Coffee roasters savor relationships
Fine coffee roasting isn’t taught in school or online. It is an art that is learned, cultivated, and sustained by personal relationships. The owners of Ancora Coffee Roasters, (www.ancora-coffee.com) George and Sue Krug, understood this early on in their quest to start their business. In 1993 they sought out experienced coffee roasters near Seattle, Washington, the city known worldwide for java, to learn about the coffee industry. They established a close, mentoring relationship with the couple who taught them the trade as well as made critical introductions to coffee importers and other industry people.
The following year, the Krugs determined that the Midwest was an open coffee market and settled on Madison, Wisconsin as the perfect environment because of the university and government influences. They started with a handful of employees and a retail store on King Street, grossing $150,000 in their first six months of business. Their commitment to quality and their exceptional customer service have paid off in unexpected ways.
They were totally surprised when their retail customers threw them a party to celebrate the anniversary of their first year in business. In an unusual turnabout, customers brought a cake and a photographer to their store, gave speeches, and played music in appreciation of the Krugs’ year of providing delicious coffees and outstanding customer service. The Krugs’ focus on relationships—from coffee growers and brokers to wholesale and retail customers—is largely responsible for their success. They have built a reputation for their quality products and customer support. A decade later, they employ 50 people and gross over $3 million from their 300 wholesale accounts and four coffeehouse operations. They promote Ancora primarily by word-of-mouth and through their growing website business.
SBDC services provide business skills
As a University of Wisconsin-Madison graduate, Sue knew that the university could be a source of help for their business. She sent George off to explore the labyrinth of university departments where he soon discovered the breadth of resources offered by the Small Business Development Center. He and Sue attended numerous SBDC programs as well as sent their employees to classes including the Financial Management Series, Quickbooks, Women in Business Conference, Customer Service, Human Resources-Management, Human Resources Legal Series, Communication & Delegation, Project Management & Microsoft Project, Sales, Sales Management, the Marketing Series, and Perspectives on Success.
Sue believes strongly in the value of SBDC courses when she states, “The number of classroom options has provided us, as owners, a chance to build on our skills and knowledge to help grow our business, but most importantly they’ve provided our staff with the opportunity to grow in their level of skill and business acumen. We’ve consistently sent our retail shop managers to various SBDC classes that focus on financial, managerial, or communication skills. Each of them has come back feeling as if their awareness, techniques, or skills have increased in the very practical sense of the word.”
Impact
Over the years, the Krugs have met with SBDC counselor Jack Reiners to discuss a number of issues related to business operations and planning. Given their facility for forging relationships, it’s understandable that the Krugs have developed a warm friendship with Jack whom they meet monthly for lunch. Jack functions as an informal advisor and he assists with strategic planning.
As George relates, “Jack and the SBDC provide expert advice which helps us continue to grow our business by looking forward and by holding us accountable. When you work so closely in your business, it’s important to have an outside expert help you take a strategic look at where you’re headed. Sue and I both feel Jack and the SBDC offered us a terrific opportunity to receive objective, thoughtful perspectives on the decisions we face in growing our business.”
Sue describes the reality of small business ownership as all encompassing and how the varied services of the SBDC continues to support the success of Ancora Coffee Roasters, “The fact that we continue to use SBDC‘s services and talents in a variety of ways is indicative of their flexibility at meeting the needs of those of us who look to them for support, guidance, or just a listening ear. You don’t just open the door of your business and it takes care of itself. It’s your entire life. You live, eat, sleep and breathe the business 24/7.”
When it’s a business that smells as good as Ancora roasted coffee, it’s really something to savor.
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All material Copyrighted @ 2007 by the Board of Regents of the University of Wisconsin System, University of Wisconsin-Extension, Small Business Development Center, all rights reserved.