I submitted my application for graduation to the powers that be at the Art Institute yesterday. I was headed to my car to get back on the road to Tally when I bumped into one the many great friends I made during my stay in Tampa. She asked me how things were going so I filled her in on the triumphs I've had so far and the challenges that I attempt to overcome day by day.
She said, "So, who's helping you do all this?" Now that is a question I hadn't gotten before. Helping me? Who's helping me? It was almost like she was speaking another language. Who could help me? And help me do what? Do market research at every opportunity (met a server today who need NOT apply...EVER!...at Concept) or revise the business plan every 4 or 5 days? Go to Chamber functions and serve as an Ambassador or figure out how to staff an upcoming event? Update all my social media sites or update the bartender's training manual for the class that I will be teaching in the next couple of weeks? Or, develop a series of cocktail recipes for friends, clients and contests while conducting research for a panel discussion on "The power of the Black Dollar"?
I had to tell her that I've been doing it all by myself: meeting with construction managers; learning about tax incentives for being in both an Enterprise Zone and a Community Redevelopment Agency area; finding out the approximate tax revenue that will be generated from Concept (a little over $100K by the end of 2010 and that's just on beverage sales) and talking to folks at the Master Craftsman Art Studio about design pieces for the venue.
And while I may have been doing all that by myself, I would not be able to do all that if it weren't for the support system I have in place. I cannot put a price tag on the value of their support. Take my sister for instance. She's not a bartender but if she had not made herself available to bar back at the event I had on Saturday, I would not have been able to go down to Tampa and coordinate a group of volunteers to help out at the Rum Festival in Ybor. And those volunteers? My old roommates and two of my closest friends. If it weren't for them, I wouldn't have had the opportunity to meet Jack Robertiello (former editor of Cheers Magazine and current editor of the Adams Beverage Group website, www.adamsbevgroup.com) and Sparky. Sparky lives on Davis Island and is planning a big block party that he wants 71 Proof and crew to bartend at in May!
I also wouldn't be able to pay the retainer for the construction manager that I met with today, the naming rights consultant that I'll be meeting with on Thursday and the securities attorney that I'm meeting next Tuesday if it weren't for a friend of the family that has become my seed round funding angel. What about Keeba? She's going to meet Terry at the hotel for me tomorrow since I have to report to work at the Flite tomorrow evening. So, I guess I misspoke.
If she asked me again, 'who's been helping you do all this?', it would take me 274 days to list all the names!
Tuesday, March 31, 2009
Friday, March 27, 2009
T MINUS 278: Skin In The Game
It's been 3 days since I had the chance (or made the time, really) to journal about the latest updates on Concept and I can tell! I've never really had the discipline to do anything as routine as journaling on a daily basis- or exercise on a regular basis for that matter- but the three days that I've gone without journaling has really taken its toll on me. Writing has always been cathartic for me and the journey of living this dream is no exception. Since I was here last, I had a meeting with a local banker who set out to intentionally shoot holes in my theory; the bank put a hold on the money I need to pay the construction manager to retain him and I learned that, even if you are independently wealthy, getting ahold of liquor license can still be hard to come by.
I must have brought my mom closer to a nervous breakdown than I am when I called her last night. I've tried not to bother anybody with the challenges that I've faced so far because just thinking about what the naysayers would have me believe gives them the power they are seeking. There has been so much negativity that I have faced in doing this day by day that when I was met with positivity for the first time yesterday, I didn't know what to do! I met with a guy who has a vision similar to mine, who wants to change the nightlife scene here in Tallahassee and we are thinking about some ways to work together moving forward. I spoke with someone who is seriously interested in being a part of the success of Concept and wants an ownership stake in the business. Those two encounters alone are worth far more than any other challenges.
Like the challenge of having the capital and collateral needed to back the loan application I will be submitting. They asked me about 'skin in the game.' How much of your own capital will you put up to get the loan that you are seeking? That's a fair question- I have to have something at risk for it to be worth my while. I would venture to say that the risk that I've put in are the opportunity costs that I have paid to date to pursue this dream. Dr. Wilson would be proud that I still know what an opportunity cost is: the value of something that has been sacrificed in order to capitalize on another opportunity.
I left my 'lucrative' career in pharmaceutical sales in 2007 to be a full-time entrepreneur. My 2006 tax return said that my AGI was $63K (I didn't have shit to show for it though). So, not accounting for the time value of money and any increase in the cost of living, let's theorize that my gross income for 2007 and 2008 would have remained at that figure had I stayed in sales. That opportunity cost is $126K.
The Art Institute of Tampa's tuition per credit hour is $450; I have accumulated 112 credits. The opportunity cost for my degree is then $50,400. While I was in school, I commuted between Tampa and Tallahassee nearly every weekend so that I could try to maintain a presence in the business community with 71 Proof. My car is 3 years old and has a 125,000 miles because of that...I don't even want to get into the depreciation expense on that.
That brings my skin in the game to $176,400 so far. Hopefully, my financial advisor isn't reading this, but I also liquidated my 401K- now granted I had only been in Corporate America for three years so I had only accumulated a little over $10K ..and then with the state of the stock market, it's value has decreased by 30%. So, with early distribution penalties of around 20% when it's all said and done AND the opportunity cost I'm paying by not allowing the fund to continue to grow, I'd say that's about another $20,000 ballpark.
All things considered, I would say I'm in pretty deep.
I must have brought my mom closer to a nervous breakdown than I am when I called her last night. I've tried not to bother anybody with the challenges that I've faced so far because just thinking about what the naysayers would have me believe gives them the power they are seeking. There has been so much negativity that I have faced in doing this day by day that when I was met with positivity for the first time yesterday, I didn't know what to do! I met with a guy who has a vision similar to mine, who wants to change the nightlife scene here in Tallahassee and we are thinking about some ways to work together moving forward. I spoke with someone who is seriously interested in being a part of the success of Concept and wants an ownership stake in the business. Those two encounters alone are worth far more than any other challenges.
Like the challenge of having the capital and collateral needed to back the loan application I will be submitting. They asked me about 'skin in the game.' How much of your own capital will you put up to get the loan that you are seeking? That's a fair question- I have to have something at risk for it to be worth my while. I would venture to say that the risk that I've put in are the opportunity costs that I have paid to date to pursue this dream. Dr. Wilson would be proud that I still know what an opportunity cost is: the value of something that has been sacrificed in order to capitalize on another opportunity.
I left my 'lucrative' career in pharmaceutical sales in 2007 to be a full-time entrepreneur. My 2006 tax return said that my AGI was $63K (I didn't have shit to show for it though). So, not accounting for the time value of money and any increase in the cost of living, let's theorize that my gross income for 2007 and 2008 would have remained at that figure had I stayed in sales. That opportunity cost is $126K.
The Art Institute of Tampa's tuition per credit hour is $450; I have accumulated 112 credits. The opportunity cost for my degree is then $50,400. While I was in school, I commuted between Tampa and Tallahassee nearly every weekend so that I could try to maintain a presence in the business community with 71 Proof. My car is 3 years old and has a 125,000 miles because of that...I don't even want to get into the depreciation expense on that.
That brings my skin in the game to $176,400 so far. Hopefully, my financial advisor isn't reading this, but I also liquidated my 401K- now granted I had only been in Corporate America for three years so I had only accumulated a little over $10K ..and then with the state of the stock market, it's value has decreased by 30%. So, with early distribution penalties of around 20% when it's all said and done AND the opportunity cost I'm paying by not allowing the fund to continue to grow, I'd say that's about another $20,000 ballpark.
All things considered, I would say I'm in pretty deep.
Tuesday, March 24, 2009
T MINUS 282: I've Done All I Can
The last couple of days, I woken up feel extremely restless- like I hadn't accomplished anything in the last couple of days. And that's exactly right.
I haven't done anymore updates to the business plan for Concept, no more market research except for visiting this website www.regus.com to get an idea of how I want the business incubator to be set up. I haven't really done any more prospecting for potential investors either. I used to make it a point that no matter where I was going in the downtown area that I would drive the building where Concept will be housed in 248 days but I haven't even done that since I tried to make arrangements to get up on the roof...oh, did I tell you about that?
Excuse the fireside chat but I needed to get up on the roof to take pictures of the structure in order to send to the engineers at Roll-A-Cover. The only roof access panel is in the women's bathroom on the 3rd floor. So Alan and I got the ladder up two flights of stairs, into the bathroom and inside the first stall. He climbed up and I steadied the ladder with one hand and held the flashlight with the other. When he got as high as he could, he pushed up on the access panel and a little sunlight peaked in. I saw something fall from the panel and then feel it hit me on the forearm but I wasn't alarmed. It wasn't until I pointed the flashlight towards the ground and saw that it was a GECKO that had fallen on me did I want to scream. I screamed in my head because I didn't want to frighten Alan lol. I'm still traumatized...
Back to the lesson at hand though. So I came to realize yesterday that I have literally laid all the ground work I can for right now. It's time to bring in the big(ger) guns and put them to work. It's time to retain the construction manager so that he can get his team of engineers and architects involved; it's time to retain the securities attorney (who I need to call again) so that we can get started developing this prospectus in order to raise the balance of $1M for the project. It's also time to retain Terry Burton of Dig In Research (www.diginresearch.biz). I found out about Terry when I started doing research on naming rights in the for-profit sector- and by naming rights I mean the Quicken Loans Arena or the Ghazvini Center for Health Care Education here in Tallahassee (www.tiny.cc/tmh). That will be another capital campaign that we use at Concept to raise this money.
So, yes I have been quite unproductive and it gets me to feeling like I'm headed for trouble. But I've done all I can and now it's time to share in the power.
I haven't done anymore updates to the business plan for Concept, no more market research except for visiting this website www.regus.com to get an idea of how I want the business incubator to be set up. I haven't really done any more prospecting for potential investors either. I used to make it a point that no matter where I was going in the downtown area that I would drive the building where Concept will be housed in 248 days but I haven't even done that since I tried to make arrangements to get up on the roof...oh, did I tell you about that?
Excuse the fireside chat but I needed to get up on the roof to take pictures of the structure in order to send to the engineers at Roll-A-Cover. The only roof access panel is in the women's bathroom on the 3rd floor. So Alan and I got the ladder up two flights of stairs, into the bathroom and inside the first stall. He climbed up and I steadied the ladder with one hand and held the flashlight with the other. When he got as high as he could, he pushed up on the access panel and a little sunlight peaked in. I saw something fall from the panel and then feel it hit me on the forearm but I wasn't alarmed. It wasn't until I pointed the flashlight towards the ground and saw that it was a GECKO that had fallen on me did I want to scream. I screamed in my head because I didn't want to frighten Alan lol. I'm still traumatized...
Back to the lesson at hand though. So I came to realize yesterday that I have literally laid all the ground work I can for right now. It's time to bring in the big(ger) guns and put them to work. It's time to retain the construction manager so that he can get his team of engineers and architects involved; it's time to retain the securities attorney (who I need to call again) so that we can get started developing this prospectus in order to raise the balance of $1M for the project. It's also time to retain Terry Burton of Dig In Research (www.diginresearch.biz). I found out about Terry when I started doing research on naming rights in the for-profit sector- and by naming rights I mean the Quicken Loans Arena or the Ghazvini Center for Health Care Education here in Tallahassee (www.tiny.cc/tmh). That will be another capital campaign that we use at Concept to raise this money.
So, yes I have been quite unproductive and it gets me to feeling like I'm headed for trouble. But I've done all I can and now it's time to share in the power.
Sunday, March 22, 2009
T MINUS 284 V2: I'm done son!
On July 21, 2007 I decided that I wanted to own and operate my own cocktail lounge. I was at my first visit to Tales of the Cocktail in New Orleans and had contacted the event organizer, the then Ann Rogers, about volunteering. I happened across the website for Tales (http://www.talesofthecocktail.com/) after I learned about the Museum of the American Cocktail, also based in New Orleans.
That was my first visit to Tales...it won't be my last! It was my first introduction to this secret little world of cocktails. So much history and so much to learn and you know me, I'm a student of life so I wasn't going to pass up that learning opportunity. I made it back to Tallahassee on July 23rd and promptly began researching my opportunities for a structured learning environment on how to operate a cocktail lounge. Sure I found books in the library about the ropes to skip and the ropes to know but I didn't feel prepared for the next step towards hospitality ownership based simply on those resources.
That's when I came across the Wine, Spirits and Beverage Management Program at the Art Institutes. Out of the 35 schools spattered across the country, only 3 of them offered this particular program: New York, Atlanta and Tampa. I decided on Tampa since that's where this all started...and met some of the greatest friends in the world, might I add! My sorors Bennisha and Chasma; classmates Pam, Jos and Cristelle; co-workers Jemaar, Angie, Samyra and Kim; roomies Marcine, Britt and Nilesia...they made my life in Tampa worth the sacrifice of leaving my life in Tally behind temporarily.
I started my classes on October 1, 2007 promptly after completing my first attempt at the Beverage Alcohol Resource program in NYC. The degree program is comprised of 112 credits and 45 of those were transferred in from my matriculation at FAMU- thank God for that MBA! So what should have taken me 21 months to complete only took 15. They weren't ready for me.
See I came into the program knowing my product I wanted to produce, I just needed the guidance and direction to do it. Most of the students who matriculate through the creative programs at Ai are preparing themselves to work for someone else but not me. I went in knowing that I would be working for myself and the class that I was most excited about was my capstone class- the course where I would graded on the caliber of the business plan that I produced.
That plan is now in its 5th draft and next week is my last week as a student of the Art Institute of Tampa. I will be the program's first graduate on March 27, 2009. The ceremony will be in June sometime so I'll keep you posted but just know that I'm done son!
That was my first visit to Tales...it won't be my last! It was my first introduction to this secret little world of cocktails. So much history and so much to learn and you know me, I'm a student of life so I wasn't going to pass up that learning opportunity. I made it back to Tallahassee on July 23rd and promptly began researching my opportunities for a structured learning environment on how to operate a cocktail lounge. Sure I found books in the library about the ropes to skip and the ropes to know but I didn't feel prepared for the next step towards hospitality ownership based simply on those resources.
That's when I came across the Wine, Spirits and Beverage Management Program at the Art Institutes. Out of the 35 schools spattered across the country, only 3 of them offered this particular program: New York, Atlanta and Tampa. I decided on Tampa since that's where this all started...and met some of the greatest friends in the world, might I add! My sorors Bennisha and Chasma; classmates Pam, Jos and Cristelle; co-workers Jemaar, Angie, Samyra and Kim; roomies Marcine, Britt and Nilesia...they made my life in Tampa worth the sacrifice of leaving my life in Tally behind temporarily.
I started my classes on October 1, 2007 promptly after completing my first attempt at the Beverage Alcohol Resource program in NYC. The degree program is comprised of 112 credits and 45 of those were transferred in from my matriculation at FAMU- thank God for that MBA! So what should have taken me 21 months to complete only took 15. They weren't ready for me.
See I came into the program knowing my product I wanted to produce, I just needed the guidance and direction to do it. Most of the students who matriculate through the creative programs at Ai are preparing themselves to work for someone else but not me. I went in knowing that I would be working for myself and the class that I was most excited about was my capstone class- the course where I would graded on the caliber of the business plan that I produced.
That plan is now in its 5th draft and next week is my last week as a student of the Art Institute of Tampa. I will be the program's first graduate on March 27, 2009. The ceremony will be in June sometime so I'll keep you posted but just know that I'm done son!
T-284: Form vs. Function
She flipped through the magazine's pages and asked me, "Tanya, are you sure no one has gotten ahold of your business plan?" I responded by laughing it off. It was a couple of days later that I flipped through that same magazine and thought to myself 'this sounds a WHOLE lot like what I want to do with Concept!' There's nothing wrong with healthy competition and, as a matter of fact, competition keeps us on our toes but this sounds more like a mirror image than healthy competition! It was the first time in the 2 years that I've been working on this project that I really got anxious about the competition that I would be facing.
Modern decor and design that speaks to the business and traveling professional is definitely making it's way to Tallahassee. Venues and attractions are opening and being updated with the design style of the season and Concept will follow suit. I went into a lounge in downtown Tallahassee and saw the same lighting fixtures that I had considered for Concept while perusing an issue of Hospitality Design magazine. I decided against those fixtures before I event visited that venue in my 'market research'. They weren't classic enough for me. They didn't seem like they would be relevant, or that they would fit, 5 years from now.
And the rooftop lounge. When my business plan was in its first, second and third drafts, it was accurate to say that Concept would be the only venue in Tallahassee with a rooftop lounge. In 284 days, we will be the second. I saw those renderings and got really nervous! So what was going to be my USP- the unique selling proposition for Concept if not the rooftop lounge? Would LEED standards/certification set us apart? Would having that flexible meeting space do it? What about our menu items of certified organic food and beverage products...would that really be our value proposition?
Would the fact that Concept will have Tallahassee's only retractable rooftop lounge seal the deal or would the elements of exclusivity be the ticket? Since there is no such thing as 'VIP' at Concept, would the "For Tastemakers Only" memberships- the status that gives you access to very exclusive events- bring you to Concept when you have options that appear similar?
I went to my unofficial board of advisors and had a 'come to Jesus' talk with them about this place that I found myself in. They told me to consider not just the form of this competition but the function. While our forms may be similar, their function is not to create the social experiences that you will find at Concept. That is a different type of hospitality establishment altogether...its form versus function.
Modern decor and design that speaks to the business and traveling professional is definitely making it's way to Tallahassee. Venues and attractions are opening and being updated with the design style of the season and Concept will follow suit. I went into a lounge in downtown Tallahassee and saw the same lighting fixtures that I had considered for Concept while perusing an issue of Hospitality Design magazine. I decided against those fixtures before I event visited that venue in my 'market research'. They weren't classic enough for me. They didn't seem like they would be relevant, or that they would fit, 5 years from now.
And the rooftop lounge. When my business plan was in its first, second and third drafts, it was accurate to say that Concept would be the only venue in Tallahassee with a rooftop lounge. In 284 days, we will be the second. I saw those renderings and got really nervous! So what was going to be my USP- the unique selling proposition for Concept if not the rooftop lounge? Would LEED standards/certification set us apart? Would having that flexible meeting space do it? What about our menu items of certified organic food and beverage products...would that really be our value proposition?
Would the fact that Concept will have Tallahassee's only retractable rooftop lounge seal the deal or would the elements of exclusivity be the ticket? Since there is no such thing as 'VIP' at Concept, would the "For Tastemakers Only" memberships- the status that gives you access to very exclusive events- bring you to Concept when you have options that appear similar?
I went to my unofficial board of advisors and had a 'come to Jesus' talk with them about this place that I found myself in. They told me to consider not just the form of this competition but the function. While our forms may be similar, their function is not to create the social experiences that you will find at Concept. That is a different type of hospitality establishment altogether...its form versus function.
Thursday, March 19, 2009
T-287: FAMU Veteran Softball Coach Goes for Win # 500
The 2009 poster for FAMU's Softball team reads: "PRIDE- If you don't believe, you don't belong." The team is gathered on the Lady Rattler Softball Complex holding a banner that reads simply '500' with the caption saying that Coach Veronica Wiggins is going for her 500th career win.
Auntie (as she called when it's NOT softball season) has been retiring from her 16-year position as the Head Coach for FAMU's Softball team for at least the last 5 years. Currently, the team's record is a miserable 5-19 but if they get their act together, if they just start to believe in themselves and their own ability, a record of 7-19 (they play a double header against Savannah State University today at 3p and 5p at FAMU, here in Tallahassee) can take her to her 500th career win. But, as the slogan reads, if you don't believe then you do not belong.
And that's what I've been finding in this quest for Concept. There are many that don't believe that my vision is attainable but those that do believe certainly do belong in my circle- you all keep me going and you should know how much I value your support. Speaking of value...
My projected startup costs are $2.7M. The SBA's 504 Loan could possibly absorb about $1.7M of those costs ($1.1M for the building and land, estimated $500K for the buildout to LEED standards, $100K for furniture, fixtures and equipment [FFE] and $100K for soft costs like architects and engineers). The remaining balance of $1M will have to come from private equity participation and some very creative capital-raising alternatives lol.
Now I'm faced with the question of how much ownership am I willing to relinquish to make this happen? In order to maintain control, you know that at a minimum, I must maintain at least a 51% share of the company but to offer up 49% of the company at a value of $1M brings my pre-money valuation only to about $2M and that's no good lol. I thought about 25%. That brings the valuation to $4M (that is, if 25% of the business is worth, or valued at, $1M then 100% of the business is valued at $4M- or at least that's my understanding of it). $4M is far better than $2M but let's explore that further.
What about if I reliquished only 20% of Concept (the entire portfolio)? That would bring the pre-money valuation to $5M...which isn't too shabby. I hope to be able to chat with a securities attorney about this in the next couple of weeks to get a better feel for this.
So, what have we learned today? That's is takes belief in yourself more than someone else's belief in you to get where you want to be. If you don't believe, you don't belong.
Auntie (as she called when it's NOT softball season) has been retiring from her 16-year position as the Head Coach for FAMU's Softball team for at least the last 5 years. Currently, the team's record is a miserable 5-19 but if they get their act together, if they just start to believe in themselves and their own ability, a record of 7-19 (they play a double header against Savannah State University today at 3p and 5p at FAMU, here in Tallahassee) can take her to her 500th career win. But, as the slogan reads, if you don't believe then you do not belong.
And that's what I've been finding in this quest for Concept. There are many that don't believe that my vision is attainable but those that do believe certainly do belong in my circle- you all keep me going and you should know how much I value your support. Speaking of value...
My projected startup costs are $2.7M. The SBA's 504 Loan could possibly absorb about $1.7M of those costs ($1.1M for the building and land, estimated $500K for the buildout to LEED standards, $100K for furniture, fixtures and equipment [FFE] and $100K for soft costs like architects and engineers). The remaining balance of $1M will have to come from private equity participation and some very creative capital-raising alternatives lol.
Now I'm faced with the question of how much ownership am I willing to relinquish to make this happen? In order to maintain control, you know that at a minimum, I must maintain at least a 51% share of the company but to offer up 49% of the company at a value of $1M brings my pre-money valuation only to about $2M and that's no good lol. I thought about 25%. That brings the valuation to $4M (that is, if 25% of the business is worth, or valued at, $1M then 100% of the business is valued at $4M- or at least that's my understanding of it). $4M is far better than $2M but let's explore that further.
What about if I reliquished only 20% of Concept (the entire portfolio)? That would bring the pre-money valuation to $5M...which isn't too shabby. I hope to be able to chat with a securities attorney about this in the next couple of weeks to get a better feel for this.
So, what have we learned today? That's is takes belief in yourself more than someone else's belief in you to get where you want to be. If you don't believe, you don't belong.
Tuesday, March 17, 2009
T-288: Going in Circles
It wouldn't seem right if anything associated with this project moved in linear fashion. If the construction manager could do his job at Step 1, the engineer, his at Step 2 and the architect do hist at Step3, it wouldn't sit well with the Universe.
Concept will be a green social and business space that is dedicated to sustainable operating by using products that have been sourced responsibly. That goes from using an existing structure for the project (industrial recycling) to making sure that the paints we use do not emit volatile organic compounds (VOCs) to ensuring that are food products will be certified organic.
Let's start with the existing structure. The building that will house Concept was built in 1971 (oooooo-oooop!!) and has been empty for about 5 years now. The construction manager that I want to lead the project can't give me an estimate on the cost of the buildout or a specific timeline unless he has an understanding of what the Heating-Ventilation-Air Conditioner (HVAC) system looks like and its capability to handle the output that I would need for a successful venue of this nature. He also needs insight on the Mechanics, Electricity and Plumbing (MEP) capacity. He can't do those things without an engineer. I asked him if he had an engineer that he could recommend and he said that he did.
OR! I could just hire he and his staff to outsource those jobs, look into zoning and permitting and bring on their own architect and designer. Because unless he had that information, he wouldn't be able to supply me with a construction bid. Which I need for my SBA 504 Loan Application. I can't submit the application unless the lender has an idea of the construction timeline and cost. The contract for the pre-construction services for Concept will be my first official expense for the project but it will only be one of many.
Concept will be a green social and business space that is dedicated to sustainable operating by using products that have been sourced responsibly. That goes from using an existing structure for the project (industrial recycling) to making sure that the paints we use do not emit volatile organic compounds (VOCs) to ensuring that are food products will be certified organic.
Let's start with the existing structure. The building that will house Concept was built in 1971 (oooooo-oooop!!) and has been empty for about 5 years now. The construction manager that I want to lead the project can't give me an estimate on the cost of the buildout or a specific timeline unless he has an understanding of what the Heating-Ventilation-Air Conditioner (HVAC) system looks like and its capability to handle the output that I would need for a successful venue of this nature. He also needs insight on the Mechanics, Electricity and Plumbing (MEP) capacity. He can't do those things without an engineer. I asked him if he had an engineer that he could recommend and he said that he did.
OR! I could just hire he and his staff to outsource those jobs, look into zoning and permitting and bring on their own architect and designer. Because unless he had that information, he wouldn't be able to supply me with a construction bid. Which I need for my SBA 504 Loan Application. I can't submit the application unless the lender has an idea of the construction timeline and cost. The contract for the pre-construction services for Concept will be my first official expense for the project but it will only be one of many.
T-289: To the Sky
"It's amazing the way darkness falls, and the truth out there is cold and nothing can keep you warm...I gotta know right now will I be rich, have everything I want. I stop myself and look to the sky."
Most of the people that know me, know that I love me some Robin Thicke! Not because, as Vibe magazine called him in the October 2008 issue, he's "the white boy that turned you out" (pg 112) or because I really think he's a black man in a white man's body or even because his music crosses genres, generations and gender gaps. But because his music is the soundtrack to my life. "2 The Sky" is track #14 on Thicke's second album, The Evolution of Robin Thicke, and I have it on repeat so much that the track has started to skip lol.
The song goes on to say that the material things don't matter. The faster car, the bigger house- none of that matters in the end because all you really need is friends and love. And that's what I've found I have: more friends than enemies and more love and support than what the naysayers will have me believe. It's time to look to the sky!
And boy will we be doing that at Concept! The building that I will be submitting an SBA loan application for is 15,000 total square feet with 3 floors. The project calls for an additional floor to be added which will be the rooftop garden and lounge. I went to the Florida Restaurant and Lodging Show in October 2007 and saw a retractable rooftop enclosure that I knew I had to have (www.rollacover.com).
The rooftop is approximately 4,300 square feet and at $80 per square foot for the enclosure, it's going to be tough to get a decent ROI on the $344K it will take to add that to the project. So, I've decided to have the enclosure cover 22x75 of space bringing me to $132,000 for that line item in the budget. When Robin is performing at the Grand Opening Celebration for Concept, maybe we'll have it on the rooftop and I can be on my way to recouping that investment via ticket sales!!
Most of the people that know me, know that I love me some Robin Thicke! Not because, as Vibe magazine called him in the October 2008 issue, he's "the white boy that turned you out" (pg 112) or because I really think he's a black man in a white man's body or even because his music crosses genres, generations and gender gaps. But because his music is the soundtrack to my life. "2 The Sky" is track #14 on Thicke's second album, The Evolution of Robin Thicke, and I have it on repeat so much that the track has started to skip lol.
The song goes on to say that the material things don't matter. The faster car, the bigger house- none of that matters in the end because all you really need is friends and love. And that's what I've found I have: more friends than enemies and more love and support than what the naysayers will have me believe. It's time to look to the sky!
And boy will we be doing that at Concept! The building that I will be submitting an SBA loan application for is 15,000 total square feet with 3 floors. The project calls for an additional floor to be added which will be the rooftop garden and lounge. I went to the Florida Restaurant and Lodging Show in October 2007 and saw a retractable rooftop enclosure that I knew I had to have (www.rollacover.com).
The rooftop is approximately 4,300 square feet and at $80 per square foot for the enclosure, it's going to be tough to get a decent ROI on the $344K it will take to add that to the project. So, I've decided to have the enclosure cover 22x75 of space bringing me to $132,000 for that line item in the budget. When Robin is performing at the Grand Opening Celebration for Concept, maybe we'll have it on the rooftop and I can be on my way to recouping that investment via ticket sales!!
Monday, March 16, 2009
T-290: Transference of Power
It's amazing how much power I have given to people around me- people I don't event know! For instance, last week I set up a meeting with a commerical real estate lender and one of his counterparts from a local bank so that I could start practicing my pitch for Concept. I think I did a great job fielding their questions about "Why so big?" and "How are you going to pay this note?" and "Why Tallahassee?" and "What makes you think going green is going to be a selling point for you?".
Questions that I readily had the answer to along with the logic and data to support those answers. I followed up with both of them asking for their feedback on how I could make the presentation stronger, especially from the standpoint of talking to investors about equity participation. Didn't hear back from one and the other completely blew off my question. I will say that he was nice about blowing me off. He said "I wish you the best with your idea. Good luck." I don't know about you but that sounds like an extremely polite way of saying "I don't think you're going to make it and I don't want to be around to see the fallout." Now mind you, I am extremely sensitive about this. Concept is my baby, my child and going through this I can't imagine what it's like being a parent. Being filled with so much love and fear at the same time.
The very next day, I had set up an appointment with an accountant, a contractor and a marketing consultant. The accountant asked me the same question "Why is your vision so big?". The contractor told me "Boy, you're dreaming big aren't you?" And the marketing consultant asked, "Why go from a business with no overhead to a business with as huge an overhead as this project will have?". See that's just it! This isn't my vision! I promise you it isn't...I just want to friggin bartend! Everything else is an extension of that.
Getting back to today though, I was feeling quite discouraged but I had to come back to my senses. Really, why should I feel discouraged? I know that I will never be forsaken and I am glad to know that. It's time to take my power back!
Questions that I readily had the answer to along with the logic and data to support those answers. I followed up with both of them asking for their feedback on how I could make the presentation stronger, especially from the standpoint of talking to investors about equity participation. Didn't hear back from one and the other completely blew off my question. I will say that he was nice about blowing me off. He said "I wish you the best with your idea. Good luck." I don't know about you but that sounds like an extremely polite way of saying "I don't think you're going to make it and I don't want to be around to see the fallout." Now mind you, I am extremely sensitive about this. Concept is my baby, my child and going through this I can't imagine what it's like being a parent. Being filled with so much love and fear at the same time.
The very next day, I had set up an appointment with an accountant, a contractor and a marketing consultant. The accountant asked me the same question "Why is your vision so big?". The contractor told me "Boy, you're dreaming big aren't you?" And the marketing consultant asked, "Why go from a business with no overhead to a business with as huge an overhead as this project will have?". See that's just it! This isn't my vision! I promise you it isn't...I just want to friggin bartend! Everything else is an extension of that.
Getting back to today though, I was feeling quite discouraged but I had to come back to my senses. Really, why should I feel discouraged? I know that I will never be forsaken and I am glad to know that. It's time to take my power back!
Sunday, March 15, 2009
T-291: The Odds Have Been Against Me
As big as the vision that I have Concept is, I had better be in church this morning praying for God's favor. I was eating my first meal of the day and Grandma had the tv tuned into to BET's "Lift Every Voice" and a Mary Mary video happened to come on. How does the chorus go? "Get up, cause you can't stop....Get up, don't sit back, Get up, if you wanna get there."
I've always been extremely sensitive and when I say I cry at the drop of a hat, I soooo mean it.
So I sat there crying into the rice and potatoes I was eating at 10:30 in the morning thinking about how much I have given up and sacrificed in this my pursuit of entrepreneurship. My cousin and I joke about why I spend so much of my day going from meeting to meeting or sitting in front of the computer for up to 10 hours at a time. I tell her that I'm just trying to make a name for myself. She called me this morning at 9:46a asking me why I wasn't up trying to make a name for myself so it was only fitting that Mary Mary's song would be the first one I heard this morning.
We had a guest speaker this morning as the youth members of the church conducted the service. Mr. Fred Simmons spoke to us from the subject of "When the Odds Are Against You" and led the sermon with Judges 7:1-7. This is the story where God reduced Gideon's army from over 22,000 to just 300 in the Israelites fight against the Midianites because God knew that if Gideon defeated them with soldiers numbering 22,000, He would not have been given the glory- that the Israelites "would become boastful, saying, 'My own power has delivered me.'" (NAS)
Sure enough, the odds have been against me. A young, African-American woman working in one of many industries where none of the leaders and influencers look like me. I'm undertaking a project where the success rate is less than 5%, going from a business little to no overhead to one with overhead expenses of nearly $50,000 per month. The projected startup costs are $2.7M and my net worth is like, what, zero? I have 291 days until the proposed Grand Opening of this project and I have accumulated approximately 0% of that figure.
So the odds have definitely been against me but the few that have been for me are definitely working in my favor.
I've always been extremely sensitive and when I say I cry at the drop of a hat, I soooo mean it.
So I sat there crying into the rice and potatoes I was eating at 10:30 in the morning thinking about how much I have given up and sacrificed in this my pursuit of entrepreneurship. My cousin and I joke about why I spend so much of my day going from meeting to meeting or sitting in front of the computer for up to 10 hours at a time. I tell her that I'm just trying to make a name for myself. She called me this morning at 9:46a asking me why I wasn't up trying to make a name for myself so it was only fitting that Mary Mary's song would be the first one I heard this morning.
We had a guest speaker this morning as the youth members of the church conducted the service. Mr. Fred Simmons spoke to us from the subject of "When the Odds Are Against You" and led the sermon with Judges 7:1-7. This is the story where God reduced Gideon's army from over 22,000 to just 300 in the Israelites fight against the Midianites because God knew that if Gideon defeated them with soldiers numbering 22,000, He would not have been given the glory- that the Israelites "would become boastful, saying, 'My own power has delivered me.'" (NAS)
Sure enough, the odds have been against me. A young, African-American woman working in one of many industries where none of the leaders and influencers look like me. I'm undertaking a project where the success rate is less than 5%, going from a business little to no overhead to one with overhead expenses of nearly $50,000 per month. The projected startup costs are $2.7M and my net worth is like, what, zero? I have 291 days until the proposed Grand Opening of this project and I have accumulated approximately 0% of that figure.
So the odds have definitely been against me but the few that have been for me are definitely working in my favor.
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