Sunday, December 27, 2009
Looking Back at 2009
Some great developments since then:
1. I wrote a post in December 2008 about my parents and how they couldn't understand why in hell I was starting a restaurant and didn't really take me seriously at the time. Well one year later, they are investors, they ask me about it all the time, and I have even overheard my mother talking to one of her friends on the phone about Saus.
2. We have funding!!! I'll be honest - we had no idea how we were going to raise enough money to start a year ago. Today, while we are still looking for more in order to be well capitalized, we have enough to start and that's pretty substantial.
3. We have a location!!! I'm just going to say it - getting the spot we did was incredibly fortuitous. We found it by accident and at the right time. Furthermore, had it not been for the property manager, Rawly, who really digs our concept, enough to plug it to the owner of the property, we probably wouldn't have it. He was a strong advocate for us and we thank him for that. And thanks to our realtor, John Brennan (he does commercial and residential and rentals so ask us for his number) who worked hard to get us the space. But what was learned from this is that there are advantages and disadvantages to any given location. Just make sure there is consistent foot traffic and is in some sort of urban (or suburban) cluster of book stores, offices, bars, or restaurants for example. Also what makes it a good fit for you? For one upscale burger shop owner I know, he wanted to be between two Whole Foods because he wanted to capture the same kind of market with an interest in quality, all natural ingredients.
4. We can stay open late!!! I remember when we stressed so much about not being able to stay open late, but I just want to say to our past selves: "duh, it's because you were looking at the wrong places, (Newbury St., for example) of course you're not going to be able to stay open late!!!!"
5. We have a menu. Chef Corey and Pastry Chef Shira have created a masterpiece...it's a first draft masterpiece, and I personally have tasted only a few items on the menu, but the menu is exactly who we are and what we want to accomplish with Saus. On that note, I say first draft because we want to host a blind taste test where you guys tell us what you think of the menu before we finalize it.
Tuesday, December 22, 2009
Thursday, December 17, 2009
Success
Wednesday, December 16, 2009
Common Victualler License Hearing
As you know from Tanya's previous post, we had our CV license hearing today. I was joined there by Greg, and our awesome attorney, Trish Farnsworth (if you want to start a restaurant or local business, she is seriously the best).
So before the hearing, you are given a list of other restaurants and businesses (such as fortune tellers) that are appealing to the license board that day. Everyone gets about 5-7 minutes to present their case (we saw everything from new food licenses to liquor licenses to moving from one location to the next and extending hours). The room is set up so that the board sits at the front, facing an audience (almost like a classroom) and when you are called you come to the front where there is a table and a microphone (it's very Senate hearing like).
When we were called to the front, Trish first explained that we were applying for a CV license and that the team had experience in food service, and showed them our two letters of recommendation (this helps, especially if it's from reputable sources - ours were from Joanne Chang and Bill Galatis - doesn't get any better than that). We showed the board our menu and renderings of the space. They then asked us questions around the menu and our hours (we applied for a 3am license at first, but settled on 2am). Then they asked if anyone was in support or opposition of our license and someone from the mayor's office stepped up and declared his undying support for Saus and it's 2am license. Thankfully, no one was in opposition. That pretty much concluded the hearing. The board makes their decision tomorrow. Fingers crossed everyone!
Tuesday, December 15, 2009
Food
Anyway, fingers crossed for Saus! We want to be able to make our delicious menu for all our prospective patrons.
Also, check out our flickr and facebook page!
http://www.flickr.com/photos/sausboston/
http://www.facebook.com/pages/Saus/238583967305?ref=nf
Monday, November 23, 2009
Sneak Peek
Sunday, November 22, 2009
Why Working in a Restaurant Generally Sucks and What We're Going to do About it....
Friday, November 20, 2009
Saus is growing up
When we originally started talking about our concept, we could think in the abstract. We could come up with brilliant, unique ideas that would drive our market crazy. Now we need to think practically. We still need our brilliant ideas (our money makers if you will), however, we need to think in business terms as well. We need to think of costs; we need to think of our production process; we need to think of execution and our market. There are so many moving parts to the business and they all need to sync up perfectly. In short, we are growing up as business people.
I am reading a book about small businesses. One of the ideas presented is that there are different "personalities" in every person. There is a creative side, an organized practical side, and a do-er side. (I am really simplifying the concept here because I don't want to drone on and on about it.) Right now, I think the team is honing our personalities. We have moved from the creative to the practical, which I think was a natural step for us. I think I can speak for us all when I say we are enjoying this learning process that we are going through. We are still striving to execute all our ideas and make our dream restaurant, but we realize that we need to address every adjustment that would be needed to make to the business to accommodate everything. No decision is a small decision, as they are all connected. Phew, no pressure...
Wednesday, November 11, 2009
Taking Down the Ceiling
Friday, November 6, 2009
A year in review/a day in the life
A year ago:
http://sausinc.blogspot.com/2008/11/brief-note-about-our-day-jobserformer.html
...waltz into the office late, gchat, facebook, a little work, office workouts, gossip, coffee run...
Yesterday:
Spend the morning with my email. Email from wholesaler, email from web designer, emails from teammates.
11:3o- The Saus team splits up into 2 groups. Chin and I had a meeting with a produce wholesaler at our space. Renee and Greg had a meeting with the sign guy.
After our meetings, we all meet up to discuss the decisions we now have to make and share what happened in our respective meetings.
1:30- Meeting with the kitchen equipment guy. We go through the list of equipment we need, look over our kitchen floor plan and get an itemized list of equipment and the estimates.
After that meeting, we all head back to headquarters (Greg's apartment) to discuss our plan for equipment (since the estimate was a TAD over what we had budgeted..)
4:00- Meeting with insurance guy.
From 4-7:30- discuss insurance options and interior design.
8pm- Meeting with possible investors.
10pm- We visit the space to see how much lighting we need for our sign.
Get home at 11pm.
I think the comparison is comical.
Monday, October 26, 2009
fall
While we are cracking down on getting everything done to open- contractors, electricians, plumbers, decorators... I let my mind wander and start planning next year's fall menu. Just call it forward thinking!
And since fall reminds me that winter is just around the corner, I start thinking about my favorite winter flavors as well.
Since my team will read this post and know I'm not working on things I'm supposed to be working on, know that my next post will be updating you on all the practical and current things I need to do. At least I made some productive phone calls today...
Saturday, October 17, 2009
Signs
So here is the sign process: 1. Meet at location where measurements are taken and a general assessment of the exterior is made. 2. Render preliminary drawings. 3. Visit sign studio and get an idea of materials, etc. 4. Final drawings are made. 5. Submit drawings to Boston Redevelopment Authority - must be approved by them. 6. If rejected, back to the drawing board, if approved 7. Submit drawings to Inspectional Services Dept. for a sign permit. 8. Have sign(s) installed.
So the next time you are in the market for a sign, start early.
Friday, October 9, 2009
just smell this!
The other day, Chin and I toured a local wholesaler that we are considering buying from. First we were shown the produce level. It was a giant chilled warehouse filled to the ceiling with fresh produce. We had to keep out of the way of those driving trolley things with lifts.
Then we were taken up to the spices and specialty cheese level, where I fell in love. Not only do I want to shop there all the time for my own personal use, Chin and I met the most enthusiastic employee there. He was in love with food and his job and everything. He gave us the most whirlwind tour of the cheese room-- having us smell, touch and dream of the possibilities. Then he moved us through the spices, telling us where he got them from, how he tracked down the rare and the exotic. Again we were smelling, dreaming... It was fantastic. I wish we had brought our chef. It would have turned into an amazing brainstorm.
Thursday, September 17, 2009
Mastering the Art of Simultaneous
These next few weeks will be spent coordinating all of our engineer contacts: the architect is in charge of aesthetics and will provide CAD drawings and a materials list, a kitchen supply engineer who will help us plan our kitchen layout and corresponding electrical and gas outlets, the mechanical engineer who will design a ventilation system based on how our equipment is placed, the kitchen plumbing guy who will configure our plumbing based on placement of sinks, the kitchen electric guy who will take the kitchen plans and install the electrical components of the kitchen, the non-kitchen plumbing guy who will plan pipes for our bathroom, the non-kitchen electric guy who will engineer a plan for lighting fixtures and what not, a sign builder (don't be fooled - this is a long process of about 2 months - the plans for a sign must go through the Boston Redevelopment Authority for approval then to the Inspectional Services Dept.) and finally our contractor who will take everyone's plans and build them out.
(Really, I made it sound more complicated than it is, since our contractor will be coordinating most of the efforts of these men and women himself)
And while all of this is going on, we must cultivate our menu and make decisions around products, packaging, staffing, and other misc. things that involve decision-making. And while all of that is going on, we must continue to work at our industry jobs for a meager sum, barely scraping by but inheriting invaluable information and experience in exchange.
(Sorry, I couldn't resist including the ever so banal "mastering the art of..." in the title of this post)
Monday, September 14, 2009
A little stitious
We have made progress. The LOI has been signed. Which means we can start our permitting process on the space. And we will sign the lease soon.
When this first happened, it was such a relief and at the same time- stressful. I didn't want to announce it too much in case our permits didn't work out. I'm not superstitious, but I am a little stitious.**
So I was fairly tight lipped about it. (Except for the tiny toast with my friends- even the toast went a little something like, "Lets not get too excited yet though. We haven't had any permits approved. No one start thinking this is for real yet." Drink.) However, the time had come to post about it. Now our focus is permits, gas lines, and starting construction.
On a different note, I've ended my time at my PR internship and took a job at a restaurant to gain some practical experience. I've learned a few things so far.
1. Gas lines are dangerous. The fire department will ax your door down if they suspect a leak, so treat that with a serious respect.
2. Employee training isn't something that should be half-assed.
3. Customers ask specific questions about the food, employees should know what everything tastes like.
4. I am not strong enough to fill the ice in the soda machine.
5. I do not know what to look for in a fake id.
I know I've learned more. But I'm too tired to continue thinking about this job on my day off.
** Name it!
Saturday, August 22, 2009
Progress
Food: Chin is collaborating with a talented chef to create our final menu. We will discuss further if and when Chin ever decides to join Saus blogdom. We are planning a tasting for anyone (of you 3 out there) who is interested, so let us know -- you can help us decide what to include on our final menu.
Location: We are thisclose to securing a Letter of Intent with the property owners (fingers crossed...if you take anything away from this blog it should be this: anything can happen). But if we do get the LOI signed, we can begin applying for permits. By the way, as our lawyer advised, we first checked with the Inspectional Services Department to make sure the area is zoned for food retail (I suggest completing this task first if the space in question was not previously used for food) . By the way, our lawyer is incredible, so please contact us if your business seeks excellent counsel and we will be happy to point you in the right direction).
Design: We have enlisted the help of a soon-to-be-architect (finishing studies at the Boston Architectural College) who recently spent over 3 hours in our maybe/hopefully/if-it-doesn't-work-out-we're-screwed/potential retail space taking measurements, which will soon result in floorplans, which will be handed off to our contractor. But we didn't hire Brandon solely based on his CAD skills. He is a creative interior designer dude, who will hopefully bring "flavor" to the non-edible aspects of our space (although I hear delicious, Willy-Wonka-esque edible walls and lighting fixtures are the latest trend in food - or was that just another news story on lead paint chips?).
So, on an ending note I would like to express the team's ongoing commitment to progress - not only of our business, but of this blog.
Tuesday, August 18, 2009
Courtesy of guest blogger, Melissa Kenyon
**Note: we are not, nor are we trying to be, in direct competition with McDonalds... Also, Chin and Renee are also bosses
Enjoy
Friday, August 14, 2009
On the Ups and Downs
Then there are other days. We don't have an office, so I work from home. I pad around my apartment in my pajamas with my laptop in hand, searching for the room with the strongest wireless signal. (It's the kitchen.) So I pull a chair up to the kitchen counter, turn on pandora and get to work. It's a glamorous life I live.
There are days where nothing seems to go right. You can't find the information you need. You don't even know where to start looking. You want to walk into an existing restaurant and ask them to hold your hand and just tell you what they do.
Then on other days, you feel amazing and get through your entire to-do list. Nothing can stop you. You get samples from a farm, research various PR platforms, get some possible investment leads and write witty web content. Days where you make significant strides make it all worth it.
Go Team!
Sunday, July 26, 2009
Asking for Money
What we have had to remind ourselves is that our investment proposal is a potentially profitable one - it's the whole reason we decided to execute this concept in the first place! Of course we think it will be profitable and wildly successful - but for whatever reason we cannot help but feel we are desperately asking people to take a risk. Here's the Saus lesson of the day (something we still have a tough time with): getting on the phone (or meeting in person) and selling your idea is a necessary evil. In entrepreneurship classes they make it sound so darn easy. You sit down in class, which should be called Entrepreneurial Strategy for Idealists 401 and the professors make raising money sound like just another item on the checklist to be crossed off as easily as bananas (what?) on a grocery list. We have raised a decent chunk from family and friends (fairly easy portion) and once we have raised the rest we will share with you how we did it (and I can tell you right now that unless there's divine intervention the SBA won't be repairing itself for a while).
Perhaps making money will be easier. Let's hope.
Saturday, July 11, 2009
May we take your order? We don't have one...
How have we dealt with this so far? Well for one thing, we have stopped being so hung up on having all our investment money before we took action. Once we obtained a portion of the total required start-up capital, we hired a lawyer and actively pursued a location. Now that we are approaching actual renovation, we'll need a second round of investment money before we hire a general contractor. On that note, there is no order, just a natural evolution of events. The way we have dealt with it is thrown the notion of "perfect planning and timing" out the window and have accepted just being able to handle chaos well, often followed by a lull period of intolerable inactivity, and once again followed by pure chaos.
We hate lull periods, and you'll know when we're in them when we don't post on the blog. But being the true food entrepreneurs we are, we utilize this down-time well. Two words: field research.
Thursday, July 9, 2009
Quench Your Thirst
As I was getting my ideas for the survey together, I thought maybe this forum would be a good way to get people prepped for it and get some initial feedback. (I do realize I'm talking maybe two responses.. but you never know.)
The Saus team was discussing what kind of beverages we were going to have, soda wise. Traditional American sodas, ie. Coke, Sprite, Root Beer, Mountain Dew, etc. Versus imported European sodas to lend to our Euro vibe, ie. Orangina, San Pellegrino, etc. Or perhaps more natural offerings, such as Steaz (which is organic), Fuze, or Izze.
These are the three directions we have been debating. But YOU tell US, which would you rather drink???
Friday, June 26, 2009
Just a quick update
I've made progress! Thanks to some great friends who were not only there for me so I didn't quit, but also pitched in with research (that'd be Christine!) I now have a long long list of farms that I'm going to spend today emailing- asking for prices, if they deliver to restaurants in Boston, and if they can handle our volume.
I'm going to buckle down and get some real work done and then I'm going to spend the weekend knowing I accomplished something. Can't wait.
Maybe I'll make some lunch before I get started...
Saturday, June 20, 2009
The Experience Factor
While we won't learn what it's really like to manage a restaurant until we actually have our own, we have drawn from our experiences to consider how we will and absolutely will not run our operation. Let me first say that standard management principles we learned in school apply only so far as general bookkeeping, efficient operations and inventory management (in other words, ensuring customer orders are filled with speed and finesse and making sure to avoid stock-outs, shortages, and waste), etc. What's unique about restaurants is that variables outside anyone's control often dictate volume.
Anything can happen. For instance, how do you prepare for the possibility of a bus full of 60+ hungry tourists who have decided to make a pit stop at your store? Do you keep the place fully staffed at all times in anticipation and risk spending more than anticipated on labor costs? If not, are you doing your employees a disservice by not giving them enough hours? I mean, what if this tour bus comes and you're short-staffed? The staff would be overextended, in turn making them unhappy, not to mention the tourists who may become frustrated with bad service and leave. These are the decisions we must make, in spite of having no clear direction as to how to make them. Sometimes it's easy. We know that busy lunch hours are usually between the hours of 12-2. We know that 3-6 is generally a lull period. Beyond the general assumptions, however, that bus can come at any moment and throw hunky-dory, business-as-usual operations out the window.
Variables aside, there are some constants that serve as underlying values for any restaurant organization. The problem is that many food service establishments neglect their true lifeblood: employees. The fact of the matter is that employees will deal with the uncertainty and unpredictability so long as they think it's worth it! If the employee does not think it worth their while to go the extra mile, then the employers are screwed (I did try to make it all rhyme) and probably doing something terribly wrong. In other words, bad service is not always the employees fault, folks.
I'm sure you will hear from us again about valuable lessons learned (I'm sure most being from mistakes we will have made), but in the meantime, the most important thing learned thus far: we have only a general idea of what to expect in terms of day to day volume, but what we do know for certain is that we need to keep our employees happy and make them feel like they mean something to the organization.
Friday, June 19, 2009
Breaking Down
While we love what we are doing (entrepreneurship wise) and are thrilled with our choices, every once in a while it catches up to us.
It got to me. I had a breakdown.
I was sitting on my couch, researching farms (still) and making no progress, when all of a sudden I felt overwhelmed. I've dedicated so much time to this with nothing to show. No solid leads. No strong contacts. No idea of how much space we need for deliveries. How often do we need deliveries? Can we handle once a week? Do we have enough room? Where are all the farms? Why don't they have websites? Why can't a farmer just email me back saying, we are the farm for you!
Kill me.
So I sat and cried a little. And lamented my life decisions. Why didn't I just get a real job? Why do I have to be all ambitious? Some call it ambitious, I call it Stupid.
And then my teammate/partner/friend/lifesaver Renee called. She listened to me to cry/whine/bitch. And she gave me what I needed- support, reassurance and empathy. She, too, felt this strain.
This is going to sound sappy (and for those who know me, I don't really do sap, so bear with me). She reminded me why we are doing this. We love it. Why play it safe? We are taking a huge risk for something we love. And we are hoping/praying/begging for it to work out. But that's why we have each other. For support. And to talk us down from the ledge. And to say, that project is wearing you down? Put it on the side burner for now! Let's talk website design!
So (it's going to get worse) I love my teammates. I need them. I couldn't do this adventure without them. I know it's gonna be great.
Ok- done now. Back to normal posts.
Thursday, June 11, 2009
Learning the Ropes
Anyway, back to produce jargon. A phone call with a farm went something like this...
Farm Sales Rep.: "Would you be needing a full load volume?"
Me: (Not wanting to let on that I am a novice and have no idea how much a full load volume is...) "Well, I would be requiring about 500 pounds a day."
Farm Sales Rep.: "Ok. That is a lot smaller than 40,000 pounds. 40,000 pounds is about 300-400 boxes. Now you would be needing something closer to 10 boxes a day. Which isn't even near a pilot."
Me: (I think she said pilot... I don't know the jargon, so it could have been a different word.) "Uh-huh." ( I say this in a very intelligent voice.)
The conversation continued much like that, while I tried to stealthily hide that I had no idea what she was talking about most of the time.
Well anyway, the search continues. Maybe the next phone conversation will go something like this:
Person: "Do you know how much you'll be requiring?"
Me: "Well nowhere near a full load volume. Probably closer to 500 pounds per day." Witty laugh.
Oh, produce jargon jokes. Man, I'm getting better at faking that I know what I'm talking about. Now if I could only find Mr. Right Farm. (Or Mrs. Right Farm...)
Even when there is no confusing jargon, my jokes are bad.
Friday, May 22, 2009
May I Take Your Order?
I love picturing the inside of the store. Imaging the day-to-day. Taste-testing. Brainstorming new recipes. Taste-testing. Etc Etc.
And I love when I have a real-world experience that clarifies how I want Saus to be and solidifies ideas that I've been preaching. One such preachy idea is that it all comes down to customer experience and customer service.
I truly believe that customer experience is a solid 80% of why people come back (perhaps more). As a self-proclaimed "foody," I L.O.V.E food. I love to eat out and to discover new restaurants. I live for it, really. It is my essence. (Am I going overboard with my enthusiasm? At least I'm in the right industry.) However, despite my love for food, if I don't have a good customer experience at a restaurant- I don't go back, no matter how good the food. Enter yesterday. I went to a bakery (out of kindness and being the new kid in the Boston food neighborhood and needing to make friends, I'll let it remain nameless). This bakery has really yummy cupcakes. Cupcakes that have enticed me to return to this bakey. And every time I go to this bakery, I never have a fantastic customer service experience but it had never been downright bad. Except for yesterday.
I went with a friend and we ordered a dozen and a half of assorted cupcakes. We were chatting as she piled them all into boxes, so we weren't counting along. When she gave us the total price, we looked at each other, eyebrows raised, thinking that's a little high. So my friend clarified, saying "That's for a dozen and a half?" The girl behind the counter replied super snottily, "No, that's for two dozen and a half. That's what I heard." So we smiled and said, "Whoops, no. It was supposed to be a dozen and a half."
The girl behind the counter proceeds to sigh, roll her eyes, grumble and ever so slowly, put a dozen cupcakes back on the shelves. She had some serious attitude. And here is what I think of this: as half of the duo ordering the cupcakes, I heard my friend say one and a half dozen. But no big deal. Mistakes are made. Just smile and re-ring us up for the correct amount. No need to make a huge ordeal about it. No need for attitude, especially when it's your mistake.
It just really gets under my skin, situations like that. How do businesses not care that they are hiring people who do nothing to get people back in the store. We are in a recession, helloooo? Crack a smile and do your job with a cheery attitude. So, mystery girl at that bakery, do not even think about applying to Saus. And a word to Saus applicants: SMILE! Oh, and be helpful and friendly. Because I really do think it all comes down to the experience.
I think I may start to draft our employee handbook. It may feature this post.
Friday, May 8, 2009
The Lawyer and I
Thursday, April 16, 2009
No Reservations...Except Those Around Our Potential Location
So far we have three spots: Newbury St., Coolidge Corner, and the Faneuil area. I will take you through some of the issues we are deliberating before making a decision: Newbury St. would allow us to become a hangout for college kids and young professionals, but would we be overshadowed by the many storefronts and dining options? Also, Newbury shuts down at a certain hour. And Coolidge Corner has the college students, but is primarily a family neighborhood. Also, the Coolidge Corner spot is way too big and would require a great deal of work. Lastly (for now) we have the Faneuil location. We would be off the Quincy Market strip and amongst the pantheon of the Faneuil bar gods. You know what I am talking about. If you are or were ever a college student in Boston you visited one of the bars at the urging of your friend from Lowell...or Quincy. The spot would do wonders for late-night volumes and could get the tourists in as well (it's right on the Freedom Trail). Sounds ideal, right? But here is the sixty four thousand dollar question: Do we really want to be positioned as a late-night food joint? A large part of our business model is that we buy locally grown produce and we make everything from scratch, and in-house! Though, after 10 Sam Adams Summer Ales can one really tell the difference between homemade and microwaved frozen food? Perhaps. But the point is we don't want to diminish the value of our offerings and the experience we wish to be creating for our customers (and no, by "experience", we do not mean projectile vomiting onto our front window).
Our search does not end here, dear friends. We shall continue on the Freedom Trail of retail space led by our good broker John (who refuses to wear a tri-corner hat when he shows us these places...we'll keep trying). In the meantime, please tell us what you think. If you can answer the sixty four thousand dollar question, or at least attempt to, we will give you a big hug. Thanks.
Friday, April 3, 2009
Ready, Set...Wait. Ready, Set...Hold On. Ready, Set....
So we at Saus have banned that phrase altogether. We have become "today" people, which is problematic in instances where an adviser, and close family friend of mine, calls one day, 9 months into start-up planning, and says in the most loving and constructive way imaginable: "Your business plan could have been written by a 5th grader." Now, I've seen that show "Are you Smarter Than a Fifth Grader" and let me just say: I acquiesce to these prepubescent miracles. I have no doubts that they could have had this business up and running by now. Nevertheless, this is not something you want to hear from a savvy restaurant investor (on his portfolio are places to which you have most likely been if you live in Boston). So our team has decided to revise our business plan and include an operating agreement that lays out the terms for our investors and distribution of equity and dividends.
The fact is that no matter how much you labor over the business plan, it will always suck. It will constantly be changed, it will never be completely accurate (in terms of numbers), and it will never be the sum of all parts of your business put into words. Somebody will always hate your business plan. Now, for us it's pretty clear: if we want serious restaurant investors to look at our plan, it needs to include serious restaurant investor lingo and metrics.
Are we in despair over this? Not really. We are still actively looking at sites and planning away like we have been doing. After all, as our adviser noted: we owe it to our investors before taking their money to be as clairvoyant as can be.
Wednesday, March 25, 2009
My Letter to Obama
Dear President Obama,
I am a 22 year old entrepreneur from Chicago, IL. I currently reside in Boston, MA. In May, I graduated from Boston University with a business degree and concentration in entrepreneurship. In school we learned the fundamentals of fundraising for our start-ups as well as the various sources from which we would be able to raise capital. For the past 10 months, I have been working to start-up my own company with a group of talented, young post-grads. In October, I was laid off from my full time job at a small software company along with two of my co-workers and business partners. At the time, we made the recession our excuse to focus our time on the start-up venture so that we could make a living and create jobs for 5-6 Americans. Once we grow, we often said, we would be able to hire more people and do our part for the economic cycle.
I went to school to become an entrepreneur. You can imagine my surprise almost a year later to discover that the SBA does not give loans to people like me. Instead they give loans to the top ten largest companies in the United States. My team’s idea is a good one. The idea is supported by a vast amount of market data and research and financial projections, and is an idea that falls under the “recession-proof” category. My predicament is that my job is with my company. Unfortunately, I do not know when my dream will be realized because my government does not support it. My team is trying to sell equity to family and friends, but people are as protective of their money as ever, and understandably so.
If only there existed a body within the SBA (or better yet, independent from the SBA, thus independent from financial institutions) that loaned specifically to start-up entrepreneurs, this country may see some unrivaled innovation that has been missing since the early industrial revolution.
Thank you
Friday, March 13, 2009
Storefront Shopping on Newbury Street
Let's talk about this spot. It's great, it's in our price range, and it's right next to a competitor. Drats. Who says "drats" anymore? So let's review: great location, good price, nice layout, wouldn't need too much work, right next to competitor. One can argue that on any high-traffic street such as Newbury, you are essentially always next to a competitor. If I'm not next to one, I'm down the block from one. Alright, I'll be fair: the competitor is not a direct competitor in the sense that Starbucks is to Dunkin Donuts or Trident (all on the same block). However, for a new brand as ours, we run the risk of being dwarfed by our competitor's name.
We continue our search. Choosing a location will be the most difficult decision our team must make, but as a very wise someone once told me: whatever you choose, it will have been the right decision for whatever reason. Maybe this is true, but we'll just have to make the right decision and find out. = )
Tuesday, March 10, 2009
Old School
Unfortunately, just like my procrastination got worse since college, my thinking got more structured and box-like- damn you corporate world! I exhausted all the typical PR ideas, even embraced new media, but nothing earth shattering/freaking awesome would come to me.
I decided I needed a trip back to college to bring out my "creative" side (what the corporate world sees as ideas that "won't" work because I don't fully understand the concept behind them...) But those are the ideas I'm looking for. So I emailed an old professor and requested a meeting. I find myself really looking forward to his ruthless critique of my "marketing" plan (something I would have dreaded in college- oh how the times have changed.)
Thursday, March 5, 2009
Eco-Spending
I just ate Vietnamese Fresh Rolls for lunch from Equal Exchange Cafe. We are in a recession, I am scrimping with money and here I am going out for lunch! (What can I say, food is a priority in my life). But these words made me feel good about spending my hard-earned, what-little-I-have money there.
I know this eco-organic thing is more than a trend... could we call it a movement? And businesses are leveraging it to boost their image (and business). Which is great. Great for the environment, great for the economy- anything to get people spending.
And we at Saus have already discussed being as sustainable as possible as a business. Serving locally grown produce (see Wo de si-uh), composting, using recycled/recyclable to-go cartons, etc. And even though these are all things we can feel good about doing, we also have in the back of our minds that our customers will be happier to support us by spending more, if they know they are also supporting an eco-friendly company.
So, sound off.. Do you think you feel better about spending (and spend more) if you are helping a good cause? What do you think about portions of proceeds going to good causes (doesn't have to be environmental)? Or will all these warm and fuzzies have no effect on your spending?
Thursday, February 26, 2009
Location Location Location. Location....aaand more Locations
Over the past few weeks, we have been scouring the streets of Boston for retail space. In fact, you may have seen us. We have been all over the place: through Beacon Hill and the West End, up and down Newbury St. several times, in Fenway, near Berklee, Kenmore Square...we're exhausted from all this walking. What we have found from our thorough exploration is a record number of open retail spots. We collect phone numbers from the "for lease" signs and text message them over to our broker, John, who then calls on these properties.
We have run into some interesting characters on our quest for the perfect location. For instance, Chin and I were walking through Fenway and saw a dingy looking storefront that looked like it used to be a Mediterranean cafe. There was no sign, so we went next door to a karate studio and Chin asked the owner if he had any information on this neighboring space. He then referred us to an office building next door to talk to the people who own the entire block. So we found the office and rang the bell. A frazzled woman came to the door and informed us that the spot about which we were inquiring was currently undergoing renovations to be leased out in the future. We left our contact information and bid her adieu.
And in the Back Bay, we saw a For Lease sign in front of a corner property...a convenience store. Chin decided to ask the employees about the space.
Chin: Hi, could you tell us when you guys are closing? (ok, perhaps this wasn't the most sensitive of approaches)
Employee (in a thick Middle Eastern accent): What?! What makes you think we are closing?!
Chin: Uh, there's a For Lease sign out front
Employee: But what makes you think it is us??
Chin: Because the sign was in front of your store. We assumed--
Employee: No! What makes you think it was not the store above us?
Renee: Because the sign was on this property.
Employee: Why you asking?
Chin: We are trying to open a business.
Employee: What business?
Renee: None of yours.
Never in my five years of living in Boston have I seen so many empty spots on Newbury St. I never thought I would see the day. Our adviser informed us today that there was a live news cast on Newbury reporting on this anomoly, "a record number of vacancies in the last eight years," they said. Now, don't get me wrong, I think it's quite depressing that fashion and specialty retailers are being forced to close up shop because of the recession. That said, it does give new businesses an opportunity to move into a playing field that would have been a distant dream a few years ago.
Friday, February 20, 2009
A Word About ITEC
Here is the email I received today from ITEC:
Thank you for participating in the ITEC $50K Business Plan Competition. This year we received many very impressive business plans. Picking the top finalists was more challenging than ever before. While the judges were impressed with your plan, they did not feel confident that it is ready yet to go to the next round in the Competition.
We thank you for sharing your plan with us and wish you the best of luck with your business. You will be receiving specific feedback from the judges next week. In the meantime, we encourage you to continue participating in ITEC events and look forward to seeing you at the Business Plan Competition on Wednesday, April 8 at the School of Management.
Of course, we continue to be available to help you with growing your business. Please do not hesitate to contact us for support.
No, ITEC, no you will not see me, nor any of my teammates, at the competition on April 8th. I will be too busy watching Lost after a long hard day of renovating our space and smoking tobacco with our investor dollars (oh calm down, just Washington). Am I bitter? Heck yes. We didn't make it because we are not the right kind of company. It's time we dispel the negative stigma surrounding restaurants. There are outrageous statistics out there that claim something like 90% of restaurants fail in their first year - this is completely untrue. I bet I can take a handful of quick-serve restaurant concepts and a handful of software concepts and find that the two are equally profitable, if not one more successful than the other (restaurants).
Thursday, February 19, 2009
The Business of Restaurants
As we get closer to implementation, we are taking all the necessary early measures to ensure that ours will be a restaurant that is process-savvy. That said, we are currently designing a flow-chart, basically a map of our operation beginning with the customer who walks in, places his/her order and from there, how long it takes for the order to be received and served with all the proper variables in place.
I'm sure this is all very riveting for you, but poor operations leads to waste, low quality in output, employee dissatisfaction, and as a result, sub-par customer service.
Also, we have recently been in touch with one of our industry sources, a good friend of mine. He encouraged us to seek legal counsel early, thus avoiding the headaches that will inevitably come later. Our lawyer will deal with our licensing, equity and dividend distribution agreements, and lease negotiations when we have our space.
Thursday, February 5, 2009
SBA Bashing
If you are an entrepreneur trying to obtain seed money at this time, your efforts to do so through the SBA might be futile. Recently, I met with the resident food service expert at the SBA and dragged our adviser along in case there was a glimmer of hope for a financing option. We soon discovered there was not. The banks have more financial jurisdiction than even our own government in that due to their loan terms for small businesses (that is, in order to secure a loan, must have been in business 2+ years), the SBA consequently was disabled from its lending. Simply, the banks control everything. The 7(a), which is the SBA's general business loan, was down 40% from last year. The good news, however, is that in 2008 the SBA was able to lend to some of the largest companies in the United States (Lockheed Martin, Dell, etc.) -- do these sound like small businesses to you? In fact, 1/6 of the money doled out by SBA went to the top 10 largest firms in the US.
Let's just hope for all the job creators of the future that the banks, followed by the SBA, begin lending to small businesses again.
So to add humor to this dark and dismal landscape, I have included an online conversation I had with our adviser about the SBA:
Adviser: We should rename the SBA from Small Business Administration to something more appropriate
Like No Start-Up Loans (NSL) or No Jobs Here (NJH)...
Sent at 8:34 PM on Tuesday
Me: Shouldn't Be Agency
Adviser: Ha Ha, yes I could not think of anything good for SBA
You are a quick wit you.
Me: not really, my quick wit would originally have said, Shit Bagger Association
Adviser: Har Har.
Small Business Anti-Christ
Another pot of gold for the shameful business advocates (aka lobbyists)
Sent at 8:38 PM on Tuesday
Me: haha
Small Business Annihilator
Adviser: ha ha okay you win
Me: i think ill cut and copy this conversation onto the blog
Thursday, January 29, 2009
Ever Wonder Why There Aren't More Late-Night Eateries in Boston?
So, we really want to extend our hours of operation from 11pm on weekend nights to 1am...or even 2 or 3am. We wanted to know how this could be done, so Chin contacted one of our industry sources. First our source explained that there were late-night licenses available, ones that allow shops to be open until 1am, some until 2 and 3am, but conceded that they are available in limited quantities and cost money. He also acknowledged the old-fashioned Bostonian mentality surrounding late-night businesses, and that is that they mean nothing but trouble and noise ("those damn college kids, they've overtaken our town!")...seems a bit Puritanical doesn't it?
While there are some areas in Boston and Cambridge that have late-night activity and would support such an eatery, most of the time businesses are faced with political opposition when trying to extend their food service to the wee hours. What late-night spots do you guys know of that seem to do well?
Monday, January 19, 2009
All About the Benjamins...or Maybe Jacksons...er...Lincolns?
Another thing we discussed with Ronald, the small business banking specialist extraordinaire, was the issue of merchant services. The merchant services department handles businesses' credit card transactions and does such things as installs the 'terminal' which is the slot for swiping credit and debit cards. The fee is a flat rate at first and then after 6 months, merchant services will reassess our business in terms of the number of transactions we process a day and whether or not it merits a better rate, etc. And that's not all...because we have a Bank of America checking account and if we decide to subscribe to BOA's Merchant Services, there is next day funding -- which means, ladies and gents, that the transactions will come through the next day and, voila, there's our money. The truth be told, however, we have bigger fish to fry before we sign on to merchant services -- but the way we see it, it's better to be prepared for these things now.
So, "What big fish?" You ask. We need investors before we start talking about swiping the plastic-y goodness that are the debit cards of our sexy and beautiful customers...or those of their parents, in many cases. This week we will be talking to some nice people who will hopefully get pen-happy with their checkbooks. If all else fails, we take to Plan B - sell stuff on eBay.
Friday, January 16, 2009
Wo de si-uh
So our latest internal "hot-button" issue/debate is over locally grown food. We, as a company, believe in sustainability and supporting local business. We also want to appeal to our market's ethical food interests. Our thinking is that if our market likes what we support, they will want to support us and become regulars... So basically, we are totally altruistic.
Anyway, when we first broached the idea of buying our produce from local farmers, we focused solely on Massachusetts farms. Of which we found a fair amount (mostly in western MA). However, a recent conversation with my partner/friend Renee left me reeling. Let me preface this by saying that Renee has what I am going to call a "sharp business-mind." Through some industry contacts, Renee discovered that Maine was a hot-spot for the kind of produce we need. When she mentioned this to me, I sort of dismissed it since Maine is not Massachusetts and we decided local was an important cause to support.
When Renee and I eventually got to talking about Maine produce, I mentioned "what about the whole local thing?" She looked askance. Maine is local, was her reply... it's in the northeast. And if it's "local" and we can get it cheaper there because it's a bigger industry there, then why not?
So... what defines local then? Does it have to be within the same state, region, country... I, lets call me naive.. or maybe idealistic, think at least within the same state. And Renee, the lets-cut-a-deal part of the company, says oh... northeast... it's fine. Thank god we have a third to tie-break, or else we'd have to resort to rock-paper-scissors or competitive drinking games. You know, how real companies solve problems.
Anyway, wa du si-uh... I am going to wrap this up and get some lunch. Hopefully, the lettuce on my sandwich is from a "local" farm. So while I eat my lunch, voice your opinion on what local means to you. And when you see a company boasting their use of local produce, where you automatically think it came from.
As an addendum to Renee's last post, let me thank in name Meghan. You are famous.
Tuesday, January 13, 2009
On the Topic of Research
New Year's Eve aside, we spent most of our days eating at different diners and cafes -- birds of a feather eat together - you know what I mean? They would not be my friends if they did not share my love for food. So the places I remember are Moonstruck Diner, Hudson Place, Petite Abeille, Pinkberry, some bagel place on 2nd, Buttercup, the infamous Chicken and Rice stand, and finally...a similar restaurant to our own...Restaurant X on the Lower East Side. Dun Dun DUN. I dragged them there after we had eaten brunch and frozen yogurt, both within about 2 hours of each other-- are they troopers or what?
They were handy research assistants, bringing to attention important details that we will be sure to incorporate into our shop. My team of inspectors also offered their support and said, "You could do better than this!"
Our friends are important in the realization of the dream that is Saus. They have been supportive and inquisitive -- take Chin's friend and girlfriend who got him some useful equipment for our upcoming taste testings, for example. Or Tanya's coworkers who send her useful links that keep us in the start-up restaurant loop. And my friends, who gladly allowed me to drag them to a third eatery. Did I mention that we got cupcakes right after?
Thanks: Brendan, Henry, Janet, Amy, Lauren, Candice, Jenny, Monica, Kristie, and Brett.
Also: Neha & Jane & Sachin
Orinoco
I tried a restaurant for the first time this past Friday. I had been hearing such great things about it and it had been on my to-go list forever. My anticipation was not for nothing. Orinoco was so delicious that I feel the need to pass on my exceptional experience.
Orinoco has two locations- one in the South End and one in Brookline Village. I went to the cozy Brookline Village location. It has a vibrant, busy atmosphere but doesn't feel uncomfortable or overwhelming. As soon as I walked in the door and saw the rough wooden finishing, turquoise accents, and warm walls I was happy and hungry.
And the food! Seriously, ridiculously amazing. They play with traditional Latin flavors and add unexpected twists. Nothing I ordered was bland. I got an assortment of empanadas for an appetizer. There was the usual black bean empanada and sweet pork empanada but also a crab-filled empanda. And they came with a sweet, lemony dipping sauce that I was tempted to scoop out with my finger when the empanadas were gone. Dinner-room decorum stopped me.
For my meal I got lamb chops crusted with pistachio-panela-plantain. It was spicy, sweet and crunchy (I like how they add texture to their food). Mouthwatering to think about. The tenderloin comes with crab picadillo piled on top, which I think was my favorite part of the meal. Orinoco made me fall in love over and over again.
Basically this post is so I can pass on my new-found love and to show that I am continuing my serious market research in exploring new flavors and searching for inspiration! Seriously, hard work people. I take my job seriously.
Tuesday, January 6, 2009
It's 2009, Saus Gets on Twitter
So, we're trying to prime ourselves for total viral-dom when we are open. This is why we have surrendered to the pantheon of social networks so adored by our Sausy market. That being said, add us on Twitter - Saus_Inc - and receive mini-updates of our goings-on. Wow, that sentence was pretty hyphen-tastic. We would also love to follow you guys, so let us know what is going on.
A friend of mine once said (once, as in three days ago)...
"All is fine in 2009."