We were lucky to catch up with Gina Schreck recently and have shared our conversation below.

Hi Gina, thanks for joining us today. What was it like going from idea to execution? Can you share some of the backstory and some of the major steps or milestones?

Starting from an idea or dream and moving into execution and completion takes some specific steps and nerves of steal. #1, You must surround yourself with people who can encourage you and tell you that you can do it. I call these your Balcony People. These are the ones who are cheering you on in the balcony. They tell you to get up and keep going when you fall or have a bad day. Some people need to seek out these balcony people. Find them at associations, networking groups, conferences #2 As the excitement and nervousness grows around your new idea, you need to dive deep into research and preparation. This means going to association meetings in the area of your new business idea. Binge listen to podcasts and read books and blog posts on your new industry or business topic. Can you go mystery shop another business that is in the same arena as you are wanting to enter? If there is a business that would not be a direct competitor, call the owner and ask if you can buy them lunch or coffee to do an informational interview. You do all of this before you actually start the business. #3 Now if the hard part. You have to find people who can challenge your idea, poke holes in it, and point out the reasons why it may not succeed. Don’t get defensive. Listen and take notes. You don’t have to agree with their input but they may have some nuggets of wisdom or ideas that you would have missed. Thank them, then go out and cry it out if you must. Entrepreneurs naturally have rose colored glasses on at all times, so having them ripped from your face and forcing you to see all sides of your idea is helpful. Finally #4 is to take action every day. Start moving forward. Action kills fear. Action puts in contact with people who can help you. Action changes you from someone with an idea, to someone who is opening a new business!

Gina, before we move on to more of these sorts of questions, can you take some time to bring our readers up to speed on you and what you do?

The Village Work, Wellness and Event Center is a new way to work. We have an entrepreneurial community and host weekly networking events to help people build their businesses. Whether you are looking for an office for yourself or your team, or you need a meeting space for your next team off-site, we have rooms for 4 to 200 people.

The Village Workspace offers a free test drive day to drop in and see how productivity and community go hand in hand.

How did you put together the initial capital you needed to start your business?

When we first started I had to decide whether or not to seek out investors, apply for loans, or pull money out of our savings to do the build out. Getting advice from my husband, who had dealt with investors in a couple of his companies, I opted not to pursue investors. He reminded me that investors will often own you and your company, not to mention having to now split profits. Our landlord provided TI (tenant improvement) money as part of our lease totaling $500K and we ended up personally funding the other $500K. It was not easy but we repaid that money within 3 years to ourselves, even during COVID.

When we decided to expand it was a different story. We got no TI dollars so I took out a line of credit to fund that part. It is always scary to take on debt but when it is to expand a business that is doing well, it’s a good investment.

Can you talk to us about your experience with selling businesses?

I did sell my marketing agency after a year into my new business. It was just too much to juggle two very busy businesses. One thing I tell business owners is to start out by running your business as if you will sell it one day. Even if you never sell it, it is a more profitable way to operate and much less taxing on you. After owning my marketing agency for over a decade I met with a business broker to get advice on selling it one day. She asked me “who is the primary salesperson?” and “How much interaction do you have with your clients?” My answers were ME and TOO MUCH! This was enough for her to tell me that I could not sell the business until I could work my out of it.

Another lesson in selling the business is, your business is never as valuable as you think it is. You put in blood, sweat, and tears, so you believe it is worth 10 times your annual revenues. It’s not. Depending on the type of business you have, it could be worth only two or three times your EBITDA. EBITDA, or earnings before interest, taxes, depreciation, and amortization, is an alternate measure of profitability to net income. By including depreciation and amortization as well as taxes and debt payment costs, EBITDA represents your cash profit generated by the company’s operations. When you take emotions out of your valuation, it’s not as much as you may think. Start early focusing on these numbers and you will be glad you did.

It’s also very hard to sell a business, regardless of profitability, if it relies too heavily on YOU. I worked for the next couple of years to put other team members in sales roles and stopped attending (and dominating) every client call. I also discovered a great book called PROFIT FIRST, by Mike Michalowicz. This book helps business owners set up their finances to ensure you are actually making money and helps you control expenses and increase that EBITDA number. It is a must read for every small business owner!

Contact Info:

• Website: https://thevillageworkspace.com
• Instagram: https://instagram.com/thevillageworkspace
• Facebook: https://facebook.com/thevillageworkspace
• Linkedin: https://Linkedin.com/in/ginaschreck