open book: financial planning

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OPEN BOOK A Pratal Gude to Busess Growth

F i n A n c i A l P l A n

n i n G—

EcOnOMY nOW —Strategies or success in today’sunique fnancial climate

OUR EXPERT —

Raymond Joabar on making plansnow or a brighter uture

cARDMEMBER

STORiES —

An insight into the business tacticsbeing employed by your peers

> American Express OPEN SM is dedicated exclusively to serving business owners,not only by providing valuable payment

products, but also by providing expert advice to help you grow your business.Simply log onto OPENForum.com tolearn more about these resources and to connect with other entrepreneurs to

grow your business.

www.OPENForum.com

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cARDMEMBER STORY —

Warren BrownCAKELOVE



FINANCIAL PLANNINGin a cyclical economy, a careully consideredinancial plan is your primary asset, allowing

you to emerge stronger rom uncertain times

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www.openforum.com/openbook



4 5financial planning —cOnTEnTS

financial planning —MaSTHEaD

caRDMEMBER STORY gROWTHTexas Driving Experience is a business

in the ast lane. But what steps are necessary or an already successul company to keep growing?

caRDMEMBER STORY plaTEaUWith ve bakeries and a caé alreadyopen, CakeLove is a thriving brand.We discuss the next phase with CEOWarren Brown

caRDMEMBER STORY EXiTHanding over a business you have built

up over time calls or careul planning. At Florida-based Airparts Company Inc.the succession plan is a amily afair

EcOnOMY nOW Nothing is more important or asuccessul entrepreneur than an

understanding o how best to respond to macro- and micro-economic trends.We reveal the key strategies to consider

OUR EXpERT financial planning How can you maintain your businessduring uncertain times? OPEN Expert Raymond Joabar presents his guide tostaying ahead o the game

caRDMEMBER STORY STaRTUpKid Car NY is revolutionizing the way

children travel in the Big Apple. CEOTopher McGibbon explains how he got his show on the road

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Edited and Produced by

Wkrete611 Brodwy Sute 632new York, nY

10012 www.wkrete.om

Creative Director — TYlER BRûlÉ

Managing Editor — JEnnifER MalEaR

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Designer —MaDS TØRK

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Sub-editors —anTHOnY BanKSlaURa vOgEl

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For American Express OPEN SM —aMY fiTzgiBBOnS

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14 15economy noW — this price isn’t quite right

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16 17

EXPERT INTERVIEW With the economy taking some hits recently,raymond Joabar oers his take on hoW you canmanage a resilient business through ups and doWns

open eXpert —inancial planning

Illustration:Noli Novak

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Name:

Job Title:

Description:

Member Since:

raymond Joabar senior vice president,product managementand developmentleads the creditcard portolio andmanages line-o-credit products

1992




18 19CARDMEMBER SORIES —SARUP: KID CAR NY

STARTUP:KID CAR NY YOU’vE hI ON A wINNINg BUSINESS IDEA – BU SARINgUP IS OEN hARD O DO. hE ENREPRENEUR BEhIND ACAR SERvICE OR KIDS REvEAlS hIS ROUE O SUCCESS

Mcgibbon asn’t aays soconinced o Kid Car NY’s iabiity. A natieo Atanta and an aumnus o CoumbiaUniersity and te Ross Scoo o Businessat te Uniersity o Mician, e reieedU.S. census data a ter is initia conersationand discoered tat ony 20,000 cidren ere born annuay in Ne York City at tetime: “It asn’t enou,” e says. “I et te

idea o and ent back to te tec ed, icis at I’m trained in nancia sotare,product marketin.” But a perect storm o circumstances caused im to reconsider. Ne York state a raised te mandatory car-seatae rom our to seen, eectiey doubinis potentia market; and Ne York City’spost-9/11 baby boom increased te numbero under-e-year-ods by 30 percent, ie,at te same time, roin numbers o parents ere optin to raise teir cidren in te city rater tan miratin to te suburbs. “lo andbeod, tis as no a reat market,” saysMcgibbon. “Tis as a ae tat e’d be

perecty paced to ride.” o raise te needed unds or KidCar NY’s eentua aunc in 2006 Mcgibbon

canassed od i scoo riends and puttoeter a roup o inestors, ot a oan romte Sma Business Administration, andbout startup equipment on credit. “I’m 34no, and I as one o te e peope ostarted my on enterprise rit out o businessscoo, and it made capita-raisin tat mucmore dicut. we on our cars and don’tuse independent contractors, and it costs me

$30,000 to put a car on te road not eencountin driers or trainin. So debt is a acto my ie and I don’t aays seep tat e.But, ten, tis is te ie o an entrepreneur,”e says it a rin. “I take reserations, I etbeind te ee, I’ make te coee. I’ do ateer I ae to do.”

Kid Car NY rates rane rom $28or a sine journey itin Manattan to$100-pus or an airport run. As Mcgibbonexpains, en you ire one o is uxury Nissan or honda minians (a in maroon,“to mark us out rom te eions o back on Cars”), tey come compete it

speciay trained driers o ensure tat seatsare propery instaed (as opposed to te 90percent tat te Nationa hiay rac

Saety Administration estimates are not), tusbuyin conenience and peace o mind aon it te ride. Tat may o some ay to expain y Kid Car NY currenty as undreds o oca amiies on its member database, tou,says Mcgibbon, “tat doesn’t incude teamiies tat isit Ne York City rom itinte U.S. and abroad.”

Mcgibbon on’t reea o many

cars or empoyees Kid Car NY as “mosty or reasons o competitie adantae,” esays but indications are tat te sericeis ourisin. Extra serices suc as KidCar Ater Dark, Kid Car MD (or pediatricappointments), Kid Car Brookyn and Kid Carhamptons (or isits to te beac) ae beenintroduced. Aso, Mcgibbon as been ndintat parents and ne moters in particuar appreciate te serice een more tan teirkids do “It essens teir sense o isoation,” esays. “we et tem beyond te tenty bockstat eery ne parent tends to stick, oer to,say brunc parties in Soho. we’re aoin

riends to reconnect; tere’s denitey a sociaeement to it. It’s part o te reason tat ourmotto is ‘get Out and go.’ ”

Six years ao, ie ain brunc in Ne York’s ime Caé, oper Mcgibbon asit in te ace by a piece o buttered afetron by a todder at te next tabe. Insteado ettin irate, Mcgibbon as inspired.“It as a Netonian moment or me,” erecas. “I as sittin it some doctors,and it prompted a conersation about saetransportation or youn cidren; I ound

out, rsty, tat te Ne York state a mandatin tat cidren under te ae o ourbe restrained in a cid-saety seat didn’t appy to taxis, and tat oer 2,500 cidren ereinjured yeary in taxi-reated crases. Secondy,I earned tat most U.S. ospitas require tatneborns eae te premises in a car seat. Tat’s en te idea as born.”

oday, Mcgibbon is te CEO o Kid Car NY, a Manattan-based car ser icedesined specicay to isk neborns omerom te maternity ard, and teir oderbroters and sisters beteen pay-dates, tutorsor piano practice, in saety-seated spendor

(aon it parents or careiers, o course “we don’t take unaccompanied kids or parents,” says Mcgibbon it a smie).

Name:

Company:

Founded:

Location:

OPhER McgIBBONKID CAR NY 2006NEw YORK, NY

Text: Stuart HusbandPhotography:Mackenzie Stroh




20 21CARDMEMBER SORIES —SARUP: KID CAR NY

eery day, and it’s od or a business ike tis.It’s aoed us to et to ere e are today.”

Mcgibbon baances suc deity aainst risin as prices and tak o a nascentrecession, and is cautiousy optimistic aboutte uture. “I can’t ie out numbers,” esays en asked about burn-rates, “but our eices are amost at te point o payin or

temsees. Our reenues are coerin our ariabe costs and oin a on ay toardcoerin our xed costs. I anticipate us beincas-o-positie itin 12 monts.” wit

a scaabe mode, e oats te possibiity o Kid Car Boston, los Anees, San rancisco,or wasinton, DC “cities it ier caronersip but perennia parkin probems.”he’s een ad inquiries about te possibiity o erryin cab-ary seniors around Manattan. Yes, e concedes, tey’e ad to raise teirrates to coer as price ikes, and a coupe o

peope ae nixed te serice as bets titen.“But e’re a uxury tat quicky becomes anecessity,” e says it a smie. “Peope makean emotiona connection it our driers andour serice. It’s not on beore tey ondero tey eer ied itout us.”

Suc is Kid Car NY ’s customeroyaty tat enou ae sined up to te $300 yeary membersip ee to enabe te company to manae its rot. “Because o our nice, e can ro oranicay and e don’t ae tobuy 50 cars at a time,” says Mcgibbon. “wecan reac te maic number o sin-ups andadd a eice tat’s uy utiized beore it een

its te road. Tat dierentiates us rom eery oter car serice in te ord.” Moreoer, tecompany is currenty nisin up its secondcapita-raise, nanced amost oy rom itsmember base. “Our aitin ist ent up romabout 25 to around 100 amiies at one point,”says Mcgibbon. “we ere approacin aneroups and een oca inestment unds but e ere eiter too sma or too o-tec. So ourmembers stepped in; tey said, “OK oper,I’ rite you a ceck.” we’e ot seera sets o parents inoed in tis next round. Tey kno tat e oer sometin specia. I tey poneand need a car immediatey, but e don’t ae

one or, say, 20 minutes, tey’ say OK; it’smore important or tem to kno teir kids i be sae tan to stick to a scedue. Tey’reprepared to accommodate us. Tat appens

OPPOSITE PAGE ABOVE

Dorian White at the control center

BELOW LEFT

Keeping the back-seat drivers happy

RIGHT

Door-to-door service,Kid Car-style

SARUP CONSIDERAIONS —

Eary stae companies aays reste it te perennia question: were is te money oin to come rom? indin te rit sources o unds tat are bot pentiu and exibe iscaenin, een in te best o times. Be sure to consider te ooin actors en startina ne enture:

1. Your personal credit record is important. Can you aord to borro to support a ne business?Secure some credit beore you quit your day job.

2. Explore both leases and loans. I your startup requires eices or equipment, you i ndenders iin to nance tese items because tey act as ood coatera.

3. Look around for investors and partners. It takes a on time to nurture inestor reationsips,so start eary and be persistent.

4. Nothing helps a new business thrive like strong sales. work ard to baance inestment in ne capabiities it rea demand rom te marketpace. I you buid it, tey may not come.

5. Consider how your company will be impacted in times of economic uncertainty. Is tere a stron enou need or te business you’e created?

6. Hold something back. Prepare a one-year budet tat eaes you it a ood cusion in tebank. Tins usuay take tice as on (and cost tice as muc) as you expect.

7. Register your business with credit bureaus suc as Dun & Bradstreet, Experian or Equiax. iout te basics about your company and ask your endors to report your payment record. Te more inormation tat creditors can obtain about your business, te more ikey itis tat you’ receie a aorabe decision rom tem.

FOR MORE INFO ONKID CAR NY SEE:

www.kidcarny.com




22 23CARDMEMBER SORIES —GROWH: ExAS DRIvInG ExpERIEnCE

GROWTH:TEXAS DRIVINGEXPERIENCEDAWn SOkES, CEO OF ExAS DRIvInG ExpERIEnCE, AlkSABOu HOW HER BuSInESS IS GROWInG A A RAE HAOupACES EvEn HER yEllOW CORvEES

schoos as a otet or job-reated stress. “Iqic saw the ae o these schoos, bothas a wa o ettig o steam ad o maigbetter driers o eoe,” she sas, i ebiettoes. “I got caght i a wororce redctioi 2003, b which time I was married addiorced, ad the mother o a og so. Ideite et ie I was at a trig oit. Icod hae carried o i the cororate word,

bt m etrereeria sirit was eadig mei a dieret directio.”Stoes’s decisio to marr a hobb

with a assio was arge isired b theact that 6,000 teeagers die i car-reatedaccidets i the u.S. eer ear. “Tat’s aitoerabe statistic,” she sas heated. “Ithoght, do we ot reaize the otetia we’re osig?”

Ts red , Stoes droe ot to eas Motor Seedwa, waed i, ad itchedher idea, which she’d christeed SkIllZ – orlie. “Te were’t imressed,” she sas witha agh. “I thoght it was goig to be eas becase I was goig to sae the word, bt the soo t me straight. Te said o’ eed $5miio-worth o israce or a start. Ad I’d

doe o costigs ad had o bsiess a. Asa woma, it was hard to get them to tae meserios at rst. It cod get rea rstratig whe the’d address remars to m maeemoees rather tha me. It was a imortatad dict esso, bt it’s heed me i otherstrategic artershis.”

o roe her seriosess, Stoescashed i her 401 (“I ow,” she sas,

aghig, “o are eer sosed to do that ”), wet MIA rom her accotat ad aciaadisor or a ear ad a ha, ad re-sod threeeets beore she ee had a cars. “I wasicredib bish,” she sas. “Bt it was cearto me rom the start that a tee driig schoo was goig to be a hard maretig se. It had tobe coo eogh to stad ot rom traditioaDriers’ Ed, bt at the same time it had toreassre Mom ad Dad, who were reaed otthat their ids were comig to a racetrac.”

o raise serios cash, Stoes started aserice aimed at eoe ie her ormer se –cororate thri-seeers. “It’s a tota adetreor the CEO or the eectie or saes team,”she sas. Withi moths o settig easDriig Eeriece, Stoes was edig

cas rom Forte 500 comaies seeig ateam-bidig eercise or their wororcethat wod be a itte more white-ce thago or ait-baig. She saw the mber o eets rise rom 12 i 2004 (at which time she was o i bsiess or a ew moths) to 150i 2007, with amost 200 aed or 2008.Reee has aso icreased eoetia, rom$153,000 i 2004 to $1.5 miio i 2007; this

ear DE is o target to hit $2.3 miio. Wiig the Mae Mie A Miio$ Bsiess rogram, desiged to he emaeetrereers grow their bsiesses witha combiatio o moe, metorig admaretig, was e to heig eas DriigEeriece to ass that magica miio-doar gre i aa reee. “Mae MieA Miio was tr the best thig that eerhaeed to this coma, beams Stoes. “It aidated who we were ad got s tae a otmore serios. ”

O a tica weeed ateroo atthe Seedwa, the rage o eas DriigEeriece’s actiities is readi aaret.A team rom a ace coma which hashired the Corettes is rios high-ig

“I’e bee a car oo or as og as I caremember,” sas Daw Stoes. “I’e awas hada eed or seed.”

As Stoes seas, a feet o te eow Z06 Corettes race ast her. Ad whie the do’t itera hae her ame o them, the hae the et best thig – the ame o hercoma. eas Driig Eeriece (DE),a racig academ ad sae-driig schoo,

is ocated midwa betwee Daas ad Fort Worth, amid the imressie srrodigs o the eas Motor Seedwa. Tis 1,500-acresite boasts a 1.5-mie trac with 24-degreetrs ad a 200,000-s seatig caacit. “It’sacta the secod biggest sorts aciit ithe States, ater Idiaaois Seedwa,” sasStoes. “Ad I’m rea rod to be a art o it.”

I the etite, bod Stoes cts aicogros gre i these brt-rbber,testosteroe-hea srrodigs, she’s qic to assre that she’s right at home. She stihas the rst car she eer boght whe she was 14 – a 1963 coertibe Corair MozaSder, ow “retired” to her garage. Drig herreios ie as a harried heath-care eectie,she eroed i high-erormace driig

Name:

Company:

Founded:

Location:

DAWn SOkES ExAS DRIvInGExpERIEnCE2004FOR WORH, x

Text: Stuart HusbandPhotography:Ture Lillegraven




24 25CARDMEMBER SORIES —GROWH: ExAS DRIvInG ExpERIEnCE

coma-owed ehices,” sas Stoes. “Adthe’re er ee o the team-bidig sideas we. As times get togher, comaies watto iest i their emoees ad retai theiroat. So we’re eectig teams o thirt eoe ot here at east three times a wee.It has the biggest growth otetia o a oroerigs – it’s rojected to add oer $100,000

i bottom-ie reee this ear, with a$250,000 goa or 2009.”Stoes aso has her ee o hsica

easio o the bsiess. She’s beeased to reicate DE i other America ees icdig Motere, Caioria, as we as Dbai ad Bahrai i the MiddeEast. “Seedwa Motorsorts, Ic. owsad oerates see tracs, icdig eas Motor Seedwa, so there is mchotetia or other ocatios. Te growthhas bee stead to ow, bt the feet-saet side shod tae thigs to a whoeew ee ad oe a oad o ew

oortities. It’s a rett ecitig timeor s.” Whie eorig the otios, she’saread secred the aroriate state domaiames – foridadriigeeriece.com,

caioriadriigeeriece.com, etc –“so that, i we eer eed ‘em, the’re read togo!” she sas with a gri.

Does she sti ee the eed or seed?“Absote,” she sas beamig. “Bt

ow I do’t ee eed to get i a car to get it.Rig this coma is so cttig-edge; m adreai’s jst fowig a the time.”

ater a reetic si rod the ied trac with DE’s driers. At the same time, theSkIllZ schoo is taig tees throgh theitricacies o wet-road driig, taigatig, adthe ABS braig sstem i their brad-ew oota Scios. Te cars are at embazoed with the eged “Driers’ Ed Was neer lie Tis!” Stoes cogratates the cororate riders

as the remoe their hemets ad mae or DE’s soeir traier; she the moes oto gie a rosig e ta to the tees. “It’ssti the art o the coma that I’m mostassioate abot,” she sas o SkIllZ. “Weget etters rom eoe saig we’e robab saed their ies becase o the thigs we’etaght them. Tat’s a rett big icetie toget i the morig ad come to wor.”

As it aroaches its orth ear ibsiess, eas Driig Eeriece is ooigor ew growth oortities. I Je o 2008, Stoes iagrated the SkIllZ – orlie Feet Saet raiig rogram, i which

some o the giat oi ad eerg comaiesbased i the area wi sed their driers to DE to brsh their hadig sis. “It’sthe tee schoo, traserred to driers o

ABOVE Instructor George Shepherd impartshis experience

LEFT

Te feet at rest

OPPOSITE PAGE LEFT

Dawn Stokes with arevved-up customer

OPPOSITE PAGE RIGHT

Proessional driver Josh Gilbert

GROWH COnSIDERAIOnS —

periods o ast cororate growth ca be ahead time. new oortities seem tobe eerwhere. It’s temtig to t theeda to the meta ad grow, grow, grow.Growth, howeer, ca be a serios drai

o cash, ad ma aso imact rots i was o do’t aticiate. Beore o siot o cotro, cosider these oits:

1. Ensure that your new venture won’t place

undo strain on the overall business. — Wi the ew oortities be asrotabe as the core bsiess? How og wi it tae to ram saes o a ew rodct ie or ead to aew territor?

2. More salaries, rents and utilities can ampliy

cash needs. —

Wi the core bsiess be abeto roide eogh cash to coerboth the iestmet i ew growthoortities, as we as a otetia osses?

3. Growth investments can decrease profts or a

number o years. —

I baers or iestors are ooig orbottom-ie rests, the are ie toactor i o-oeratig eeses schas dereciatio or amortizatio

4. Spending or the sake o growth should yield a

good return on investment (ROI). — Do o ow what retr oriestmet is brigig or ie tobrig? I o hae seera otios,iest i those that are ie toroide the highest growth otetiabased o the mbers.

FOR MORE INFO ON

TEXAS DRIVING

EXPERIENCE SEE:

www.texasdriving

experience.com




26 27CARDMEMBER SORIES —PlAEAu: CAKElOVE

Plateau:CakelOVe YOuR BuSInESS hAS hI IS SRIDE, Bu hA DOESn’MEAn YOu CAn RES On YOuR lAuRElS. wARREn BROwn,CEO O CAKElOVE, IS PuShIng On ROM hE PlAEAu

te love Caé, atray – i te Maryad/Viriia/D.C. area (a sixt ocatio, inatioa harbor, Maryad, i ac atertis year). he as o meros accoades,icdi DC’s Sma Bsiess Perso o te Year Aard i 2006, pbised CakeLove:How to Bake Cakes from Scratch, ad as aood netork baki so caed Sugar Rush.Opra as aded im, bt is most oi

testimoias come rom te kids e teacesi is Itrodctio to Baki casses ed atis Siver Spri, Maryad, ocatio (“Yorcakes ere so ood, I ated to marry tem,”six-year-od Saa, rote, etsiasticay,i te cass estbook). Bro is iciedto dopay is acievemets, oever.“I’m oeri at’s aready e-ko, btI’m jst maki it a itte better, by site resest irediets,” e says. “It’s otrevotioary, it’s jst back to basics. Bt I’mopey etti peope red p abot ood.”

Bro as aays appreciated teee-ood actor i ood; he re p otsideCevead, Oio, ere, e says, “My momaays ecoraed s to cook, ad I reay et a sese o accompismet i prodci

a amiy mea. wit baki, i particar, yokid o srreder yorse to te process; tepreparatio ad presetatio is so meticos.”

Bro’s rea cake epipay came e e as erryi oe o is omemadecocoate oeris to a amiy-reiodier back i 1999. “Peope at te airport,compete straers, ere comi p to me adpracticay cooi over tis ti, sayi, ‘Yo

made tis rom scratc?’ ” e recas. “It asike avi a adorabe cid or pppy i to.I as etti te same reactio o te pae,ad I’m tiki: OK, i tis is at appes it oe cake, at od appe i peope ere ecoteri oe seves o tem?”

At tat poit, Bro as aboriat at e cas “a job I did’t reay ike”– ater eari a B.A. i istory at Broad a Master’s i pbic eat rom geore wasito uiversity, e’d become aitiator i eat-care rad. “I as jstot o a scoo, I’d jst broke p itmy irried, ad I as oe o miios o ayers i D.C.,” e says. “I et I ad moreto oer, so I od myse cosideri tebakery idea reay seriosy.”

wit ait tat i e baked it, tey od come, Bro started prodci seveto te cakes a eek ot o is apartmet,i tadem it is a practice – a baki/itiati orkoad tat brot o aER visit or exastio. wit mometmbidi, e took ot a $125,000 bak oaad opeed is rst Cakelove – it teapt motto: “Cakes rom Scratc” – i D.C.’s

p ad comi u Street corridor (Bro is apropoet o rba ecoomic deveopmetad ooks to make a impact ere e ca).It set te tempate or te Cakelove empire:a iterior tat’s bot compact ad airy, erecstomers ca order persoaized cakes ad atc te ayeri ad ici process i actio.Etsiastic ad koedeabe sta prody ear Cakelove -sirts – “Make Cakelovenot war” bei a particar avorite. “Terst sop took o amost immediatey,” saysBro. “Bt I ke it cod i I stayed ocsedad did it rit. Becase o my reaxed attitdepeope derestimate o mc tis oe vetre as cacated. My idea as to ocssoey o cakes. Tey ave te best maris,so y aste yor time o oter tis?”

It’s a brit spri day o te aterrot o Batimore’s amos Ier harbor, bt it’sot jst te s tat’s brii a smie to teaces o te patros o a it, airy ad ky ood emporim o Bosto Street. oodiessca te ros o cpcakes i motatericombiatios (jst a taste: cocoate-raspberry, straberry-vaia, ime-emo).Aso o dispay are ormidabe straberry

ayer cakes oozi bttercream ici as eas a particary eta-ooki cocoate-ad-aace cococtio, apty amedMy Decadece. Te cstomers’ raptrosexpressios te a simpe story.

we’re ere at Cakelove, to meet38-year-od warre Bro, te compay’scarismatic oder ad CEO. “Peopeassociate cake it ceebratio, ood eeis,ad memories,” e says, as a ite-aired oma practicay skips ot o te sop ita are sice o Cytia’s Si (a deicioscombiatio o cocoate, carame ad peatbtter). “It’s a reay reardi ti.”

It’s certaiy proved so or Bro.Sice Cakelove’s odi i 2002, e’sopeed ve ocatios, ps a caé – amed

Name:

Company:

Founded:

Location:

wARREn BROwnCAKElOVE2002 wAShIngOn, DC

Text: Sr HsbndPhotography:Mcnzi Sroh




28 29CARDMEMBER SORIES —PlAEAu: CAKElOVE

watever te tre ods, Bro’saready prod o at Cakelove’s acieved.“My sister says I se memories,” e says, takia ibbe o a cpcake. “Most peope taste tisst ad tey’re rit back to teir cidoods,birtday parties, ood times. Maki temappy makes me appy. So, eter e aveseve stores or seve dred, I’m codet

tat e’ be sticki arod.”

(or tis reaso, e says, e o’t be opeiaoter love Caé, ic ses sadicesad savories aoside te cakes: “It’s toocompicated ad it dites te brad.”)

grot as come at a moderate pace– Bro opeed oe e Cakelove ocatioa year or te rst e years, it te asttree comi i te ast ie mots – ad,

so ar at east, is prodct seems impervios toecoomic teeteri. “Or core cstomers do’treard cake as a xry; tey reard it as aessetia part o teir ives,” e says, rii.“I’m amazed by te breadt o te cstomerbase – e et yo ad od ad a sapes adsizes, ad e tey d a cake tat’s oodtey’ ot oy come back or more, tey’pass te ord o. Most o or exposre, adte oter opportities tat ave come my ay ike te V so, are a de to ord-o-mot.” Peraps peope are aso respodito te ree vaes tat Bro esposes; treeo is stores ad is ofce are poered by

eectricity eerated rom id trbies (“I’mooki to et more eaviy ivoved i id-poer as te bsiess ros,” e says), ierecyci o ass ad cardboard is madatory,ad cstomers are (ety) dissaded romsi pastic bas.

Bro does’t ive ot ay aciares or te bsiess – “let ’s jst say e’reprotabe, ad te bak ikes s,” e saysarcy – bt e cocedes tat e’s o ot tebase e eeds to cotie to ro – i tat’s at e ats. “Peope say, ‘O, yo sodrab moey rom a ric ivestor ad add 700stores i ve years,’ ” e says it a smie. “I’m

ot compeed to try tat. I at to keep tecompay i my o imae, to ave my orecipes, my imprimatr o it,” says Bro.“I’d ike Cakelove i paces across America,beyod its borders, eve, bt I at to keepte qirky ee. It sod’t et too biqitos;it sod be a pace tat peope ee tey’vediscovered.” he sakes is ead. “grot is acaei ti, particary e ood adas prices are kii s. we’re avi to raiseor prices, ic makes me more catios –istead o opei aoter or to six storesext year, I’m tiki it mit be jst oe. Attis poit, I’m ised it major cas otays.I’d rater peope came to me.” he adds it ari: “Ater a, e yo do’t ro is e yo ca actay ejoy te prots.”

OPPOSIte PaGe tOP

Warren Brown spreadsthe love

OPPOSIte PaGe BelOW

A cornucopia of cakes

leFt

A deliciousbirthday surprise

BelOW

Customers at CakeLove’sCanton, MD, store

PlAEAu COnSIDERAIOnS —

Matre compaies ave iced te process o providi vae to cstomers, o te bsiesssod be ted to meet te eeds o te oer. Cosider te ooi poits i yorbsiess as reaced patea stae:

1. Rsrcr fnncs or cos svings. — A matre bsiess is i te eviabe positio o bei “bakabe.” ake advatae o tis by ocki do oer rates ad seek biercredit ies.

2. Wihdrw som csh. — use te improved acia strctre to move some cas ito yorpersoa ie. It’s abot time te bsiess started payi yo back or yor oriiaivestmet… it iterest.

3. Ngoi wih vndors. — wit size comes priviee. no is te time to step back adreevaate yor prcasi poer. go or better prici ad oer paymet terms.

4. Invs in fcincy. — Improve yor tecooy ad prade yor eqipmet – bt oy ere it i ave a impact o efciecy. ry to cetraize ad cosoidate processes ere possibe.

5. Sv whr possib. — Bid a ar cest or tre rot ad acqisitio.6. Posiion or xi. — Is te bsiess te best size to iterest a strateic byer? id te

optima size ad becmark yor acia perormace aaist recet acqisitios,competitors or idstry eaders.

7. thin bo sccssion. — o om i yo pass te bsiess? Start roomi a ieteato. Bid a trsted team o maaers o ca r te pace itot yo.

FOR MORe INFO ONCakelOVe See:

www.cakelove.com




30 31CARDMEMBER SORIES —EXI: AIRPARS COMPAny InC.

Exit:AiRPARtS comPAny inc.hOw DO yOu RAnSIIOn A BuSInESS yOu hAvE SPEn

yEARS ShAPIng In yOuR Own IMAgE? In hE CASE O AIRPARS, yOu MAkE PlAnS O kEEP I In hE AMIly

ater, Airparts boasts oer 50 empoees, aetor o 1,200 deaers ic proidesa coz csio o 8,500 cstomers i 70cotries icdi most o lati America,Erope ad Arica, as e as Paista, Israe,ad ee Papa ne giea, ad reee o approximate $43 miio per ear. “It jstoes to so at a itte determiatio cado,” sas Marta, it jstiabe pride.

Mae tat determiatio spied itca bsiess acme. Marta bea Airparts e se ad er rst sbad, a piotooi or or at Cessa, et teir atieAretia or kasas. “wicita as aasbee te air capita o te ord, ad asa maet or piots bac te,” sas Marta.“Cessa, learjet, Beeccrat ad Boei area based i te to, ad tere as a ot o trac betee tere ad lati America. Ioriia sod tis ie eadpoes adsasses to te piots, bt te te startedasi me i I cod et od o tires, braes,e pmps ad sc, to ep tem sericeteir paes. Te spoe o Eis, so Iacted as a broer or tem. Tat’s o tebsiess oriia ot o te rod.”

Beid te odescript açade o a o-s bidi ear ort laderdae Airporties a treasre troe or airpae etsiasts.hdreds o pae compoets are stacedo foor-to-ceii sees; te pacaesad boxes boast sc obscre prodcts as“Aex Riets,” “vae Coer gasets” ad“Mose Mi lbricat.” rcs sttecostat betee te oadi ba ad te

earb ras. Tis is te eadqarters o Airparts Compa Ic., oe o te oremostu.S. oesaers o parts ad eies or teeera-aiatio idstr.

upstairs, i a oce adored it oode modes o te jets ad paes tatmae p te compa’s maret – Cessa,haer Beeccrat, learjet, Piper – sitsAirparts’ ie CEO, a brit, ioros oma amed Marta Maxe. next to ersits er dapper, coiia sbad geore, tecompa’s ice-presidet. Marta’s cidre,Ad ad Em, Airparts’ saes maaer adeera maaer respectie, oersee te dai comis ad ois; tis is te epitome o aami bsiess. Airparts bea ie i Marta’sarae i wicita, kasas, i 1963; 45 ears

Name:

Company:

Founded:

Location:

MARA MAXwEllAIRPARS CO. InC1963OR lAuDERDAlE, l

Text: Suar HusbadPhotography:makeze Srh




32 33CARDMEMBER SORIES —EXI: AIRPARS COMPAny InC.

It’s tis attetio to detai tat’s o Martate meros bsiess-eadersip aardstat ie or space it te mode paes ote compa’s sees, icdi te SmaBsiess Perso o te year (u.S. SBA orkasas) i 1989 ad Exporter o te year(u.S. SBA) 1988.

“we ae’t bee 45 ears i te

bsiess itot eari a ti or to,” seopies, a tie i er ee.Marta married geore Maxe,

a aeroatica eieer o’s aso a piot,i 1982, ad te reocated te mai part o teir bsiess to ort laderdae ie stimaitaii a sbsidiar oce i wicita. Temoe to orida as coeiet o to cots– ma o te sma jets are o maitaiedo te East Coast, ad te Maxes ad aee o teir eeta retiremet. hoeer,Marta ad geore are’t abot to f teirCitatio jet ito te sset jst et. Te stiassidos atted te oce ad pa a cetra

roe i compa decisio-mai. Bt teirexit strate as aas bee to ad tecompa o to te ext eeratio. Ad asbee tai te compa ito e territories,Brazi ad Mexico tis ear, possib Aretia ad Paama ext. Em as a dereei bsiess admiistratio ad is i care o Airparts’ aces.

“we’re opi tat te ids i taep te mate,” sas geore, as Ad ad Em joi tem at te coerece tabe. “we ae’tacta ored ati ot orma et. Btte otoo or te idstr is ood. More admore peope are deserti te major airiesad si te priate jets ad trboprops ose parts e se, ad, becase or bsiessas aas bee predomiat export, eae some protectio rom a dotr ite u.S. ecoom. Or orders are er eat,tas to te ea doar; domestic saes arestead bt orei saes are boat. Ad e’reaas ooi to etre ito e marets; asoe maret drops, aoter – Rssia or Cia,or exampe – rises.”

or tese reasos – ot to metiocotii rot o arod 20 percet a ear – tere’s bee a ot o otside iteresti te Airparts brad. “we’e ad seeracompaies ca s, expressi iterest ibi s ot,” sas te pramatic Em. “Bt e’re jst ot iterested at te momet.”

“I someoe comes ao ad oerss $200 miio, I’m ot sre i o’ dtese to ori i Airparts a oer,” isgeore’s r ie o a potetia bot.

“Bt i te meatime, or prospectsor iteratioa rot are s-i,” oersAd, o as ierited Marta’s ormer roeo iitiati e coectios ad bsiess

partersips. “Eer time I trae, peope as me, ‘we are o oi to ope p ere?’not o are e a oe-stop sop or tesecompaies, e aso ae a cast-iro reptatioor oest ad probit. Ad tat’s priceess.”

Most o tat reptatio, as Ad adEm are qic to acoede, rests o Martaad geore’s teacios drie ad persoacarm. Bt te ami is aci te prospecto te cae o Airparts’ pricipa cre iteqaimit. “Te most importat esso I aeeared i bsiess is tat te ame o te ameis riedsip,” sas Marta. “yo eed to et too te ocas ad teir cstoms ereer o

se, ad oi te bsiess ees, ad Ad isreat at tat, ie Em eeps a tit rei o orexpeses. I o tat it tese to, te treo te compa cod’t be i saer ads.”

hoeer, tere as some iitiatrbece to eotiate. Marta diorced i1969 ad as aarded te fedi compa as part o te settemet. Se od erse it to o cidre ad bas tat ere ess ta etsiastic abot er pas toexpad te bsiess. Oe maaer acta adised er to ope a beat paror istead.ortate te ice presidet at er oca

ba, o, as c od ae it as asoa oma, rated er te oa se eeded.It proided a boost to te cas fo o tebsiess ad as te e to its sccess. “I e tere as a maret, ad o oe as seriit,” sas Marta. “I et ot ad ctiated tepersoa reatiosips it te piots ad teair compaies.” (Ideed, Marta’s mtiiabarbeces became eedar i piot circes.)“Te etire rot o te compa as bee,predomiat, b ord-o-mot,” secoties. “Peope o ot o tat e arereiabe, bt aso tat e’ o te extra mieor cstomer serice – e’ sta ope tatextra a-or, e’ ee op o or o jet o rida eei to deier a retpart to Aretia or Brazi i o eed s to.”

oPPoSitE PAGE

Te Airparts team keepit in the family

ABoVE

Airparts’ Andy puts aconsignment together

EXI COnSIDERAIOnS —

rasitioi a bsiess to te exteeratio ca be a perect pa, or aatra disaster. It reqires a deicatebaace betee acia secrit orte oder, ad te tre eat o tebsiess or te ext eeratio. here are a

e poits to cosider e prepari orbsiess or ami sccessio or sae:

1. Kw he ke value. —A bsiessesae oe or more “maic metrics”–tose mbers tat drie te eatad aatio o te bsiess. Beore o ad oer or compa or ptit p or sae, be sre or metricsoo as ood as te ca.

2. Ge a usde advsr. — A bsiesstrasitio deseres to ae objectieparties moderati te process.Iestmet baers ca proide

importat ea ad acia adiceas e as preet te parties rometti too emotioa.

3. csder all he ps. — A bsiess ort passi o ma aso be ortsei otrit. Mae sre oderstad te tre oas ad desireso te ext eeratio beore trido a potetia bers.

4. Reeber Ule Sa. — Meet ita estate paer or tax attore.Sei a bsiess to eirs caae e tax coseqeces, orbot seer ad ber. Be sre

o derstad te o-termramicatios o bot aatiosad acta pamets.

5. Ge frable wh rsk. — e bers(reated or ot) i pa or prcase price i cas. It’s ie tatseers i ae to “ear ot” some o te prcase price oer time.

6. thk lg-er. — wat i o dooce te bsiess is o oer ors? wi o sti ae some deree o ioemet or act as a costat?Cosider or ie ater te bsiess,te mae a exit dea tat is

aied it or tre iterests.

FoR moRE inFo on

AiRPARtS SEE:

www.airpartsco.com




More resources roMAMericAn express opensM

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American Express OPEN is the founding partnerof the Make Mine a Million $ Business programthat provides a combination of money, mentoring,marketing and technology tools that womenentrepreneurs need to help grow their businessesfrom micro to $millions. For more information,visit www.makemineamillion.org.

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