Thursday, January 31, 2008

Piping Up

Things continue to gradually come together, as the piping is now in place, and the plumber (Rick with Chief City) is wrapping up his work. Today I walked into the store to find him scorching threads into my gas pipes so that they'll fit snugly together and bring the gas service to the oven. He was using an impressive machine I'm confident I'll never see again, and I now wish I'd snapped a picture while I had the chance...

I also found out today once again that if you don't specify every small detail, something will get missed. It's not the end of the world; however, I went with three-phase electrical service for the sake of efficiency, only to find out when tracking down a cut sheet for my air conditioning condenser that one of my main consumers of energy will be single-phase (unless I can prevail upon the HVAC contractor to change that at a reasonable cost, which I presume will not be the case).

On a completely unrelated matter, I spoke in front of Dr. Hosack's Business 100 introductory class on Wednesday. She had instructed me to come in and just sort of tell them about my experience opening a business, randomly touching on a number of important themes. I worry that I may have talked over them a bit, but I tried to hit on some important topics as they came up. Looking back, it would have been nice to have structured some sort of presentation in advance, but I still think it may have opened a few eyes; however, this was a class that meets right after a lot of people have just eaten lunch - from my experience, it's one of the best times for slouching into a sudden nap, and I saw a student or two close to keeling over. I will be the first to admit that I had so much to say that it was hard to keep in mind what might be most relevant to them, although I did manage to get a laugh or two on a number of occasions, which made all the difference. I must admit that despite being only two years out of college, it felt entirely different speaking before a group of students who are, on average, probably six years younger than me. Thankfully, when my impromptu presentation had run its course after about 20 minutes, a number of students had questions that caused me to think, mostly with regards to how I intend to reach the college population.

Since I'm not a huge believer in constant full-page advertising in The Daily Vidette, I've always pegged my hopes on reaching the students via word-of-mouth spreading from one D.P. Dough fan to another. Targeted blanketing of the campus with our menus right now represents the main thrust of my advertising efforts. I've hired a rather diverse staff representing a number of different interests across campus, so their ability to purchase discounted 'zones for their friends at the end of their shifts - as well as score special deals for whichever organizations they may be affiliated with - should work wonders if executed properly. Lacking a massive war chest for an all-out advertising blitz, a read of the book Guerilla Marketing is tops on my list as soon as I can steal it back down here from my parents' house.

I've told my new employees that I will be relying heavily on them to spread the word on campus, while I focus most of my personal efforts on the surrounding business community. With David moving down here sometime soon (it was supposed to be Friday, but walls of snow blowing straight sideways have a way of changing things), we should be able to build significant awareness of the store as we move towards opening.

Finally, I visited Bradley today at Idearc, publisher of the Verizon Yellow Pages, to sign up for a quarterly postcard mailer exclusively dedicated to businesses in the restaurant or entertainment genre. As part of the deal, I'll receive an ad in the upcoming annual Yellow Pages phone book, as well as two coupons in that part of the book. They'll also provide me with a dummy phone number for all people using the card to call in an order, which will ensure that they will be able to accurately track the number of people who call in an order to my store after receiving the card. Best of all, there are only about 20 cards in the clear plastic wrapped package, so I'm not at risk of people not thumbing through the entire stack (by contrast, my experience with the flimsy Valu-Pak coupons - a competing offering which comes in an envelope - has been less than enjoyable, mostly because there are roughly 50 pieces of paper that all cling to each other for dear life, making it a nightmare to sort out the ones you want).

We'll see if this pays off the way I hope it will; it seems like a reasonable bet, though, as it is quite a bit more cost effective than television - which I hope to get into eventually, just not right now - and targets 30,000 households representing both students in apartments and members of the community at large. Visiting with Steve (brother) the other day, he mentioned that he thinks it's a good idea, based on how he feels his Madison, WI store could have better sustained their ridiculously successful opening had they committed to some advertising right from the start.

Anyways, after a few days under the weather it was nice to tie up some loose ends today, including random bill payments and continued progress towards a set of documents that Todd (landlord) is comfortable signing - I think we're very close at this point. I'll find out soon if I'm wrong. I'll be posting recruitment flyers for drivers early on Monday, and hope to resume interviews shortly thereafter. I've received a number of applications in the last week or so, and have kept a lot of anxious applicants in the dark for longer than I'd like; however, once David is down here to help me with the process of identifying how much help we still need, and for which shifts, I think we'll be able to move much more smoothly from here on out.

In the meantime, I am now nearing two weeks until the Great Flooring Odyssey, so I am also committing myself to learning as much as I can about this task in advance. Advice, anyone? Thankfully, I'll have help and I'll have periodic guidance from Mark (contractor's superintendent), so hopefully things will go well. Still, it doesn't sit well that both Mak (handy best friend) and my old man don't want anything to do with flooring. Still, they say heroic deeds are borne out of desperation, and I have no choice but to do this right and not have it cost me a ton of money. I'll keep posting as this develops...

New Pipes in an Old, Old Building

Friday, January 25, 2008

Another Thousand Bucks

I'm hoping as I get closer to opening, things will become increasingly certain, and concomitantly the degree of extremity of the surprises that come my way will shrink proportionally. This has not yet happened, as evidenced by a phone call from Jeff yesterday morning telling me that the HVAC guys had discovered that the ducts bringing air to the furnace are rotted and insufficient in size. What this means is that, if left uncorrected, the furnace will have to work that much harder to draw air, and will get its air from the basement instead of the cleaner air of upstairs. The furnace will be much more prone to a premature failure, as well; thus, I relented and approved the additional $1000 or so (after the 15 percent contractor surcharge is added to the $750 to $900 estimate). Thankfully, my financials are still looking like they'll make it, but by how much is anyone's guess as I continue to dodge glancing blows and move ever closer towards opening.

In the meantime, I am hoping to lower my natural gas bills by finally having stuffed the openings in the walls with insulation (there had previously been doors/windows in two spots towards the back of the store, and they were filled in rather haphazardly through the years, in keeping with the overall theme of penny-pinching neglect to which the building was subjected previously). My Nicor Gas bill will probably come to $300 or so, rather than the ridiculous $710 based on the estimated reading. Much of this can be attributed to the recent Arctic chill that has descended upon the Midwest, and perhaps some blame is due to the aforementioned furnace situation; regardless, I'm going to do everything in my power not to allow for the bill to climb this high again until the oven is install and firing away.

I've more or less completed my first round of interviews, and have been thoroughly impressed with all who have shown up (I've had a few no-shows). As a new business, it has been easy to hire without regard for specific needs (other than making sure that everyone can work until close at least a few times a week); however, now comes the hard part. As I interview the remaining applicants, I'd be wise to look at who I've hired thus far and try to sketch out a typical schedule based on their hours desired and availabilities before blindly hiring more help. I have one interview this afternoon, and then will take a look at where I'm at and go from there.

On the random nuisances front, I will be meeting next week with Jeff and Brian (my equipment vendor rep) to figure out how to get all the necessary equipment into the store without having it get in everyone's way while they work any more than is necessary. We'll be deliberating these considerations next Friday when Brian comes in from Champaign to check out the store's dimensions in person. As a curious aside, the mop sink I had picked out is out of stock and has a 4-6 week lead time, so I am now looking to purchase one through my plumbing contractor for a slightly higher price.

Finally, based on the finalized schedule, I'm good to start flooring the store on the 15th. I'll have David down here by then to help, and a few of the guys I've hired thus far have a construction background and are willing to help. Even better, Mark (contractor's superintendent) is going to show us the ropes and make sure we do things right. All in all, I have a twelve-day window in which to complete flooring, baseboarding, and painting the inside of the store. I think it can be done, but we'll see.

I also will be running Motor Vehicle Reports (MVRs - also known as public abstracts) on all of my drivers in an effort to get more favorable rates on insurance coverage. So many little things to take care of, but so much time that my biggest enemy is my own tendency towards procrastination. So with that in mind, I'll wrap up this immensely important blog post and get back to what really matters - LUNCH!

More soon...

Tuesday, January 22, 2008

Well-Equipped

One step closer...I finally purchased the majority of my equipment today, which meant another $12,000+ out-of-pocket. Money well spent, though, as this continues to push me towards a late-February opening. Comparable drops in the bucket ($21) were spent wisely at the County Recorder's office, where I kept myself as legal as I know how to be by having my Secretary of State incorporation documents entered into their records. I still have this nagging feeling that there's something perfunctory that I haven't yet done, not because I don't want to do it, but because I don't know I'm supposed to...we'll see.

Anyways, more good news came my way today in the form of a solid expected ship date on my walk-in cooler/freezer unit. If it in fact ships on February 6, it should arrive in Champaign on Friday the 8th, and perhaps be at my store by the 11th, which is four days sooner than my contractor had projected.

With the above as ammunition, I am hoping to see if the schedule can be modified tomorrow morning when I meet with Jeff and Mark to discuss target opening dates, and the sequencing of everything that has to be done to reach that point. I'm sure they have reasons for scheduling everything the way they have, but at the least I'll understand that reasoning and perhaps be able to push my opening date back into late February.

I ran some quick financial revisions on a paper scrap this afternoon and was elated to find that I think I'll be alright if I can just contain costs from here on out. Brian from Serv-U was able to help me switch away from name brands on non-critical components such as hand sinks, mop sinks, and shelving, which saved significant money; he did, however, also upgrade one of my tables to a stronger gauge of steel for an extra $100 so that it won't collapse under the weight of my dough sheeter.

I also spoke today with a very knowledgeable lady with the Illinois DMV, and she clued me in on how to purchase public abstracts - better known as motor vehicle reports (MVRs) - for my drivers. I'll wait until I've completed my first wave of hiring before purchasing the MVRs, as it may require a 50+ mile trip down to Springfield.

Today was also one of chance encounters. On a personal banking mission, I happened to catch old friend Jason Clay from my undergrad and MBA days scurrying off to a meeting. He's a big honcho in commercial lending with National City now, which could possibly come in handy down the road - it never hurts to have successful friends, that's for sure. Also, while I was in the County Recorder's office, a lady tapped me on the shoulder. At first, I thought it was just another case of mistaken identity, where an Edward Norton fan asks me for an autograph, not realizing nor caring that I'm not him. In this case, though, she told me I looked very familiar, and it turned out I'd worked with her son at Jewel for a few years. I gave her a business card, figuring that it can't hurt to have somewhere to turn when hungry.

Anyways, I can only waste so much time posting today, since I still have to get organized for my interviews tomorrow, cook my legendary Peanut Surprise for dinner, and manage to find time for my weekly Lunker's excursion. Tonight was supposed to be the night where I didn't have to drive - and could therefore drink more - but then I went and committed to meet my contractor at 7 AM. Oh, well. More soon...

Thursday, January 17, 2008

My Very Own Spaceship

After taking care of random odds and ends - such as setting up my Verizon online account and FINALLY buying an HDTV to hover above the dining room - I had the chance to sit down with Mr. Yellow Pages and find out what they have to offer. I'll say this: the phone book has come a long way in the last few years.

I'll probably end up signing up to be part of a direct mailer that will go out quarterly to 30,000 households and apartments with heads that are between the ages of 20 and 55. The ads are in the form of attractive glossy postcards - a far cry from the ValuPak envelopes with which I am most familiar - and will be dedicated exclusively to restaurants and entertainment venues. If I do it for $2400 for the year, I'll also get 1/8 page ad in under the "pizza" category in the phone book, as well as two coupons in that section of the book.

After the Yellow Pages info meeting, I headed over to the store to check on the progress. What I found was nothing short of astounding. I must admit I had totally underestimated the size of my exhaust hood - it's a flying saucer (albeit decidedly rectangular in shape - see below) hovering ominously low over my kitchen. I called Superintendent Mark to find out more about this ninth wonder of the world, and found out that code dictates that the clearance for an exhaust hood be set no higher than 6' 6". If I can jump and bang my head on the edge of the hood, I truly fear for the wellbeing of those taller than me. On the plus side, this monstrosity should suck out every last wisp of hot air emanating from the oven.

My very own spaceship hovering in its bay.

Later on in the day I heard back from my first employee - my youngest brother's friend David Kim. I've been keeping him in the loop since October, and he finally got me an application to set his availability and find out all the latest. He's also probing his friends to see if they might be interested in applying. In any event, I got a few more applications in from students I met at the job fair. If I can just clear one or two more hurdles, I should finally be able to begin setting up interviews with them.

I knew I was riding too high, and would likely be brought down by something shortly. Sure enough, that something came in the form of a call back from Todd (landlord), telling me that he wants serial numbers for all of the equipment that is to be left behind in the event of a default. Considering that the walk-in unit won't arrive for another four weeks, this is quite the tall task. I've dealt with the difficult before to get to this point, however, so my emails have gone out of all the people who can get me the info I need and hopefully I'll have something for Todd to sign no later than Monday. Admittedly, though, I'm stressing this, because my bank accounts are getting tapped fast after I had to plunk down the deposit for the walk-in out of my own pocket the other day.

In a separate interesting development, I have been asked to speak in front of Dr. Hosack's Business 100 class on Wednesday, January 30. I asked her if she was sure the kids could handle the harsh realities of getting a business off the ground, and she assured that they would be better off for hearing it; she thinks that certain topics I cover might provide a springboard for future class discussions throughout the semester. I have to admit, I think it'll be fun.

Anyways, nothing relieves stress like rest, so I'll report back soon hopefully with some positive developments that leave me closer to being able to touch my money. More soon...

Wednesday, January 16, 2008

Help Me! Setting Up Shop at the Job Fair

While excavators were digging a 4-foot-deep crater behind my store, I found myself in the Bowling and Billiards Center spreading the gospel of the 'zones. The off-campus job fair that provided my forum and captive audience was an all-out success. I had probably the most visible booth directly in line with the entrance, and found quite a few people curious about who I am, what I do, and where I do it - and whether they could potentially do the D.P. too. In any event, thanks to all the ISU students who stopped by to learn about the dough, and who were kind enough to navigate their way to this blog when I ran out of applications and told them they'd have to apply online - your efforts and quick response time are much appreciated. Of course, if I wasn't still a college student at heart, maybe I'd have had plenty of aps and driver info forms - and maybe even some colorful posters and such - but instead I barely managed to make it to the fair a half hour late carrying only what I remembered to grab on the way out the door. Still, as the picture below illustrates, it was well worth it due to a turnout that far exceeded my expectations.

Interesting side note: my booth was right next to Weed Man, who was not nearly as interesting as I had hoped he'd be - he was signing up people to cold call for landscaping services.


Moving on...as promised, the latest construction pics are below, including the giant trench out back behind the store. It's now half-filled, with the footings in place awaiting the pouring of the concrete pad on which the walk-in cooler/freezer will sit. According the Mark (contractor's superintendent overseeing the project), it's really hard to get concrete poured in winter on the few days on which weather permits. Go figure. Not to fear, though - it's not as though this will delay the overall project, as I found out yesterday that the lead time on the walk-in cooler is four weeks. When I got that message, I immediately checked my bank accounts, maneuvered a bit, and hauled ass to Champaign to place my order for the unit as quickly as possible. As a result, my $8,725 down payment had to come in the form of two separate checks adding up to that total (funds still have not been released, as Todd (landlord) has gone MIA the last few days as I've tried to track him down to sign the final documents. For the time being, though, I should still be OK; however, I'd really like to have the funds ready so that no further delays are sustained on account of lack of money.

In the meantime, while I was in Champaign, I toured the damaged goods aisle at Serv-U (my equipment vendor), and found an ice machine identical to the one I'd planned to purchase new for a fraction of the cost. It's flaw? It had a panel chip off in transit, so they resecured it with a bolt, which I'll have to loosen to access the machine's inner workings. Do I mind? Not a bit.

It's a little hard to imagine, but in a month 'zones will be flying out of this kitchen.

My royal moat, commissioned to keep the enemy armies at bay.


Drywall stilts - a very cool tool of the trade.


Right now entrance to the store requires the assistance of two mules and a sherpa...especially since the front door can only be unlocked from the inside.

Anyways, I'll begin interviews for kitchen and drivers next week. I'll only speak in generalities, since it's not nice - and probably not legal, either - to divulge anything specific that transpires in an interview. In any event, stay tuned...

New Mascot

Thanks to Christian in Champaign for making great use of excess dough shrapnel to create a real-life "Dough Man"...or "Dough Hamster" action figure. Check him out below surfing on a D.P. Dough menu. More construction pics and updates coming soon!

Sunday, January 13, 2008

The Magic of the Dough

Sometimes I forget why I'm bothering with all the hassles of starting a business - my brother's new commercial for his store in Champaign helps remind me of the fun side of D.P. Dough. Enjoy!

Saturday, January 12, 2008

Good to Go...Almost

This week was definitely more kind to me than those which preceded it. Of greatest import is the return of construction workers to my store. The building inspector is back from vacation, and immediately spoke with my architect and contractor to assuage his lingering concerns.

I sat down on Wednesday afternoon with Jeff (contractor) and his superintendent, Mark. Their belief is that I can be ready to go in about five weeks, which puts me on target for an opening around Valentine's Day. This will work perfectly, as my funding going through next week will allow me to immediately order my equipment; the most critical piece is the walk-in cooler/freezer unit, which has to be in place before the enclosure attaching it to the building can be constructed.

In the meantime, I have spent some time cleaning a three-compartment sink I'll very likely be buying next week. The health inspector has stipulated that it must be rust-free, a state which my persistent scrubbing achieved. I also finalized my menu and continue to work on the lingering question of non-owned auto insurance to cover me in the event that one of my drivers has an accident while on the job.

I am also breathing easier now that I've received basic assurances that I will not have to put up the fencing around the aforementioned walk-in cooler in the dead of winter, but will have the opportunity to negotiate a reasonable extension. The mid-February opening also allows me to go before the design review commission once again to receive formal approval for my matching funds as part of the Town's facade improvement program. The drawback is that any work which is performed before formal approval has been granted is ineligible for the matching funds, so my window vinyl, exterior lighting, and awning must be installed no sooner than Tuesday, February 12. Nevertheless, everything appears to be lining up nicely to coincide with the target opening.

My new work computer arrived (although I am ignoring it at the moment by typing this post on a laptop), and I was able to successfully install QuickBooks; unfortunately, I have yet to summon up the patience to set up my account. My decision to go with Windows XP instead of Vista will allow me to be able to network this office computer to the point-of-sale (POS) terminals, according to my rep. I spent part of Thursday discussing specifics and logistics regarding the installation of my POS system.

I admit I'm getting tired just thinking about all the things that still remain to be done before I can open; however, I'll soon have help in taking care of them, as David signed a lease the other day and will be moved down here as of the first of the month. I tend to work better when someone is around to push and prod me a bit.

With all of these mundane tasks occupying my mind, I've been unable to think about the gradual buildup of brand awareness for the business - the fun part of the job. I am very much looking forward to renewing acquaintances with friends in town with whom I've fallen out of touch over the past year or two, but who work all over town and should therefore be able to organically spread the gospel of the 'zones. Oh, and I'll be occupying a booth at the spring student employment fair next Wednesday - should be fun trying to find employees.

Next week promises a concrete pour behind the store, as well as progress on the plumbing, drywall, and HVAC fronts. I'll be starting to investigate my flooring options, and can't wait to peruse some of the restaurant products available at Sam's Club - I'm hoping to purchase some of my shelving there, among other things. More enthralling updates soon...

Friday, January 4, 2008

Throwing Up Prayers

This week represents the most important gauntlet to jump, on a number of fronts. First, I have to hope that the project gets its green light reinstated when the building inspector returns on Monday.

Second, I will be meeting with Todd (landlord) on Monday to discuss some changes his lawyer suggested be made to the SBA documents; my banker will be on the phone to work through them with him, while I anxiously wait in the wings.

Finally, I am working to get an insurance quote that is reasonable for my business and its drivers. Right now, I have heard back from a local agency, but the quoted premiums are quite expensive; I am hoping that the lady my brother used can do better. Regardless of the non-owned auto (driver's insurance) outcome, I should have insurance in place next week.

So...if Todd and Busey Bank agree on the language of my SBA documents, AND my insurance coverage gets initiated, AND building inspector is agreeable to our response to the plan review, THEN my project should truly be on the fast track at long last.

In the meantime, I'm working to get my menu finalized by early next week, so that the printing process can get underway. I also have to follow up with the POS vendor, campusfood.com, Verizon, and American Waste Disposal (need somewhere for the garbage to go), as well as establish an additional vendor relationship or two.

It's a bit frightening how fast time keeps flying by, but hopefully I'm laying the foundation for an early February opening at this point. Until the next delay...

 

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