Small Business News | May 1998 | Page 4

Small Business Hawaii | Volume 23 Number 5 | May 1998

ENTREPRENEURS TAKE FAST TRAC
TO SUCCESS IN DIFFICULT TIMES

By Jim Proctor

Jeri and Gary Barnes started Tropical J's in 1989, more as a part time distraction than a business. Gary was busy building his Naval career while Jeri, tired of frequent moves, was looking to lay down roots. Nevertheless, the Barnes charged full speed ahead into the manufacture of beautiful hand-held, Hawaiian floral cotton umbrellas in their home.

Like most entrepreneurs, sheer persistence carried the Barnes through the lean years. "We spent thousands of dollars on material. We developed a process of waterproofing cotton fabrics and purchased the necessary equipment. After selling several umbrellas, we did a spreadsheet on production and profit potential and figured we'd be millionaires within two years," laughed Jeri. "We thought, 'If we build it, they will come.' It never occurred to us that once they came, we'd have to feed them," said Gary, referring to workers' compensation, TDI, state and IRS withholdings, OSHA, fire inspectors, employee medical benefits, etc. "We didn't understand basic business terminology, such as net, margins, gross sales, COGS, etc. Naturally, things did not go as planned, because we did not have a plan."

Although they manufactured and sold thousands of hand-made umbrellas, they were unable to meet the demands of stores, airlines and private purchases. Seeking solutions, in 1996, Jeri and Gary enrolled in FastTrac II and quickly learned that, although they had a booming business, it was actually costing them money. "It was at this point that we stopped and set a plan in motion," pointed out Gary. "Knowing that our profit margins were minuscule with the hand-held line, we dropped it and focused on the commercial and industrial arena. Our employees quickly adapted, and we concentrated on automating the manufacturing process without incurring an expanded employee base. With our FastTrac training, Tropical J's was able to take on larger orders, profit margins rose, and we went from 1997 sales projections of $600,000 to over $1,000,000."

Hawaii's economy has been difficult for Tropical J's, but they now have eight full-time employees in their Kapalama factory and plan on staying. As Gary sees it, "We're survivors, not only Jeri and I, but the entire company. FastTrac gave us many of the tools to survive and grow in a difficult economy. We now look beyond Hawaii and now consider the Pacific and the mainland our arena. There is a real need for our product, and word of mouth has been our best ally. Jeri and I no longer hire employees; division leaders advertise, interview and hire new employees as required. Delegation has made for a cohesive, motivated company."

"Support, training and good business advice did not end when Gary and I graduated from FastTrac," emphasized Jeri. "Our instructor, Debbie Hallof, was instrumental in helping us through rough times and readying our company for the future. Last year was the most prosperous, the most turbulent and the most exciting time for our company. We now have a good business foundation to grow on. FastTrac was instrumental to the growth of Tropical J's." As Jeri puts it, "FastTrac was a class that neither Gary nor I could have afforded to miss."

Tropical J's quality workmanship can be seen at Aloha Tower Marketplace, Hyatt Regency, Kahala Mall, the Moana Surfrider, Molokai Ranch, even Raffles in Singapore, just to name a few of their customers. To participate in the next FastTrac II class, beginning Thursday, May 14, at Chaminade University, and learn about funding possibilities, call Alix Howard-Jones, at 739-4664.

EXPORT: A KEY TO PROSPERITY
By Richard O. Rowland, Rowland & Alameida

I attended the big "Economic Revitalization Task Force Rally" that the Governor's people conducted on April 6th at the State Capitol. Stood right up there in front with Senator Sam Slom holding my "no new taxes" sign. A few individuals wearing "ERTF 37¢" buttons came over to whisper "right on" to me.

But the Governor's speech gave me a pause. He pointed out that much of the proposed new taxes would be "exported" to tourists thereby relieving me (and you) from paying so much. Gosh. This was food for thought.

One of my neighbors owns a small business in Waikiki. Almost 100% of his revenues spring from tourists. Perhaps, with a little effort, I could "export" my family's electricity bill to him. And, if I did, it really would not hurt him, he would just raise prices at his store and, presto, I would have a bunch of faceless tourists handling my obligation to provide electricity for my family. Even better, the visitors wouldn't even know they were being used for this purpose.

I called a good friend who is very good at electrical hookups and the like. We went out at 2:00 am Sunday morning and hooked my electrical master wiring into my neighbors'. Sure enough, my bill has gone to zero.

Thanks so much, Governor, for the brilliant, practical idea. I am now looking for other ways to apply the creative tax ideas of the ERTF, soon I will be well on my way to prosperity and I will be too busy applying my new found wisdom any time holding a "no new taxes" sign.

Sorry Sam, as the "movers & shakers" say...don't be so negative.

THE BODY TAX
By Ken Schoolland

A: It says right here in the paper that Hawaii ranks as one of the worst states in the country for Selective Service registration.

B: Worst in the country, huh? Does that mean "too high" or "too low"?

A: Too low-of course! And some legislators want to punish those who don't register for the military draft-maybe take away job opportunities or put 'em in jail!

B: Wow! I'm not registered!

A: Not you, lady. It's for 18-year-old men.

B: What? A youngster who isn't allowed to have a beer-you'd make him do your fighting for you?

A: Eighteen-year-old's are better at fighting. And they're more likely to take orders.

B: That's quite a tax on those kids. Do you suppose it's right to have 'em sign up before they know what the war is all about?

A: There's no time to waste. You gotta trust the politicians to act fast in time of war.

B: Do you trust politicians in time of peace?

A: Well, no. But in a war I would. They're sworn to defend the Constitution!

B: Are you talking about the same Constitution that prohibits involuntary servitude and guarantees equal protection of the law to all citizens?

A: Is that in there?

B: Sure is! And the kids read about it in school.

A: Well, you can't take the Constitution too literally. I mean, "involuntary servitude," "equal protection of the law," and all that. Those things need the proper interpretation.

B: Oh yeah, right! That's probably what 18-year-old men are saying about the Selective Service Act as well.