Lessons Learned: Local businesses share the wisdom of experience

Even if you aren’t thinking about starting up your own cookie shop or calzone empire, there’s much to be learned from those who have the gumption to earn their living by doing what they love—and then bring it to the masses. We spoke with a variety of Central Indiana business owners—Anne Collins of Agrarian Indy, Kurt Cohen of Arni’s Restaurant, Jennifer Wiese of BeeFree, Mark McSweeney of Broad Ripple Chip Co., Mark Cox and Joshua Henson of Fermenti Artisan, Doug Dayhoff of Upland Brewing Co. and Terry Knudson of Viking Lamb—for some pro tips and advice.

Edible Indy: How did you come up with your product/idea? What kind of market research was involved?

Agrarian: Andrew Brake had started Naptown Chickens several years before the idea for Agrarian evolved. He had a good feel for the growth of the backyard chicken craze and the need for a store to serve the needs of urban chicken farmers. In discussions with Anne Collins and David Stuckert, it was clear that chicken supplies could not support a retail store but a store with a broader offering of products might be successful.

BeeFree: When we discovered that gluten-free was impactful for our son with autism, I started developing recipes for his favorite foods: chocolate chip cookies, pizza and chocolate cake. After we bought and tasted every brand available, my mom and I got busy in the kitchen. We first re-created our family favorites, then we started taking requests. 

BR Chip: I had extra room in my existing business (Great Harvest Bread) and I wanted to think of something else to do with it. I had seen artisan potato chips sold in other places around the country and, after experimenting, decided to do it.

Fermenti: We decided to focus our business on fermented foods as a key beginning step toward healing the body through food and as a missing component to the standard American diet. In addition to reading and demographic research, we saw a gap in the local market for the products that we create.

Viking Lamb: My business was born out of necessity—I bought a flock to use that had some issues that needed cleaned up and I had a chance to make some money.

EI: What are the biggest challenges you have faced in starting your business?

Arni’s: The biggest challenge is always managing and maintaining the staff, keeping the employees happy and motivated. Our product has always been in high demand, but it is a people business through and through.

BeeFree: Because I came into the food business world without any experience or bag of tricks, so to say, my biggest challenges in getting started were involved with finding quality, cost-effective sources of ingredients.

Fermenti: Our biggest challenges have been lack of capital (as we are a self-funded company that has never taken on any debt, just building the business piece by piece from scratch), along with the lack of consumer education/knowledge of our products.

Viking Lamb: In 2001, lots of restaurants weren’t even looking for a local product, so I had to create a whole new state of mind. There was the Carmel Famers’ Market and not much else. And lamb—most people would look at me and say “I don’t eat it and I’m not interested in it.”

EI: How did you form your business plan?

BeeFree: The business plan for BeeFree is an evolving document. It has changed from creating a product, to turning that product into a business, to growing that product, to adding other products.

BR Chip: Little by little I worked on numbers and projections. It was a second business to begin with, so I did not have the pressure on me. I just figured whatever we can sell will be great, maybe it will grow bigger.

Upland: Every year we revisit the business plan and establish three priorities for each department to develop the following year. Every year we win some and we lose some.

Viking Lamb: I didn’t have a “real” business plan, it just evolved. I had a lot of things in my head, had a sales background and I have always been a results person.

EI: Did you have rough times where you questioned whether you should stick with it? What kept you going, and what advice can you give?

Agrarian: So far, the most significant challenge we have faced is an extended move from our original location to a much larger location.

Arni’s: There have been some very hard times, none worse than the recent recession. But getting out of the business was never considered. With almost 500 employees, it wasn’t a choice. We had to buckle down and ride it out. Hard decisions were made to cut as much expense as possible. Don’t ever think that you are running your business as efficiently as you possibly can. With a proverbial gun to our heads we found many ways to run a tighter business.

BeeFree: I would say this question is exactly what defines an entrepreneur: the willingness to take risks, fall down, get back up again and again—being so passionate about your cause or product that you are willing to stay on the course when most others would jump ship.

BR Chip: My advice would be to not have the pressures of a bank loan—or any loan, for that matter—and avoid high rent (I would get the cheapest rent/overhead I could unless it was a retail business, where location truly matters). Not having the debt pressure made all the difference in the world as far as growing the business.

Fermenti: Yes, as a self-funded company that has never taken on any debt, we constantly experience occasional rough times. The best advice we can give is to find something that you are passionate about and which contributes positively to society, start out fully funded and have outlets for your product from the start.

Upland: Your business has to be about something bigger than your own ego and income. When it is, the answers to why and how you push through the rough times will reveal themselves.

Viking Lamb: There were lots of rough times. You have to LOVE what you do—if you’re doing it for the money, go do something else.

EI: What are your recommendations for capital?