Guest post by Rob Hatch

My dear friend John Grossman and his wife Dawn own the Holyoke Hummus Company in Holyoke, Massachusetts. I’ve marveled at how they grew from setting up a small folding table at a local park selling falafel sandwiches to acquiring a cart. Next, they outgrew the cart and bought a food truck. They eventually opened a restaurant.

I appreciate their growth because John tested each stage and grew based on the results.

Don’t get me wrong, it wasn’t easy, and some steps tripped him up, but each stage built on the success of the previous one.

Pandemic Adjustments

In the early days of the pandemic, restaurants shut down. So, like many others, John made the switch to pick-up or delivery orders. But maintaining a full, sit-down restaurant didn’t make sense financially. [Read our October 2020 story on Holyoke Hummus.]

John adjusted quickly. He moved his food prep operations to a co-kitchen. Then, he partnered with a new cannabis dispensary where he could park his truck and serve. This spot became the new pick-up (and walk-up) location.

It was great. Locals could venture to the truck to grab a bite, and the online delivery orders kept coming.

Of course, that changed when restaurants reopened. Suddenly those pick-up orders slowed down.

So, John adjusted again.

Not going back to a restaurant

He stopped his truck service at that location and shifted his focus to his business’s catering and events side. He continued to use his food truck and food trailer, which are far more profitable than the restaurant.

While this was all happening, John hired a food scientist to replicate his hummus recipe for large-batch preparation and eventual supermarket distribution.

From the outside, owning and operating a restaurant has all the indicators of achieving a certain level of success. But, in reaching that point, it might be tempting to hold on to it too long for fear of having to do what feels like a failure or at least take a step backward.

John’s story is different. First, he did what he could to make adjustments and stay put through the pandemic. But when it became clear that wasn’t going to work, he changed his model.

Shift to What Works

The phrase Fail Forward gets used a lot. And while I get that, it seems like that’s what is happening here. But I’m not sure it is.

At its core, the Holyoke Hummus Company makes and sells delicious food. They have a variety of proven methods for getting that food to their customers. And when one of those methods stopped working, John shifted to something else; something that had worked for him before.

And the shift did work until it didn’t. So John shifted to something else that has worked.

We spend so much time worrying about our failures or attempting to mine them for precious lessons.

Maybe we need to change that approach and shift to what works.

Find out about Rob Hatch’s coaching

How Holyoke Hummus stays Idea Friendly through a crisis

One of the first small steps: a used minivan and a tiny food cart. Photo courtesy of Holyoke Hummus Company.

John is the owner of Holyoke Hummus in Massachusetts, along with Dawn and their family. Like a lot of food entrepreneurs, John started by cooking for friends and family. He grew through a series of small steps and experiments, from selling at a folding table at a event, through a tiny food cart, a mobile truck, and pop-ups at more events. Eventually, he opened a cafe in downtown Holyoke across from city hall.

Holyoke isn’t a small town, but you have seen this same type of experimentation by entrepreneurs in small towns that you know.

This was a perfect example of the Idea Friendly Method in business. You start with your big goal. You use that goal to Gather Your Crowd. You turn your crowd into a powerful network by Building Connections. And you and your newly-powerful network accomplish that goal by Taking Small Steps.

Through each step, John was Gathering His Crowd as he built a following. He was Building Connections networking to find resources and answers before taking each step. And of course he was Taking Small Steps.

Business was up and down, mostly good, until COVID hit and closed down the downtown around him.

John didn’t stop. He closed his dining room, of course, but he kept experimenting. As soon as mobile dining was allowed, he converted his cafe to a production base for his food truck. He is also exploring opening it as a shared kitchen for other food businesses needing a base for their mobile operations.

Another small step, the food truck. Before investing in a custom paint job, a small banner held on with bungee straps was good enough to test the market. Photo courtesy of the Holyoke Hummus Company.

Since the downtown location wasn’t working anymore, he wanted to test a new location for his food truck in a nearby community, but there’s a local regulation that doesn’t allow selling from food trucks on the streets. John found the owner of an empty muffler shop building. He asked him for permission to park on his parking lot, and the owner said yes. So he’s setting up shop on the empty parking lot and building a new customer base. Another Small Step.

It’s not easy to keep a business going when a crisis hits, but the Idea Friendly Method makes it possible to move forward without knowing all the answers.

Thanks to our friend Rob Hatch for sharing updates on his friend John and the Holyoke Hummus Company.

Update: 2022 Growing again

Holyoke Hummus is still adapting to changing times. Read how they’re growing without going back to a restaurant.

Idea Friendly means you don’t have to know it all

You don’t have to know all the answers. You just have to be open to new ideas.  

Being open to new ideas requires us to let go of worrying about whether the idea will work. Lots of those ideas will fail. In fact, most ideas will fail. By keeping the tests and trials very small and immediate, we can reduce the cost of failure to almost nothing.

Author Clay Shirky says “Failure is free, high-quality research, offering direct evidence of what works and what doesn’t.”

It will never go back to the way it used to be. You have to start from here and go forward, one small step at a time.

Get the Idea Friendly Method Video

At SaveYour.Town, we’re offering a special video on using the Idea Friendly Method to make your community a better place. Learn more about the Idea Friendly Method video at SaveYour.Town.

Photo (CC) by Chris Lasher, on Flickr

I have had the opportunity to work with the small-business community over the last twenty years.

That community includes people looking to start a business, those in the start-up stage, others growing to the next stage, and a cadre of people dedicated to support these folks.

I have seen businesses start but also shut down.

Over that time, I am often asked what is the key element to success.

A successful, sustainable small-business meets a need. It offers products and services at prices the market will pay. These businesses market themselves and watch their dollars carefully. The owner knows that he or she must do the daily tasks and also look forward and plan for the future. And the owner understands the importance of keeping up with the trends. While the initial product might be unique, it won’t stay that way plus the market itself will often shift away to new ideas and alternatives.

Yet even when following all of these important elements, some businesses make it and other don’t. So what else is at play?

Some people say its luck or timing. Others talk about the support network and mentors that a business owner has in place.

And there is support for those two factors as well.

But there is one more element I view as even more crucial than all of these. That element is passion!!

Some call it perseverance or focus. Neither of these quite capture the attitude though.

You have to want it. You think about your business constantly looking for ideas and concepts to follow.

One of the earliest business owners I worked with drove this idea home. There were ups and downs, and hurdles. His response was it’s all a learning experience and let’s keep learning. If you asked him about his business, he knew it would be a success.

Passion, it goes a long ways.  No it isn’t the only thing you need but it sure helps when the road ahead looks rocky.

Want to have a successful small business? Then build your network.

Comments like this are not uncommon. Good networking is one factor in building a successful, sustainable small-business. Both anecdotal information and research supports such claims.

We have written about it previously in this blog when discussing “Networking for Business Success.” Most articles, like this one, focus on why small-business owners should network and offer steps on doing it effectively.

Yet knowing you need to network and connecting with people at an initial meeting will bring you only a small part of the full value of networking.

The  full value of your network comes over time as you deepen relationships and begin to branch out as one connection leads to another.

I encouraged this long term effort in 2016 in the post, “Don’t Neglect Your Networks.” Now let me add some specific things you can do.

1. Reconnect immediately. This is true for two reasons. We will meet lots of people in our lives and also we forget. Send a thank-you. Remind them of who you are and what you do. Suggest a future meeting and perhaps even a topic or point of conversation. Email works well but a handwritten note will not be forgotten.
2. If you talked specifics in your first meeting, put some notes in your contact. People are encouraged to write notes after meeting people that first time, but that rarely happens in reality. So help both of you remember.
3. As time goes on, it is important to keep the connection. If you:
   • See their name in the paper, let them know
   • Find a news article of interest, pass it on
   • Note something new in your business or industry, share it
   • Find something or someone who might help them, give them the tip
4. Send along non-business information also. Perhaps they mentioned their interest in jazz and a group will be in your area performing, send them the information.
5. Meet on a somewhat regular basis. And while meeting just to reconnect is fine, think about a specific question or topic you might discuss.
6. Celebrate their successes and a note on holidays, birthdays, etc. is always appreciated.

Networking can be a powerful tool for your business. The more you work at it, the greater your returns.

While a great early step, it often is done incorrectly. The instructions ask you to define your customers or potential customers in terms of:

• What they like to do
• Where they gather
• What they buy
• What drives them
• Where they live and shop
• To whom they listen
• Their worldview

The problem with this, except for maybe where they live, is that you are defining them. The description is your words and thoughts about who they are.

What you want is to know who they are in their own words. 

This idea of understanding your customers from their point of view grows from the old adage, arisen perhaps from the Cherokees, to “walk a mile in his shoes.” Harper Lee, in “To Kill a Mockingbird,” likewise said, “You never really know a man until you understand things from his point of view… .”

So how do you get that perspective and understanding?

Watching people is a great ways to start. Do so in situations similar to what you are planning or in situations where they are using a similar good or service, great. However, just watching in general will add to your depth of understanding.

In terms of reading, all sorts of data have been gathered by various federal and state agencies, as well as nonprofits. You also have the research literature put out by academia. But don’t ignore the popular press newspapers and magazines. These sources are more timely in reporting what is happening today instead of “what was.” The popular press may offer more direct comments from the participants. History is valuable, but knowing that such trends continue is crucial.

Yet both of these sources need to be verified. And verification comes from talking with your intended audience. Words and numbers are great, but you need depth and richness that only stories can offer.

So talking to people – people who are part of your perceived marketplace – is crucial.

Your questions can be specific. Even having a prototype would be beneficial if you are building a new product. Or the questions can just be more general in nature.

Quite often, small-business owners are concerned they would have to talk to a huge number of people. Obviously more is better, but the bottom line is you talk to people until you start hearing the same things over and over and themes are beginning to develop.

Starting a business means knowing your audience. Truly knowing your audience requires that you can define the people in their terms and not yours.

Photo (CC) by John Eisenschenk, on Flickr

How often aren’t we told to “trust our gut?” You see this comment made often for people starting a small business or when small-business owners need to make an important decision.

Yet a recent article from Entrepreneur challenged this and indicated that this idea may be a myth.

So who do you believe? Which view point is correct?

Well from my perspective, both are correct. Let’s look first at a young business owner right out of college. Many of the questions this person will face are new. He or she has no history on which to draw. Decisions based on “your judgment” will probably average out close to 50/50 between ideas that worked and ideas that failed.

So how does our decision making ability get better? It happens because of two factors. First, our past history provides information useful in making future decisions. Second, we get better at evaluating a situation and weighing the likelihood of alternatives ideas succeeding. Decision-making process is therefore somewhat a learned skill.

So as we increase our knowledge base, however, our ability to “trust our own judgment” typically increases. Our past history base grows as to when we have made similar decisions. It may not be the exact same question but science has shown that we can pull bits and pieces from other decisions into a new situation. By using that knowledge, we find our decision-making improves.

So how does this long answer help you make decisions? It’s by understanding where you are at when making a crucial decision.

Yet, there are two caveats to this answer.

First, remember that we don’t have perfect memories. This affects us in two ways. We tend to remember the wins and not the losses. This allows us to view our decision making skills as better than what they actually are. Second, we may forget or discount some of the factors surrounding past decisions, information crucial to the final outcome.

The second caveat is how crucial is the decision. If I am trying to decide what appetizers to have for an open house, failure on my part will probably not have a large or long-lasting impact. But deciding on the products to carry for the Christmas season in a retail store, could make or break your business.

So should you trust your judgment? It depends.

I would leave you with one final thought. The old adage, two heads are better than one, is a good one to remember when making crucial decisions. Especially if that second head is a carefully selected mentor.

Inventors are interested in the development of the idea. They are not put off by trial and error.

Business owners are focused on solving a consumer’s problem and doing so at a price where a profit can be made. They want to know who the market is and how to best get their product in front of that group of potential buyers.

A good example of these differences was the inventor of the glue found on the 3M Post-It Note®. When the new product didn’t perform as expected, it got pushed to the side. It was a second employee who found the commercial value of the product.

Another example often used is Microsoft and Bill Gates. Bill was viewed as being creative but his creative capacity and passion was in understanding the market as opposed to the development of the product itself.

During my career, I have worked with people who have perfected an idea and paid to have a substantial inventory built only to find there was no market. I also have worked with the focused business owner who developed but didn’t keep working on the product and tried to go to the market too early.

You can be both, an inventor and a business owner. You need to understand though that the skills are different. You also need to know when you need to switch hats. Each of the Wright brothers had both business skills and were passionate inventors.

Yet the Wright brothers also understood that having the skills didn’t necessarily mean that they excelled in an area or that they enjoyed using certain skills. Wilbur considered his brother, Orville, as having the business mind. Wilbur was restless one, wanting to always continue development. He was the networker, easily able to connect with new people.

So why is this important?

First, a person needs to understand what drives them, what makes one’s eyes light up. Then, you can work on ways to keep that spark burning.

Photo (CC) by Rachel Hinman, on Flickr

Second, as the Wright brothers did, you can capitalize on your own skills and find a way to bring the other skills you need into the mix. You may be good or even very good at certain skills, but if they are not a priority for you or could be done better by someone else, your business would be stronger if, when possible, you can find someone who brings the skill set and the desire to use those skills into the operation.

Lastly, having different skills makes it possible to challenge each other as you move forward developing your product and your business. Yes, it may be frustrating to have someone who doesn’t see the world as you do, but the result of such conversations is a stronger company.

The bottom line is to know yourself and what makes you tick.

Are you the person who loves to build an idea, launch it and then turn it over to someone else? Or is it at that point, you get excited about the opportunities. Or maybe you are one who has quality skills and desires in each area. Then you need to ask if you have the time to handle both sides.

Recognizing your skills can go a long way in developing your successful business.

Photo (CC) by Dana, on Flckr

You will find a family business in one out of every 10 households.

Family businesses contributed over $10 trillion, by one estimate, into our U.S. economy.

Family businesses generate over 50% of U. S. business revenue.

Family businesses employ over 50% of the U.S. workforce.

Do you get a sense of my topic this week? Yes, it’s the role and contributions of family businesses to the economy.

Family businesses are found in all segments of the economy, from large (Walmart) to micro in size (one person working off of their table after they work another job all day and handle their family responsibilities). And you will find them in every segment of the economy but dominating in farming and retail.

The family business is a unique entity as it combines the traditional business system along with the family system. And all of this is done while being a part of the larger community system.

With these connections, family businesses can, and do, have the ability to use the resources and time of family members in helping to get work done. They also have been found to be more successful when the community is supportive of the business.

Yet this intermingling and exchange of resources is often a two-way street with businesses providing resources, beyond a paycheck, to the family as well as being a supporter of the community. Such community support, though, is often tempered by the perception of the business owner as to how much the community is supporting them along with business revenue and the age of the owner and the business.

The most common community support provided by family businesses includes direct and indirect financial support. In communities that are struggling, the amount of this support only grows as do we see the involvement in community leadership roles of family members.

Technical assistance is another form of support offered by family businesses to communities.

I have had the good fortune to work on the Family Business Research group for some time. As these businesses are so prevalent and important in rural communities, a better understanding is helpful in developing a stronger group.

Recently the group has released a 20-year highlight newsletter. You can find it at my website, https://www.ag.ndsu.edu/smallbusiness/documents/family-owned-business-research-highlights-2016. You can also find a list of the over 400 publications from the group and the annual reports that have been filed.

According to Heck and Stafford (1999), two members of the research group, the importance of family businesses to our economy and society is only exceeded by the family unit itself. They are a vital economic engine. Their support will help everyone grow.

If you operate a family business, thanks and good luck.  If you know a family business owner, stop in, say hello and check out their offerings.

Today, you have unprecedented support available to help you build and improve your business and to survive any economic conditions. No matter how small a town or isolated an area you live in, internet access connects you to astounding resources.

• You can read advice from experts, including those in your own field.
• You can connect personally with mentors, consultants, and many other types of support online directly and through social networks.
• You can access in-depth guides, ebooks and college courses on any small business issue, some for free, others for an affordable price.

All that’s available, but you’re still struggling with your business. Why? What’s keeping you from using these abundant resources to improve your business? With all this abundance, there are still two resources that remain scarce:

1. Your time
2. Your attention

What is the solution? You’re going to have to make an appointment with your self and your business. Dedicate a set time each week, 1 hour minimum. Make it an absolute commitment. Do not let anything disturb you during this hour.

Here’s the agenda for how you’ll spend that time:

1. Figuring out what areas of your business need improvement and choosing one to work on at a time.
2. Finding the resources and people you need.
3. Reading the resources that you found.
4. Learning by making your first attempts.
5. Talking with your mentors, contacts or consultants to check what you’re learning.
6. Implementing and solidifying your learning into how you do business. 

Your very first step is simple:

• Make an appointment with yourself this week for one hour.

Get your calendar. Do it now.