June Economic Development News
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From Our Executive Director
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Our local youth work hard to prepare for Lemonade Day, but they also know that the work isn’t done when they close up their stands.
They are then asked to evaluate their business performance by calculating gross and net profit, comparing their results to their original goals and more.
The end of the fiscal year is a good time for our business clients to do the same. You likely track your gross and net profit on a regular basis, but how are you doing when compared to your projections, your goals? Do you understand all your financial obligations and are you prepared to meet them? Have you scrutinized your balance sheet and profit and loss statements to understand what you’re doing well and what could be improved? Have you recently reviewed your insurance policies, coverage and rates to make sure you’ll weather unexpected adversity?
Now is also a good time to make some new goals and set a plan to review them regularly. The year will undoubtedly throw you some unanticipated curves, but if you keep your sights on your goals, slow (or quick) and steady progress will be made.
Happy New Fiscal Year !
~Ross
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Lemonade Day Participants reap sweet rewards for themselves and others
On June 2, Humboldt County Celebrated Lemonade Day with the community's youngest entrepreneurs, a
ges 5 to 17, operating about 60 stands all over Humboldt County.
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Those participants collectively earned about $11,670 in gross profit and netted about $6,830.
58% of the participants met their goal
79% reported paying back their investor for start up costs
79% shared an estimated $2,500
Some of the recipient of those funds included: Cystic Fibrosis Foundation; Field of Dreams; Buddy and Angie's Animal Rescue; American Cancer Society; Boys and Girls Club; St. Joseph Food Pantry; Food for People; and more
"Having a lemonade stand was so much fun!" said Jacob Lawrence of Jacob's Awesome Lemonade Stand. "I wanted to participate with Lemonade Day to raise money for Buddy Benches at my school. I really wanted to help because I wanted kids to learn about how to be a good friend and include the kids on the benches. I also love advertising for my stand! I will definitely participate again."
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Lemonade Day Profile: Lemon Acres
October Mintey and Everette Young, both age 10, have been friends since they met at Woodside Preschool. This year, they took their relationship to a whole other level: co-business owners of “Lemon Acres,” a Lemonade Day stand. Located in Redwood Acres Fairgrounds, the stand was a partnership with Succulent Bliss, a participant in Open Studios that same day.
The stand offered lemonade with simple syrups the kids made with the help of their Moms. They used jalapeno (which was more popular than they expected), strawberry (the best seller), lavender, basil, ginger and rose-hibiscus. “I got to boil the strawberries for the strawberry one,” said Everette.
“A lot of people tried jalapeno-strawberry,” said Everette.
“I tried it, too,” said October. “It was pretty good.”
They wanted to have the lemonade stand because they were excited to be by Succulent Bliss and to serve lemonade, said October, who sheepishly added that the money was also a motivation for participating.
And, they made money. Even after paying back their investor, they made $133 each. They saved costs on the expenses by using reclaimed wood for the stand and they had cookies shaped like cactus donated by Everette’s Grandma. They also made “more than they expected” in tips. They each shared about 20% of their profit between CASA (Court Appointed Special Advocates) and HART (Humboldt Animal Rescue Team).
October, who chose HART said, “
"I chose HART because I love that they help cats and they treat them so well while they look for new homes for them."
Moms Stacy Mintey and
Carra Young
said it was a lot of work, but it was “definitely worth it.”
The kids say they’re going to do it again next year. They already have a stand that both of their dads helped them build. Next year, they say they’ll make sure the stand is in a more noticeable place and make their signage is clearer. This year, customers had to walk past another stand that was nice enough to direct them to Lemon Acres, “After they sold them a big glass of their own lemonade,” said October with a sigh. Oh, the struggles of a business owner.
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Mid Century Humboldt is making a permanent home in Old Town as House of Humboldt
Zach and Betsie Zinsmann used to travel from Orange County to the North Coast for visits and decided 13 years ago that they wanted to call this area home. “We saw that Humboldt County would be a great place to live and are especially fond of Eureka,” Zach said. “We want to help build its future.”
That future, as the Zinsmanns know, includes strong small businesses and they are doing their part as owner/operators of Mid Century Humboldt.
“We have been operating for over three years and specialize in new and vintage designer furniture and home goods focusing on mid century and Danish modern,” Zach explained. The Zinsmann’s recently used an AEDC loan to buy their building- further solidifying their presence as a brick and mortar store.
“We invite the community to come in to meet us and get a better understanding of what we do,” Zach continued. “We are also currently unveiling our new brand name -- we are changing from Mid Century Humboldt to House of Humboldt.”
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520 2nd. St. Eureka, CA.
Or call 1-707-798-6368
The Zinsmanns offer free delivery to the Bay Area. They also ship
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Meet Tony Rodrigues
AEDC’s Tony Rodrigues is never bored. Rodrigues oversees AEDC loans over a 6-county region and covers a loan portfolio of approximately 105 borrowers. He is responsible for AEDC's loan servicing, collections and annual site visits. “I also do verification of insurance,” he explained. “I document and request annual financials from borrowers and transfer all documents into our Laser Fiche program making it paperless.” When needed, Rodrigues also manages the logistics when a loan goes bad.
"The most rewarding thing about my job is knowing that I try to keep somewhat of a personal relationship with the borrowers and am able to communicate with them, which builds a trusting relationship for myself and AEDC,” he said. ““I enjoy what I do at AEDC and the individuals we serve are a pleasure to work with!”
Rodrigues was born and raised in Crannell and came to AEDC in 2004. Previously he worked at Humboldt Bank, where he did Loan Servicing, Real Estate Construction Inspections and more. Prior to that he worked for a retail company for 8 years selling, delivering, and collecting.
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FOUNDERS GROVE 2018: HUMBOLDT BUSINESS SUCCESSION CONFERENCE
Have you thought about the future of your Business?
- Are you a business owner or business partner?
- Have you been In business at least two years?
- Do you have gross annual revenue of at least $75,000?
- Are you based in Humboldt County?
If this sounds like you, please plan to attend an exclusive one-day conference for business owners planning or needing an exit strategy, be it soon or years from now...
When:
Tuesday, August 28, 2018
9:00 am to 5:00 pm
Space is limited, so please register early
Featuring
- Real succession stories from experienced owners like Mary Keehn of Cypress Grove Cheese, Dale Maples of Maples Plumbing, Laurie Mark of The Millyard, Julie Fulkerson of Plaza Design
- Access to experts on the financial, legal, strategic, and management aspects of a smart exit, like Scott Hunt of Hunter, Hunter & Hunt, LLP and Jason Eads, Esq.
Benefits
Start the day with a blank "Exit Plan" template and fill it in with notes and ideas. Take home your reality check and next steps.
Then work out the rest with the help of your no-cost, confidential business advisor during the Business Succession Program.
Questions?
Please note:
This conference is intended for business owners. The SBDC will send a mandatory pre-conference survey to ensure the topics addressed meet the needs of the participating business owners. Confidentiality and privacy commitments will be emphasized.
Thanks to The Headwaters Fund for the generous funding that makes this possible
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SBA 504 Current Rate:
5.3%
- Low down payment for borrowers
- Competitive fixed interest rate
- Long Term loan
- From $50,000 to $5 million for commercial real estate, construction and equipment acquisition.
Many commercial loans available on the market require a sizeable percentage down before the loan will be granted, and this can be an obstacle for many business owners looking to improve their facilities. The SBA 504 Loan offers a solution for that -- you can borrow up to 90% of your financing needs at a fixed rate, so only a minimum of 10% down is required.
The remainder is split between the SBA loan (40%) and a bank loan (50%), and the Arcata Economic Development Corporation will work with your bank to submit your loan application. Loan amounts range from $50,000 to $5 million, and some restrictions apply.
For more information, call Kelli Sterling, Loan Manager: 707-798-6132 ext. 212 or email kellis@aedc1.org.
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Arcata Economic Development Corporation
Fax: (707) 798-6130
Tel: (707) 798-6132
707 K Street, Eureka, CA 95501
Newsletter produced by
Lynette Mullen, Projects Delivered
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