Letter to Advisory Team and Investors

Posted on May 10, 2013 by admin

letter
Last week two significant things happened. One, an investor with a $10,000 promise dropped out. Secondly, River Falls State Bank clarified that they would be lending WeatherVane Creamery money for equipment and assets rather than starting costs. So, instead of needing to raise $50,000 (raised $40,000 last month!), the choices are to raise an additional $87,000 or cut opening costs by $87,000. River Falls State Bank also said that they couldn’t see doing a line of credit in addition to the loan either. The line of credit was to be available as a buffer in case things do not meet projections in the first opening months.

In looking at how to respond to this, I could possibly see opening WeatherVane Creamery this summer on the most riskiest of terms- basically everything on terms by paying the contractors 50% up front and work out payment plans for the rest, buying inventory on terms, cutting as much as I can from the opening costs while attempting to not sabotage the business needs, and taking out credit cards in WeatherVane Creamery’s name and using them. This strategy does not support the economic sustainability that I am committed to for WeatherVane Creamery.

Another way is to continue fund raising. I met with a few people last Sunday to discuss WeatherVane Creamery branding. It seems like the themes of HIP, MODERN, LOCAL, SMART, QUIRKY, ACCESSIBLE, MAGICAL, and TRADITIONAL SENSIBILITIES are coming through the online marketing. Areas for fund raising were also discussed. River Falls Days, Town and Country Days, and other public event participation was emphasized. Also continuing with the online marketing that would include a weekly video series and a crowd sourcing campaign (like www.indiegogo.com/weathervane-creamery-rocks-this-town ). These things would entail re-working the website (thank you David Foster Babcock for your help recently!), having marketing materials for displays and for social media, a video intro, and an easy, automated ways for people to invest or donate. It would be going to back “on the streets” to market and also would be an opportunity to sell product. Besides raising funds and having sales, these types of activities generate interest and audience which provides a better foundation for WeatherVane Creamery to open with. Opening date would be this winter.

On a personal note, as it looked like we were only $10,000 away from pressing the GO button, I was stretching my personal dollars more and borrowing money to make my monthly expenses. At the same time, I was taking care of some outstanding issues around my health, car, and student loans. I have applied for social assistance. In light of this trend combined with the news that I won’t be taking a paycheck from WeatherVane any time soon, I have started to look at my options. Eddie Bauer has been pestering me to promote to a full-time management position. In considering this (right now we are starting negotiations), I realize that I can do most of the marketing and fund raising things for WeatherVane Creamery at the same time. And if Eddie Bauer can’t accommodate me, I also have an opportunity to expand my cheese sales to chefs and grocery stores in the Twin Cities with St Croix Specialty Foods. I get mileage and commission and can tie in my weekly video series with the professionals that I meet. Either way, a regular income affords me some peace of mind, my credit score intact, and a better structure for getting things done.

WHAT I NEED: For all marketing efforts, I will need support whether it be bodies at the events or people behind the scenes promoting it. I need an active advisory team. I will be in touch with each of you personally (and some I have already) to gauge how to make things work. I have also approached a few people about joining the team. And as always, resources. Anything you’ve got. I envision working with a social media company and a graphic artist. I’ll need to purchase packaging for online sales. I’ll need a 4G phone to act as a hotspot so people can donate or invest on the spot. These things all cost money. I will be in touch with investors to ask permission to use the funds that they have invested towards some of this. I will make a detailed budget.

Please reply with any feedback or insights. I’d love to hear your thoughts. I will be in touch with you in the next two weeks.
Thanks for your support,
Sarah

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Money! (Part “Sidetrack” or 1a)

Posted on May 2, 2013 by admin

sand-&-money

Awww crap. I dropped by my local friendly banker today. And he was friendly. I discovered that the $50,000 that I had to raise also came with cutting my opening costs by 60%. Hmm funny that I don’t remember that part of the initial conversation. Not to say it wasn’t said. I just don’t recall how that fit into the “we want to work with you to get your financing” conversation. Then, in talking to my esteemed lawyer and advisor, Max Neuhaus, breaking things down, it looks like it could be as much as $87,000 left to raise. *sigh* And yet, these things should not be a surprise anymore. This isn’t the first time the winds have changed.

And on the bright side, I did receive a check made out to WeatherVane Creamery, LLC for $5000 today. So it isn’t all that bad.

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Money Part I

Posted on May 1, 2013 by admin

money scrabble

Money money money! Cue Pink Floyd, the Beatles, or that Apprentice theme song (For The Love of Money by the O’Jays- I googled it). I really hate this topic. I know you’d never believe it but I do. And obviously it has been the most deciding factor for WeatherVane Creamery coming into existence so I have been dealing with it quite a bit for the past two years. Not dealing with the paper stuff- no, the emotional stuff. Ugh- the WORST!!! And as I come to nearing the end (I hope!) of asking for money, it is a story that begs to be told. Not so much for you, but for me. I want to remember this part of the journey.

I guess it all started, well… aside from what I learned from my parents that is- when I got fired at Duck Delivery in Portland. Suddenly and quite unexpectedly, I was unemployed. We all know what unemployed people do in this country: apply for unemployment insurance. So that was a blessing to have and not one that I necessarily felt entitled to. That carried me for a year and a half. But anyway, I found myself without a job or a car or a place to live all at once. Oh, and I had a trip to San Francisco planned as a part of a Landmark Education course that I was in. I had never been to San Francisco before and it felt very clear that if I didn’t go now, it could possibly never happen.

Enter my friend Helen. She wanted to hook me up with her friend, Peg, to do some business networking. Helen is kind of a pushy mom type that you just say ‘yes’ to and know that is well intentioned and loves you. Anyway, I am in my friend Julie’s car coming back from the Starbucks Shareholders Meeting in Seattle. I think we were passing through Olympia. I am sure that everything was green and beautiful out, probably around 65 degrees. It always is on that trip in March. I get a phone call and it’s a mildly frantic Helen. “Sarah! Sarah! I forgot to mention to you that my friend Peg is also a tarot reader and anyway she is doing readings for donations at a coffee shop and I signed you up!” I laugh. What has Helen gotten me into? The coffee shop is also right on Julie’s and my way home so Julie drops me off. I am glad to see that Peg, aka Lady Zelda, is not wearing a velvet shawl or hoop earrings. She is just a regular person. I put a $10 into her jar.

The majority of the reading I am keeping private but know that it was shockingly accurate. There was just one detail that was a little foggy that didn’t seem to resonate. But one of the things she said was “Money is going to be ok right now. It won’t be a problem.” That seemed unlikely considering my job status. In any case, I set my sights on returning to the Midwest. I sold some Mary Kay inventory and supplies that I had stashed from my former MK days, cashed out a savings account that had some money in from when I sold my car, dusted off the credit cards, and got some tax money back. Money wasn’t a problem. I had a great time in San Francisco and even bought some home decorations and a beautiful Asian jacket… the one I wore at Empowering Taste last August. And then I rented a rental truck and crossed over our great nation and stayed in some hotels. And still, money wasn’t a problem. Upon arriving in Wisconsin I stayed with some friends and was able to save up enough from my unemployment to buy a car with cash. Who knew?

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Put A Bird On It

Posted on April 4, 2013 by admin

put a bird on itBig sigh. Here Comes the Sun is playing on Pandora. Perfect. I was just called “salt of the earth” from the other room. Ha!

So what have I been up to? I’ll tell you what. I have been carrying a heavy To Do list that feels like it has the weight of the two tablets that the Ten Commandments were written on. I have a fund raising campaign that was supposed to start a month ago. I have people wondering what is going on. All the while I have been working on driving costs down and getting information to the banks. My sister isn’t returning my calls. I’m broke.

The campaign. To be so close to the finish line- let me tell you that this is the hardest part so far. The goal is in reach. I currently have a loan application in for $30,000 of the $50,000 that WeatherVane needs. And Tasha Burilini-Olson put in $5,000 for people to match. I have multiple people on my list to initiate and follow up with for the $5,000 loan program. So…. in…. reach….

And suddenly the vastness of this opportunity sets in. Hey, here is a chance to raise MORE than needed. A chance to engage the community and expand the reach. I could do another indiegogo campaign, make more videos, get press, overhaul the website, oh my! I have been talking to every internet marketer that I know and have gotten connected with many that I don’t know. Some have too much on their plate. Even more don’t think they can do the campaign justice with their skill set. And while I appreciate this, I would hedge a bet that they have more in their tool bag than I do in mine. And my internet marketing skill set has gotten me this far. It’s time to kick it up a notch! This is the sort of investment that pays for itself.

So there’s that. And now back to that To Do list. Why do some of those names of people to call look so daunting? Why have I been dragging my feet? Have I been depressed? Am I taking on some personal issues to distract and sabotage myself? Do the planets have to align right? Should I give myself a little compassion for being the one who forges forward, albeit with heavy boots and slow movements?

Screw that. Or maybe there’s some truth to all of it. All I know is that today I woke up and those phone calls are getting made. I have joy in my heart and a skip in my step. The Beatles are playing my song and the birds are chirping. Forward!

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A Glimmer Of Hope

Posted on March 14, 2013 by admin

glimmer of hopeI am leaving for the weekend and haven’t even started packing or restoring this house to the original order that I found it in. As I get ready to start those things there is something nagging at me. It’s these last two blogs. What downers! How can I leave you like this while I go gallivanting to my leadership class in Chicago? How rude!

The last place in time that I left you was Christmas week. Mark Ritzinger had given me some names to follow up with at River Falls State Bank for a business loan. My plan was to call over there after the new year as an obligation and courtesy. Surely such a conservative bank would never consider doing business with risky ‘ol me.

Well, I didn’t have to wait until January because River Falls State Bank was a’knockin’ at my door. Loan officer Todd Schultz left me a message just a few short days after that fateful meeting at Eddie Bauer. I called him back and made an appointment after the 1st.

I show up to the appointment. I bring in some story boards and don’t even bother bringing a business plan with me. Just the numbers. I was already prepared for the rejection. Why waste good paper with a 100 page business plan complete with color graphics and binder? To be fair, I did bring Todd a 1/4 lb of WeatherVane Creamery Holiday Roast as a token of appreciation in his interest. But little did he know what a waste of time this was going to be. And he was training someone in that day as well, so I had a captive audience of two.

I started the conversation with something like “Here are all the reasons why I don’t think this loan is going to appeal to you…” The conversation ended with him telling me that he was going to talk to his loan committee about it the next week Monday.

Meanwhile I had my Advisory Team meeting the day before and you know how that went.

A few days later I get a call from River Falls State Bank. I return the call and talk to Todd. He astonished me by saying that River Falls State Bank was interested in working with me. He told me how everyone loved the concept and how hard Mark fought for it. I was really touched. Then he explained that no matter how much the bank could bend their policies to do the loan, they could only bend so much and be accountable to their underwriters and government powers that be. I get it. Then he told me that all that I would probably have to do is raise an additional $50,000 to the $30,000+ that I already have raised as well as shave a few numbers on the business plan and we could probably make a deal.

So there you have it. The glimmer of hope. Just a mere $50,000 away from having our store. That is ten $5,000 investors. Or an additional $30,000 loan (in progress) and four investors. That tale is to be told next week. For now, just rest well knowing that not only is there hope for WeatherVane Creamery opening during June Dairy month but that I, Sarah, can now promise without a doubt that WeatherVane Creamery is going to happen. Stay tuned.

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Rejections

Posted on March 11, 2013 by admin

Rejection Just Ahead Green Road Sign with Dramatic Storm Clouds and Sky.It was early January and I/WeatherVane just got rejected by two banks. The first one was Bremer Bank in New Richmond. I had been recommended to talk to them due to the relationship that they have as a Small Business Administration preferred lender. Apparently this makes the underwriting process take half as much time. I had a great meeting with the loan officer. She was extremely encouraging. Someone even interrupted the meeting to meet me. And the bank president knew the WeatherVane story. I felt kind of famous. Three days later I met with the loan officer once again and was surprised to hear that they couldn’t work with me. I had gone over all the numbers and financials at the original meeting. What happened to all of the encouragement and famousness from the other day?

The next bank was Impact Seven in Almena. Impact Seven is a Community Development Financial Institution (CDFI) that works with the Opportunity Finance Network (OFN), the company that handles the Starbucks Create Jobs for USA campaign. For those of you who don’t know, I flew out to Seattle last year and spoke with Starbucks’ ceo (sic), Howard Schultz. I got up at the shareholder meeting during the Q&A session and invited him to be an investor and mentor for WeatherVane Creamery. He connected me with Mark Pinsky, the President of OFN who in turn connected me with a few consultants. So, I leaned a bit on those folks to put in a good word for me with the loan officer, Bob, at Impact Seven. I really felt that if any bank was going to do a loan, it would be these guys. It was time to cash in my grand gesture. I drove up there and had a great meeting with Bob. It was before the Bremer bank rejection. Bob had said that maybe we didn’t even need Bremer, that Impact 7 might be able to do the entire loan. In fact, they had more money than they knew what to do with. This seemed very promising. Alas, not long after, I got word that Impact Seven was not in a position to loan to WeatherVane Creamery.

The major reason for these rejections is lack of capital. I am renting the space so all of the money going into electrical, plumbing and the sort stays behind if the business gets moved or fails and the bank can’t cash in on those things. The major investment with teeth is the restaurant equipment and that is only worth fifty cents on the dollar.

Meanwhile, during Christmas week I was working at my temporary holiday job at Eddie Bauer in Woodbury. Mark Ritzinger and his wife Jean came in. I remember Jean as a customer when I managed Whole Earth Grocery in River Falls 12 years ago. They approached me and Mark asked me how WeatherVane Creamery was coming along. He then encouraged me to stop by River Falls State Bank to talk to one of their loan officers because Mark was on their board. He even asked for a piece of paper from the register to write some names down for me. I knew River Falls State Bank to be a conservative bank and figured that if I called any of these people that the chances were slim of getting any actual loan. But I took the names and made a mental note to look into it after the New Years.

So early January I called an Advisory Team and investor conference call to deliver the news and see what we could do with the funds that WeatherVane had raised. We spoke of an online store and more fund raising efforts. I was jaded and disappointed. The thought of peddling cheese at art fairs and farmers markets making a hundred dollars at a time was discouraging. My spirits were down and I spoke of jobs that I had applied for. It was not pretty.

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The Marathon

Posted on February 7, 2013 by admin

fb status marathon

I had some setbacks this week that I wasn’t anticipating. Let’s face it already: I never anticipate setbacks. I am so forward driven. I mean, yes, I am aware that setbacks happen but somehow convince myself, despite evidence otherwise, that they won’t happen to me. Then setbacks happen, I feign surprise, and plow forward some more. Naive? Probably. And I am kind of grateful for my optimism. I mean, without that this journey would be unbearable. I would also be unbearable to spend any time with. ‘Cuz I know those people. Ha!

So, what is forward now? On Monday I will release to the world a revamped promotion for WeatherVane’s loan program. It will be viral-friendly, easily shared. It will have a new rendering of the store at the North Main Street location. I also need to follow up with the St Croix Economic Development Fund to see if they can help with any of the $50,000 that I need to raise. There is also a WeatherVane Creamery Advisory Team Pow Wow to plan. And for fun, I am starting to plan my “Sarah Kowal- Cheese Hustler” video series. Oh yes, you heard me right. Yes, indeed. Sit tight for that one, my friends. And lastly: Everything. Is. Going. To. Be. All. Right.

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Exciting Times!

Posted on January 31, 2013 by admin

Today “write blog” is on the list. Same as yesterday and the day before. It was much easier in December. A good routine is priceless. So here I am at Dunn Bros. in Hudson. I had a great day of meetings and finished up the “to do” list for this week. Except this, of course.

I think I will start with today and work backwards. At 1pm I met with a graphic designer and woodworker who uses things from old barns. Both are back in school studying their crafts. Todd, the woodworker, contacted me on LinkedIn and his fiancée Mary has been following WeatherVane Creamery since our early days online. I have to tell you folks who want to network, do not underestimate LinkedIn. Seriously. If you have questions, let me know. Right now I am sitting on some InMails. I have three to use in the next two weeks. These can be very strategic.

So anyway, I have many pieces of the business plan and opening costs outlined in a very detailed manner. Recently I sent an email to the graphic designer I was planning on working with and didn’t get a reply. A week later, I see she checked me out on LinkedIn and still didn’t reply. Then Todd got in touch with me. Today he and Mary walked in and he introduced himself as someone who works with old barns and I was like “BINGO! These are two of my missing links!” I had a thought just last night that I needed to talk to Pam from Dave’s Brew Farm about who they used for their house made from two barns. I love it when the Universe gives me what I need when I need it.

Before that I was with my friend Tony. I can’t quite describe our meetings together. Lots of brainstorming goes on and it isn’t the most organized. Prior to that, he was meeting with my writer, Thekla. Writer really doesn’t do her justice. Thekla went over my business plan a few months ago and gave me exceptional feedback and notes. I made the changes she suggested and it was an incredible improvement. Thekla is currently working on an exciting project of mine that will be revealed soon. She’s drafting a piece for me that will be used in all media: email, facebook, print, and on our website. Stay tuned…

You probably saw the announcement on facebook about the space. It is a great location at 705 N Main, nestled between DeVine Liquor and Elizabeth’s Jewelry. It is on the right side of the road for evening commuters, has over 16,600 cars pass by it a day, doesn’t have any grocery competition, is easily found off of the highway, and has 40 parking spots. Being new construction, it also has built in marketing. Everyone will be watching to see what is going on. Little Caesar’s Pizza is one of our neighbors.

705 N Main St

705 N Main St

Right now all of the plumbing, electric, and construction is getting re-bid.

There is just one last hurdle: raising an additional $50,000. This is the sum that the bank has told me. When I first heard that, I was actually relieved. I had been turned down by banks and in particular, turned down by Impact 7, a Community Development Financial Institution. To me, they were my best bet given my experience with Starbucks and the Opportunity Finance Network. I thought I had some pull. Turns out I don’t. Ha! So that letdown was a tough one. It called upon my Plan B, Plan C, and Plan D skills in short order. I had a conference call with the Advisor team. I applied to jobs. I started to contemplate how the current backers would view a retreat. And then someone on a local bank board saw me at my part time job at Eddie Bauer and insisted that I talk to their loan board. It was during the holidays so I thought I would wait until January to try to get in touch with them. But then they called me! So I went in to the loan officers office and told him all of the reasons why I didn’t think this opportunity would appeal to him. I laid out all of the things that other bankers told me. I was slightly stunned that he insisted on presenting it to their board. Later that day I got the call. They loved the concept. They wanted to help. I just needed to raise $50,000. The relief part was that they gave me a number. I even contacted Bob at Impact 7 to see if that was the same number he needed. He never replied. But my view of the $50,000 is that I just need ten $5000 lenders. And suddenly, people started showing interest again. And an investors group in Madison is taking their stab at it, too. So close to waving the white flag and rebirth occurs. Magical.

And I realize that I can’t give up. I am no longer capable. And that feels like a pretty good thing to know.

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Day 31- 365 Days

Posted on December 31, 2012 by admin

So here it is, the very last day of blogging for December and 2012. I have to say, it took some discipline and commitment to do it every day and I am glad that I did. Even on those selfish days that I thought that there was nothing more to be grateful for. Ha!

I did it because I was recognizing that I was losing steam. I did it to remind my self of all of the work and people that have brought me this far. And for all of the accomplishments that I haven’t let myself celebrate. It serves as a wonderful recap and a way to leave it behind.

What I am taking with me is the business plan that represents all of the days that I was creative, all of the days I was motivated to “get ‘er done!”, and all of the days I was inspired by numbers and spreadsheets. All the phone calls, research at assorted libraries, and all of the hundreds of people who chipped in. And the $26,000+ that was raised from over 100 people. But going into 2013, it’s just a plan and the money is just money in the bank or money spent. Tomorrow, none of it matters because it’s only the plan itself and the dollars that anyone cares about. And that will be fished out to 13 financial institutions. I hope to get a fish. A big one. And maybe even some smaller ones. And I also know that sometimes the Universe has a different plan for me. So let’s see what it is already.

So I find myself here on day 365 of 2012. This morning I woke up and realized that I don’t have much of a plan after mid January. I guess I am letting life work itself out after that. The job interviews will be done or at least started, all of the banks will be applied to for WeatherVane, and I probably still won’t know where I will be living the end of February. I just cross my fingers that my car will be working. And somehow, if I learned anything in 2012, it’s that it will all work out and I will just have to wait and see. Although, I did give myself a sneak peak at my horoscope for the year. Have you figured it out yet that I am a little superstitious? Only if the news is in my favor, of course.

So here it is. What some random guy on the internet named Michael has to say about the Snake year, 2013, for me: The Dragon has a good year to look forward to in 2013 which is a nice way to follow on from last year. If you are keen to do well this year and set plans to stone fairly early in the year, then you can get a great deal accomplished in 2013. As with 2012 there will be plenty of prospects for the Dragon. There will possibly be doors opening that you thought had closed a long time ago, the most important thing to remember is to spot a good opportunity when it comes and do not overlook the small print of any offer.
Sunshine_Dragon_by_Nadurac
So there you have it. Of course, the Chinese New Year isn’t until February 10th. Until then, I am still in my Dragon Year. So I have a little more wrapping up to do. The aforementioned interviews and bank applications I suspect. But to you, I wish you a Happy New Year!

And PS- to Shawn: it says it will be a good year to strengthen romantic relationships. 🙂

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