Keith Forney, owner of Gotham Comics.
Written By Scott Braden, Photos by: Phil Grout
Starting your own business might be a big part of the American Dream, just like owning your own home or something,” said Keith Forney, owner of Gotham Comics in Westminster. “But the truth is it’s not for everybody.”
“The most important thing about starting your own business,” said Forney, “is that it’s not all the paperwork that’s involved up front like registering your trade name, getting your tax ID, or getting your business license.
“That might seem daunting, but it’s actually real easy. You can do a lot of that online. Setting up bank accounts, etc. The biggest thing you have to deal with is if you’re opening a business that involves comic books or gourmet cupcakes or anything in between.
“That may be your dream, but if your dream is to open a gourmet cupcake shop, and there are 10 gourmet cupcake shops in town, there’s probably not going to be a market for another one, so don’t do it. Don’t allow your desire for a business to cloud your common sense.”
“Still, you have to have a vision,” said Frank Tunzi, the co-owner of The Buttersburg Inn in Union Bridge. “And you need to surround yourself with people who share your vision and treat things the way you want them to be treated.”
Step One: After you’ve done the research and realized that your shop will be serving a need, it is time to find a location for your business. And as they say, “location is king.”
“Did I examine the area before I opened?” asked Forney. “Yes. I looked for competitors in the area, the population, the perfect space. You know that thing about location, location, location? That’s true. So, visibility and accessibility are important.”
Step Two: “I researched the market to see how many custom cake shops were in the area,” said Shannon Clarke, the owner of Westminster’s Starry Night Bakery & Coffeehouse. “I did research on equipment; exactly what I needed and what I could live without when I first opened up.”
Which leads us to Step 3: Money.
“You have to have a lot of money,” said The Buttersburg Inn’s co-owner, Jim Rowe. “We used some of our own money. Then we got a small loan, and then we had to get a mortgage for the building.
“We bought an existing business that needed to be revamped and brought back, so the loan money didn’t last. That’s when we pulled money from my savings. A restaurant business is one of your highest-risk businesses because you can fail very easily. You have a lot of waste, a lot of overhead, and you need personnel.
“The business plan looks good on paper, but when you start working it, it’s a very different thing. The business plan shows what your income projection is going to be, your utilities, your overhead, your employee cost, your various insurances.”
“You also have to have a desire and a love for what you’re going to do,” said Rowe, “and you have to have a business plan because when you go to get loans they want to see everything laid out; but that’s not always easy because you’re not sure what’s going to happen and how it’s going to affect [the business]. We opened the [Buttersburg] restaurant to give people a product that was good, and that product is food that’s all homemade and home-cooked.”
Forney agreed: “You need lots of money,” he said. “What are you going to live off of – and how are you going to meet your personal expenses when you start your business?
“It still takes time to start your business and grow your customer base. Eventually, if you have done things properly and there is a viable market for your product, then your business will support you. You can pay for your mortgage and groceries and taxes, but that’s not going to happen overnight.
“And if it never happens, that’s when you should shut your doors. The business is not there for you to shovel money in, it’s there to support you.
“I started my business with money I had saved – I borrowed nothing from the bank. I also felt there was a cap on how much I was willing to lose. It is a risk. You might have done everything right – you’ve set up your vendors, you have your fixtures in, and great product – but you might still fail. There are no guarantees of success. And that’s a personal thing you have to decide. You better be prepared to live with the consequences whether you succeed or fail.”
“When I first started, I had $40,000,” said Clarke, “which is bare bones. It came down to what equipment was I going to buy used and what I was going to buy new.”
“Whatever you do,” said Forney, “it better be something that you enjoy. If you are opening a gourmet cupcake shop, you better enjoy making cupcakes, eating cupcakes and talking about cupcakes because that business will be taking up most of your time for the foreseeable future. If it’s not something you enjoy, that will be reflected in your business initially. But even more than enjoying it, you have to be knowledgeable about it.”
Small Business Information:
For more information on starting a small business, please contact:
Carroll County Maryland – Small Business Development Center
225 North Center Street, Suite 101
Westminster, Maryland 21157
410-386-2317 ¥ www.carrollbiz.org/sbdc
The Small Business Development Center (SBDC) is dedicated to helping you establish and expand your business. We accomplish this by providing a variety of management and technical assistance programs designed to help you, the aspiring and existing small business owner.
Carroll Community College – The Miller Center for Small Business
1601 Washington Road
Westminster, Maryland 21157
410-386-8012 ¥ www.carrolltraining.com
The Miller Center for Small Business was created in 2003 through the generous funding of William E. and Eleanor B. Miller to provide educational services to small business owners and entrepreneurs.
