The Truth About Owning Blue Sail Coffee
We wanted to know the truth about owning a coffee shop… so we tracked down owner of Blue Sail Coffee, Kyle Tabor, and asked him some tough questions. Here’s how to make it as a serious business owner…without taking yourself too seriously!
Hit the Ground(s) Running
Team Silverlake: How long has Blue Sail Coffee been in business?
Kyle Tabor: We opened in May of 2014, so six years! We have two locations: The original shop in Conway and a shop in downtown Little Rock.
TS: That’s awesome! What’s your favorite part of the job as owner of Blue Sail?
KT: No questions asked, I LOVE sourcing unique and delicious coffee and sharing it with other people. Our next limited release is the first place winner of the Cup of Excellence Competition out of Columbia.
Kyle’s office for the day. Gotta love Arkansas.
Makin’ Boss Moves
TS: You were barely in your twenties when you started Blue Sail. What are some ways you saved money at the beginning?
KT: I slept in the back of my shop on a military cot, sold my jeep, basically did anything to save money!
TS: It seems like a lot of business owners struggle the first few years, especially with finances. What advice would you give to a new business owner who is barely breaking even?
Packaging collab w/ Silverlake + Blue Sail!
KT: For your business: Hire a consultant w/ relevant strong experience in your field. Even if it’s a decision you could have eventually made yourself, you’ll save money and make more if you have someone advising you. One of my consultants is 10k a year, but after 2 months they saved me over 20k because they told me what NOT to spend money on.
For yourself: In the beginning of building your business, put your body, mind, and personal life first. Don’t sacrifice yourself for your business. I see it all the time, people don’t have a life because they are trying to do everything.
TS: How do you forecast profitability? (I.e. How do you keep from wasting your time on things that aren’t profitable?)
KT: I’ve got three separate businesses: Retail Coffee Shop, Wholesale Coffee, and Online Sales. Each one has a different primary goal, so I have to make sure my team understands which projects are top priority. I break it down into expenses and go from there. Retail Coffee Shop - we’re looking at labor expenses. Wholesale Coffee - we’re forecasting the inventory. Online Sales - we’re watching our conversion rate. It takes time to get the right formula for profitability and sometimes you have to try something and switch gears if it’s not working.
TS: Marketing is super important to growing your business. What’s the best marketing investment you’ve made?
KT: I hired the right people to handle all of the smaller marketing tasks. I took social media apps off of my phone because it was too much for me to worry about. My advice: Hire people who are good at understanding your target market and business strategy and who will stay with you for a long time.
Grow Your Own Way
TS: Okay, now for the hot seat. Have you ever had a big business screw up?
You might recognize this coffee, they now carry it at Target & Whole Foods!
KT: Yes… I lost 400k at the age of 24 on a location that closed down. Everyone, even the skeptics, thought it would be a great business move. The location was awesome, but there were a lot of things outside of my control. We ran into unexpected expenses. The landlord would not cover a new fire suppression system. We ended up paying $10,000 which was our entire interior design budget. Looking back, I know I gained a ton of business finance smarts, educated myself on negotiating leases, and learned more about basic leadership skills. If I could go back, I would have told 23 year old me to do a drive thru instead, haha.
TS: Would you say you’ve found Blue Sail’s niche? If so, what was that process like?
KT: Yes, I’d say we’re really honing in on our audience. It’s been such a long blurry journey. At first, my thought process was really limited to my environment, as in I limited my business because I wasn’t thinking beyond Conway, AR. I had to think bigger and think not about where Blue Sail was but where I wanted it to be. When we moved online, our audience became more clear because of that digital space. We realized the possibilities are infinite.
TS: What does the future look like for Blue Sail?
KT: For our future growth, I went back to my roots. I realized what drives me to explore coffee and what Blue Sail was founded on is a sense of adventure. We experiment with flavors and focus on the art of coffee. I don’t want to lose sight of that and we’ve already made some marketing changes reflecting our love for exploring the world and the world of coffee.
Got a business idea you think will change the world?
We love working with local and national businesses–