Orem SBDC Success Stories: July 2009

Thursday, July 23, 2009

Sole Envy

Sole Envy
Laura Felt
1200 Town Centre Blvd #1142
Provo, UT 84601

Laura started out working in Claire’s Boutique as a retail manager. She enjoyed her position, but wanted to go to law school. Once she stopped working retail she realized how much she missed it. She knew what she really wanted was her own retail store. Laura had married into an entrepreneurial family and she and her husband dreamed about opening their own retail place. One day, while driving around, they decided that it was time to stop talking about their dream and start living it. They started researching the Provo Towne Centre to see what was missing from the mall. They decided that there really was not enough reasonably priced shoe stores. The only competition around was Famous Footwear.
Laura dove into research and decided she wanted to stay within a moderate price of $17-$24 per shoe pair. She looked into chic companies such as SODA, Cupid and Wild Diva. Laura scoped out the competition, camping out in front of other small retailers, finding out just what were the desirable and less desirable traits of each place. She decided she wanted to own a place that was shopper friendly with great customer service. She wanted to have well trained and helpful employees but also make it easy for customers to help themselves.
It wasn’t always easy for Laura to be successful. She came to Ken Fakler needing help to get a business loan. With the way the economy was heading, no bank was willing to finance a 22-year-old wanting to open a shoe store. Ken pointed Laura in the direction of Zion’s Bank as well as private investors and he helped her get a business plan together that won over both bank and investors.
Laura’s next hurdle was the Mall lease. The bank and mall could not come to an agreement about a lease plan. The Mall’s rules were that they can kick out anyone the first 90 days if you do not meet your goals. Once an agreement was finally reached and the Mall saw what a success Laura’s store was, she received invitations to franchise and spread throughout the Ggp (a mall organization that is in charge of 669 malls nationwide).
Before Laura opened her store she hired a designer to help with the store layout. She decided to keep everything at eye level, with deep enough shelves that all the sizes were available on the floor. She went with long mirrors on the walls that made the space look bigger. Laura chose furniture from IKEA, so that it looked modern and yet very inviting. She also spent hours making her window displays unique and eye catching. The result was the Sole Envy of the mall.
Even with the current economic downturn, Laura’s store has been recession proof. Within her first four months of business she was able to reach 62% above her projected sales. The sales were thousands of dollars above her projected monthly goals. Part of what makes Sole Envy such a success is that people always need shoes, and this is a lower priced, yet chic option. Another success maker for Laura is that she puts her employees first. She makes sure that her employees are very well trained and customer oriented. In return for their excellent service she is willing to help them out with their college education. Laura has been able to accomplish all of this at the young age of 22 and as a new mom, thanks to her dedication, the strong support of her family and the SBDC.

SBDC In The Spotlight

The Orem Small Business Development Center, located just west of Utah Valley University, assists startup business owners and entrepreneurs to navigate the often treacherous waters of becoming self employed. Among the center's staff are (left to right) consultants Eddy Yujra, Marynika Miche , director Ken Fakler, consultant Camille Pendleton, and administrative assistant, Karen Wenn. Michael Rigert - NORTH COUNTY STAFF With the economic turmoil depleting personal finances, displacing employees and forcing some to seek new career paths, more and more Utah County residents are turning to self-employment to support themselves and their families. Floralyn Martinez, a master hair stylist for 17 years, researched the possibility of opening her own salon last summer. It was at that time that she came into contact with the Orem Small Business Development Center located just west of Utah Valley University. She didn't have a clue about the steps to starting her own business."I'm an artist behind the chair, but I'm computer illiterate," she said. "I was either going to start up my own place or go to another salon."A free resource provided to entrepreneurs, startup businesses and existing merchants, the Orem Small Business Development Center is one in a network of such centers across the state tasked with not only helping the self-employed get into business, but stay in business, said Ken Fakler, the Orem center's managing director.Funded through the Small Business Administration, the state of Utah and Utah Valley University, the Orem center assists clients in applying for SBA loans, putting together a business plan, doing market research and strategies, and learning the nuts and bolts of business ownership. It serves clients in both Utah and Wasatch counties.Martinez said Fakler and Orem center consultant Laurie Ann Thomas taught her how to write up a business proposal, where to find resources and apply for funding, and how to navigate the often treacherous waters of self employment.In October, Martinez and her husband, Marcos, opened Katumba's Day Spa and Salon, 1015 S. State St. in Orem, which offers a wide range of services from hair styling, massage therapy, skin care and aesthetics. Their salon employs a full staff of stylists and therapists, and business is slowly but steadily increasing, she said."Ken is absolutely incredible and knows what he's talking about," Martinez said. "It was a huge, huge help. I would say they are a major aspect of getting me started."With the housing slump and high gas and food prices hurting businesses and residents, Fakler said the center has seen a large influx of clients in recent months. From the newly unemployed to people looking to earn some income on the side, the center's clients come from all walks of life and range from college-age students to people in their 70s.The center supports clients who own businesses with dozens of employees to stay-at-home moms who want to take their eBay sales to the next level.The center works with about 35 to 40 new businesses a month, or nearly 500 per year. About 50 percent of the center's clients are women, Thomas said."It's really an entrepreneurial area," she said.Because approximately 80 percent of small businesses go under in the first five years, the center stresses the importance of formulating a strong business plan and funding options as well as forming a long-term relationship with owners to continue to provide advice as their companies grow. The center also offers free classes on a variety of related topics taught by professionals."We have very, very few businesses that go broke if they're doing the things we ask them to do," Fakler said.Just two weeks ago, Martinez said Fakler stopped by her salon to inquire about her business's progress and see if there was anything he could do to help. Without the assistance of resources like the Orem Small Business Development Center, she doubts if she would have taken the risk of living out her dream."I would have probably ended up going to another salon," she said. "I wouldn't have had the guts to try to go out on my own."