I've spent this morning working on getting in touch with everyone who has expressed interest in becoming a community lender for Greenlight Bookstore. (If you're interested and I've somehow missed you, email me here or here and I'll happily send you the documents and details.) Here's what I told them:
After conferring with our lawyer and accountant, Rebecca and I have finalized the new terms of the loan and promissory note for community lenders. Basically, we're giving lenders the option of choosing their own interest rate, between 2.5% (just above the minimum required by the IRS) and 4% (just above the prime rate). The loans of $1000 or more will be paid back by Greenlight Bookstore with quarterly payments over five years, beginning one year from the opening date of the bookstore (this gives us a grace period during the traditionally difficult first year of business). Interest begins to accrue on June 1, 2009, and will be compounded annually.
In addition to getting your loan back with interest, community lenders get the employee discount of 30% off all purchases at Greenlight until the loan is paid in full. And they'll get special "community lender privileges" like advance notice of author appearances, sales and other store functions throughout the life of the bookstore.
Additionally, lenders at the $10K+ level will be included in meetings (probably quarterly) of the bookstore's Advisory Council, to get in-depth updates on the store's progress. We're also working out details of an optional "lender internship" for high-level investors, in which they'd have the chance to experience the various parts of the store's operations, such as buying, receiving, hosting events, etc.
Thanks again to all our community lenders. We're so delighted and honored by your support, and we think it will prove to be extremely worthwhile.
Showing posts with label investors. Show all posts
Showing posts with label investors. Show all posts
Monday, April 27, 2009
Friday, November 21, 2008
Phone banking
Rebecca's post about the awesome wish list feature on IndieBound below is what I'd rather be thinking about now -- I spent a good portion of this morning blogging about it and other holiday independent bookstore shopping initiatives over at The Written Nerd.
This evening, though, I've been making phone calls to those wonderful folks who filled out a survey at our party, commented on our blog, or otherwise got in touch to let us know that they might be interested in investing in our bookstore. They've all received the cover letter in the post below, so I'm just calling to follow up on their expressed interest.
But it feels a lot like calling to ask people for money.
It also feels like the brief stint I did at the Obama campaign phone bank here in Brooklyn. We were working just before the election to make sure folks in battleground states had the information they needed to get to the polls. I was calling Florida voters to make sure that they know were their polling place was, that they had a ride, that they had a plan for voting. We'd been given lists of folks who had supposedly already expressed support for Obama, so we weren't trying to change any minds -- just providing information, and a reminder.
But that didn't mean it was easy calling strangers. And it didn't mean that we didn't get a range of responses -- from outrage at yet another campaign phone call, to indifference or apathy about voting, to lots and lots of answering machines. There was some profanity, on their part. There was some terror and guilt and frustration, on mine.
As with the phone banking, I don't know most of our potential investors personally. And I've already gotten a range of responses. I've gotten some wrong numbers. I've gotten some folks whose financial situation has changed, so they can't do what they thought they could. I've gotten some who don't seem to remember expressing interest, which is the most awkward of all. I've gotten some tough questions about our loan terms, and our plans overall.
As I checked out after my campaign phone banking shift, I told the campaign leader ruefully that I hadn't gotten a single "yes, I will be voting for Obama" call. But you left a lot of messages, she told me. And you provided the information that is going to help some people vote.
And then Obama won Florida.
I can't know whether my sixty-odd voicemails made any difference. But I like to think I was part of the rising tide.
The Fort Greene bookstore already has a handful of $1000 investors ready to sign their loan documents. And we've got a handful contemplating much larger amounts. And we've left a lot of voicemails. And there are a lot more phone numbers left to be called.
There are moments of terror and frustration, working on this kind of project. But oh, it's worth it, for those moments of satisfaction you can take to the bank.
This evening, though, I've been making phone calls to those wonderful folks who filled out a survey at our party, commented on our blog, or otherwise got in touch to let us know that they might be interested in investing in our bookstore. They've all received the cover letter in the post below, so I'm just calling to follow up on their expressed interest.
But it feels a lot like calling to ask people for money.
It also feels like the brief stint I did at the Obama campaign phone bank here in Brooklyn. We were working just before the election to make sure folks in battleground states had the information they needed to get to the polls. I was calling Florida voters to make sure that they know were their polling place was, that they had a ride, that they had a plan for voting. We'd been given lists of folks who had supposedly already expressed support for Obama, so we weren't trying to change any minds -- just providing information, and a reminder.
But that didn't mean it was easy calling strangers. And it didn't mean that we didn't get a range of responses -- from outrage at yet another campaign phone call, to indifference or apathy about voting, to lots and lots of answering machines. There was some profanity, on their part. There was some terror and guilt and frustration, on mine.
As with the phone banking, I don't know most of our potential investors personally. And I've already gotten a range of responses. I've gotten some wrong numbers. I've gotten some folks whose financial situation has changed, so they can't do what they thought they could. I've gotten some who don't seem to remember expressing interest, which is the most awkward of all. I've gotten some tough questions about our loan terms, and our plans overall.
As I checked out after my campaign phone banking shift, I told the campaign leader ruefully that I hadn't gotten a single "yes, I will be voting for Obama" call. But you left a lot of messages, she told me. And you provided the information that is going to help some people vote.
And then Obama won Florida.
I can't know whether my sixty-odd voicemails made any difference. But I like to think I was part of the rising tide.
The Fort Greene bookstore already has a handful of $1000 investors ready to sign their loan documents. And we've got a handful contemplating much larger amounts. And we've left a lot of voicemails. And there are a lot more phone numbers left to be called.
There are moments of terror and frustration, working on this kind of project. But oh, it's worth it, for those moments of satisfaction you can take to the bank.
Friday, November 7, 2008
Investing in the Fort Greene bookstore!
This is an adapted version of the letter we've just sent out to everyone who has expressed interest in investing in the bookstore. You hate to send a form letter about something so personal as money, but we wanted to make sure everyone has the basic information before we talk to them by phone. And in case there's anyone out there who isn't on our list yet who might be interested -- or if you're just curious about how we're doing this financing thing -- I thought we might share the information with you too! Feel free to email us if you want more info.
Investing in the Fort Greene bookstore!
Now that the overwhelming excitement of election season is behind us at last, it's a great time to look toward the future! We'd like to take this moment to check in with you about our Fort Greene bookstore project.
In the past few weeks we have worked out the details on the financial side of things, so now it's time to ask everyone who expressed interest in investing in the bookstore to turn their support into a reality. We now have a working loan agreement and promissory note; you can email us if you'd like to see it. As we outlined in our initial pitch letter, the investment we're asking for is actually a loan, to be paid off in five years. The final payment date is tied to the opening date of the store. We have fixed the interest rate at 5.00%, one percent above the Wall Street Journal prime rate on November 2.
We realize the economic climate has changed quite a bit since our launch party. We're lucky that none of the startup capital we have was tied up in the stock market, so we are still in exactly the same financial position that we were in before the market started to flounder. If someone's financial circumstances have changed since they expressed interest, we completely understand. But we still have every confidence in our business plan and our ability to turn the bookstore into a reality. With the overwhelming support we've already seen from the Fort Greene community, we know that bringing a bookstore to this neighborhood is the right decision, and that we'll find a market here. Feel free to contact us if you have questions.
We feel that loaning your money to the bookstore is one of the wisest financial decisions you can make right now. It's effectively the same as putting your money into a CD – you will get back the principal and interest after a given time period, and there's no danger of fluctuation. Additionally, as a Founding Member of the bookstore, you'll get 20% off on bookstore purchases until your loan is paid off – and that's good for your bottom line!
We'll be in touch by phone with everyone we can during the month of November to check in and confirm. Feel free to contact us first – we can let you know the next step. For those who are able to finalize this loan by the end of the year, interest will begin to accrue January 1. If you can't make a financial commitment until after the new year, we can revisit things later.
Thank you again for your support for the future bookstore of Fort Greene – we look forward to speaking with you!
P.S. One thing you will notice on the loan document: the bookstore now has a name! Soon we won't be referring to it as the eponymous 'Fort Greene Bookstore' any longer. In the next week or two, we'll be sending out an email to our mailing list about the new name and what it means to us. Potential investors will be among the first to know, and you'll hear much more about it soon.
Investing in the Fort Greene bookstore!
Now that the overwhelming excitement of election season is behind us at last, it's a great time to look toward the future! We'd like to take this moment to check in with you about our Fort Greene bookstore project.
In the past few weeks we have worked out the details on the financial side of things, so now it's time to ask everyone who expressed interest in investing in the bookstore to turn their support into a reality. We now have a working loan agreement and promissory note; you can email us if you'd like to see it. As we outlined in our initial pitch letter, the investment we're asking for is actually a loan, to be paid off in five years. The final payment date is tied to the opening date of the store. We have fixed the interest rate at 5.00%, one percent above the Wall Street Journal prime rate on November 2.
We realize the economic climate has changed quite a bit since our launch party. We're lucky that none of the startup capital we have was tied up in the stock market, so we are still in exactly the same financial position that we were in before the market started to flounder. If someone's financial circumstances have changed since they expressed interest, we completely understand. But we still have every confidence in our business plan and our ability to turn the bookstore into a reality. With the overwhelming support we've already seen from the Fort Greene community, we know that bringing a bookstore to this neighborhood is the right decision, and that we'll find a market here. Feel free to contact us if you have questions.
We feel that loaning your money to the bookstore is one of the wisest financial decisions you can make right now. It's effectively the same as putting your money into a CD – you will get back the principal and interest after a given time period, and there's no danger of fluctuation. Additionally, as a Founding Member of the bookstore, you'll get 20% off on bookstore purchases until your loan is paid off – and that's good for your bottom line!
We'll be in touch by phone with everyone we can during the month of November to check in and confirm. Feel free to contact us first – we can let you know the next step. For those who are able to finalize this loan by the end of the year, interest will begin to accrue January 1. If you can't make a financial commitment until after the new year, we can revisit things later.
Thank you again for your support for the future bookstore of Fort Greene – we look forward to speaking with you!
P.S. One thing you will notice on the loan document: the bookstore now has a name! Soon we won't be referring to it as the eponymous 'Fort Greene Bookstore' any longer. In the next week or two, we'll be sending out an email to our mailing list about the new name and what it means to us. Potential investors will be among the first to know, and you'll hear much more about it soon.
Thursday, July 3, 2008
Magic and the Money Thing
So I think it's time for a little background, as I'm working up to chronicling the current state of my bookstore efforts.
Most of the folks I know who have opened up independent bookstores in the last 10 years or so (it may have been different in, say, the 1970s), have had one of two things:
1) a mortgage
2) a well-off relative or friend.
These are traditional and time-honored means of securing capital for an independent business, especially one as high-risk as a bookstore (it also works with restaurants, bars, and other retail businesses).
I have neither of those things.
What I've got is starry eyes, a passion for bookselling, and eight years of experience, which I've purposefully used to the best of my ability to gain the skills I think I'll need to run a great store. And for a long time, I thought that this experience would attract to me the kind of investor who might stand in for a well-off relative, and be willing to put a big (really big) chunk of money into a startup business on the strength of my capabilities alone. I also expected this person to be satisfied with an eventual financial return and the good they were doing for the Brooklyn community, and not take any interest in the day-to-day operations of the business, which would be my domain. Especially after winning the PowerUp! competition, I was certain it was only a matter of time before someone stepped forward to help me take the next step.
The ALP calls this imaginary investor "the magical millionaire."
Clearly, they have not materialized.
This non-happening has, from time to time, made me a little depressed. Why, in a world where people are always investing in crazy ideas, couldn't just one person invest in my seemingly-crazy-but-actually-totally-solid idea? Why couldn't I just find a grant or even a low-interest loan or SOMETHING that would make it easy for me to make my vision happen? Why couldn't I just be born rich?
But when I stop saying "POOR ME!" and my thoughts clear, it's fairly obvious that I need to let go of the magical millionaire, and try something else.
That's where I am now.
Anyone who is going to put money into my bookstore is going to either want some control of/involvement in the business, or the fulfillable promise of a reasonable financial return. I need to figure out how I can give them what they want, while still getting what I want.
Instead of hoping for some goodwill angel investor type, I am now preparing to formally solicit investors (or lenders). The Fort Greene Association is willing to help to connect me with some likely folks. So I'm putting together a prospectus, including my business plan and investment terms. These will include options for loans, payable by promissory note, or equity investments, which will give investors a share (though never a majority share) of the business, and thus its profits.
I spent this morning with a super nice lawyer in Dyker Heights, talking about how to calculate what interest to offer on a loan like this, and how to figure out the value of the business in order to "sell" portions of it to an investor. It's all fascinating stuff, though I'm a bit slow at it (English major, you know -- this math stuff is not my forte. Though I did get an A in AP Calculus, so just skip the blonde jokes.)
In any case, what this means for the bookstore is that since I'm looking at a formal investment process -- or a longer-term negotiation over a partnership, which is another option -- the bookstore isn't likely to get built and open its doors by this fall. Instead, I'm looking at early spring. Give me a few months to connect with investors, a few months to find and build out the space. And even that is dependent on whether I can in fact find folks willing to plunk even small chunks of money into a business with the profit-to-startup costs ratio of a bookstore (and looking at it this morning, I realized it's not super pretty for several years.)
On the other hand, I've already had three good friends approach me, unsolicited, and tell me that they want to put a chunk of their money into the store. They told me to name the terms -- they just think the bookstore is a brilliant idea, and trust that I can make it happen. Their investments alone only get me a few more yards down the track toward my goal, but that's a lot further than I was before.
And a number of people have already "invested" in Stimulating Reading, plunking down your stimulus check in exchange for a t-shirt, a bag, or some swag from my personal library (and you will get it, I promise!) These are even smaller amounts, but they're basically donations, based on the strength of what Andy Laties calls "social capital" -- you all just think I can do it. I'm hoping there's even more out there, as the checks flow in and folks decide that making a bookstore happen is one way to really boost the economy.
So there's no magical millionaire. But there are already a bunch of ordinary folks willing to get in on my bookstore dream. And I think -- and the FGA thinks -- there will be more.
Instead of a wealthy individual, a rich community. That's pretty magical to me.
Most of the folks I know who have opened up independent bookstores in the last 10 years or so (it may have been different in, say, the 1970s), have had one of two things:
1) a mortgage
2) a well-off relative or friend.
These are traditional and time-honored means of securing capital for an independent business, especially one as high-risk as a bookstore (it also works with restaurants, bars, and other retail businesses).
I have neither of those things.
What I've got is starry eyes, a passion for bookselling, and eight years of experience, which I've purposefully used to the best of my ability to gain the skills I think I'll need to run a great store. And for a long time, I thought that this experience would attract to me the kind of investor who might stand in for a well-off relative, and be willing to put a big (really big) chunk of money into a startup business on the strength of my capabilities alone. I also expected this person to be satisfied with an eventual financial return and the good they were doing for the Brooklyn community, and not take any interest in the day-to-day operations of the business, which would be my domain. Especially after winning the PowerUp! competition, I was certain it was only a matter of time before someone stepped forward to help me take the next step.
The ALP calls this imaginary investor "the magical millionaire."
Clearly, they have not materialized.
This non-happening has, from time to time, made me a little depressed. Why, in a world where people are always investing in crazy ideas, couldn't just one person invest in my seemingly-crazy-but-actually-totally-solid idea? Why couldn't I just find a grant or even a low-interest loan or SOMETHING that would make it easy for me to make my vision happen? Why couldn't I just be born rich?
But when I stop saying "POOR ME!" and my thoughts clear, it's fairly obvious that I need to let go of the magical millionaire, and try something else.
That's where I am now.
Anyone who is going to put money into my bookstore is going to either want some control of/involvement in the business, or the fulfillable promise of a reasonable financial return. I need to figure out how I can give them what they want, while still getting what I want.
Instead of hoping for some goodwill angel investor type, I am now preparing to formally solicit investors (or lenders). The Fort Greene Association is willing to help to connect me with some likely folks. So I'm putting together a prospectus, including my business plan and investment terms. These will include options for loans, payable by promissory note, or equity investments, which will give investors a share (though never a majority share) of the business, and thus its profits.
I spent this morning with a super nice lawyer in Dyker Heights, talking about how to calculate what interest to offer on a loan like this, and how to figure out the value of the business in order to "sell" portions of it to an investor. It's all fascinating stuff, though I'm a bit slow at it (English major, you know -- this math stuff is not my forte. Though I did get an A in AP Calculus, so just skip the blonde jokes.)
In any case, what this means for the bookstore is that since I'm looking at a formal investment process -- or a longer-term negotiation over a partnership, which is another option -- the bookstore isn't likely to get built and open its doors by this fall. Instead, I'm looking at early spring. Give me a few months to connect with investors, a few months to find and build out the space. And even that is dependent on whether I can in fact find folks willing to plunk even small chunks of money into a business with the profit-to-startup costs ratio of a bookstore (and looking at it this morning, I realized it's not super pretty for several years.)
On the other hand, I've already had three good friends approach me, unsolicited, and tell me that they want to put a chunk of their money into the store. They told me to name the terms -- they just think the bookstore is a brilliant idea, and trust that I can make it happen. Their investments alone only get me a few more yards down the track toward my goal, but that's a lot further than I was before.
And a number of people have already "invested" in Stimulating Reading, plunking down your stimulus check in exchange for a t-shirt, a bag, or some swag from my personal library (and you will get it, I promise!) These are even smaller amounts, but they're basically donations, based on the strength of what Andy Laties calls "social capital" -- you all just think I can do it. I'm hoping there's even more out there, as the checks flow in and folks decide that making a bookstore happen is one way to really boost the economy.
So there's no magical millionaire. But there are already a bunch of ordinary folks willing to get in on my bookstore dream. And I think -- and the FGA thinks -- there will be more.
Instead of a wealthy individual, a rich community. That's pretty magical to me.
Friday, June 20, 2008
A Week's Worth of Pre-Business
And then she never blogged again. For like four days. Sorry about that -- sometimes so much is happening that you don't have time to record it. For example, here's this week in the life of a prospective bookseller.
Monday:
Talked by phone to JC, my contact at a local bank. He was a guest speaker at a business class I took through the Brooklyn Economic Development Corporation and emphasized the importance of building a relationship with a bank -- so when I was ready to put my grant money in a business account and start researching loans, I got in touch with him. He helped me open a money market account and has offered both enthusiasm and good advice as I'm working on the financial part of starting a bookstore (which is kind of the ONLY part I'm working on these days.)
I had taken home a small business loan application, intending to fill it in and turn it over to the bank along with my business plan, and I'd been pestering JC with questions via email for a week or so. He asked me to call him so he could share some of what he learned in asking questions of the bank's underwriters, so I did. And he shared the following rather discouraging items:
1) The bank won't want to give me a small business loan until I have a space secured. They'll want to know the specifics of rent, utilities, square footage, etc., rather than my estimates for the neighborhood and what I'm looking for.
2) The bank will want me to have twice what I'm asking for as a loan on hand in equity. (That means, if I'm asking for $100,000, I should have $200,000 in personal or investor equity.)
With $25,000 in the bank and no current prospects on a space, that means it's back to the drawing board. I spent a day and a half feeling weepy about this, but really it's a good thing to know how to prioritize. I need to focus on finding investors and finding a space -- the loan may be the last piece of the financial puzzle.
Later on Monday:
Emailed with Len and Sarah at the ABA about becoming a Prospective Bookseller Member of the American Booksellers Association. I've been using my boss's ABA username to access the resources on BookWeb, but I feel like it's time to get my own membership. I need to start asking questions of fellow booksellers in the forums, etc., and it's a little silly to keep having to explain that I'm not actually Sarah and I'm not actually asking on behalf of McNally Robinson.
Wednesday:
Had coffee with a friend in the publishing industry who had expressed interest in hearing about the progress of the store. Turns out she had something to share of her own: a nest egg, and a tentative proposal for working together. She's someone I like and respect a great deal, and I'm cautiously intrigued by the idea.
I've tried out and rejected the idea of a partnership several times, for reasons of personality conflict or idea conflict or mismatching expectations, and I'm not totally sure that I (as the bossy eldest child in my family, and as someone who's been processing this idea for years) am even capable of sharing this project with someone else. But another part of me thinks I might be foolish to continually insist that I have to do this on my own and in my own way, when if I can't come up with some capital I won't be doing it at all. Any investor is going to want some form of equity in the business -- I can't expect that someone will just hand me money and say "have fun" -- and it might be better to work with someone I know shares my values and my knowledge of the book industry, and who has a reasonable understanding of how we might split responsibilities, than with someone who just has money. And if this could work, it would certainly mean things could get going sooner rather than later.
For now, we agreed to "date" as potential partners, leaving all options open, and parted ways with a hug, both feeling a little giddy. An interesting morning, to be sure.
Thursday:
Had a breakfast meeting with another woman I'd love to work with, if the world was easier: this time a local resident who wants to support independent business in her neighborhood. We had talked some time ago about her proposal: that she might buy a building in the neighborhood to house the bookstore, with some kind of equity arrangement as the landlord, and charge below-market rent. In a city like New York where rising rent is the usual reason stores go out of business, this could be a major lifesaver for the bookstore! The problem, of course, is time as well as money: it takes a lot longer to buy a property than to sign a lease, and the idealistic local resident (shall we call her the ILR?) is an extremely busy person without a lot of time to run around looking at buildings. We also agreed to keep our options open: I'll look for great rental spaces and forward her any information on appropriate properties for sale. And we'll think about revisiting this idea in a few years, once the store has gotten started and I may be looking to move to a better space or settle in more firmly. In the meantime, she also gave me lots of good advice and encouragement -- it's good to have another supporter.
Friday (today):
I have a 3:00 conference call and a 7:30 dinner scheduled with my strongest local supporters: the Retail Committee of the Fort Greene Association. Around the time I was winning that business plan award, the FGA was conducting a survey of the residents of its neighborhood to find out what kinds of retail they wanted to bring to their neighborhood. The neighborhood is becoming more affluent, and the FGA wants to be proactive about bringing in the kinds of services residents really need, rather than watching as chain stores and nail salons take over all the retail properties.
Turns out that bookstore was the number one desired store, across all categories of income, race, gender, etc. The FGA had contacted some other local booksellers to see who might want to come to the neighborhood, but everyone had their hands full with their own stores and projects. Then they heard about my win in the Daily News and contacted me, and it was like love at first sight. Fort Greene was one of three neighborhoods I proposed in my plan as the most in need of AND the most able to support a bookstore, and really my favorite of them all. I'll probably write lots more about the neighborhood; I live just on the other side of Flatbush Avenue in Park Slope, but I'm becoming more and more enamored of Fort Greene as a place to set up shop.
(This is the risk of posting this publicly: please, if you're thinking of opening a bookstore yourself, don't steal this joy and head straight for Fort Greene. But I figure I've talked to enough people about this in person that the word is already out there, and I can't keep being vague about the community I'm working with. I'll just cross my fingers and trust in everyone's good faith -- or that no one else is crazy enough to want to do this.)
Anyway, the FGA is planning a sort of "coming out" party for me, to publicize the impending bookstore and, more importantly, to pitch the idea to some potential investors. The phone call and the meeting are about that. I'm still hoping to get advice from a small business lawyer on what investment terms should look like, and there are lots of details to plan. But these guys are great, and I'm grateful for their support and for their welcome into their community.
Okay, that's the week, give or take a few dozen details. I'm going to try to post more frequently and less at length, as time and developments allow. But you're mostly caught up now. Would love to hear your thoughts or comments. Have a good weekend!
Monday:
Talked by phone to JC, my contact at a local bank. He was a guest speaker at a business class I took through the Brooklyn Economic Development Corporation and emphasized the importance of building a relationship with a bank -- so when I was ready to put my grant money in a business account and start researching loans, I got in touch with him. He helped me open a money market account and has offered both enthusiasm and good advice as I'm working on the financial part of starting a bookstore (which is kind of the ONLY part I'm working on these days.)
I had taken home a small business loan application, intending to fill it in and turn it over to the bank along with my business plan, and I'd been pestering JC with questions via email for a week or so. He asked me to call him so he could share some of what he learned in asking questions of the bank's underwriters, so I did. And he shared the following rather discouraging items:
1) The bank won't want to give me a small business loan until I have a space secured. They'll want to know the specifics of rent, utilities, square footage, etc., rather than my estimates for the neighborhood and what I'm looking for.
2) The bank will want me to have twice what I'm asking for as a loan on hand in equity. (That means, if I'm asking for $100,000, I should have $200,000 in personal or investor equity.)
With $25,000 in the bank and no current prospects on a space, that means it's back to the drawing board. I spent a day and a half feeling weepy about this, but really it's a good thing to know how to prioritize. I need to focus on finding investors and finding a space -- the loan may be the last piece of the financial puzzle.
Later on Monday:
Emailed with Len and Sarah at the ABA about becoming a Prospective Bookseller Member of the American Booksellers Association. I've been using my boss's ABA username to access the resources on BookWeb, but I feel like it's time to get my own membership. I need to start asking questions of fellow booksellers in the forums, etc., and it's a little silly to keep having to explain that I'm not actually Sarah and I'm not actually asking on behalf of McNally Robinson.
Wednesday:
Had coffee with a friend in the publishing industry who had expressed interest in hearing about the progress of the store. Turns out she had something to share of her own: a nest egg, and a tentative proposal for working together. She's someone I like and respect a great deal, and I'm cautiously intrigued by the idea.
I've tried out and rejected the idea of a partnership several times, for reasons of personality conflict or idea conflict or mismatching expectations, and I'm not totally sure that I (as the bossy eldest child in my family, and as someone who's been processing this idea for years) am even capable of sharing this project with someone else. But another part of me thinks I might be foolish to continually insist that I have to do this on my own and in my own way, when if I can't come up with some capital I won't be doing it at all. Any investor is going to want some form of equity in the business -- I can't expect that someone will just hand me money and say "have fun" -- and it might be better to work with someone I know shares my values and my knowledge of the book industry, and who has a reasonable understanding of how we might split responsibilities, than with someone who just has money. And if this could work, it would certainly mean things could get going sooner rather than later.
For now, we agreed to "date" as potential partners, leaving all options open, and parted ways with a hug, both feeling a little giddy. An interesting morning, to be sure.
Thursday:
Had a breakfast meeting with another woman I'd love to work with, if the world was easier: this time a local resident who wants to support independent business in her neighborhood. We had talked some time ago about her proposal: that she might buy a building in the neighborhood to house the bookstore, with some kind of equity arrangement as the landlord, and charge below-market rent. In a city like New York where rising rent is the usual reason stores go out of business, this could be a major lifesaver for the bookstore! The problem, of course, is time as well as money: it takes a lot longer to buy a property than to sign a lease, and the idealistic local resident (shall we call her the ILR?) is an extremely busy person without a lot of time to run around looking at buildings. We also agreed to keep our options open: I'll look for great rental spaces and forward her any information on appropriate properties for sale. And we'll think about revisiting this idea in a few years, once the store has gotten started and I may be looking to move to a better space or settle in more firmly. In the meantime, she also gave me lots of good advice and encouragement -- it's good to have another supporter.
Friday (today):
I have a 3:00 conference call and a 7:30 dinner scheduled with my strongest local supporters: the Retail Committee of the Fort Greene Association. Around the time I was winning that business plan award, the FGA was conducting a survey of the residents of its neighborhood to find out what kinds of retail they wanted to bring to their neighborhood. The neighborhood is becoming more affluent, and the FGA wants to be proactive about bringing in the kinds of services residents really need, rather than watching as chain stores and nail salons take over all the retail properties.
Turns out that bookstore was the number one desired store, across all categories of income, race, gender, etc. The FGA had contacted some other local booksellers to see who might want to come to the neighborhood, but everyone had their hands full with their own stores and projects. Then they heard about my win in the Daily News and contacted me, and it was like love at first sight. Fort Greene was one of three neighborhoods I proposed in my plan as the most in need of AND the most able to support a bookstore, and really my favorite of them all. I'll probably write lots more about the neighborhood; I live just on the other side of Flatbush Avenue in Park Slope, but I'm becoming more and more enamored of Fort Greene as a place to set up shop.
(This is the risk of posting this publicly: please, if you're thinking of opening a bookstore yourself, don't steal this joy and head straight for Fort Greene. But I figure I've talked to enough people about this in person that the word is already out there, and I can't keep being vague about the community I'm working with. I'll just cross my fingers and trust in everyone's good faith -- or that no one else is crazy enough to want to do this.)
Anyway, the FGA is planning a sort of "coming out" party for me, to publicize the impending bookstore and, more importantly, to pitch the idea to some potential investors. The phone call and the meeting are about that. I'm still hoping to get advice from a small business lawyer on what investment terms should look like, and there are lots of details to plan. But these guys are great, and I'm grateful for their support and for their welcome into their community.
Okay, that's the week, give or take a few dozen details. I'm going to try to post more frequently and less at length, as time and developments allow. But you're mostly caught up now. Would love to hear your thoughts or comments. Have a good weekend!
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