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Published May 07, 2019

In last week’s column, Tiffany Frelich of Green Bay talked about the challenges of growing her new business, “Teddies Creative Cakes.”

She has baking skills, rave reviews, and an established online presence. However, decorating takes time and since Frelich is a perfectionist, it is difficult to be compensated for all of the hours spent decorating.

Shirley VerBruggen, a mentor with the Green Bay SCORE Chapter, has an MBA and is a business education and marketing educator.  She met with Frelich and stressed three areas - ideas that most entrepreneurs should consider.

“I met with Tiffany to help her with several different start-up business issues she was experiencing,” VerBruggen commented.  “In addition to needing information on how to price her products, she struggled with how to become more efficient and was especially in need of strategies to manage her work time and personal life.”

VerBruggen explained the concept of Opportunity Cost, the process of looking at the benefit, profit, or value that must be given up to acquire or achieve something else.  In business, every action, choice, or decision has an associated opportunity cost.

She noted, “For example, if Tiffany chose to spend her work time making one elaborate cake, she would forego spending that time making 50 decorated cookies.  If she spent her time putting wrappers on the products (something a helper could do for her), she would give up the same amount of time doing what only she was capable of doing – the special decorating that differentiated her products from any that could be purchased at another store.”

For any business, VerBruggen says that choices should be made regarding work time in order to maximize profitability.

“When Tiffany begins to correctly value her time, she will move from hobby to business,” she added.

Another challenge has been time management.  As a busy mother, it is hard for Frelich to spend the number of hours on her business that she’s been spending.  Between her and her husband (who is employed full-time), she estimated they spend between 80 and 85 hours per week.  

VerBruggen suggested that she look at her roles and goals within the business.  A book such as 7 Habits of Highly Effective People by Stephen Covey was recommended.

“I explained that Covey taught that one should identify her roles first and foremost (mother, wife, business owner, sister, friend, daughter, volunteer, etc.) and create one calendar based on the goals one has for those important roles,” VerBruggen said.

A calendar such as the Franklin Covey system, or any day calendar, can be used to block out specific times of the day or week so that time management is a plan, not a reaction.

Finally, Frelich has struggled with time wasters such as social media and in finding a balance between work and family.  For this, VerBruggen taught the concept of the Eisenhower box which helps people decide on and prioritize what is not urgent, but important.

She stated, “The concept teaches them to either delegate or not do what is neither important nor urgent.  The goal is to spend the most amount of time in quadrant 2 which focuses on planning.”

By incorporating these methods, VerBruggen predicts that Frelich should be able to do what she loves and become profitable.  Because the current business does not allow for economies of scale, it will be difficult for Frelich to be paid for her time.

“Where another bakery is going to produce a gross (144) of cookies, Tiffany is going to specially decorate a dozen or two cookies or one cake,” VerBruggen noted.  “I explained to her that her pricing tools are accurate, but she will never be able to charge what she should be charging for her time given her product production volumes.”

That said, VerBruggen stressed that the use of the tools she recommended and an adjustment in the business model could be transforming.

“Tiffany is talented and determined and she could benefit from learning these very important business concepts. That could help make her start-up company viable and allow her time to be with her family,” VerBruggen concluded.

Tina Dettman-Bielefeldt is co-owner of DB Commercial Real Estate in Green Bay and Past District Director for SCORE, Wisconsin.