Latest / The Money and Banking Law Podcast with Joe Silvia / Ice Cream, Coffee and Cash Flow with Rachel Lohman

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Ice Cream, Coffee and Cash Flow with Rachel Lohman · The Money and Banking Law Podcast with Joe Silvia

0:00
Hello and welcome to the Money in Banking Law
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podcast with Joe Silvia, brought to you by Duane
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Morris, an international law firm with roughly
0:06
30 offices and 1 ,000 lawyers all over the world.
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I'm your host, Joe Silvia. I'm a former Federal
0:12
Reserve lawyer who represents banks, fintechs,
0:14
and financial services clients on M &A, payments,
0:17
and regulatory matters at Duane Morris. I'm also
0:20
a core member of our banking, fintech, and digital
0:22
assets and blockchain practices. Now, while we
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can't provide legal, financial, investment, or
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tax advice on the podcast, our goal for the Money
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in Banking Law podcast is to inform and educate
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our clients and friends on both the fundamental
0:35
concepts and structure of the banking ecosystem,
0:37
as well as critical developments in the law and
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regulation of money in banking. Thanks for joining
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us today. As always, if you have any questions
0:43
from any of our podcast episodes, please reach
0:46
out to me at jsylvia at duanemorris .com. So
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on this episode, we're talking with Rachel Lohman,
0:52
small business owner in Northern Wisconsin. Hey,
1:06
Rachel, thanks for joining us. I really appreciate
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your time. Really appreciate you being here.
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I know it's kind of almost a random reach out,
1:14
although I've been to your business a number
1:16
of times and enjoyed every visit. So thanks for
1:20
being with us today. Thanks for joining the podcast.
1:22
I'm really excited because you're the first guest
1:25
I've had that is a business owner. You know,
1:28
Money and Banking Law podcast tends to focus
1:31
on financial institution law and financial services.
1:34
But one of the things that I've been thinking
1:36
about is trying to connect businesses with financial
1:40
services. And I figured one way to do that is
1:43
to help people understand. what it is to be and
1:46
run a business and how that journey works so
1:50
that when you build relationships with banks
1:52
or other financial institutions, the banks can
1:55
listen to the podcast, for example, and say,
1:57
okay, now I understand where some of these individual
2:00
business owners are coming from with their background,
2:03
their perspective, what they need, so on and
2:05
so forth. So we don't have to talk about banks,
2:08
but I want to talk about Analog, which is Analog
2:10
Coffee and Ice Cream. It's a business up in Sister
2:14
Bay. in Door County, Wisconsin. I've been there
2:17
a number of times. Love it. It's great coffee,
2:19
great baked goods, great ice cream. My kids love
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it. So thanks for joining us. I really appreciate
2:25
it. Tell us a little bit about Rachel. Tell us
2:28
a little bit about you. Joe, firstly, thank you
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so much for having me. I'm really happy to be
2:34
here and glad you reached out. So this is great.
2:38
I guess for me, I grew up in Iowa, actually.
2:44
I went to college in Green Bay, and that's how
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I wound up in Door County. I went for music history
2:49
and arts management, actually. But I had to do
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an internship in the arts world as part of my
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degree. So I did that up here in Door County.
3:00
And so that's why I'm here. That's amazing. That's
3:04
amazing. And so tell us about the journey to
3:09
becoming the owner of Analog. How did that develop?
3:14
How did you get where you are? OK, so as part
3:18
of the degree, as I mentioned, I was working
3:21
up here as an intern and I was not making any
3:24
money, basically. So I got a part time job at
3:29
it was called Drink Coffee at the time. And I
3:32
just fell in love with the cafe. I loved it.
3:36
And when. I had graduated and the man who owned
3:41
the cafe originally was ready to move on. I jumped
3:44
in with both feet. So that was all the way back
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in 2006, like a lifetime. Yeah. Wow. That's amazing.
3:53
That's amazing. So they are in the 21st season.
3:56
Wow. So you had your 20th anniversary. You're
3:59
in the 21st season. So tell us about taking over
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the business. in 2006 like what was that like
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what did you what did you learn from those first
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couple of months or years um that maybe you hadn't
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known about or thought about before that when
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you were working there well I was very young
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so a lot of it was just like blind confidence
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that I was gonna work this and it would be fine
4:30
um and we started uh in a smaller location that
4:36
I was renting which is good. Then, you know,
4:41
you're not worrying about the building side of
4:45
stuff and, and all of the maintenance and all
4:48
of that kind of stuff that, which was actually
4:50
really helpful for me at that time. I guess I
4:54
want to answer your question, but I also want
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to say something else. So what did I learn right
4:59
out of the gate? I think I really became conscientious
5:13
very quickly of cash flow. Okay. And that, I
5:19
guess that wasn't, I've always been like one
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of those savers. I'm always like been on top
5:24
of the money and all of that kind of stuff. Even
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though I had like pretty minimal accounting experience,
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it was basically through the arts management
5:31
degree. I took a couple accounting courses and
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so I had like some idea, but. When you're actually
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in the pool, then you're like, oh, okay, cool.
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And especially, Door County is seasonal, as you
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know, so that presents its own benefits and challenges
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of how do you deal with making sure you have
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enough savings for winter and really getting
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down to brass tacks on your budget. What do you
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actually need? What do you need to be prepared
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for? And those first couple of years as a small
6:06
business, work really hard and it takes some
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time to get over the hump on the debt you take
6:14
on to own the business or to buy the equipment
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or all that kind of stuff so you know it was
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it was really an exercise in um believing in
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myself and working hard and we got there um so
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we were out of that building in I was leasing
6:33
there for three years and we moved actually to
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the building where right next door. Okay. Right
6:39
next door to where I am now. And I was leasing
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there and leased there for, I want to say four
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years. And then I got married. My husband and
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I had the opportunity to buy the building that
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we're in now. So we did that project. But everything
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down to the studs. I mean, new electric, new
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HVAC, new plumbing, new the whole works. So that
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was its own terrifying project. But that was
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we closed on that building in 2013, February
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23rd. And we opened for the season on May 23rd.
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So it was like everything's got to get done.
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We've got to get this going. You know, luckily
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by then I had a lot of experience in, in knowing,
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okay, this is what we expect when we open and
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what I need to order and all of that kind of
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stuff. So it wasn't, it wasn't, uh, starting
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fresh, but it was, uh, how is this space going
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to work, you know, and, and set the workflow
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and, you know, that was Memorial day weekend.
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So it was really busy weekend. Well, hopefully
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this is going to go. We're going to turn the
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open sign and hope for the best. Yeah. Yeah.
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No, I get it. I get it. Did, did the guy that
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you bought the business from, did he help you
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with the transition? I assume to some degree,
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or was he like, here's the business I'm retiring.
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Good luck. I mean, he helped in so far as like
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getting me set up with the vendors. But I had
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some friends who helped me with. dealing with
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some paperwork set up and getting your QuickBooks
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going and all of that kind of stuff. But gosh,
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you got to remember this was 20 years ago. So,
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I mean, it just, their county just was not nearly
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as busy as it is now. So it was, it was a lot
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lower stakes than now it's built up so much and
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the business is so much larger in volume, not
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in. square foot, but you know what I'm saying?
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Yeah. Yeah. Yeah. I was going to ask you because,
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you know, I've been coming up to Door County
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now for 15, 16 years or so, maybe a little bit
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longer actually. And, you know, I remember going
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up to Sister Bay initially and it was, there
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wasn't a ton of stuff up there except for Al
9:08
Johnson's. That was like the thing. And then
9:10
Sister Bay Bowl and a couple of other things
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that were. I guess, more well -known, at least
9:19
to someone like me that didn't really spend a
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ton of time in Door County prior to that. So
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now you go to Sister Bay and for anybody that's
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listening or watching that's not been there,
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it's totally different. It's transformed. There
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are beautiful buildings. There's a beautiful
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new medical center just off the main path. The
9:41
businesses along. the main road are amazing.
9:45
The beach and boating area is amazing. It's just
9:48
a whole 180 from what I remember. Yeah, that's
9:51
exactly what I was going to say. So I imagine
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that changed your business quite dramatically.
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So how did you experience that growth of the
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community around you and trying to grow with
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that community as a small business? You're totally
10:07
correct because I remember being in that little
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space. Um, and there just really wasn't a lot.
10:15
It's where the on -deck building is now. It's
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a, for people who don't know, it's a big, it's
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about a block size building and it's more or
10:23
less a department store. So there's a couple
10:25
different shops within this building. Um, and
10:30
I was a part of that and it was basically that
10:33
building. And then as you're saying, like Al
10:35
Johnson's and kind of the more well -known stuff,
10:38
but there was a lot of vacancy. I remember the
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The Pulse, our local newspaper, writing an article
10:45
about Sister Bay being a dead zone. And then,
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you know, as things started to turn around, they
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wrote an article about, OK, well, the Bull is
10:56
redoing their outside and Analog is redoing their,
10:59
you know, their building. And, you know, suddenly
11:02
these pieces started to come together and there
11:07
was this big infrastructure project, which you
11:09
probably remember. Redoing the highway, lowering
11:14
the hill, making the sidewalks wider, putting
11:17
in some water and sewer improvements and then
11:20
redoing the beachfront. And we bought that building
11:23
in 2013. So that was two years before three years
11:27
before the project was done. So we knew coming
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into this, we're putting out a lot of money right
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now. And it's going to be. There's going to be
11:40
some risk here because it's not going to be as
11:42
busy during this construction phase. And, you
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know, it's going to limit when we can be open.
11:49
My husband was working for the sheriff's department
11:52
at that time and he worked second shifts. And
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so I'm working days. So, you know, we want to
11:56
have a little time that we're both off at the
11:59
same time. So that's why we're seasonal. So that
12:02
was OK, that piece of it. But, you know, we knew
12:05
we were taking on this risk. And then I went
12:08
back and looked today because I thought this
12:10
would come up. And the first season that everything
12:14
was back open, 2016, we increased our business
12:19
38%, which was absolute chaos. I mean, it's just
12:24
like, we were constantly out of everything, like
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reckless a mile long. I think everything is just
12:31
a wreck, but we did it. And, you know, obviously
12:34
we're not increasing 38 % every year, but I mean,
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it was really, really a huge, huge boon and just
12:41
shout out to sister Bay for having the foresight
12:43
to do it, honestly. And, you know, now sister
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Bay continues to be premier and busy and great.
12:51
Yeah. It's, I mean, there's still, a lot of building
12:53
going on and that, that new hotel right across
12:57
for right across the street from analog has got
13:00
to help analog and it's just a beautiful place.
13:02
So there's, there's any amount of, of really
13:05
great stuff up there. I love, love going up to
13:07
visit. So back to being a business owner, what's
13:12
your favorite thing about. owning a business,
13:14
especially now, since you've survived the first,
13:17
you know, five years when most businesses fail,
13:20
you're 20 years in of owning it. Right. Like
13:22
I think we're going to make it. Right. Right.
13:25
I think you're doing fine. You're going to, you're
13:26
a success story. So you've gotten there, but
13:29
what's your favorite, what has been just one
13:31
of your favorite things about owning a business?
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Without a doubt, it's the community that you
13:37
build as a small business owner. You know, you
13:39
have your customers and you have your employees
13:42
and you get to be a part of their lives and you
13:44
get to ask them about their grandkids. And, you
13:47
know, you see, oh, gosh, you just had a baby.
13:50
How is Harvey? You know, all of that kind of
13:52
stuff that that piece is, I think, the absolute
13:56
best part about owning a small, small business.
13:59
That's awesome. Yeah, that's you know, it's actually.
14:04
I told you we would. I told you we didn't have
14:06
to talk about banks, but it reminds me of a lot
14:08
of smaller community banks that I work with because
14:11
they are so focused on the community and for
14:15
them and their business, especially their commercial
14:17
customers like you, they are hyper -focused on
14:22
building those relationships, building the trust,
14:25
and then it just kind of flows from there and
14:27
it can actually be a lot of fun. So that's great.
14:32
Definitely. We work with a small bank. here it's
14:36
the same i mean they just really invest in the
14:41
community and make sure if you're there and you're
14:44
um a good candidate i mean they're not going
14:48
to be silly but they'll work with you to to make
14:51
things work and they want to see the community
14:53
grow and see small business thrive and it's great
14:56
did you ever did you ever get any opportunities
15:00
through your bank or other banks or other financial
15:03
institutions to learn about certain areas of
15:09
finance, whether it's taking on debt or running
15:12
a business, doing QuickBooks, anything like that?
15:15
Was there ever anything that was offered for
15:17
that? Do you remember? The Door Company Economic
15:19
Development Corporation does have like a quick
15:23
and dirty class for people who are aspiring entrepreneurs.
15:27
They didn't have it when I was buying the business.
15:31
So I never took it. But I do know that's a resource
15:34
out there that has been really good for a lot
15:37
of business owners that I know. So I would say
15:39
if you're here and you're interested, that's
15:42
a great resource. Going back to 2006, what intrigued
15:48
you about taking on a business? I mean, in some
15:53
ways, I'm imagining myself in 2006. And in 2006,
15:57
I was I was entering my third year of law school.
16:00
I was 24 going to be 25 years old. I couldn't
16:03
imagine saying, yeah, I want to start a business
16:07
or I want to own a business. Not to start, but
16:09
own a business right now because I wouldn't know
16:12
what to do. So what intrigued you about that
16:17
prospect? Was it just that you really enjoyed
16:20
the atmosphere of the cafe? people, the community,
16:24
and you just wanted to be able to continue that?
16:26
Or was it something different? I loved the cafe.
16:32
I fell in love with it right away, obviously.
16:35
But then everyone thinks, you know, you want
16:38
to be your own boss and be in charge and get
16:41
to make all the choices. And then pretty soon
16:43
you realize that the customers are your boss.
16:47
Somebody's the boss. Oh, man, that's amazing.
16:56
So I want to kind of turn to what you think the
17:02
future looks like for Analog, maybe for Sister
17:06
Bay, but really more for Analog. What are you
17:09
thinking? Is there plans for expanded growth,
17:14
new markets, new areas with Indoor County, or
17:17
is it let's continue focusing on the community
17:19
because we're doing things right? we're successful
17:21
and we're just going to keep on doing that and
17:24
making people happy. Well, I'm, I would say I'm
17:30
really proud of the atmosphere and the, the workplace
17:37
that we've created at analog. I'm, I'm really
17:40
proud of the kids who work for me. You know,
17:44
being able to mentor them is so great. And just
17:47
being a support for them is, you know, one of
17:51
the reasons that you get up and you go to work
17:53
it's it's awesome so um i'm happy to keep doing
17:58
that i love doing it um it's probably gonna be
18:05
about time to start thinking about letting someone
18:07
else uh build their door county dream now it's
18:10
been 21 years so no major plans for for getting
18:16
frisky and doing other uh locations or anything
18:19
but ride this one out a little bit. Yeah, that's
18:23
great. That's great. And am I correct? Did I
18:25
see in, I don't know, maybe your, your, the analog
18:29
Instagram or something along those lines that
18:31
you teach baking classes or. I have taught your
18:36
kids. Okay. I taught at the savory spoon when
18:39
they were open. Okay. So I did that a few times.
18:42
I've taken a lot of baking classes. So yeah,
18:46
I have fun doing it. And that's something I would
18:48
probably continue to do here. I don't have a
18:51
schedule out right now, but I should probably
18:53
get my act together. That's a great winter project.
18:58
Obviously we're so hectic right now. It's not,
19:01
not a, not a top of mind, but. No. Yeah. You
19:05
got to capitalize on the summer. Yeah, exactly.
19:07
Absolutely. Yeah. That's great. So, okay. So
19:11
as we kind of close out a little bit, any advice
19:15
for. young, old, whoever, anyone that might be
19:19
interested in starting a business or buying a
19:23
business because like you, they fell in love
19:27
with a cafe, they fell in love with a product
19:29
or a service and they want to be able to continue
19:31
with that and continue with their interests.
19:34
Any advice on initial steps towards that goal?
19:39
I have so much advice. How long? All day. Does
19:43
anyone want to listen, actually? No, I would
19:49
say most importantly, believe in yourself. You
19:53
know, it's going to be scary. You got to jump
19:55
into the pool. Otherwise, you're staying on the
19:57
side. So that's probably the biggest piece that
20:02
I've seen from people. Or you're just like. overconfident,
20:08
you know, not being prudent. Like this is not
20:11
a get rich quick scheme. You got to show up every
20:13
day. You got to be there. Obviously you have
20:16
some time off, but this is an everyday job. This
20:22
isn't tomorrow. I'm going to go out and sell
20:24
a million ice cream cones and retire. So that,
20:28
that mindset, the, the grind set, I guess, but
20:34
is really important. And believe that you can
20:37
do it. Stick with it and you'll get there. That's
20:43
that's great. I love it. I've heard from others
20:46
that I've connected with that are business owners.
20:50
Some of them are very, very close friends from
20:52
college and law school. And that's been a consistent
20:57
message is there are going to be ups and downs.
21:01
It can be a little bit of a roller coaster, at
21:03
least initially when you're learning. And it's
21:07
constantly a grind. You're constantly learning.
21:09
And there's always I'm sure there's always something
21:13
that can be done. Listen, this is 21 years. Just
21:17
when you think you've seen it all, something
21:19
else happens. So every day you're just learning
21:23
and it's it's great. It's challenging. It's fun.
21:26
It's wonderful. It's mind boggling and you want
21:31
to pull your hair out sometimes. But in the end,
21:33
it's it's awesome. No, I love it. I love it.
21:35
So last question, where can people find you if
21:39
they want to connect, whether Instagram, Facebook,
21:41
where can they find you and Analog if they want
21:44
to reach out and learn more or come visit the
21:47
shop? So where people can find us, Joe, is in
21:50
Sister Bay, Door County, Wisconsin. That's 10649
21:54
Bayshore Drive. So we're right on the main drag.
21:57
If you want to come see us in person, we'd love
21:59
to have you. Also, we are on Facebook and at
22:04
Instagram at AnalogSB, like Sister Bay. Awesome.
22:09
Well, thank you so much, Rachel. Really enjoyed
22:11
the conversation. I'm super happy that you agreed
22:13
to do it. And I can't wait to get back to Analog
22:17
as soon as I can. Thanks so much. This is great,
22:19
Joe. Really appreciate it. All right. Thank you
22:21
so much, everyone. Take care.