Economic Development News |
|
From Our Executive Director |
As we learned last year, life can be very unpredictable. And as a business owner, you’ve put in too much of your time and hard work to have to close your doors due to an unforeseen disaster. As we head into the summer months, we wanted to focus this newsletter on some proactive strategies to help you prepare for whatever the road ahead holds for your business. Whether you’re a brand new business owner, or a seasoned expert, don’t let the unexpected throw a wrench in your plans. Instead, be prepared to take on whatever happens next. Do what you can now, to be set up for success later. AEDC wants your business to thrive, we can support you and help you prepare for the unexpected. And as always, AEDC is here to help you with your financial needs, no matter what comes your way.
-- Ross
|
|
Client Profile: Dick Taylor Chocolate—Craftsmanship on Display |
|
If you had to define Dick Taylor Chocolate in one word, it would be craftsmanship. When co-owners Adam Dick and Dustin Taylor started their company in 2010, they made the career switch from carpentry to chocolatiers. Counter-intuitive though it may sound, there were common themes in the two industries. Just like finish carpentry, the art of chocolate making requires a love for turning raw materials into a work of art.
As you can see from every detail of their company, Adam and Dustin are passionate about taking vintage practices and combining them with best-in-class results to create an artisanal experience, and AEDC has been proud to be a partner with them from their early stages to this impressive expansion.
Committed to the most hands-on process of making chocolate, they began sourcing the finest fairly-traded cacao and combined it with organic cane sugar in-house. Their small-batch, bean-to-bar craft chocolate has received over 80 awards and is now shipped worldwide, but this craft chocolate had humble beginnings in a corner of the Almquist Lumber warehouse. They first partnered with AEDC several years ago to purchase a large piece of equipment. “Getting this loan was instrumental in helping us scale,” said Dustin Taylor. “It allowed us to ramp up production and begin shipping chocolate wholesale throughout the world.”
With their vintage refurbished equipment, they quickly outgrew that small rented warehouse and needed to move to their current location on 4th Street in Eureka. “This was an intentional move for us,” explained Dustin. “Transparency is a huge part of our craft chocolate industry. People want to know what ingredients are going into the chocolate, and we want to be as open as possible. We also wanted to be a part of the revitalization that was happening in Eureka. We love crafting a destination chocolate experience for community members and tourists.”
That intentional decision to be more in the public eye was a key to their continued growth. Even during the pandemic, the demand for their chocolate only grew, and it became clear that they needed to expand a second time. They began their search for a location that would both allow them to boost production and be a destination chocolate factory for the community and tourists to enjoy.
They set their sites on the old Co-op building at the corner of E and First streets along Eureka’s waterfront. “This beautiful building is located in the heart of Old Town Eureka on the boardwalk and dates back to the late 1800s. This property has been vacant for a few decades and is so ready to be restored to the gem that it once was.”
True to their craftsmanship core, Adam and Dustin are finding ways to restore the beauty of the past while creating something new that our whole community will enjoy. “We’ve been fortunate to work with some great partners in this project. K. Boodjeh helped us redesign the space to highlight the best of the original architecture while also bringing in sharp design elements and tons of natural light. And the general contractors on the project, Pierson Company, have been awesome. Their proactive communication has made everything go smoothly.”
|
|
The new space will feature large windows where passers-by can watch the chocolate crafting process. Open seating on the adjacent sidewalk will give the boardwalk the vibrant European bistro feel. And as you head inside the facility, you’ll see original redwood ceilings stockade walls, and reclaimed turned posts, highlighting the original craftsmanship of the building. The interior hallway will have large display windows so they can offer tours while production is happening.
“Everyone loves chocolate, but few people know how it’s actually made,” Dustin shared. “(Through tours and tasting experiences,) we are excited to get to explain the full story, from the farmers and the backstory of the cacao beans we select, to stages of making the chocolate by hand here in our factory. The whole process is so mesmerizing.”
Beyond the artisanal chocolate bars, Dick Taylor is expanding their menu to include a variety of baked goods, drinking chocolate, and other chocolate deliciousness. You’ll be able to browse their confections in the retail space overlooking the bay and enjoy a chocolate treat while sitting on some hand-crafted furniture—made by the owners, of course. And what goes better with chocolate than a cup of fresh coffee? As if this space couldn’t get any better, Humboldt Bay Coffee Co will be sharing the space, with a cozy coffee shop in one corner of the building.
For Dustin and Adam, this dream has been a long time coming, but it’s also the most significant financial project the company has taken on. “Luckily, all of our lenders supported our dream from the beginning. They saw our vision and worked with us to make the numbers work so we could move forward. It’s so fun to be a part of a project where everyone in the community is so supportive.”
If you’re shopping around Old Town this summer, you may hear the sounds of construction coming from 333 First Street. The craftsmen are at work, creating an unforgettable space to complement their unforgettable chocolate. They hope to be open to the public in time for Christmas, just in time to drink hot chocolate and begin a new holiday tradition.
|
|
Fire Season Is Coming...Are You Prepared? |
|
Disasters can strike at any moment, and it’s crucial that your business is prepared to deal with the aftermath of whatever life throws your way. The financial cost of rebuilding after a disaster can be extremely overwhelming. With the right plan in place, you can create your business’s roadmap to recovery. When planning your disaster response plan a.k.a your roadmap to recovery, make sure to tailor it to your business’s specific needs and operations. It should address immediate priorities and be easy to access at all times. Checklists and online toolkits are also effective resources that can help you develop your plan.
Consider the following:
There are many other important factors to consider when developing your disaster response plan. Consider making copies of your business’s most important documents, or store them electronically using Google Drive. When looking from a financial perspective, it is important to make sure you have a system in place that allows you to easily access important files and sensitive documents.
If the worst case scenario happens, you may be eligible for a low-interest disaster recovery loan through the SBA for damaged and destroyed assets in a declared disaster. These include repair and replacement costs for real estate, personal property, machinery, equipment, inventory, and business assets. If this should happen that preparation to save important records will be especially useful. Check to see if one of the loans below would apply to your business.
No matter what unexpected disasters may come your way, you can take steps to mitigate the risk so you can get back to recovery as fast as possible.
|
|
New To Business?
Get Started With The Right Financial Footing.
|
|
While many of us took a pause on life during COVID-19, a lot of entrepreneurs looked at the pandemic as an opportunity to become their own boss and start a new business. Between March 11, 2020, and March 1, 2021, Yelp saw more than 487,500 new businesses listing on its platform in the United States. No matter what type of business you have, ADEC wants to ensure that every business in Humboldt County has the potential to thrive by starting off on the right financial foot from Day One.
Starting a business doesn’t always mean borrowing money. Many businesses begin with very little capital. Those scrappy start-ups can turn into the industry leaders we know today. Jessicurl started as a concoction made in a kitchen. Holly Yashi jewelry was made in a garage. Countless businesses are running today having never taken out a loan. If they’ve grown significantly, though, it’s likely that they had to at some point. If you’re thinking of starting a business, you may not need a loan to get started, but financial lending can help as you start to grow.
If the time comes that you do need financing to expand inventory, buy equipment or even buy commercial property, you’ll want to be poised for borrowing success. There are things you can do today to prepare for a successful application in the future. Even if you never apply, these practices will help you build a stronger business.
A lender will look at the following components:
- Your credit rating
- Financial records
- How your assets can be used as collateral
- Assumptions you made on your projections.
Your Credit Rating
If you’re a small business owner, lenders will look at your personal credit scores as well as your business credit report. This is the case whether you’re a sole proprietor, a partnership, or a Limited Liability Corporation (LLC). While filing as an LLC does have some liability protections, almost all lenders will require a personal guarantee on a loan, which will make each owner liable for repayment. Any loan funds that come from a federal source will require that all owners-partners with 20% ownership have a credit check and guarantee the loan.
In addition to personal credit reporting agencies, lenders will often look at reports from business reporting agencies like Dunn & Bradstreet. These agencies will include the usual sources for credit information and they may also look at some payments that personal credit agencies don’t, including vendor payments and some utility bills. Judgments, tax liens, and other public information will also be considered.
A revolving line-of-credit is a popular and often misunderstood, form of financing for a business. It can help establish good credit. Use it incorrectly, and it can have a negative effect even if you pay your bill regularly. The purpose of a line of credit is for cash flow, which means spending it on inventory or working capital then replenishing the line by paying it off.
Do not use a revolving line of credit to purchase business assets, such as equipment or vehicles. It is not like a personal loan that is paid back a little bit at a time. In fact, a rule of thumb is that a line of credit is paid off completely at least 30 days of the year to show that it is being used properly. When an account is not maintained it can be “termed out,” which means that the line of credit becomes a fully amortized loan with fixed payments. At that point, it is no longer accessible to draw from.
For information on the other key components for preparing a successful loan, visit aedc1.org.
|
|
Arcata Economic Development Corporation
Fax: (707) 798-6130
Tel: (707) 798-6132
707 K Street, Eureka, CA 95501
Newsletter produced by
|
|
|
|
|
|
|
|
