonable cost and will use part of today to fill a dozen or so and put them on the shelves.

What I am saying here is that while I am a little worried about making sure we make ends meet each month, I also know that without new products to keep customers coming back, we are just like every other fragrance shop. I want us to be different...price, quality, affordability, and diversity...come see us and offer suggestions.

It takes money to make money

2010-02-21T05:44:00.000-08:00

Don't you just love these types of sayings? While I understand this one philosophically, I guess it did not hit me until I owned a store where making the rent payment was so critical. Here we are with just seven days left in February and I need to order stock for the shelves. The trick is that I am also trying to save as much as I can day to day to be sure I can meet the other financial obligations.

Yesterday, I put on my educational consultant hat and worked for six hours in the Dallas ISD holding an AP English workshop for high school juniors (they are great kids, by the way!). This kind of day does wonders for making sure we have something of a cash reserve. Don opened the store and made sure our customers were taken care of. It was a great day for soap and gifts--not so much oil sold, but that is okay. Consequently, I have to use the next several days making soap and candles not only for special orders, but also to replenish the shelves. This is not a bad thing--just a costly one. Now I have to place orders so I can continue to offer my products to people, and I want to spend wisely and judiciously. I don't know if it is matter of going without one thing in favor of making sure something else is done, or working on new products that will surprise those who come in looking for something new.

Part of my business is doing just that--listening to what my customers are looking for and want, and trying to get it at a reasonable price. Because I love research, this is enjoyable for me (to hunt for and find stuff), but sometimes I have trouble finding just the right thing at an affordable price. My goal has always been to offer the same for less--and I will continue to do that. In this weird economy, though, finding quality can sometimes be as difficult as finding those reasonable products. I do not want to waste precious dollars on what looks good on the internet--I think I will start scouring local talent and see what I can find.

My feet hurt

2010-02-21T05:38:00.000-08:00

I wonder every day: Why do my feet hurt? Could it be that I am just getting on up there in years, and hurting is just part of life beyond 50? Possibly. However, I think more likely the answer lies in the fact that we are working seven days a week at the store rather than the two days of the weekend. That is the biggest difference, I think, about working in the flea market or weekend traveling to craft shows arena and owning a retail storefront. Even though I had a full-time job teaching, when I worked at the flea market, there were definitely times I could sit and read or visit with other vendors. I did not normally walk around and see what other people offered as wares--I was there to work.

At the store, though, even when business is slow during the weekdays, I am walking around, checking stock, cleaning shelves, and making soap, candles, incense, and the like. I do not like to have a customer come in the door and see me get up out of a chair--it suggests that they are interrupting what I am doing, and their first reaction is to apologize for walking in my store. On the contrary, I want them to see me "busy," even if that means faking it. I will just have to find a good pair of comfortable walking shoes that help my legs feel younger--yea, right!

Good credit but no cigar

2010-02-18T09:12:00.000-08:00

Yesterday I talked a little about the business plan and the financial/credit report. Both are extremely good documents to complete and update from time to time, just to keep us honest, and our motives clear. What is a little disconcerting is the fact that no matter how good the credit score, this does not alleviate or substitute for a lack of what is called liquid assets. Here is what I learned: Don and I have a great credit score--we should; we have been plugging away at eliminating debt, paying down credit cards at more than the minimum payment, and limiting spending as much as possible, using cash for necessities. However, when we look at moving into a permanent building through a lease, we have to consider the very concrete "move in costs."

First there is the security deposit and the first month's rent (about $6k). We also have to buy a sign and have it installed to the tune of approximately $3k. Then we have to figure in fixtures and displays--even though we can use our current furniture, we have to fit in the parameters of the individual building. Add to that a security system, utilities, a new CO (certificate of occupancy), a sign fee from the city of Garland (they get you coming and going), phone and cable if necessary, and a variety of other little things I am sure we have not even thought about yet.

What this means is that despite all the money we have saved and all the things we bring to the table otherwise, without at least $10,000 to start, we cannot even think about moving in today's commercial market. I refuse to refinance our home or take out a personal loan just to make this work. On the upside, the Simon property we are negotiating for and waiting for the contract on does not require either a deposit or move in fee. We do still have to get a CO, a sign and a utilities sign-off, but those are minor in the grand scheme of things. With a two-year contract, we can revisit a move in the not-so-distant future.

Financial Statement

2010-02-17T06:38:00.000-08:00

Besides the business plan, the other important document to fill in and be aware of is the financial report. I filled one out yesterday, and noticed it is much like any other credit type application we might encounter when buying a car or financing a home--although the one I worked with was only two pages and relatively straightforward.

Here is what I got out of this report: I often forget all the assets I have--including the property we own adjacent to our homestead as well as furniture, tools, and the like. In addition, I focus on the fact that I am a retired teacher rather than consider that I am still employable as an educational consultant and an online instructor for a university. Both these "jobs" are ongoing and bring money to the table, so to speak, so they are part of my income. In addition, now that we are starting to thaw out, and people are venturing out of their homes to look at possible repairs, Don's phone is ringing and he is taking on home repair jobs that always help bolster our financial stability.

I tend to look at the liabilities column and see the credit card balances still owed and the bottom line for our mortgage and my car. What helps me rebound is the asset column where we have the value of both home and automobile, both of which are still much greater than what we owe. We are working hard to pay down balances of credit cards; hopefully they will be at zero within 18 months, but that responsibility falls on all of us. We have pared down expenses considerably, but there are some things we still feel important: cell phones (both Don and I use our phones for business) and cable (our only big luxury).

What did filling out this financial report do for me? In black and white and very concrete numbers, it gave me a realistic view of our money situation. It is more than just what we owe. It analyzes and gives a bottom line for our personal situation. This is important not only to a future landlord, but also to us-this report gives us a chance to understand what we have and what we still need to do to stay on the plus side.

Business plan

2010-02-17T06:19:00.000-08:00

Yesterday got away from me, so I will play catch up today. In talking to a commercial real estate guy on Tuesday, and in looking at a possible store front in a nearby market, I was faced with putting down information in two different formats: a business plan and a financial report. I found a business plan template online, deciding that reinventing the wheel was not a logical thing to do. I cannot believe how many good model documents I can find online! Some scam and want money at some point, but with careful research, an individual can find what he/she needs and tweak it as needed.

This particular business plan was more detailed than I need right now, so I worked on it for several hours, covering the background material that would serve the immediate purpose. The rest (researched background for traffic and customer breakdown in a 3-5 mile radius, statistics for needs, etc) could be done at a later time).

I have always before now avoided this commitment on paper, thinking it was not necessary for what I was doing. However, in finally taking the step, at least to complete Part 1, I am able to see exactly where I have been, where I am now, and where I want to be three to five years in the future. The business plan also requires that I acknowledge what and who I am as a business, complete with mission statement, description of product line and customer base, and short and long term goals. While I would not say it was "fun," it showed me that I have grown from hobbyist to business person in understanding the need for growth and development.

The book I talked about earlier by Bill Collier also reiterates the need to look constantly at the business play--keeping an eye on the prize--to be sure I stay on track and can meet my goals, even if they shift and change depending on what happens in the market of fragrance oils. For my purposes, this plan shows a potential landlord that I know what I am doing with this business. One of the important parts of this plan was an explanation of how my business is different from other similar fragrance-oriented stores. This part is a lot like the question a potential employer might ask a job-seeker: "Why should we hire you? How are you different from the other 17 applicants for this job?" Especially if the landlord has leased space to other similar businesses that have not succeeded and maybe even broken a lease, he needs to be convinced that my situation and business is different.

Now that does not mean I won't fail for reasons out of my control; on the other hand, filling in the parts of the business plan that elucidate strengths, weaknesses, and challenges at least show this lessor that I have considered different scenarios and possibilities as well as solutions to the challenges that may face me. I do not plan on failing. I have faith that I offer a quality, affordable line of products. Unfortunately, business cannot run on faith alone, and so the planning part is critical to acknowledge.

Does walk by traffic count?

2010-02-15T06:31:00.000-08:00

One of the things Don and I considered when we first looked at Firewheel Town Center was the "walk by traffic." As an open air mall, it's pretty cool that we can see cars drive by and folks going from one end of the mall to the other. I know that some things to consider before leasing commercial retail property include population, median income, cars that drive major roads by the business, and so on, but for us, we wanted to look at potential new customers. That does not mean we do not rely on our customers of long standing! They keep us afloat, but one of the main reasons we chose to move out of the flea market was because new customers were NOT coming in.

We moved into the store the week before Thanksgiving to give us a shot at Black Friday and the holiday buying season. Business was good, but what we wanted was a fair shake at people coming into the store, looking around, and even if not buying on the first trip in, having the potential for a return visit. What we have determined thus far is that we do not get that much walk in business. We are sandwiched between two major restaurants and a block from the AMC theatre and Dick's Sporting Goods, so people are on the way somewhere, and they do not walk in our door.

Why is that? A big reason could be that we do not yet have a giant sign on the building. The catch to that is we are only here temporarily--until we get a permanent store, we do not want to spend $2500-3500 (conservative estimate) for a sign when we would then have to pay to have it moved--and hope it fits the specs of the new building. So, I am trying to get the word out through this blog, through Facebook, through email, and through word of mouth.

What to negotiate?

2010-02-15T06:17:00.000-08:00

I want to keep on a little bit about this triple net. What confused me at first (and I looked at this several years ago) is why, in this terrible economy, commercial real estate folks are gutting the business owner--both large and small--by such methods. Well, it saves them money, trouble, and upkeep for their properties. Now a lessee could lease a property, sign all the appropriate documents, and promise to pay on time and take care of the "investment." What I have seen happen in my limited experience, however, is renters not paying (or paying late) and destroying the store either by ripping out appliances, built ins, and fixtures, or demolishing the insides altogether. I have also more recently seen store owners just up and leave--break the lease. I do not know legally what happens at that point, but it can't be good.

Just yesterday, one of the realtors I contacted about available stores here in Sachse contacted with with options smaller than she had already suggested (this is after I told her we were looking for under 1,000 sq. ft.). The two new spots are a little over what we asked about, so I inquired about price per sq. ft and triple net. Her response? She could be a used car salesman: "Tell me what monthly cost you have budgeted..." Really? I may be new at this, but even I know better than to answer THAT! So, onward and upward.

My question now is, what can I negotiate when I do get a contract for this new space at the mall? They are giving us leeway on several items per square foot, and I do not want to negate those things. However, I do not like an estimated cost for anything, because something like electricity can definitely fluctuate. For example, Don reads the electric meter daily and tracks usage and cost per day. In our current location, we have yet to see the meter, so we cannot track usage. This bothers us as three units are together and use, I think, the same transformer (both are large restaurants). Because Don and I are energy use conscious, we use compact florescent bulbs and are very conservative about turning breakers off if we are not using them. I do not want management to dictate what we pay unless I can see myself the numbers. Is this a negotiable item? Between that and common area maintenance (CAM), we will see. I still have research to do...

Valentine's Day

2010-02-14T07:49:00.000-08:00

Today is Valentine's Day, we have freezing fog blanketing the Sachse/Garland corridor, and my store is in an outdoor mall. Gotta love it. However, I am optimistic that we are a destination for everyone who loves not only great scents, but great prices as well.

I put in yesterday's numbers in the sales spread sheet Don made, keeping my eye on the daily sales number. I know the current number for our store is half of what we will need just to break even in the new location, so I get a little nervous. That brings up my education concerning triple net (or nnn). This is the jargon that means the lessee (me) pays the replacement cost insurance on the entire building, the property tax, and the maintenance on the store I choose to lease. If a store leases for $20/square foot, the next question I have to ask is how much the triple net is. You would think that this would be standard for a strip center, mall, or complex, but ohhhhh no. That would be too simple.

For example, in the mall where I am now, the nnn for the store we are considering is one price, while the other two proposals for the same mall, one street over, have two different nnn's. What this means in a nutshell is that as far as "ownership" goes, everything is our problem, but we don't own it. We will be paying twice (or more) of our home mortgage for a store that we are leasing. Of course we are there seven days a week, nine hours a day, so technically we are there more...Who thought of this plan???

Learning about Business

2010-02-13T09:22:00.000-08:00

Last week I started reading How to Succeed as a Small Business Owner...and Still Have a Life by Bill Collier. Let me reiterate: I am a teacher, not a business person. I am terrible at numbers, I have trouble organizing all the diverse products I carry, and I am taking baby steps learning the technology that will help me move into this virtual business world.

To that end, the first step was my husband patiently teaching me how to set up a spread sheet. This way, I am able to track daily, weekly, and monthly sales. I can see what my daily average is, and we can project what I need to make to make rent and bills. The problem right now is that the permanent space we are looking at is $1,000 more each month, so we also have to project future needs. Yikes! Now it starts getting scary.

Always before I had a full-time salary to bolster the whims of setting up a booth at the Denton Jazz Festival, the Muskoogee Castle, or Hawkwood's Fantasy Faire. Now, this is our way of life--let's see how it goes.

A New Life for an Old Business

2010-02-13T09:02:00.000-08:00

Last week I watched Julie & Julia, a pretty good movie about how a cookbook and a chef changed the life of one person. The medium Julie used to chronicle her year of cooking Julia Childs' recipes, the blog, helped me understand the importance not only of putting my words down concretely, but also of taking my life one day at a time in order to find balance and truth in my choices. While, like Julie, I am not sure if anyone but me will read this, that is irrelevant.

What is my purpose? My purpose is to track my first year as a small business owner. Don't get me wrong--I have been in the "oil" business for over fifteen years, but always it was second banana to teaching. I worked full time as an English teacher and consultant, keeping the weekends to sell my wares at a local flea market. Although I retired in '05, I continued to work with at-risk students at the district alternative evening school. Then, with budget cuts all the rage, I found myself unemployed this past August. What to do? What to do? I spent the next several months weighing my options--the flea market was going downhill fast, and I would never build a new customer base. Thank heavens for our loyal customers of many years.

After looking at several options, my husband suggested I look into leasing a store at Firewheel Town Center, an outdoor mall in north Garland. I did not think we would have a chance, but to my surprise, they offered a deal we could not refuse, and we signed a temporary 6-month lease. We are halfway through that agreement and are working on a more permanent situation. Now I am getting nervous--a 2 year commitment means we have to look at other considerations.

That said, my secondary purpose is to put down my thoughts, my misconceptions, my insecurities about being an entrepreneur in a very unstable economy. What will happen? Can I generate enough new business--and keep my existing customer base--to really succeed? For the next year, I will follow Julie's model and keep an on-going journal about this adventure. Surely I will learn many lessons as I jump into the retail world with both feet.