31 October 2005

Two years ago today I began my officer basic course at Ft. Jackson. I temporarily felt like I was escaping and yet simultaneously felt guilty for the same. I hated that Amy and the kids were left behind in the chaos that I knew was coming.

That afternoon I exchanged phone calls with Brad Eldridge while I was on my breaks. Agim had called back and wanted to know how much my SBA loan was for. I let him know it was $122,700. Agim responded back and told me he would assume my loan and assume my lease. I responded and let him know I had considerable debt beyond the SBA loan. I told him I would need at least another $50,000 to be able to ensure there were no liens. His response was that would be fair, but he was exploring another location in Nixa and he would get back to me.

That night I talked to Vineese’s sister. Vineese had referred me to her to see if her and her husband may be interested in the same deal I had offered Vineese. The first conversation went well, and they gave me some hope that a partnership deal might still be possible.

Sales that night were somewhat typical for a Monday night; $695.34, with labor at 26%. After the cash deposit is made, my updated QuickBooks balance is -$6,459.98.

The Last Days of the Lazy Susan 1,2,3,4,5,6,7,8,9,10

30 October 2005

For I know the plans I have for you, declares the Lord, plans to prosper you and not to harm you plans to give you hope and a future.

Jeremiah 29:11

This scripture that I wrote on the wall of the Lazy Susan while it was under construction never meant so much to me as it does today. When I wrote this on 29 July 2005 I thought it meant God was going to prosper our business; however, I now know it means our business had to fail to get us to where we are now.

Two years ago today I received an email from Vineese after I landed in Columbia, South Carolina and settled into my officer housing that would be my home for the next several months. The email said, “Count me in.” She had agreed to the plan we had discussed the night before, and we were ready to move forward. In her email to me she even mentions God having a plan to prosper us. I don’t think she knew how true that statement was and how her next email fulfilled that truth.

A couple hours later she emailed back to tell me she had spoken prematurely; Tim had been asleep when she sent the first email, and when he woke up he had a really bad feeling about it. He didn’t think it was God’s will for them to do this, and boy was he right! As angry as I felt at the time, it was God working his plan to prosper us and to not harm us. Her decision ultimately led to Amy entering the Chaplaincy and my fervent desire to provide financial counseling.

Later that night I drove around Columbia looking for a post office to mail my quarterly tax forms. I was very depressed, and probably drove around for over two hours hunting for a post office. I was listening to the radio and with each song I became more and more depressed. I knew the end was near.

When I got back on post at Ft. Jackson I called Brad. We talked about everything, including the fact that rent was due in a couple of days, just another $3,854.17. I was in so deep I couldn’t even see the day my checking balance would come out of the red. I finally had to face reality; we decided if I couldn’t sell or find an investor by November 6th we would close. That would be the last day of the pay period, and I would mail everyone their checks on the 11th; their normal pay day.

Sales for the day were a little better, but still not good; $1,899.14 with labor at 19%. After the cash deposit was made, the QuickBooks balance was -$7,060.03.

The Last Days of the Lazy Susan 1,2,3,4,5,6,7,8,9,10

29 October 2005

The 29th was my last day in Springfield for what I believed at the time to be the next 18 months (now I know it to be 27 months). I spent all day running the range for the regional criminal justice conference that was being hosted by Evangel University. Between leaving the firearms competition and going to the banquet, Amy told me that Tim and Vineese wanted to meet with us both in person that night and they didn’t care how late it was. I was very concerned about this meeting; we owed them $57,600 and had been good friends with them for years. The destiny of the Lazy Susan was literally the destiny for all of us.

At the banquet, I was treated to one of the best motivational speeches I had ever heard. Major Steve Ijames (pronounced Imes) of the Springfield Police Department talked to the nearly 400 college students and law enforcement professionals about what it is to be a law enforcement professional and a warrior. He referenced the book Gates of Fire and the Spartan warriors of old. At the end of the night, Bob Cirtin surprised me and recognized me for my work at the conference and for my upcoming mobilization.

After the banquet was over, I went home and picked Amy and the kids up and we headed down to the Lazy Susan. This meeting had us both scared to death; we weren’t sure if Tim and Vineese were going to kill us, preach at us, or tell us they were going to sue us. We did not think anything positive would come from the meeting; we were scared to say the least.

Shortly after 11:00 pm we arrived at the Lazy Susan. Right away I realized the meeting was not going to be what I thought. Vineese started off by telling us they wanted to pray for us. Tim then told us about their experience with a gym they owned in Nixa that they had to close and how they spent several years paying back all of their debt from that experience.

Next Vineese started asking some detailed questions about the Lazy Susan. She and Tim had reviewed our business plan and balance sheet I sent Tim the day before and wanted to know why there wasn’t any money. The answer was rather easy; $124,000 a year in management salaries. I had recently laid one of them off dropping that to an even $100,000; but the only way the Lazy Susan was going to make it was if I eliminated all of the salaries and ran it myself. Since I was mobilizing, that would not be an option.

Knowing what the main issue was our conversation switched to a solution. I’m not sure whose idea it was, but a plan emerged. Vineese had just left her job as a morning DJ on a local Christian radio station and was in between jobs. The thought was if we could eliminate the salaries altogether for a period of time, we might have a chance. We would also need our hourly employees to accept a pay cut to keep things spinning. The plan we came up with was for Vineese to take over as the only manager and work for free for one month. After that we were going to pay her a modest salary.

Our goal was to get profitable enough to be in position to finance the start up debt that was overdue. In exchange for her efforts, I offered Vineese 40% ownership and total operational control if she would have accepted. After that we all four prayed together. Tim and Vineese told us they would need to discuss it more that night and pray some more, but they would be in contact with us the next day.

Sales for the day were $1,324.14, another below average Saturday. Labor was a frustrating 26%. After the cash deposit was made, the updated QuickBooks balance was -$8,165.03.

On the way back to our house I realized I had a voice mail message. It was from Jack Merritt. Jack told me he was sorry he missed me at the end of the banquet but he wanted to thank me for everything that we had accomplished together in the last five years. He wished me well in my upcoming mobilization. That message from Jack meant so much to me; especially at that time in my life! I felt at peace with my whole situation.

The Last Days of the Lazy Susan 1,2,3,4,5,6,7,8,9,10

28 October 2005

That week was a whirlwind. I received a call around the 21st notifying me that upon completion of my Officer Basic Course (OBC) I would be mobilized to Iraq (of course it later changed to Afghanistan). While I always knew that call would likely come, I didn’t think it would come then. There couldn’t be a worse time for it with everything else going on. Amy, the kids and I returned from Ft. Jackson on the 27th where I left my truck and most of the stuff I would need for OBC.

Debt was the only thing I thought about for over a month. I owed Tim, my general contractor, $57,600 from cost overruns in the initial construction. I owed US Foods over $24,000; about $12,000 of that for our start up order that was due 18 September. I owed Feller’s Fixtures over $15,000 for equipment, and I owed Cardinal Business Systems nearly $23,000 for my camera and point of sale system. These four debts were all due in full and had been pressuring me very heavy for a solution.

The solution I was working for the entire month of October was to get an additional $40,000 from the SBA to pay Tim most of what I owed and then get an equipment lease company to pick up about $39,000 to satisfy two of the other three. On the 21st, things were looking good. I had received an approval for the lease pending receipt of my balance sheet. By the 26th, everything was falling apart. One line on my balance sheet had scared everyone; payroll taxes payable $21,172.

On the 26th while I was at Ft. Jackson playing with the kids on the playground I received a call from Karen, my banker. She told me that she had argued all she could on my behalf concerning financing the cost overruns up to $40,000; however, the board and the SBA could not overlook the payroll taxes payable. They felt I was too far behind and that I should consider liquidation. When Karen said those words, my heart sank. I shut my cell phone off for the first time in months and disconnected from the world; later that night I did check my email only to discover that my lease had been disapproved due to the payroll taxes payable.

I kept my phone turned off throughout most of the day on the 27th until we arrived at O’Hare Airport on our way back to Springfield. We had about a three hour layover, so I turned it back on to discover over 30 voice messages. One of the messages was from Brad Eldridge, a friend of my General Manager, Brad Moncado. Brad Eldridge had been privately shopping the Lazy Susan for a buyer, and a guy by the name of Agim Zendeli had made an offer. Those of you from the Springfield area would recognize Agim as the owner and developer of Ziggie’s Cafe. He had offered to pay $75,000 for the place and take over the lease. I called Brad right away and told him I was looking for closer to $350,000 but to have him make another offer. After I got off the phone, I was immediately back in the game.

Of course one of my other messages was from Brad Moncado. Nixa Utilities had dropped off a termination of service notice; we had to pay $1,675.67 by 4:30 PM on the 28th or our electricity would be shut off which would make it difficult to remain open. I called him and let him know I would drop a check by for them to deliver later that night.

I woke up early the morning of the 28th; I had lots going on. I had to get ready for the range I was running for the Criminal Justice Association conference that Evangel was hosting. I also had several emails to respond to. Tim wanted a copy of my business plan and my current balance sheet after I told him we were denied on our loan, I had an email from a customer who loved our decor yet hated our food, and I had to get photos of our equipment to Agim.

The rest of the day flew by and that night I headed down to the Lazy Susan after everyone had left. I needed to pick up the deposit. When I sat down and looked at the numbers I just started shaking in fear. Sales for the day were $1,676.30 and labor was at 23%; 5% too high! I needed at least another $1,000 in sales for a Friday night, but it just wasn’t there. After the deposit was added in and the check to Nixa Utilities and payroll was taken out my balance in QuickBooks was -$8,669.06. I was going to need a good weekend, and it didn’t start out on the right track.

The Last Days of the Lazy Susan 1,2,3,4,5,6,7,8,9,10

I woke up this morning and looked north to discover snow once again atop many of the mountain peaks. It was a little hazy this afternoon when I snapped the photo; however, it is beautiful in so many ways! Not only are snow capped mountains outwardly beautiful, but it means I am going home soon; maybe really soon

Don’t forget I start my ten part series on the last days of the Lazy Susan tomorrow. You can look for the first installment in about 8 hours!