Business Information for Entrepreneurs by an Entrepreneur

Do you think your small business could turn into a Fortune 500 corporation? Just because your business is currently local doesn’t mean you can’t think globally and expand your business horizons. A good example is a success story about Fairytale Brownies, which was started in 1992.

Fairytale Brownies was formed by long-time schoolmates, David Kravetz and Eileen Spitalny in 1992. They began baking his mother’s 50-year old brownie recipes using the back of a friend’s catering kitchen. Their brownies were a hit with the local community, and they decided to make it a full-time venture and gave up lucrative jobs in the corporate world at Proctor & Gamble and television.

Creative Promotion

Fairytale Brownies found a 1,000 square foot facility in Scottsdale, Arizona, where they could make their delicious delicacies, and they soon had to double their space a year later due to their popularity.

To help get the word out about their product, they gave samples and sold their products at street fairs and farmer’s markets. Still, they continue to promote Fairytale Brownies by partnering with local and national non-profits, such as the national playground developer, KaBOOM.

Strategic (And Lucky) Domain

David and Eileen had the vision in the early 1990s to notice that the internet was becoming a great place to promote a business given the growing numbers of internet users. They bought the domain, brownies.com, and have not looked back since. Now about half of their business sales are via their internet site, and 35% of all revenue comes from internet sales.

Expansion

Fairytale Brownies sales volume steadily expanded year after year, finally reaching $1 million in sales in 1997. David and Eileen have used three separate small business loans backed by the SBA, culminating in the development of their 26,000 square foot baking facility in 2006, which now serves as both their main production facility and corporate headquarters. They employ about 30 regular year-round employees and an additional 50 during the busy holiday season. Each employee is empowered to make decisions that will help keep customers happy.

By 2007, Fairytale Brownies reached $10 million in gross sales.

Take an example from David and Eileen – they took a delicious family recipe and created a bonanza of a brownie empire with strategic promotions, partnerships, and marketing. Will your little venture be the next $10 million small business company?

Nature or nurture? This eternal debate continues to shape behavioral sciences regarding how people develop their personalities. Interestingly, the question extends into the realm of entrepreneurship: are people simply pre-programmed to become business owners?

What the Entrepreneurship Statistics Reveal?

Let’s first take a look at the facts. According to a study performed by the Ewing Marion Kauffman Foundation, a leading non-profit entrepreneurial devoted to promoting entrepreneurship, almost half of all small business owners came from a family where a parent also started a small business. About 15% of entrepreneurs had a sibling who started a business before them.

With this information, one can conclude that a person is more likely to become an entrepreneur and start a small business if they had a family member who did the same.

Business Ownership: Nature or Nurture?

However, is the data conclusive to whether a person is programmed in their DNA to become an entrepreneur? Not really. Most likely people have a tendency to follow in a parent’s footsteps because they are trained to do so. A person who has a parent or sibling model of an entrepreneur has a much better chance to learn the ropes of starting and operating a small business, as well as the benefit of encouragement, coaching, and emotional and financial support.

However, though training and modeling support the ‘nurture’ theory, there are studies that show how a person can be predisposed to possessing entrepreneur traits. The Journal for Business Venturing is a scholarly publication that conducts studies that deepen the understanding of entrepreneurial phenomenon. An article published in 2008 concluded that inherited traits such as extroversion may, indeed, play a part in entrepreneurial endeavors. The authors concluded that there were high probabilities of inherited traits contributing to the propensity for entrepreneurial endeavors. In addition, these traits had little influence from the family upbringing or environment.

In answering the question regarding whether entrepreneurs are born, it is not entirely conclusive. However, it is obvious that a people with certain traits can become entrepreneurs more easily than people without those traits. In addition, families with supportive and modeling entrepreneurs can help develop other entrepreneurs within the family – which may be the catalyst behind the saying, “keeping it in the family.”

Due to tightened budgets, many companies will be scaling back their holiday parties or eliminating the annual holiday party altogether. However, your company does not need to become Scrooge this year! You can still celebrate the holidays by being creative with their party planning.

The last two years have proven that cutting the annual company holiday party may save money, but it is not good for employee morale. Businesses are realizing the importance of rewarding employees for jobs well done, and a company holiday party is one simple strategy to recognize employees’ efforts and promote a feeling of community within a company.

If you want to provide a holiday party for your employees but are stuck on budget issues, here are a few great ideas that can help your party get on its feet.

Prepare Your Own Food

Catering is one of the biggest expenses for a holiday party. Instead, why not have the management prepare the food and serve to employees? It will save money, and it gives management a way to show their appreciation toward employees on a personal level.

Another food idea is to have a potluck. Have employees bring their own great recipes to the holiday party. Everyone loves a smorgasbord, and employees get a chance to show off their own fine food preparation.

Forget Dinner – Host a Lunch Party

Rather than hosting an expensive dinner party after company hours, you might consider an extended lunch party for employees. Treat them to a meal at a local fine restaurant. Bring in carolers to provide ambiance. Give out prizes and recognition awards. It’s a great way to save money, and everyone enjoys a little extra time away from work.

Look for Event Space Discounts

With economic factors still down, many event spaces are not getting booked. In response, they are offering deep discounts for meeting rooms, ballrooms, and event space. Look around your area and find a great space where you could save 40% up to 70% off of regular fees.

Your holiday party doesn’t have to be eliminated this year just because of money issues. Keep the spirit alive and use these and other creative ideas to give employees the recognition they deserve.