By Hope Belli Tinney, Washington SBDC
PORT TOWNSEND, Wash. – Bazaar Girls Yarn and Fibre Emporium on the waterfront is stuffed to overflowing with yarns for sale – from luxurious to country rough and in a kaleidoscope of colors.
But the owners believe their most valuable asset is free to all comers: a place to be creative and in community with others who make beautiful things for themselves and their loved ones.
“This is more than just a store,” said Numahka Swan, who co-owns the store with Kerri Hartman. “It’s a way of being in the world.”
Ingenuity boosts inventory, sales
Even so, creating a place where people browse, buy and become part of the tribe requires inventory. When Hartman and Swan took over the store from the previous owners in late 2011, they had about $15,000 in inventory – paltry by yarn store standards.
On paper, their prospects weren’t good, which is why getting a bank loan for new inventory wasn’t an option. Instead they threw themselves into low-capital TLC, like increasing business hours from three days a week to seven, redesigning the store’s interior for maximum customer appeal and offering free drop-in workshops several times a week, often with cookies and tea provided.
Every bit of profit was turned back into new products, and by the end of 2012 they’d more than doubled their inventory and tripled their sales.
But they knew they had to take a quantum leap forward to get the kind of momentum they wanted.
Help with loan application
When Hartman and Swan heard about the Local Investing Opportunities Network (LION) in East Jefferson County, they thought Bazaar Girls would be a good fit for local private lenders, but they needed help getting their application in order.
They first met with a certified business advisor with the Washington Small Business Development Center (http://www.wsbdc.org/) in 2011 when they took over the business and had questions about taxes. In early 2013, they turned again to the SBDC and started meeting with Elaine Jones for help with their loan application.
Jones is one of 26 SBDC advisors across the state who offer confidential, free business advising to clients who want to start, grow or transition a small business. The SBDC is supported by Washington State University, the U.S. Small Business Administration and other economic development agencies and institutions of higher education.
Business plan propels success
Before Hartman and Swan could start the loan application, Jones told them, they needed a business plan. Translating their vision into a business plan with goals and objectives gave them a map to move forward, which they did rather quickly.
Jones started working with them on the application in February and they submitted it in March, about the same time they learned they had about three months to find a new location for their store.
They were approved for five loans totaling $60,000 in early June, about the same time they celebrated their grand opening at a new location on the Port Townsend waterfront with a deck overlooking the bay.
“Having to move was the best thing that ever happened to us,” Swan said.
Most of the $60,000 was spent on inventory, she said, which fueled a successful 2013 holiday season and has pushed them forward on many fronts, including enhancing their design team, expanding classes and drop-in events and increasing their online presence.
Advisor a guide to practical aspects
Access to capital was key, Swan said, but Bazaar Girls has also benefited from Jones’ expertise related to marketing, branding and business models. When they were weighing the pros and cons of becoming an LLC, Jones helped them talk through the decision.
“The magic comes easy to us,” Hartman said, but they needed to make sure their financial decisions were reality-based; Jones helped them do that.
“She helped us to define who we are in the business world,” Swan said. “She really has been an important part in making the practical part of this business successful.”
For more information about Bazaar Girls, see http://www.bazaargirls.com/wp/. Bazaar Girls Facebook page is at https://www.facebook.com/pages/The-Bazaar-Girls/211006292307770.
Contacts:
Numahka Swan, Bazaar Girls, 360-379-9273, info@bazaargirls.com
Kerri Hartman, Bazaar Girls, 360-379-9273, info@bazaargirls.com
Elaine Jones, Washington SBDC, 360-344-3078, elaine.jones@wsbdc.org