Todd Jones has a restaurant management background and his wife, Denise Ortgies-Jones, has financial management experience. Todd had always wanted to own a gift industry business and realized his dream by buying a ‘Cookies by Design’ franchise in 2004, which combined his food industry experience and the gift business into one.
After a few successful years, the Urbandale business had a serious downturn in sales in late 2008. The impact of the national economic crisis was straining the business and steps needed to be taken so it would survive intact; they also wanted to create a long-term survival plan for the business. Needing help in coping with financial constraints and a guide in determining what cuts could be made and how to increase sales, the Jones turned to the Mid Iowa Small Business Development Center.
After an assessment appointment at the center, the SBDC gave Todd and Denise a professional referral list of franchise attorneys, and then they met with the center’s strategic planner and financial expert. This two person SBDC counseling team advised that the company’s first steps were to downsize some staff, negotiate a rent reduction based on cash flow projections, and set up a series of regular meetings at the center to determine long-term, cost effective marketing and cost containment planning.
A team of five SBDC counselors then provided help to the Jones in getting additional changes implemented, including negotiating a more reasonable rent on their real estate, writing a strategic marketing plan, and devising a cost management monitoring plan. Ongoing support and refinement meetings were provided regularly by the SBDC to check on the company’s progress. Along with retaining a franchise attorney, the Jones now have a three year cash flow projection, with breakeven, debt load ratio analysis, monthly receivables and payables, a proper balance sheet, and a comparison to industry standards to guide them.
Happily, Cookies by Design has survived and continues to increase its market share while maintaining and further reducing costs. The Jones have been able to retain five jobs in addition to the owner’s position and keep a positive cash flow during these difficult economic times. They continue to look at new markets and more effective ways of reaching existing customers as well as restructuring the company to keep costs down, all while keeping a vigilant eye on their bottom line. The company is now being supported by the Chamber of Commerce and had a strong attendance at their recent ribbon cutting ceremony.
Owner Todd Jones has nothing but praise for the assistance provided by the Mid Iowa SBDC saying, “The SBDC has kept the wolf from the door and we are learning to market for a reasonable amount of money.”