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Business

For the Love of Beer and Community – An Interview with Mike Schwartz

July 22, 2020 By Brian Petro 2 Comments

Update: Mike has sold Belmont Party Supply and posted this photo and message on his  Facebook page:

“Thanks for the Memories!

May the Schwartz Beer Be With You Always”

Please enjoy this repost of this interview with Mike from 2013.

Belmont Party Supply Logo

Belmont Party Supply: the epicenter of great beer knowledge in Dayton.

The craft beer business has been booming for the last two decades. Since the late 1980’s, craft beer has been slowly nibbling at the edges of the big name beers that people knew well and enjoyed. Sam Adams led the charge at a time when there were roughly 90 breweries in the United States. That number has grown to over 2,500 in 2013, and it looks like there is no slowing down. Dayton has multiple breweries and brew pubs opening in the area, adding to the seventy that already dot the state of Ohio. As this beer explosion was happening, there was a business that was quietly growing with it. Belmont Party Supply, owned by community supporter and beer advocate Mike Schwartz, will be celebrating 30 years of business next year. They also have been named by several websites and magazines as one of the best beer stores in the world. While beer lovers see Mike as a cornerstone of the Dayton beer scene, it was something that may not have come to pass if events played out differently.

“I actually quit drinking beer, because I am not a fan of carbonation, and I don’t like cold beer,” Schwartz said, sipping a Bell’s Expedition Stout at the Trolley Stop. “I didn’t know anything about drinking a warm beer like English ale. I was so slow at drinking my beer it would turn warm, and obviously we all know what an American major tastes like when it turns warm.” He quit drinking beer around the same time he bought the Belmont Party Supply in January of 1984. It was two years before the craft beer movement was even truly born, and he bought Belmont as it was going out of business. Mike had been sidelined by illness from his day job as an electrician, ultimately bought the failing shop for one reason. “I was bored!”

Mike_and_I

Author Brian Petro and Mike Schwartz after beer tasting at Trolley Stop

The explosion of craft beer in the late 1980’s helped his business, and his knowledge of beer, grow. That growth eventually led to some problems in the middle of the 1990’s. “They were putting a lot of crap on the shelves. Very expensive crap. I started to see breweries putting money on their labels and not in their beers. The consumers stood strong. I had to react by tasting beers before I put them on the shelf. At one time I had distributors bringing me beers to evaluate before they carried them. It was that bad.” Mike developed a reputation in the area as the guy that knew beer. “I used to have my beer manager collect the samples. She would sit down and pour the beer on Friday afternoon. Then she would tell me what to evaluate it as. I would evaluate it. She would not tell me the price. I would evaluate it by how much money I thought they put into it and how it fed into the style.” He had good taste even then. He was selling North Coast and Avery beers before they were widely popular.

Mike Schwartz with pink hair

Isn’t he a good sport? And pretty in pink?

He gained some of his vast knowledge of beer the same way most of us do: trial and error, tasting many different beers, and learning about their flavors through experience. He also went the extra step and became certified. “First of all I took the Beer Judge Certification Program (BJCP). If you are a brewer, that will teach you how to brew. It will teach you all the physics, the science behind all the beers. What they are supposed to be, how they are supposed to taste, and what makes them taste that way. Yes, you have certain ingredients, but it’s how your treat that certain ingredient to get the flavor you want.” There is another program, the Cicerone program, which is for beer handlers. Mike suggests that if you are a beer lover, either of those programs would be beneficial for your knowledge of beer. He also networked to learn more behind the scenes information about the beers and the programs he loves. He has met such beer luminaries as Gordon Strong, one of the creators of the BJCP and a master brewer in his own right; Randy Mosher, 27 year veteran of home brewing, author, and part owner of Five Rabbit Brewery in Chicago; and Fred Karm, brewer at the increasingly popular Hopppin’ Frog brewery in Akron, OH. Some of the luminaries in the beer world he had the pleasure to interview, and those interviews are posted on the Belmont Party Supply’s website for all of our benefit. Mike’s reputation grew as his business grew, and soon he was not just known through the state or the region, but the world.

For those of you not in know, Belmont Party Supply is known well beyond the confines of Dayton. Mike spoke about one of the incidents that illustrated how widely known this local beer store is. “My wife went out to San Diego last year for a family wedding and people that grew up next door to us flew in as well. They had just come back from Belgium. They were doing a brewery tour, and they asked they tour guide if they ship to the United States. The tour guide asked ‘Where are you?’, and our friends said in Ohio, right by Dayton. He responded by saying ‘Do you know Mike Schwartz over at Belmont Party Supply? He carries our beer. That to me is an impressive thing.” BeerAdvocate has rated it as one of the best in the country, and RateBeer has it ranked as one of the top beer places in the world. After being in the business for thirty years, Mike knows what it takes to create a successful business. “I did not do that all alone. I am the guy at the top but it took great people working for me, and the customers that requested beers. We worked hard with the distributors. I could not have done it without the distributors. We carry some of their slow moving items, and when we do that, they feel the need to pay us back.” And pay him back they have. One of the beers he was paid back with was the ultra rare and highly desired Westvleteren 12. “It came in through Shelton Brothers Importing, through a distributor of course. We carry all of Shelton Brothers beers, and they have showed us appreciation by giving us some one offs.” It is smart business practices like this that allow Belmont to carry beers no one else has, and end up with beers that everyone will want.

Brewtensils interior

This is utopia for beer brewers in the Dayton community.

Mike Schwartz’s beer expertise is not just in tasting in and selling it, but brewing it as well. Brewtensils started as shop within Belmont Party Supply, helping local brewers make their own beers at home. It eventually grew into its own shop right next door, offering not only brewing supplies but brewing classes and contests as well. His favorite style to brew is imperial stouts. “It is very English, it tastes better the warmer it gets. I have had bartenders pour me a glass and put it in the microwave for ten to fifteen seconds to knock that chill off.” The classes not only give Mr. Schwartz a chance to help local brewers pursue their craft, they also give him a little insight into what brewers are starting to explore. Many big beer trends start in kitchens of amateur brewers, so this becomes a little lab for him to observe. What is he seeing on the horizon? “I really think you are going to see more herbs going into beers. People are more conscious of nature. Some of the people herbs are using for flavor and bitterness are phenomenal. Your saisons are increasing now. You can play all kinds of games with saisons with herbs, ginger, lemongrass, all kinds of stuff. I see that coming around the corner, I really do.”

Beer brewing classes and tastings around town are just a few ways Mike stays in touch with the community. And he is a big supporter of this community. He is part of the brain trust that is bringing Big Beers and Barley Wines back for its fifth year at the Roundhouse on October 5.  For the connoisseurs of craft beer and looking for more local flavor, this is one of the last big beer festivals of the year. The list of beers for this year’s festival is impressive. Revolution Brewing’s Very Mad Cow stout is almost worth the price of admission on its own. Mike has other reasons other than supporting local breweries and beer lovers. “This organization (the Resident Home Association) came to me and asked me to do a beer tasting for them. I said ‘No, I want to do a festival. I want to do a knockout festival.’ I told them they would have to handle all the money, but I will not accept any users or advisors fees. No one will make a penny off of this. This is the fifth one, and now we’re typically putting in $8000 to $10,000 a year in profit.” He gives back quite a bit to the community that supports him, not just locally, but nationally. He has done charity work for others as well, like our veterans. “Probably the neatest thing I have ever done in this trade was helping my sister down in Columbia, SC, home of Ft. Jackson. She belonged to an Elks Club, and she asked me to come down and do a beer tasting for the Wounded Warrior Walk. It is the hospice for wounded warriors. We raised quite a bit of money. I got to meet some high ranking officials down there. One high ranking officer invited me out to the firing range to fire some of the big guns. I wasn’t able to go because I was flying out the next day.”

Big Beers and Barley Wines

You have a date with some great beer for a good cause on October 5.

The wisdom Mike has about beer and his willingness to share it is obvious to anyone who speaks with him for any length of time. It makes Mike a quiet but influential figure in the beer community, and he knows there is plenty of room for everyone. “I think the breweries have a great chance in Dayton, especially with Columbus, Cincinnati, Indianapolis, and Kentucky not too far away.” And he thinks Dayton has just started to hit its stride. “I don’t know what happened to Dayton. It has one of the world’s best water supplies. It is very comparable to English water. It is beautiful ale water, and there is plenty of it here.” When asked if he thought that the Miami Valley was getting too many breweries and brew pubs too soon, his answer was a very quick “Absolutely not.” He even sees some lessons that the “fizzy yellow beer” producers can teach all of these new brewers. “Back in the late 1800’s, Anheuser Busch was making a European style lager. They almost went belly up until they decided to lighten the beer up by using rice. Anheuser Busch actually listened to the consumer, adjusted, and hit a home run. Americans were looking for a lighter, drier finish. I don’t have a problem with yellow, fizzy beer. There is a beer for everybody, and we all need to accept that and honor someone’s beer. If that’s what they like, that’s what they like. If everyone is drinking that beer, they leave my imperial stout alone!”

Mike Schwartz is not just a lover of beer; he is a lover of the industry and the community that supports him. He gives that love right back in a way that raises all the people around him. He does what he can to make sure everyone gets the help they need. His view of success sums it all up quite nicely: “If you work hard all your life and you take all the proceeds and experience and keep it to yourself, you really haven’t gained anything. But if you can share it with other people and do good for unfortunate people, which makes me feel good. That’s success right there. You can live in your mansions, but if you can’t share it, you haven’t succeeded at life.” I would gladly raise a glass to that sentiment.

Filed Under: Dayton Dining, Dayton On Tap, Happy Hour, The Featured Articles Tagged With: Ale, Beer, Belmont Party Supply, Brew pub, brewery, Brewtensils, Business, community, Craft Beer, Dayton, Dayton Ohio, DaytonDining, Downtown Dayton, English ale, imperial stout, lager, local, Oregon District, pub, Stackers, Things to Do

Welcome to The Collaboratory!

January 19, 2015 By Brian Petro

The Collaboratory Logo

Cities are amazing things. Their growth during the 17th and 18th centuries helped lay the foundation for some of the largest leaps in thought in that era, and have continued to be a source of innovation ever since. A conversation in one of the booming coffee houses in 17th century London lead to the writing of Newton’s Principia; another chat lead to the creation of Lloyd’s of London, the world’s first insurance agency. The Industrial Revolution grew slowly within cities, drawing people in with opportunities for economic growth. The density of people in urban centers helped to spread ideas by developing a fertile environment for it. The more seeds of ideas that are planted in one area, the better the chances those thoughts will bump into each other and spawn completely new, innovative thoughts. The internet may have us more connected to more resources than ever before, but there is still something special about meeting people face to face. Adding a personality and a voice to all those interesting Facebook posts and LinkedIn updates. That is where The Collaboratory, a new place for people to connect, share, and develop, comes in.

The Collaboratory is located at Courthouse Square, the hub of downtown Dayton, and provides a space for everyone to use. There is a wealth of talent in this area, and we are seeing it grow in leaps and bounds. It is being developed in homes and small offices through the city, people working long days on labors of love. The Collaboratory is a space for people who are looking for more tools, a change of scenery, and more access to expert advice on building a business. It is for entrepreneurs who are just starting out and looking for help and for established businesses needing a place to work on larger projects. Being downtown encourages a wider group of people to come and utilize the space, attracting politicians, students, non-profit experts, and civic leaders to interact and develop new ideas to enhance the Miami Valley. It is within walking distance to many resources, like the Metro Branch of the Dayton Public Library, Sinclair Community College, and Boston Stoker. Physically, it offers one of the largest white boards in the Miami Valley, as well as internet access, public and individual tables, and the ability to be reserved for morning and evening meetings. All of this access costs just $5 and a mention on social media!

The Collaboratory pricing

Connect and collaborate for the cost of a few beers. What could be better?

This venture has been spearheaded by Peter Benkendorf, someone who has believed strongly in this community since he moved here in 2008. He is head of Involvement Advocacy, a group dedicated to encouraging collaborative efforts and creating support systems for those seeking to build a better Dayton. By developing spaces and events that bring people together, better known as Collaborative Infrastructure, Involvement Advocacy is looking to put our city on the map with St. Louis, New York, and Oakland as leaders in innovation. Spaces like this foster interaction with thinkers in diverse industries, ones that may not otherwise have a chance to sit down at a table together. This is where new concepts are developed, ones that can add a fresh sparkle to the Gem City.

Cities are engines for developing new ideas, and Dayton has the talent and imagination to make its own future. The Collaboratory wants to collect that imagination and turn it into businesses, actions, and inspiration to go out and connect with members of your community. There are many places in Dayton you can go outside of your office to get some work done. There are few where you have all of the resources you need to assemble something new. This space will be open on Monday, January 18th from 10 AM to 4 PM. We look forward to seeing and reporting about all of the phenomenal new ideas to come out of The Collaboratory! What will you be heading downtown to build?

Filed Under: Community, Dayton Entrepreneurs, The Featured Articles, Urban Living Tagged With: Business, Business Networking, community, Creativity, Dayton, Dayton Entrepreneurs, Dayton Ohio, Downtown Dayton, Gem CIty, The Collaboratory, Things to Do

Apply Now for Activated Spaces’ Pop-Up Fall Project

June 11, 2013 By Dayton937 Leave a Comment

Pop-up DotsFor those who have dreamed of opening their own business, now is the time to give it a try and the place to try it is downtown Dayton.

Activated Spaces, an initiative to fill downtown storefronts, is accepting applications for temporary retail and service businesses to open downtown this fall as part of the fifth phase of its Pop-up Project. The project matches business owners and entrepreneurs with downtown property owners who have first-floor storefront space available for occupancy.

Interested retailers should fill out an application, which can be downloaded at www.activatedspaces.org, and email it to Jen Cadieux at cadieux@downtowndayton.org. The application deadline is 5 p.m. Friday, July 19. Tenants will be selected the week of July 29, and retailers must be ready to open no later than Friday, Sept. 20, in time for the fall Urban Nights.  

Lease lengths will range from three to six months. The spaces will have varying lease rates, but will be leased below market value. Activated Spaces volunteers will connect retailers with commercial property owners, help make the space move-in ready, and promote the business during such events as First Friday and Urban Nights. Selected businesses will negotiate leasing terms directly with the selected property owner, but flexibility for the tenant is a priority.

Activated Spaces volunteers hope to build on the success of the Pop-Up Project’s first four phases. Six of the businesses that have opened as part of the Pop-Up Project are still open: Beaute Box, 116 W. Fifth St.; Peace on Fifth, 508 E. Fifth St.; American Pi, 37 S. St. Clair St.; Vintage Barbershop, 110 W. Fifth St.; Sew Dayton, 16 Brown St.; Green Baby, 31 S. St. Clair St.; and All Pilates, 27 S. St. Clair St.

Commercial property owners interested in offering space to Pop-Up Shop owners should contact Jen Cadieux at 937-224-1518. Participating property owners are on the Activated Spaces website. Once a match is made, a limited amount of money is available to be distributed at the discretion of the Activated Spaces team for such purposes as offsetting utility costs, making cosmetic improvements to the space or other necessities for making the space operational.

Activated Spaces, a volunteer-led initiative spearheaded by young professional organizations Generation Dayton and UpDayton, has three main goals:

• reactivate and beautify vacant storefronts with creative displays

• encourage entrepreneurs, artists and community groups to occupy space for short- and long- term uses

• showcase downtown properties and increase interest and investment in available space

Activated Spaces is part of the Greater Downtown Dayton Plan, a strategic blueprint for the future of downtown. Those interested in volunteering with Activated Spaces should e-mail getinvolved@updayton.com.

Filed Under: Downtown Dayton, The Featured Articles Tagged With: Business, Dayton, Dayton Entrepreneurs, Dayton Ohio, Downtown Dayton, generation dayton, updayton

Business Casual or Casual — That — Is The Question!

April 2, 2013 By Leah Hawthorn 1 Comment

cartoon4620Last week my husband and I were in New York.  We were going to an incredible restaurant called “Del Frisco’s”.  This is a nice restaurant – white table clothes, great wines and a’la carte menu.  I wasn’t sure what the proper attire for this restaurant would be.  Yes, I know, I am an image coach and I should know these things, right?  But, what is proper attire in Dayton or California may not be acceptable in New York.

I called the restaurant and they said business casual.  When I heard my husband repeat it over the phone, I said, “Jeans”?  I said this because the difference between business casual, casual and weekend wear seem to be an issue everywhere.  My husband asked, “Jeans?”  They immediately said, “Of course.  A lot of people wear jeans in our establishment.”  I quickly realized that business casual in New York can mean jeans with a jacket, as I saw much of when I was there.

It seems there is always a question: What is the difference between casual and business casual for the workplace.  In the Midwest, if someone said business casual to me, I would immediately tell someone that khakis were appropriate with a shirt and no tie, or simply a shirt, jacket and khakis.  Women, well, we have a lot more options.

In California, you wouldn’t dress the same for business as you would in the Midwest or New York.  If someone said formal business attire in New York, you will probably find yourself walking into a sea of black suits.  Formal business attire in the Midwest may be a suit, but could be beige or neutral with some color mixed in.  Formal business attire in California – well, that’s another story.  It is extremely casual on the West Coast, so I would probably have to make that phone call before I showed up for an interview or meeting.  And remember, there is no shame in calling and asking.  Rule of thumb; Err on the side of formality and you will always be dressed properly.

Here are some guidelines for casual, business casual and formal business attire.  And I lean hard on the word “guideline.”   Proper business attire will vary depending on the business or your profession.  Proper business attire for an engineer may not be the same proper business attire for an attorney.  There is a protocol (rule) to everything, and this is a guideline for Business Attire — erring on the side of formality.

There is so much more that goes into proper dress.  Dressing for business internationally is an article all its own.  Accessories, makeup and hair are also another article.  There just isn’t enough room in one article for everything.  This may not be the answer for everyone, but it’s a place to start.  Let the comments begin.  Enjoy!

BUSINESS ATTIRE GUIDELINES:

CASUAL FOR MEN:  Open-collar shirt without a necktie or dress polo shirt with jacket – cotton trousers (khakis) with golf shirt – slip-on leather shoes (e.g., loafers) – jeans, sneakers and sporting attire, only if allowed by your dress code.

CASUAL FOR WOMEN:  Simple skirt, casual slacks, or khakis – pumps, low heels, or flats – sandals (only as appropriate) – blouse, knit top, or sweater, jeans, sneakers and sporting attire, only if allowed by your dress code.

BUSINESS CASUAL FOR MEN:  Sport coat with open-collar dress shirt or turtleneck – slacks with open-collar dress shirt – no necktie – slacks or cotton trousers such as khakis – dress shoes or loafers.

BUSINESS CASUAL FOR WOMEN:  Blouse, knit top, or sweater set – slacks or simple skirt – conservative dress – coordinating jacket (optional) – pumps, low heels, or flats – hose with skirts/dresses.

FORMAL BUSINESS ATTIRE FOR MEN:  Dark business suit – sport coat and slacks – crisply laundered shirt – necktie – dark socks – dark shoes.

FORMAL BUSINESS ATTIRE FOR WOMEN:  Jacket with matching skirt or slacks – jacket with coordinating skirt or slacks – conservative accessories – conservative jewelry – closed-toe-shoes – hose with skirts/dresses.

 

http://www.youtube.com/watch?v=sWJ_Sg92epA

 

Filed Under: Community, Getting The Edge on Etiquette Tagged With: attire, Business, business image, dress, Etiquette, Protocol, wardrobe

Pop-Up Project Seeking Business Owners to Open Downtown

February 16, 2012 By Dayton937 1 Comment

Guests at Beaute Box, one of the businesses that opened downtown as part of the first phase of the Pop-Up Project.

Guests at Beaute Box, one of the businesses that opened downtown as part of the first phase of the Pop-Up Project.

Activated Spaces, an initiative to fill downtown storefronts, is accepting applications for temporary retail and service businesses to open downtown as part of the second phase of its Pop-up Project. The project matches business owners and entrepreneurs who want to try out a business concept with downtown property owners who have first-floor storefront space available for occupancy.

Interested retailers should fill out an application, which can be downloaded at www.activatedspaces.org, and email it to Sherri Wierzba at wierzba@downtowndayton.org. The application deadline is 5 p.m. on Friday, March 9. Tenants will be selected March 30, and retailers must be ready to open by May 1.

Lease lengths will range from three to six months. The spaces will have varying lease rates, but will be leased below market value. Activated Spaces volunteers will connect retailers with commercial property owners, help make the space move-in ready, and promote the business during such events as First Friday and Urban Nights. Selected businesses will negotiate leasing terms directly with the selected property owner, but flexibility for the tenant is a priority.

Activated Spaces volunteers hope to build on the success of the Pop-Up Project’s pilot phase, when three businesses filled 2,300 square feet of space. Two of those businesses ― Beaute Box, 116 W. Fifth St., and Peace on Fifth, 519 E. Fifth St. ― are looking to convert their temporary leases into traditional long-term ones. Another business, Basho Screen Printing and Apparel, opened a second area location at 521-523 E. Fifth St. after being drawn to the space when it was occupied by Comfort & Joy, which offered holiday gifts, during the Pop-Up Project’s pilot.

Commercial property owners interested in offering space to interested retailers should contact Sherri Wierzba or Erin Gillespie at 937-224-1518. Participating property owners will be listed on the Activated Spaces website. Once a match is made, a limited amount of money is available to be distributed in $250 increments at the discretion of the Activated Spaces team for such purposes as offsetting utility costs, making cosmetic improvements to the space or other necessities for making the space operational.

The grand opening celebration of Pop-Up Shop Peace on Fifth.

The grand opening celebration of Pop-Up Shop Peace on Fifth.

Activated Spaces, a volunteer-led initiative spearheaded by young professional organizations Generation Dayton and updayton, has three main goals:

• reactivate and beautify vacant storefronts with creative displays

• encourage entrepreneurs, artists and community groups to occupy space for short- and long- term uses

• showcase downtown properties and increase interest and investment in available space

Activated Spaces is part of the Greater Downtown Dayton Plan, a strategic blueprint for the future of downtown. Those interested in volunteering with Activated Spaces should e-mail getinvolved@updayton.com.

For more information, contact Sherri Wierzba or Erin Gillespie at 937-224-1518.

Filed Under: Downtown Dayton Tagged With: Business, Dayton, Dayton Entrepreneurs, Dayton Ohio, downtown, Downtown Dayton, generation dayton, updayton

I Will Stay In Dayton If….

April 4, 2011 By Dayton Most Metro 4 Comments

In a recent article on CNBC.com (March 23), Bert Sperling, known for his expertise on best places to live, eat and retire (just to name a few), shared some wonderful insight on where he sees Dayton in the near future. He comments that, “Dayton’s industrial heritage is transitioning to today’s new technologies;” he believes the City has all the right assets for an economic comeback.

Photo courtesy of Joel Spitsnaugle and Val Smith

With our award winning, nationally recognized universities and colleges, a thriving healthcare industry and expanding military base, Sperling believes Dayton is poised to bounce back.  So what will it take to keep Dayton moving in the right direction? What will get people, particularly those elusive and desirable college graduates and young professionals, to come and stay in Dayton?

According to a survey conducted by updayton, a local initiative launched in 2008 to attract and retain young talent in the area, hundreds of young professionals pointed to four specific areas that needed improvement – they will stay if they have access to more jobs, better neighborhoods, increased diversity and more nightlife and entertainment options. Young creatives have spoken, and updayton is dedicated to making their voices heard.

Each year updayton hosts the Young Creatives Summit to engage and empower young people to implement their own solutions to meet these needs. This year’s Summit, to be held on Friday, April 15 at the Dayton Convention Center, will bring together nearly 200 young professionals and creatives to craft and implement four unique projects to address these pressing issues. To strengthen these efforts, updayton has partnered with organizations focused on solutions for each of the key concerns to work closely with these highly energized volunteers.

Summit attendees interested in creating more livable neighborhoods will partner with CityWide Development to provide vital input on current neighborhoods in and around downtown and on the development of a new neighborhood near Brown Street.

Photo by William Murdock Photography

Other projects include working with the Human Relations Council to make Dayton an immigrant friendly city, creating a new entertainment option for First Friday in cooperation with the Downtown Dayton Partnership and partnering with the Southwestern Ohio Council on Higher Education (SOCHE) to connect more college students and recent college graduates to local internships.

Linking the talent of the young professionals with the resources of these organizations greatly increases the potential for success and sustainability. Volunteers from the Summit may decide to focus on small manageable projects in order to serve the mission of the larger organization, but often times it is the small steps that lead to big results. Collaboration is key in moving Dayton forward; updayton is grateful for the support of these four partner organizations.

To register or get more information about the 2011 Young Creatives Summit, click here.

Filed Under: The Featured Articles, Young Professionals Tagged With: Business, civic engagement, convention center, Dayton, Networking, updayton, Young Professionals

South Park Tavern – An Entrepreneur Success Story

September 1, 2010 By Dayton Most Metro Leave a Comment

Previously, I wrote an article about starting a business with little capital and smart business plan.  Here is a great case study:

Bill Daniels has been in the pizza business for a number of years.  He has a degree from Wright State University and the business savvy and technical knowledge of the food (pizza) industry.  This is a great combination for an entrepreneur.

After starting the successful Pizza Factory years earlier, Bill acquired a building a few blocks away on Wayne Avenue in the South Park neighborhood and began to lease the space on the top floor to tenants.  Then slowly he built the success of South Park Tavern.  At first, he found Shane, who is a sharp bar manager who had experience in the industry.  He gambled on Shane and Shane gambled on him.  He opened only on weekends and served no food.  The neighbors were thrilled to have a place and so they supported the tavern.  Service was terrible and there was no food.  But each weekend, the place got better.  Bill invested everything earned from those early days back into the business.  He began to offer pizza by transporting it from the Pizza Factory store down the street.  He extended the hours each time business picked up.  The neighbors relentlessly promoted the tavern.  If there was a special event, Shane would open the tavern.

Next, the great marketing promotion and understanding of the customer took off.  Shane opened through the week.   They had open mic nights to bring in bands.  They had half price pizza nights on Monday.  Bill built a patio outside and remodeled the tavern, installing 12 micro brew taps in the process.  Instead of offering the same beers and pizza that most other chains offer, the South Park Tavern offered exotic seasonal beers with unique and flavorful pizzas.

The South Park tavern offers only beer and wine.  By not offering hard liquor the establishment identifies itself as family friendly tavern.  Many would be tempted to increase revenue by offering hard liquor, but Bill and Shane understood the importance of their market positioning.

So, Bill used a formula that involved several trends in the industry.

  • Popularity of micro brew beers
  • Different pizzas
  • A hang out for the people of the neighborhood
  • Bands and music
  • No hard liquor

As a result, the South Park Tavern has become a popular and successful  business.  It did not start with a million dollars of capital.  The business stretched the capital and grew in small increments.  The business tried to differentiate itself and it created loyal customers.  Bill and Shane are not done.  They plan to carefully expand the business further.

There are some lessons for entrepreneurs in the growth of the South Park Tavern…

Filed Under: Dayton Entrepreneurs Tagged With: Bill Daniels, Business, Dayton Entrepreneurs, pizza, Pizza Factory, South Park, south park tavern

Entrepreneurs Start with a Customer

August 4, 2010 By Dayton Most Metro 1 Comment

I am often asked about resources to start a business.  Too often the startup entrepreneur is asking the wrong questions and looking at the wrong issues.  Before starting a business, a prospective entrepreneur must answer the marketing questions.

The most important issue around starting a business is the customer.  Let me say this again: THE MOST IMPORTANT ISSUE AROUND STARTING A BUSINESS IS THE CUSTOMER! Who is the customer?  What need (product or service) are you satisfying that they are willing to pay you?  Why is no one willing filling that need now?  Or are they?  How much are they willing to pay?  What makes your product or service superior to the alternatives?

Many entrepreneurs focus on financing, building, location, etc when starting a business.  Instead, they should answer the questions honestly before looking at anything else.  The #1 need of entrepreneurs at all levels is customers.  Without customers, you have no business.

When I started Gasper Corporation, I benefited from the business classes I took at Wright State.  The most important were marketing and accounting.  I used the concepts of target marketing to make the business viable and effective.  So here is how I answered the marketing questions.

David Gasper - Back in the day...

Who was the customer? The 500-1,000 Automatic Teller Machine (ATMs) departments in banks worldwide.

What need did they have? The ATM industry was in its infancy and availability (uptime) was not considered thoroughly when ATM networks were designed.  The cost of downtime hurt their profits and bank image.

Why was no one filling that need? The startup industry offered the opening.  Competitors offered offline manual products while we had a chance to offer online monitoring and management.

How much were they willing to pay? We developed a pricing model based upon the size of the network.  Larger networks paid more as their problems were larger.  Our pricing model also reflected a payback based upon two values that our product offered.  1.  Our product reduced labor costs, so that savings was part of the price.  2.  Our product increased revenues from higher availability.  We factored that into our price.

What made your product superior? I started my career as an ATM programmer.  I understand the sensors and status signals better than others who designed management systems with no ATM experience.  I also understood the specialized switches (such as Base24) that processed ATM transactions.  Finally, conventional wisdom at that time did not believe that personal computers could process online transaction.  From my programming efforts in 8080 assembler and low level code of personal computers, I saw that was not true.  PCs were the wave of the future with more power in smaller boxes for less cost.   This specialized knowledge allowed Gasper Corporation to create unique position.

So we picked a small limited market with little competition that we could dominate. We stayed very focused on that small target market of 500-1,000 customers.  We could have created monitoring products for many other markets.  In doing so, we would have been wiped out by large competitors such as IBM, Hewlett Packard and Computer Associates.  Instead, we chose to target one specific market and be the BEST in that market.

The rest is history.  So, before you go looking for start up funding, answer the questions above honestly.  If the answers are not satisfactory, then FIX them with the right honest answers.

Filed Under: Dayton Entrepreneurs Tagged With: Business, Customers, Dayton Entrepreneur Links

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