Success Stories

Pilates Connection

By Malia Durbano

Kim Moriyama opened the Pilates Connection in 2002. She envisions her business as a vehicle to make a positive difference in peoples’ lives and is so grateful for the instructors who work with her that are passionate about doing that.

In 2013, Kim met with advisor Joe Bishop who, “Was an awesome sounding board and helped me with revisioning to make the studio vital and dynamic.” She implemented the ideas they came up with and “Put together a pay structure that rewards instructors who are passionate about sharing what they love to teach.”

Joe Bishop encouraged her to look at the business from the perspective of her employees and to create systems to help them be the best they can be. Also looking at the business from the perspective of the owner, Moriyama was able to clarify the personal values she would like the business to reflect in the world.

Moriyama explains, “Working with Joe Bishop was very empowering.” He helped her transform the business from something that was somewhat mechanical to create systems that embody the values they share as a team and that now permeate everything they do. “We now understand the different roles people play on the team. I also better understand what my role is as the business owner and leader of the team.”

Further work with Joe Keck provided deeper clarity on her vision and how the business serves the staff, the clients and the community and herself as the owner.

Following the recent Women’s Small Business Conference, Moriyama consulted with advisor Terryl Peterson regarding the financial aspects of the business such as the compensation model and ways to incentivize the employees. “Terryl was really great at listening and asking key questions. She provided great resources based on where I was in that moment and helped me create a thriving environment for my instructors, which in turn makes the whole business thrive!”

Moriyama is grateful for the on-going coaching and regular check-ins with the advisors. “My studio has started to flourish in a whole new way.”

Higher Grounds

By Malia Durbano

Nicki Alley, owner of Higher Grounds Coffee in Pagosa Springs was “really excited” when she won First Place for the business plan she wrote after attending the Leading Edge for Entrepreneurs training.

Although her coffee house, bakery and gift shop had been open since 2004, she wanted “a refresher and to update the business plan”. She will be celebrating her 10th anniversary on August 16th & 17th. The eclectic shop features scarves, mugs, cards and other novelty gift items. Fresh, home-made baked goods cooked on -site complement the delicious coffee.

Included in the new business plan were her projections to remodel and expand the seating. She also purchased a catering trailer to sell at festivals. Nicki recently attended cooking school and will soon be offering cooking classes, tapas and beer and wine. Her future plans also include inviting guest chefs to prepare different varieties of food.

Rich Lindblad is the main advisor Alley works with in an ongoing relationship. She meets with him whenever she has questions and he helps with the financials. Recently, she met with Joe Keck “to go over the books.” They did industry comparisons on shops like Higher Grounds and Joe said, “It’s really doing well.”

Pine Needle Mountaineering

Advisor Terryl Peterson worked with Jeremy Dakin and Miles Avenzoar to analyze the prospect of purchasing Pine Needle Mountaineering. Coincidentally, Jeremy knew Peterson as a customer of the store, but didn’t know what she did professionally.

When they originally started looking at the business in the fall of ’07 and the spring of ‘08, the banks were optimistic and the economy was good. Then everything changed. They contacted Joe Keck for advice and what they learned was a real “eye opener.”

Peterson primarily helped them look at the historical financials of the business and to use the performance to determine a realistic purchase price. They examined financials for the three previous years.

They projected the cash flows forward to make sure the purchase price was reasonable. They looked at fixed costs and variable costs to see what they could change to improve some of their margins. The lengthy process took a few years to complete with Peterson’s involvement off and on.

Jeremy explains, “Terryl gave us lots of good advice and ideas. We analyzed the Profit and Loss Statements, looked at the Balance sheets and ran every ratio on the business.” They saw some things they could change to tighten up some of the systems and opportunities for growing the business.

The information they gathered with the help of the SBDC provided exact numbers on how the business was performing. This data from a respected, objective third party gave them ammunition to negotiate the purchase price and influenced the seller to agree to a realistic price. “Terryl helped us structure the deal to make sure it made sense.”

Miles commented, “Joe Keck and Terryl provided really non-biased opinions. They gave us an objective analysis.” Joe Keck provided excel worksheets to project the numbers out for five years. They gained an understanding of forecasting and cash flow. “Luckily, the store had lots of history they could look at but the economy and the weather have a huge influence on the business,” explained Jeremy.

Teresa Malone was really efficient in helping them write a business plan. Her work was facilitated by the fact that the partners had done their due diligence and had accurate information to present to her.

Both partners agree that the advice and help they got were a huge help. They are grateful such an awesome resource exists in the community. The assistance they got made them focus on IF they could pull it off and how they could make the business thrive.

They will be contacting the SBDC again for further assistance with marketing.

Earthsense Herbals and Gift Gallery

There is a saying that “if you can dream it, then you can achieve it,” -Zig Ziglar. Lake McCullough is an example of this by turning a hobby into a growing business. Earthsense Herbals and Gift Gallery is a quaint and sunny store located in the heart of downtown Pagosa Springs. Creatively decorated, the store is full of handcrafted items from perfumed soaps, herbal teas and remedies, to silk paintings, porcelain sculptures, greeting cards and plants. All of the items, down to the shelving, wall displays, and labels are all made either by Lake McCullough or her mother, Carolyn McCullough.

“I like making things and always had an interest in plants,” said Lake who began working at an herb store at age 14. But it was after she got a warm reception for her teas and salves sold at the local Farmer’s Market, that Lake began exploring the idea of opening a store front.

“I didn’t know where to start, and that turned out to be a strength,” said Lake. “Because I think if I knew too much, I might not have actually done it.” Lake, who owns the business with her parents, Tom and Carolyn, worked with the Southwest Colorado Small Business Development Center to research and formalize her plan. Earthsense Herbals opened in May of 2010.

The McCullough’s received start-up funding from the Region 9 Economic Development District and used some technical assistance grant funding for Lake to attend a conference that furthered her knowledge about medicinal plants and herbal medicine. Lake has a Diploma in Herbal Studies and says she continually researches the biochemical properties of plants. She gets annual permits from the Forest Service to harvest certain plants, her favorite being Osha, which helps boost the immune system and fight colds. Many of the plants are ordered because of the quantities needed but all of the store’s herbal products are mixed or made by Lake.

The most popular products vary per time of year. The porcelain and artwork sells in the summer and the gift items offer consistent cash flow. Lake fondly credits her mother with creating all the store displays and the art.

“I always know it will be beautiful, and I don’t have to worry about it,” said Lake. “She may stay more behind the scenes, but she is no less important.”

The biggest surprise for the McCullough’s in running a business has been the lessons learned working with the public.

“We are both introverts and there is a lot of energy needed to constantly interact with people. It is important to be here and explain some of our products and do research for customers with questions,” said Lake. “We want to make sure customers get the best product for their needs.”

Mail orders are a growing part of the business which the McCullough’s estimate as half local residents and half visiting tourists. Though she has had requests to sell her products to other natural food stores, Lake said, “I can barely keep up with my own inventory. I also don’t think I would have as good of results without providing the one-on-one customer service.”

The business has not only weathered the recession but has seen annual growth. As for future plans, offering herb walks, herbal tea blending and silk painting lessons may continue, but the mother/daughter team isn’t sure. “We’ll take each day as it comes and see what happens,” said Carolyn.

Soundscapes International

By Malia Durbano

Ross Barrable an acoustic sculptor attended the Leading Edge for Entrepreneur’s Class offered by the SBDC in the winter of 2010 because, “I wanted to learn about business and branding and how to market my wind harps.”

Barrable doesn’t have a store front and recognizes that most of the sales for his high ticket items come by building relationships with potential clients. Barrable creates, “Contemporary sound sculptures, or wind harps, fabricated out of highly resonant metals using the principals of sacred geometry.” The harps, which range in size from 53 inches to 14 feet, are each mounted on metal bases of varying shapes and sizes.

Rich Lindblad, instructor for the Leading Edge course, helped Barrable discover ways to reposition his very unique art work and get recognition nationally and internationally. “We devised a whole marketing approach differentiating between push and pull marketing. Instead of waiting for people to find the web page, we determined who our potential customers are and how to get in front of them.”

The two decided that, “We needed to get this fascinating product into the hands of potential clients.”

They contacted Assisted Living facilities, high end marinas, and boardwalk communities, with a breeze on the water. “The product needed to be out there where it can be visually and auditorially experienced,” explained Lindblad. “We decided to gift the harps to a few communities for six months and then see if we can get them back.” The theory is that they will fall in love with the product and want to keep it. “We will keep playing with the market until we find the right niche.”

Barrable expounds, “Having to submit a business plan got me thinking. I got an expanded understanding of what it takes to really run a business. I learned about the costs of having employees above and beyond their salary. I got a huge reality check.” He chose to recreate how he markets the products. “I got really clear on why I’m doing what I do- it’s for love and passion.”

Barrable spent lots of time cultivating relationships with Landscape Architects. “But, they didn’t get it.” He decided to get on LinkedIn to connect with people who understand the science of sound and the healing effects of music. “I needed to connect with people who resonate with where I’m coming from and who value the importance of bringing healing sound into their environment.

Through LinkedIn, he connected with a man who runs, Water for the World- Ponds for Peace, a 501 (C3) organization. They donate and install water gardens for children’s hospitals and orphanages all over the world. Barrable donated a larger wind harp, which is installed in a meditation garden project in Haiti adjacent to the children’s hospital that was being rebuilt. “It was truly a joy to participate in a project that was more about giving than getting”

Sterling Wind Harps create soothing music as the wind passes through the strings and have an effect similar to listening to flowing water like a babbling brook.

Happy with the new direction in marketing and with the knowledge he gained in the course, Barrable is now moving forward with his Wind Harp sales.

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