Perseverance Pays When Seeking Startup Funding
It is the first week of December, 1787, and you are a Delaware Legislator debating ratification of the U. S. Constitution. Your meeting place is the Golden Fleece Tavern in Dover. After a long day of deliberations, you and your colleagues ask the proprietor, Elizabeth, for a locally brewed beer to help you relax.
Fast forward to 2010. You, again, are a legislator or business person in Dover seeking relaxation after a tiring day. Where do you go? The Golden Fleece Tavern of course. Amazingly, you may still ask the proprietor, Elizabeth, for a cold locally brewed beer of the same name.
The new Golden Fleece is a few blocks from the original site, the current proprietor, Elizabeth Ford, is not related to the original Elizabeth Battell, and the local brewery has not been in continuous operation since 1787. But some things never change; creating a successful small business still requires planning, funding, and execution.
The current owners; Elizabeth Ford, Diana Welch, and Ryan Weber recognized the business opportunity with the revival of downtown Dover. Welch had experience in purchasing a distressed business and turning it into a profitable concern. She teamed with Ford to leverage her experience in business planning, finance, and her meticulous attention to detail. Ford now oversees the administrative and cash flow aspects of the business. Weber’s expertise in restaurants complemented the team’s talents. He coordinates the day-to-day operations and doubles as the lead bartender.
It is easy to see how this is a recipe for business success. Successful entrepreneurs know how to attract the expertise needed to complement the skills they may not possess.
Ford developed a detailed business plan that outlined a clear path to profitability. Even with a great team and a great business plan, perseverance is also needed, especially in today’s lending market. Many banks at the time were not financing startup businesses.
Arline Brex, of the U. S. Small Business Administration’s (SBA) Wilmington office, and Bobbie Schmittinger of the Delaware Center for Women’s Entrepreneurship first met the owners when they conducted a tour of Dover’s Main Street in 2008. After learning of the difficulties Welch faced in finding financing, Brex suggested they seek an SBA guaranteed loan to ease the approval process.
“SBA guaranteed loans reduce the bank’s exposure and make it possible for many small business loans to be approved that otherwise wouldn’t,” said Jayne Armstrong, district director of the SBA’s Delaware District Office.
After having their loan proposal declined at five banks, they found a supporter in Sam Adolph at TD Bank. The bank financed two SBA 7(a) guaranteed loans including $160,000 to purchase the building and a second loan of $40,000 for working capital.
“These loans were certainly enhanced with the SBA’s agreement to provide a 90 percent guarantee, but the principals involved in this transaction were definitely well-prepared for this under-taking,” said Adolph. “We are not surprised that the business has taken off and that they have plans to increase revenue over the next year.”
With funding in hand, the team purchased the property and began renovations to create the mix of modernity and history resulting in an atmosphere that many patrons refer to simply as ‘just right.’ The Golden Fleece Tavern was reborn during the week of July 4th 2009, serving a full range of beer and ‘revolutionary’ specialty drinks such as the ‘Redcoat’, and ‘Tory’.
“We hope to continue the tradition of healthy revolution, and become a place where those of a slightly rebellious nature, with a love for good times and sincere smiles will find a home,” said Ford. Our mission is “to provide a gathering place where you can step back into the past to enjoy the present.”
Today, the Golden Fleece is a thriving business with seven employees. There is a recently completed deck, and plans to expand its offerings, by adding a larger kitchen, are in progress. You can visit the Golden Fleece Tavern at 132 West Loockerman Street, Dover, Delaware 19904, go to their website, www.thegoldenfleecetavern.com or call them at 302-674-1776 for information. To learn how the SBA can assist you, contact them at 1007 N Orange Street, Suite 1120, Wilmington, DE 19801, call (302) 573- 6294 or visit www.sba.gov/de.
When you do visit, please remember to pay your bar tab. Legend has it that the same politicians who were first in line to build our nation… were also the first to skip on their bill. The original invoice is in the Delaware Archives. A copy hangs on the wall at the new Golden Fleece Tavern still waiting to be paid.
Contributed by James Provo, a business development specialist and public information officer in the SBA’s Delaware District Office.
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