“Green” is in Pete McHugh’s blood. As the son of retired Growing Greens nursery owner Liz Ronaldson, Pete was raised in the industry. Pete had acquired a 1,500 sq. ft. shade house and has about $5,000-6,000 in the “Anthuriums and More” business already. The business to date had been run informally, but he was ready to make the business official and pursue funding through the Division of Vocational Rehabilitation. He was referred to the Hawaiʻi SBDC-Kauaʻi Center (John Latkiewicz) by Laurel Brier, DVR counselor.

We worked through the paperwork involved in starting up a business. John and Pete worked back and forth with business plan; with Pete responding to the elements in the business plan format and John editing and providing feedback. As with most business plans, the process of developing cash flow projections proved to be enlightening to Pete and will assist Pete in managing the business. In terms of Pete’s overall experience with the SBDC, Pete stated that “Without John, I wouldn’t be here, I learned so much. The learning continues now and I’m having a ball with it”. Pete continues with a full-time job to complement Anthuriums and More. He’s ploughing his profits back into the company as he continues to grow the business. It’s certainly paying off, as he just landed a major contract with one of the resort hotels and is working to develop a contract with another.

An interesting punctuation in the process was the impending arrival of tropical storms hurricanes Iselle and Julio. Writing the plan had to take a back seat to preparing for the possible impacts of those storms.

The project is demonstration of the interplay of agencies involved in business development. As Laurel stated, “I regularly refer my clients who are interested in self-employment to the SBDC. Their staff is able to work with people one on one to discuss their ideas and the many aspects of starting a business and making it viable. I have had many clients through the years who have developed successful businesses with the help of SBDC. It’s a great resource that our office is happy to partner with.”

Tara Leota had found herself with two dilemmas. On one hand, she had managed to secure two harbor leases which allowed her to work the summer and winter boat tour seasons. However, having two leases was premised on having two boats – one operating out of one harbor and the other boat operating out of the second harbor.

However, she needed a second boat. Beyond the legal issues, her being able to effectively capitalize on the two harbor leases was also premised on revenues from two boats. A second boat also addressed the second dilemma – level of income being generated.

Working with the Hawaiʻi SBDC (John Latkiewicz), Tara was able to develop a persuasive business plan and obtain a $40,000 loan from First Hawaiian Bank to buy a second boat for Kauaʻi Sea Rider Adventures Inc. Since bringing on the second boat, revenues have increased by a third. She expects sales and profits to continue to increase and expects to hire additional employees. A secondary benefit to the process is that Tara was able to wrap her mind around the financial implications of expansion. In the process of developing cash flow projections, it became apparent that a more modest boat was the way to go rather than the larger boat that she was working towards. Another, larger boat is still in the picture for further expansion.

According to Tara: “If it wasn’t for the SBDC, I would have never have gotten the loan. As a marine biologist, I was terrified of the idea of writing a business plan. John and Darlene were just so pleasant and supportive. Thanks to them, I was able to conquer the process.”

Puka Dog, owned and operated by Rick Quinette, serves Hawaiian Style Hot Dogs. The product is unique in that a polish sausage or veggie dog is served in the toasted puka (hole) of a bun with one of four secret sauces, ranging from mild to lava, and one of six different tropical fruit relishes ranging from mango to starfruit.

When the Hawaiʻi SBDC Network (SBDC) first started working with Rick, his retail outlet was a high rent location in the Poipu Shopping Village. Rick saw the potential for expansion and increasing profits; his vision included a North Shore (Kauai) location, a factory on Kauaʻi under his control to supply buns, sauce, and relish to all Kauaʻi-based Puka Dog locations, new product lines and possibly a mobile food truck.

As with most entrepreneurs, ideas typically exceed available capital. Rick was referred to the Kauaʻi Office of the SBDC (John Latkiewicz) by the Bank of Hawaii for assistance with financials and help in developing a business plan. The Kauaʻi Office teamed up with the Maui Office of the SBDC with John focusing on the business plan and Fred Rickert (Maui) on financials.

As it turned out, Rick was able to boot strap the bakery/food processing operation in 2013. He acquired significant equipment assets at a price that he could personally bankroll and opened up his factory in the Puhi Industrial Park on Kauaʻi. Now, Rick not only supplies the buns for his operation but also bakes for other interests such Birdie’s Cafe in Kalaheo.

Rick found the ideal second location in the Ching Young Village Shopping Center in Hanalei. The Bank of Hawaii, Small Loan Advantage program, provided funding for the operation which opened in May of 2014. As manager Brandee Barkly, Rick’s step-daughter stated the Hanalei location is doing fabulously and has not taken any business away from the Poipu location.

Greg Askew and Candace Boxer were seeking a warm weather climate with plenty of outdoor opportunities. When they arrived on Kauaʻi, they knew it was going to be home. By happenstance, the local Hawaiʻi SBDC Network (SBDC) office was offering a “Starting a Business on Kauaʻi” seminar while they were on the Island. Greg attended and met John Latkiewicz, Center Director. They approached John with a plethora of ideas. Much of the first contact was working through these ideas and how they might fit on Kauaʻi.

One idea that appealed to them was frozen treats (popsicles) made with local ingredients and based on local flavors. (“Popsicle” doesn’t do it justice. Think of flavors such as Lilikoi Cheesecake, Butter Mochi, Strawberry Lemonade and Pineapple Li Hing. Then think local ingredients, all natural, nothing artificial ever.) Greg contacted Ono Pops, possible competition and what they thought might be a competitive relationship turned out to be a partnership. Kaua’i was not working for the O’ahu based business due to distance and the need for a local presence. They were amenable to Greg and Candace giving it a try.

The next issue was access to a commercial kitchen. It so happened that another of John’s clients was contemplating renting out of her commercial kitchen on off-hours. Greg and Candace came to agreement and the kitchen issue was resolved. They began operations in the kitchen in November of 2014. As of February, 2015, 10 retail outlets now carry Ono Pops with more being added. Ono Pops is one pursuit. Expect to see some of the ideas that they came to the island with evolve into other business ventures. John certainly expects to be seeing them again.

Kaua’i is now home. Greg and Candace are committed to the community volunteering with local organizations, participating in chambers and trade associations and finding ways to use local ingredients and partner with local businesses.

Kauai Juice Co. is owned and operated by Kristal Muhich. The Kauai Juice Co. manufactures and distributes kombucha, cold-pressed juices and kale chips. “I love Kaua’i. I love everything about it. On this island we are all intertwined, which has given me a deeper sense of connection here. It also gave me the idea of creating a business that helps the community, combined with a passion to create healthy, sustainable products.”

In 2010, Kristal started Kauai Kombucha on a shoestring using personal funds. Kristal approached the Hawaiʻi SBDC Network (SBDC) on Kauaʻi at that point. Working with John, she brought the business forward and worked her way through understanding the requirements for a certified commercial kitchen. Along the way, Kristal also started working on a business plan. That planning process lead to Kristal organizing a successful Kickstarter campaign, which in turn allowed her to take additional steps forward.

From that point, she’s never looked back. Since her beginnings, she’s gone from:

• Volume – 5-10 gallons a week to 200 gallons a week.
• A solo operation to 7 employees, 5 full-time; distribution from 3-4 stores to 35 stores; started her own retail outlet as well. As of the beginning of April, 2014, she’ll be in Whole Foods – Hawaiʻi stores.
• Sales growth – quadrupled sales over the first 3 years of operation, tripled those sales in the last year.

As she moves forward, the SBDC will be a go-to resource for information and guidance in areas such as exporting and franchising.

“Kauai Juice Co. is for the Kauaʻi community, for sustainable agriculture, and for a healthy future for the island. A portion of our proceeds is donated to HAWAIISEED, a non-profit organization that supports Hawaiʻi’s agriculture in a positive, chemical-free way and supports organic farmers. At Kauai Juice Co. we are committed to giving back directly to the land and to farmers.”

Seven years ago, Seth Peterson didn’t even like to cook. With a biology degree in hand, he began working on a farm on the North shore of Kauaʻi. That experience gave him a new appreciation for food and was the seed for what has become Kickshaws – a food truck specializing in “science forward” food.

Seth and Paulette, his wife, opened up Kickshaw’s on December 5th of 2013 culminating a 2-year process of preparation, business planning and resource acquisition. Seth approached John Latkiewicz of the Hawaiʻi SBDC Network (SBDC) office on Kauaʻi regarding funding for the business. The initial meeting began the process of refining the idea, going through a reality check, and preparing a business plan. From there, it was shopping the business plan, dealing with a food truck damaged in transit, the State Health Department having trouble wrapping themselves around the menu and a traffic accident that blocked traffic for several hours on opening day. They have been nothing if not persistent. That persistence is paying off, however, as they continue to grow and see a constant stream of repeat customers.

Although still a fledgling business, Seth and Paulette hope to expand and expect that theyʻll be back at the SBDC as they pursue expansion.

Talk to Seth and it becomes clear quickly that he just doesnʻt just throw a burger patty on the grill and call it good. Ingredients are carefully selected and prepared using techniques and processes designed to create unique tastes and textures. His enthusiasm for cooking stands in stark contrast to “didn’t even like to cook”. Seth and Pauletteʻs passion and persistence suggest that “Asian shrimp tacos” and their variation on grilled cheese (think Gouda and figs) will be around for a long while.

El Herington’s tour company, Spirit of Kauaʻi, is grounded in El’s 30 years of experience with spiritual healing. “Kauaʻi is very much a perfect place to deepen your connection with your spiritual nature.”

Tours were originally informal and free. “People were asking to go along with me to some of the magical places around the island. Then they were referring visitors and friends.” El decided to put together a simple website to see if there was more interest. In the first year El gave about 10 tours. After a while she developed the flow of the 3 main tours now offered and began to add retreats and custom tours. “It was a natural progression of sharing what I love with people who may not have the possibility of finding these places on their own and learning about the spiritual nature and unique history and significance of the healing island.”

The business continues to grow with prospects for additional growth. In 2011, the 10 tours offered generated an income of $4500 with approximately 90% of that being profit. In 2013 she gave 25 tours with income of over $15,000 plus $5,000 more from workshops, retreats and weddings. She is now being contacted by other tour-related providers about arranging tours for their clients and is looking at the possibility of expanding to other islands.

In terms of the Hawaiʻi SBDC Network (SBDC), El originally approached John Latkiewicz of the Kauaʻi SBDC Office regarding her website. John assisted with bringing her website and marketing materials to a more professional level. “John’s help with pouring over hundreds of photos was really helpful to hone the image of Spirit of Kaua-i.” From there, on-going discussions have focused on many aspects of her business from logos to taxes to pricing to insurance to forming partnerships to hiring employees. As she moves forward, she sees the SBDC as a major resource. “John is great as a sounding board and guide. It’s so helpful to have guidance with priorities and common sense business practice.”

Bark! Bark! Backyard provides dog daycare, boarding and training at a facility located in Līhuʻe on Kauaʻi. The business started out of necessity – “we have dogs”. What started out as a necessity, turned into a passion.

Slow and steady characterized Karen Tolodziecki’s efforts. She began the “Starting a Business on Kauaʻi” workshop provided by the Hawaiʻi SBDC Network’s (SBDC) Kauaʻi Office. That provided an opportunity for Karen to evaluate her skill set. Then on to the business plan which was 2+ years in the making. Her SBDC advisor, John Latkiewicz, provided edits and a sounding board. As with most business plans, the business concept evolved over time. For instance, dog walking as a revenue stream dropped out over time allowing them to focus on core capabilities.

Her persistence and hard work paid off.

The end result – a $100,000 line of credit with a $30,000 equity stake on their part allowed them to open in the fall of 2014. As Karen and RJ Tolodziecki noted, the line of credit has enabled them to minimize financing charges. By providing sweat equity – power washing and prepping floors, putting together kennels and equipment – they’ve been able to keep their cash flow positive as they work through the start-up phase of the business.

What’s next? Karen and RJ are looking ahead – room for a pool and, somewhere down the line, “acreage”. They are looking to educate, train service dogs and, the big dream, to establish a no-kill shelter. Karen is pursuing training opportunities to further enhance her skills and build capability. She recently completed a training program conducted by Cesar Milan (the Dog Whisperer) and she has also been designated as an AKC approved evaluator for running the Canine Good Citizen test. The Kauaʻi office of the HSBDC will be part of those plans moving forward.

Matt is a driven young entrepreneur. A key to his business future is learning.

Matt approached John Latkiewicz at the Hawaiʻi SBDC Network (SBDC) wanting to explore a mobile food operation focused on sushi and operating in the Poipu area of Kauaʻi. It became clear that although Matt had the drive and ambition, the smarts to pull it off and the funding from family, he really didn’t have the background in the business and in the cuisine in particular. As John often does in such situations, John advised Matt to find some way to get his feet wet in the business. That advice all too often falls on deaf ears with many clients. Not with Matt, however.

After graduating from the Sushi Chef Institute in California, Matt worked in sushi restaurants learning by doing, observing and asking questions. He then launched the Yanagi Sushi Wagon in December of 2013. Matt experiencing steady growth operating three days a week at the National Tropical Botanical Gardens, doing Hanapepe Art Night and doing catering.

Although the lunch wagon was profitable, it was too close to being a breakeven proposition. The answer – take the lessons learned and evolve into Makai Sushi. In September 2014, Matt was invited to build and operate a sushi bar in the Kukuiula Market near the Poipu roundabout. Makai Sushi has been hugely popular (and much more profitable) with both tourists and locals who enjoy his quality sushi, his outgoing personality and his enthusiasm for what he does.

Matt has plans for a upscale restaurant and hopes to realize that vision in the next couple of years. He’s also working with John to find a way to organize a periodic evening event in the Poipu area that involves the restaurants and other business in the Poipu area. The SBDC will be there to support him. As Matt says, “you’re my business advisor.”

Jeff Adams had a higher purpose in mind when he created Hā (Hawaiian for “breath”) Coffee and relocated he and his family to Kauaʻi from Washington State. Organized as a non-profit and using funds from an acquaintance/investor interested in community development, Hā Coffee is designed to provide employment/training opportunities, serve as a platform for community activities and act a hub for discussion. At any given time, you may find the local makers group, a hui of individuals working to promote sustainability and awareness of climate change issues and members of the Līhuʻe Business Association meeting in the space. A recent visit to Hā Coffee provided an opportunity for the SBDC Director (John Latkiewicz) to connect with the Red Cross Director (with whom the HSBDC is coordinating regarding disaster preparedness) and Megan Fox and Sally Rizzo of Mālama Kauaʻi (John Latkiewicz will be presenting to a group of students and interns focused on sustainable agriculture).

The HSBDC has largely been involved serving as a sounding board for ideas, an opportunity to brainstorm possibilities and providing connections in the community. Originally, that included identifying local bakers who could provide goods for his business to resell (thus supporting local entrepreneurs) and identifying possible community partners, e.g., the heads of the Līhuʻe Business Association and the Kauaʻi Planning and Action Alliance.

Jeff is not sitting still. Over the last year or two, Jeff has asked for additional meetings with the SBDC focused on organizing a hui that would look at using the local feral pig population as a resource and then again on developing a business incubator. Again, John provided connections and played his role as a sounding board. We look forward to supporting Jeff as he works to build the local business community and the entrepreneurs operating in that community.

Jeff stated: “John and the SBDC of Kauaʻi have provided invaluable insights, connections and overall help in establishing of Hā Coffee Bar. It’s been an essential part of our success in this community!”

Keliʻi Kaʻaihue has a passion for concrete pumping. As Keliʻi explained, he has been in the concrete pumping business for 12 or so years but as an employee. Based on his experience, he felt that he was ready to strike out on his own.

They were referred to the Small Business Development Center by First Hawaiian Bank who they had approached about loan possibilities. Along with his wife, Chelise, they started their journey toward business ownership by attending a Starting a Business workshop sponsored by the Kauaʻi Office of the HSBDC. They followed that up with one-on-one assistance aimed at developing a business plan as part of loan application process and getting the business registered.

Working with John Latkiewicz, Center Director, Keliʻi worked on his business plan and on the related cash flow projections. As is typical, they worked back and forth with John making edits and suggestions and helping Keliʻi to focus on how the business would roll out. Along the way, John helped Keliʻi register the business. All of his work paid off; Keliʻi got his loan – $142,215! Keliʻi’s looking forward to a good 2017 based on the projections for the construction industry.

When asked about the involvement of the HSBDC, Keliʻi stated that “The HSBDC made it happen. They held my hand throughout the 4 process and gave me confidence. They were helpful in every aspect”. As Chelise stated, “It’s not worth doing it alone when you have a service like that provided by the HSBDC.”

Aletha Thomas, a former schoolteacher, launched Monkeypod Jam in 2010, when she was placed on furlough. Each furlough Friday, Aletha would pull out her French copper pot and make jams and jellies using ripe Kauaʻi fruit. With each batch, she was preserving the season’s harvest while also preserving childhood memories of her grandmas, both of whom she remembers making jams on the farm.

Today, Monkeypod Jam works with more than 25 Kauaʻi farmers to create 55 seasonal preserves. They use only fruit from Kauaʻi. This is their way of sharing it with everyone. Monkeypod is committed to Kauaʻi agriculture, green practices and impeccably high preserving standards.

Aletha continues to make her jams, jellies and marmalades by hand, cooking them in wide copper jam pots, which help heat the fruits quickly and capture the freshest, brightest flavors. Over the course of the last 7 years, Monkeypod Jam has continued to grow reaching sales of $500,000 + in 2016. In 2016, they moved into a storefront in Lawai and now features a variety of freshly made sweet treats and savories, first rate coffee and, of course, jams and jellies.

A recent soft spot in her cash flow led Aletha to a whole new revenue stream. In order to take advantage of her space (and pay the rent), Aletha began offering cooking classes – chocolatier classes, Korean Food classes, Hawaiian chefs’ favorite comfort food classes. Those classes, in fact, became the focus of her entry into the Kauaʻi Coffee Food and Ag Business Plan Competition held the first part of this year on Kauaʻi. Aletha emerged from that competition as the first-place winner out of a field of 17 entrants realizing a first place prize of $20,000 award and a first-rate business plan.

Aletha has always sought out advice. As it relates to the HSBDC, her involvement started with a Starting a Business workshop in 2010. From there, it’s been an on-going relationship. As Aletha describes it, “it’s great to have a resource that you can go to whether that be with specific questions or just to kick ideas around.” She appreciates the confidential, safe environment that she has with the Kauai office of the HSBDC. Future opportunities? Creating Monkeypod Jam as a tourist destination, tours, private tastings and mentoring others. There’s always another opportunity.

Christy and Keola Wong had operated Wong’s Traveling Zoo working with abandoned or retired animals (farm animals in particular) but had to discontinue the business due to losing a lease of land that they were using to support the animals. By their own admission, the had not really operated the business as a business; it really just grew out of serving family members and community contacts. They approached the HSBDC (John Latkiewicz, Kauai Center Director) for help with resurrecting the traveling zoo, running it as a business and expanding services using a non-profit to complement the traveling zoo.

Much of the initial work focused on teasing out the for-profit’s versus the for-profit’s kuleana. The non-profit would control the land, buildings and animal assets. The non-profit would handle services that are generally not for-profit activities. These might include rehabbing animals, veterinary care, housing unwanted animals, running rescue/adoption services, running pet therapy programs, and a Building Living Classrooms program. Not all of those services are on-line yet, but the vision and dedication are there.

The HSBDC worked with them to complete the non-profit paperwork and refine their business plan. From there, we worked on creating a board, identifying partners and identifying land possibilities. John has been amazed by the Wongs. “They have been persistent to say the least. They have also never shied away from the challenges or from the opportunities to stretch themselves beyond their comfort zone.”

The Kauaʻi Animal Education Center reopened its doors late last year and has moved to its new location at Keālia Farm. The effort has since morphed into a full-fledged operation that offers all kinds of opportunities for keiki and adults to learn about farm animals. In fact, the nonprofit is launching new programs left and right, including pet therapy workshops and “living classrooms”, where families visit the farm to learn animal husbandry skills.

Christy and Keola appreciate the HSBDC. “John has been instrumental in every step of the process going above and beyond not just with the business plan writing, and filing for non-profit, he has offered support in many ways, such as coming to meetings, fundraisers, making connections in our community that built the relationships for KAEC to grow upon. We wouldn’t be a success with our services without the guiding knowledge, programs and support of HSBDC!”