PANEL ANSWERS QUESTIONS

By Martha Wickett
OBSERVER STAFF
Apr 13 2005

What about profit? What would be the effect of a gas price increase on your business? What if a Big Box store moves into your town?
These are some of the questions that a panel of local business people discussed during a recent seminar for Xtreme Dreams: Be Your Own Boss, a local initiative supporting young entrepreneurs.
The panel consisted of Tom Peasgood of Skookum Ski and Cycle Ltd., Denzel Sandberg of Denzel's Hot Sauce, Anna Heckrodt of Pinz-N- Needlez and April Feenstra, a previous Xtreme Dreams winner with her Coffee Break Delivery business.
Feenstra and her cinnamon bun delivery business tied for first place last year with Robert Bradford, Dave Pilling and Kyle Reynaud with their Xtreme Dreams Basketball Camp.
In discussions of profit, panel members said there are different ways to look at it. Heckrodt noted that profit often goes back into inventory, allowing a business to stock more of a variety of products.
Peasgood mentioned that part of a personal vehicle is paid for when you require a business vehicle.
"That's nothing you see in your pocket but it's definitely something you use every day."
Panel members said other less tangible factors can be part of profit, such as the benefit of living in a beautiful setting such as Salmon Arm's.
Feenstra made about $500 in one week with her cinnamon bun business. She said she liked the idea of being her own boss, rather than being an employee.
She noted that regardless of the effort an employee puts in, they generally still get a fixed wage.
In terms of what businesses would do differently if they were to start again, Sandberg said he thinks he spent too much money early on trying to advertise for the American market.
"I was advertising in specialty trade magazines. It was quite costly."
Panel members were asked what they thought the effects of an increase in gas prices might be on their business.
Sandberg noted that the cost would have to be covered somehow, whether that be in the price of the product or not.
Heckrodt mentioned that it might be positive for some businesses like hers, in that the public might get on skateboards and bicycles more.
Regarding the introduction of a Big Box store, Peasgood noted that Salmon Arm is a hub, with several smaller communities around it. He said a Big Box would ultimately draw more people to Salmon Arm .
Heckrodt noted that for some items, her cost would be what the product is retailing for at Wal-Mart. She said she wouldn't try and compete with those items, but would instead offer better selection. She said better customer service would be key.
She also suggested going to big competitors to see what items they're stocking, and then offering different products.
Following the varied discussions, the young entrepreneurs were asked about their businesses, which ranged from T-shirt design to jewelry making.
All of the participants in the Xtreme Dreams: Be Your Own Boss competition must have submitted their business plans by May 15.