On Saturday morning, January. 2009, I wrote a dairy that went to the top of the recommended list Betting on the New Local Economies: I'm expanding my Business. The economy was bad but I was expanding my small bread bakery, investing in efficient bakery equipment and green (ie bicycle) transportation and green (ie reusable) packaging systems.
Now, I am expanding again, moving from my 325 sq. ft. bakery to a 1,000 sq. foot, storefront, with a much bigger investment.
Why I'm expanding. I am turning down business because I can't keep up with the demand for my products. Through the Great Recession, I focused on quality, local economy, and slow, sustained expansion. I built systems to reduce and eliminate waste, invested in quality bakers, and green, sustainable systems---all relatively small investments designed to enshrine my survival through the recession and into the emerging new economy.
The big picture. Around me, other food businesses were shutting, skimping on ingredients, reducing hours, employees, and in a general state of panic as their sales were steadily, perhaps quickly, going down. New businesses struggled to get a foothold, and continue to find their niche.
My take is that a new economy is gradually emerging. And this economy relies on locally based small businesses: Businesses that care about their communities, are involved in social problems, and heavily invest in supporting other local businesses. Success will require investment in technologies with a focus on the Triple Bottom Line: People, Planet and Profit. Those who don't get it will fade away.
My Business Stragegy. I am investing over 6 figures to expand my back-door bakery into a front and center retail storefront. It's the old fashioned kind of bakery where we just sell our products and you walk in to buy your bread and some coffee (freshly roasted at the bakery, organic fair trade coffee); pickup your morning croissant or baguette on your way to work; and a loaf of fresh bread on way home.
I am buying a $30,000 state of the art efficient vapor tube deck oven, a $25K coffee roaster, a new walk in energy star refrigerator.
Bakeries like this faded away because the business model didn't work. People buy their baked goods at grocery stores, not bakeries. But people in my neighborhood in West Philadelphia get it that we need to build up our local food system again. They have strongly and loyally supported me, appreciating the uniqueness and quality of my products; knowing they are supporting an art form, not a standardized factory.
Food justice is a big problem in my industry. So I started a program where my customers can contribute to a fund. The fund is used to buy fresh bread from the bakery and delivered local Soup Kitchens. That's FRESH bread, not stale or day old bread. Healthy, fresh food with dignity. I am applying for a grant to expand this potentially self-sustaining program to other local food businesses.
I am into the new social media: facebook and twitter. Building up the solid base to secure my place in the new economy.
This is the new paradigm for business. It's happening now. But it's still a struggle and I have yet to make much profit for myself and my family, even after 3 years in operation. But I am expanding again, and this time I will have a huge presence in our neighborhood and the whole Philadelphia area.
We are the modern day pioneers. And we ask that you support your local businesses; and buy into their efforts to make a social impact in the neighborhood.
The Political Message. Stimulate small business. Support candidates who get that we need to mobilize the public to support small, local economies. We win with micro grants to small businesses to expand and hire employees, invest in new technologies.
Your dollars are votes in this political climate. Invest your money and bank where your dollars will stay local.
Update: Here is a link to my web page www.fourworldsbakery.com