News Highlights

Five entrepreneur friends explain rigors, joys of starting a business

College of Business class

Five local entrepreneurs described the personal and professional rigors of starting and nurturing a new business for College of Business students.

2007-10-08
By Tim Krohn, Free Press Staff Writer [published in The Free Press, Mankato, MN, 10/8/2007]

They’ve been through it all as entrepreneurs — writing checks they hope will be covered by payments they collect in a few days, cajoling bankers, tending to unhappy customers, laying awake wondering if expansion will lead to success or bankruptcy.

And the five men have been through it together.

“We all grew up together and graduated from Loyola high school together. Then we went away for a while and all came back and all own businesses in Mankato,” said Shane Bowyer.

Bowyer, director of the Innovation and Entrepreneurship Center at Minnesota State University had his four friends come to his class last week to give students an insight into the frustrations and joys of being your own boss.

Their businesses are diverse, but their experiences similar.

Ben Scheidel owns a Nationwide Floor & Window Coverings franchise which provides at-home shopping.

Mike Lloyd is head of the Aluma aluminum trailers manufacturing plant in Iowa, part of his family’s Mankato-based Kaye Corp. holdings.

Craig Theuninck is owner and operator of Theuninck construction.

Dan Bastian has Angie’s Kettle Corn.

And Bowyer, besides teaching, started the Sports Institute, a training and research business aimed at enhancing athletes’ performance.

No matter the size of the business, or how long it’s been around, cash flow is lifeblood.

Scheidel is quick to remind students that cash flow — the money you need coming in to keep up with bills — and profits are two different things.

“I write checks and hope I can collect on money owed me to cover them.” He said that while he has bills to pay for materials and labor, he often doesn’t get paid until long after a job is done.

Making the income and bills match at the right time is even more difficult when business hits a downturn, Scheidel said.

Last year he hired a sales person, just before the new-housing market collapsed, seriously cutting his business the first half of this year. “I kept her on because she’s great at what she does. She’s very valuable and out there drumming up new business,” he said. “But I need to make her paycheck every two weeks. It’s another responsibility.”

Bastian, who with his wife, Angie, has been expanding their kettle corn business to a statewide and Midwest level, said they never realized how big of a financial demand comes with expansion.

“It’s a big issue when you make the jump to a higher level. You make the jump because you’re doing well up to then. But you have no idea how much money you need to make that jump,” Bastian said.

Lloyd said that while trying to find the cash needed to expand is daunting, not expanding can be fatal. “At some point you have to make that commitment (to expand) or you may go out of business.”

The five friends are too busy to have the regular get-togethers they’d like, but they’ve always stayed connected and offered support, advice and plenty of ribbing.

All of them put in time for Thuelninck years ago as he was getting into the construction business. “We all helped him. We shoveled shingles into Dumpsters,” Bastian said.

Bowyer recounted Scheidel’s first, and not-so-successful business venture — an organic kitchen in the country.

“We came and hauled these heavy stainless steel sinks into this farmhouse. They’re probably still sitting out there,” Bowyer said. “Those are the things you remember. We laugh about them now. They’re good memories.”

Bastian recalled a day a few years ago when Bowyer and Lloyd were visiting, and the three discussed whether Bastian should maintain the name of Angie’s Kettle Corn or allow the supermarket powerhouses of Byerly’s and Lunds to put their private label on the product. The private label would mean significantly bigger sales initially, but would do nothing to build up the name recognition and brand loyalty of Angie’s.

And they’ve all bounced a lot of ideas off each other in regard to the Holy Grail of business — finding more money to grow their businesses.

“It’s not just about going to banks, but things like foundations and other ways to find financing,” Bowyer said. “You have to be creative.”

“Having your own business changes your personal life, too,” Bowyer told his students. Worries aren’t left at the door at 5 o’clock when you’re your own boss.

Scheidel said the perception of being an entrepreneur is often mistaken. “People say they want to own their own business so they have freedom and can come and go,” Scheidel said. “But that’s not the way it works. Maybe 20 years down the line if you’re successful. But certainly not while you’re growing your business.”

Theuninck said the worry and stress are always present to some degree. “You’re always worried about getting the next job. Worried you can’t make the callback to someone right away.”

Bastian said business is always on your mind. “Weekends, or when you’re on vacation, it’s on your mind. It’s one of the stresses."

In spite of the stresses and frustrations, all said starting a business has rewards that an 8 to 5 job can’t bring.

In the end, the entrepreneurs' advice to the would-be entrepreneurs in the room was unfiltered: You need a strong work ethic, must be willing to put in long hours and be able to wear many hats.

That, they said, doesn’t guarantee any kind of success. It just gives you a fighting chance.

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