Hi everyone,
Before we begin, I want to thank everyone who read my last newsletter. Special thanks to everyone who liked, commented, and shared. Those little things go a long way to help me grow my audience. Also, a very warm welcome to everyone who has recently subscribed, with extra special thanks to those who chose a paid subscription. I hope you will all continue to have interest in my work, and that I can inspire you to engage with and support my work even more. This project can’t happen on my own, regardless of my passion, my drive, my experience. I need your help.
This newsletter might be a bit of an over-share, but let’s get started.
The idea of this newsletter was to introduce myself to a wider audience, and share my experience of trying to start my own bakery. For those of you who have been here from the beginning, you’ll be familiar with most of the steps I’ve taken to get to where I am today.
For someone with imposter syndrome, progress is such a wild thing to become aware of. I’ve described the feeling as someone hiking a mountain trail with their head down, never aware of the beauty around them or how far they’ve gone. It’s our own internal struggle. In different shapes and forms, something I’m sure we all have to a degree. It’s a crazy feeling to lift your head up and look around, and realize how far you’ve come.
It was mid-October of last year I viewed my first space. It’s the corner spot of Rupert and 22nd, it’s still for lease. That’s how long I have been working with a designer, a real estate representative, a lawyer, and a banker. It took seven months of looking for the right space and negotiating on terms to sign a lease. During that time my financial projections and business plan would change and become more refined. When I moved my plan from Main St and 36th to where it is now at 338 Powell Street, I had to reduce projected revenue and re-imagine what business would be like in the DTES. Operating expenses are lower in the Downtown Eastside than they would have been in Little Mountain, so the lower revenue didn’t impact the bottom line very much.
In January, before I had raised any capital through investors, the banks told me they couldn’t finance 100% of a project. Makes sense to me. My financial advisor told me a few years ago that lenders will look for 25-50% owner contribution. Back in January, there was also an error on the spreadsheet, and was showing a negative net income and cash flow on the first year. It was a formula error, and not a problem with the projections. I fixed it and sent it back to the bank manager helping me with my loan application. In February, after looking at my personal net worth, credit score, and new projections, the banks told me I was eligible for up to $250k. Before we could go through with the loan application, I had to have a signed lease. Looking back, this wasn’t the only way to proceed, they could have offered me a ‘delayed draw’ so we could have applied for the loan much earlier than the funds were actually required. I would have been better to go this route, but at the time I didn’t know it was an option.
After signing the lease, we applied for the loan. As soon as the loan was applied for, the tone of the banks changed. Even though I had 50% of the capital investment required, I didn’t have anything to fall back on because I am putting everything I have into this business. I don’t own my house, but they knew that. They lowered the eligible amount by half, and we are re-applying.
Having things go this way after signing the lease has been unsettling. Luckily, I still have confidence in my plan, and believe I will be able to find the right bank to partner with. I feel a lot better after having had a phone call with my financial advisor.
I’ve not given up on BMO, and hopefully this current loan gets approved. Failing that, later this week I have meetings with Vancity and with the Futurpreneur program through BDC. One thing is clear, there will be a financial gap that I will have to fundraise for. That’s where you come in.
I am launching a GoFundMe campaign to raise a minimum of $20,000. I need this to make sure that I have all the pieces in place, and am able to get this business off the ground. In the scenario it takes some shopping around to find the right bank, this fundraiser will help build confidence with the risk manager and show that I am capable of filling the gap. Your support can help insure Tommy’s Whole Grain bakery is a community success.
In the coming days I will announce an incentive program for donors. Subject to change, my idea is:
$250 = Merch designed by A More Colourful World
$360 = Weekly Bread Subscribers Club ($450 value)
$500 = Zoom seminar on grains and baking
$1000 = Buy a Brick - Have your name or the name of your organization written on a brick behind the counter.
$5000 = Founders Club - please inquire
I have a lot more to share and say on this, but will leave it here for now. I hope you are excited by the idea of Vancouver’s first whole grain bakery, and I hope you are able to make sure it becomes a reality. Please click here to donate now.
Thank you for reading all the way through. Please continue to like, comment and share. Please donate and encourage your network to do, as well. I know what’s possible when we have our community behind us, and now is the time to get behind Tommy’s Whole Grain.
Looking forward to baking for you soon. With love and gratitude, Tommy.
PS. I’ve also started a business Facebook page. Please follow and share.
Awesome newsletter and journey Tommy! I love your analogy of imposter syndrome and hiking. Everything you pass will set you up with a stronger foundation and greater resilience. Keep moving forward!