Sunday, January 24, 2010

The LBV Chronicles


LBV building circa 1999
Episode 3: Decisions, decisions everywhere

“It is our choices...that show what we truly are, far more than our abilities.” J.K. Rowling

I consider myself a decisive person in that I will make decisions. Occasionally they’re even good ones. That Leaf, Barley & Vine opened at all is Exhibit “A” for both being decisive and stumbling onto a good one now and again.

One debate I find myself in with some is whether not making a decision can be equally decisive. I contend there are situations where deciding to not do anything is just as powerful as doing “something” and can, in fact have equal positive or negative impact.

Starting a business from conception will test anyone’s decision-making process and ability. The sheer magnitude of things to be considered, weighed, measured and acted upon (doing something or not) can be overwhelming.

The more time spent planning, the more detailed the plans, the more research devoted and options weighed will create a roadmap that make decision making merely the process of consulting the plan and pointing to the answer. Thus time, energy and money are saved.

Under lessons learned and things I would do differently is planning. Doing it again I would spend more time getting the plan for each element more finite and detailed. I would spend more time with the architects, designers and builders on creating more exact and detailed plans to help prevent delays, cost overruns and last-minute snap decisions.

I once wrote about this subject – Invest More - where I counsel about asking critical questions about what the money is being used for and it’s relative value.

Yep, doing it all again I would have the plan pinned down tight and that would have led to lower costs, higher quality and a quicker opening.

Not so fast, my friend.

You see, plans are important, and they will make everything go more smoothly and save time and money. But there’s also such thing as over-planning where so much time is spent analyzing drawings, schematics, paint chips, vendor lists, equipment manufacturers, potential competitors, potential partners, and so on that you never get around to actually doing anything. And if you never open the doors then you never start generating revenue.

So many things look differently when the work actually begins, especially when remodeling an old building. What’s behind the walls does not necessarily correspond to the architectural drawing, interior design ideas look different on the wall as opposed to on the design board, and wines that have great reviews may not work upon being tasted. My favorite story is I kept badgering my contractor about how he wanted to make decisions on many of the cosmetic items at ten o’clock in the morning. My contention was we were going to be a night business and things look totally different at night under the lights than on a sunny summer morning. My advantage since I live in the building is I would wander down at night and just take the place in. It’s amazing the difference artificial light and shadows make to how a place looks and feels.

So many of the plans changed as the work actually happened, and anyone who’s ever built anything knows that doing, undoing and redoing is where the real waste of money comes into play.

In the world of software development it’s called Agile development. Agile development is where you decide what you want the finished product to be and start building it using short development cycles called Sprints. At the end of each Sprint (each one being 2-3 weeks in duration) everyone sits down, reviews the progress, solidifies the next sprint and the work continues. This way at the end of the last sprint you have something that’s nearly finished. The other way – called a watershed approach – painstakingly lays out the entire project before beginning.

The key point is no matter how much time and effort you spend planning once the building starts you’re going to discover things different from the plan. What’s on paper just doesn’t always translate to reality. This is where staying true to the vision and knowing what the finished product is supposed to do is imperative but the road getting there is filled with change.

I would say with LBV it was a bit of a mix. For one thing I had to have some of the architectural design complete in order to pass the city’s project review. Plus I had to have some idea what this thing was going to cost and be able to hold people to their estimates. And yes, I had overruns and it went over budget but almost without exception each one caused the finished product to be better and true to the vision.

But along with other lessons learned, the “let’s look at things at night” one is a keeper. Next time I’ll have all decision-making meetings at 10PM.

Next: Episode 4: It’s sometimes better to be lucky

Sunday, January 17, 2010

The LBV Chronicles


Episode 2: The interview

“So tell me Jimmy, what made you decide to start a Soul band in Dublin?” Jimmy Rabbitte

Jimmy Rabbitte’s self-interview in the movie “The Commitments” was masterful, so I figured it would work here. The great thing about interviewing yourself is you get to ask the questions you want to answer. So what follows is a list of the most common questions I’ve gotten about starting the business plus some that I think should be asked.

So Greg, what made you start a business?
It was self defense. I was sitting on an empty building with no prospects of selling it and slim prospects of leasing it. I needed to generate some revenue and if it wasn’t coming from someone else then I guess it was going to come from me. I tried whining about it but my goldfish seemed unsympathetic.

Was having a wine bar always a dream of yours?
No, not really. Oh, I always thought it would be cool to own a bar. And if I had one I wanted it be unique, fun and different. But a wine bar? Not necessarily. Wine is like so many things, you think you know something about a subject until you meet people who REALLY know about it. Whereas I probably know more about wine than a lot of people, I don’t know a fraction that some of the people I’ve met know.

No, I used my product management expertise to look around town and see what we didn’t have and came up with three things that could co-exist and were personally interesting. Those were a classic wine bar, a great cigar store and a place to have after-dinner desserts and drinks.

Didn’t starting a new business in the depths of economic disaster scare you?
Scared wouldn’t be accurate. Terrified would probably be closer to the mark.

Actually once the decision was made the fear subsided. Probably because there was never enough time to think about it and partly because there’s great power in action. Goethe said, “Whatever you can do, or dream you can, begin it. Boldness has genius, power, and magic in it.”

OK, maybe a bit cerebral for someone like me, how about John Wayne, “Courage is being scared to death and saddling up anyway”

Did you have any experience with something like this?
None whatsoever, but that didn’t really bother me. I’ve spent my entire career being thrown into things of which I had no previous knowledge, new companies, new technologies, new disciplines, new cities, new countries. I’ve become almost immune to worrying about being ignorant. Of course, maybe I’m just not smart enough to realize how risky that attitude is.

Was getting a liquor license difficult?
Yes…and no. The state created a new license designed for redevelopment situations. Not only did I have to qualify but the city (Brighton Michigan) had to also qualify. I was fortunate that my city has embraced these and was able to provide me great support and guidance. Then I just had to follow the path. There were some classic head-scratching political hoops to jump through but to be absolutely fair I found the people within the Michigan Liquor Control Commission (MLCC) to be helpful, friendly and fair.

What are the most common compliments you get?
“This is exactly what we’ve needed around here”. “I love the atmosphere”. “Great wine list” “Great people”

What’s the most common criticism?
“It’s not big enough”

So, why didn’t you make it bigger?
The building was done it two parts. The original part – where the bar is – is a remodeled ex-gas station. It’s relatively small inside but has a great look for what we wanted to create from an image standpoint. It also has a great patio area. The “new” section that was built later is much larger but doesn’t have access to the patio area.

Part of the decision was practical. I felt the patio was essential and the smaller space would equate to a smaller initial investment. Although the move to do this was bold I wasn’t willing to take on the risk of taking on the entire space plus I had found someone to lease the larger area.

How did you find your people?
Well, how the person that became the managing partner came about is discussed in a later episode, so we’ll save that one. The others came primarily from Craig’s List. Evidently that’s the gold standard for this industry.

I’m very happy with the staff. They’re good, honest, hard working and fun. I really like being around them and the customers love them.

Did it turn out like you expected?
Yes…and no. Yes in that it has a really great look and feel to it like I expected it would. No in that it’s WAY better than I envisioned.

Knowing what you know now would you do it again?
Absolutely! I would just do it quicker. I spent a lot of time dawdling while hoping the building would sell. I now wish I would have moved swifter and opened earlier. However, in an upcoming episode I’ll discuss why that might have ended up not working out as well.

What would you do differently next time?
I’m going to discuss that later.

Why do you keep putting answers off? I already know what you’ve written.
Yes, but I might change my mind.

Whatever. Thanks for your time Greg.
You’re welcome.

Next: Episode 3: Decisions, decisions everywhere

Monday, January 11, 2010

The LBV Chronicles


Episode 1: The beginning of the beginning

“But all endings are also beginnings. We just don't know it at the time.” Mitch Albom

In late October 2009 Leaf, Barley & Vine opened to the public (http://www.leafbarleyvine.com/). Spring boarding off my Tales from an XOD blog I’ve decided to write about the experience. Partly to capture key points in case I ever want to do it again, partly to share the lessons learned, partly to put salve on some of the wounds, and partly to amuse myself. Actually reverse the order.

Episode 1 is a preamble to set the stage.

In 1999 I got talked into buying a decrepit ex-gas station/transmission shop which was subsequently remodeled and in which my late wife Bonnie opened her business. Once completed we often talked about what a cool wine bar it would make given its European motif and its large patio area. But her business caught the wave and liquor licenses were tough to come by so over the next eight years her business expanded and thrived. The adjoining property was bought, the building expanded and a cool loft apartment that was built above. Things progressed until Bonnie was diagnosed with cancer in 2004 and the business was shut down in April 2008 prior to her passing away that September.

When Bonnie was diagnosed with Multiple Myeloma in June 2004 – accurately described as a “treatable but incurable” cancer – the plan was to sell the business, sell the building and enjoy as much time as possible trying to cram 30 years into a handful. Through a series of events – some evil, some naïve, some unfortunate – neither the business nor the building got sold. Eradicating the business was straight-forward. The inventory was sold off, bills were paid and there was even a surplus. The building was much more problematic.

The aftermath of losing a spouse, friend, partner and compass was one of getting through the holidays with the kids and I offering essential support to each other. But once into January 2009 I was faced with a fact that had all the finesse of a ball peen hammer between the eyes. I had totally missed my opportunity to sell the building prior to the collapse of the economy, which was felt more here in Michigan than any other state,

Winter is tough in a lot of places. Here in Southeastern Michigan it’s brutal. It’s cold, dark, cloudy, has too much snow but not enough to make it a “winter wonderland” I’m personally amazed there’s not more suicides around here, but I figure people in that mood just drive around Detroit for a couple of hours and become a victim. Much better for insurance purposes.

So it’s January. I’m sitting on a cold, empty building that probably won’t sell and will be tough to burn.

This is where I found myself one year ago today

Next: Episode 2: The Interview