Episode 64 – Chip Langerak, Arthur Berry & Co and The Villa Coffeehouse
Coffee and Business
Becoming a business broker wasn't what Chip Langerak saw himself doing, but joining Arthur Berry & Co 4 years ago allowed him the opportunity to help business owners sell their businesses and move into retirement. “Building the package, marketing the business, fielding the questions, pitching it to people, that's my specialty,” Chip explained.
In looking at what the coronavirus pandemic has done to businesses who are ready to sell Chip believes we have to see what happens going forward. “It won't have a huge impact on business evaluation,” Chip said, “unless it effects your business beyond now. Some businesses have been propped up by a vibrant economy.”
Chip and his wife Alexis own The Villa Coffeehouse in downtown Idaho Falls and also located in the EIRMC lobby and have been directly impacted by the pandemic. “We will survive, it may put us behind but we'll survive,” Chip said.
When advising business owners who are looking to sell he suggests that at least 3 years prior the business owner should be thinking about the sell and what needs to be in place in order to get the highest valuation. “The financials of a business are that businesses curb appeal,” Chip said. Chip explained that about 1/2 of buyers are moving here from out of state. He advises they are looking at financials and business owners need the financials to look as good as possible. “I see not enough detail in financial reporting,” Chip replied when asked what the number one mistake that business owners make.
Chip and his wife purchased The Villa 8 years ago. Chip describes his wife as “the perfect operator” and attributes any success of The Villa to her. “What drew us to The Villa was a love for the place. Ultimately we asked ourselves the question of is this something we could do for several years and we knew it was,” Chip said. So many in the restaurant industry are focused on turning around tables but at The Villa they are happy to provide a space for people to spend time and feel comfortable. “It's built around the idea of community and that's the part that's rewarding and we love about being here,” Chip said.
When asked about how the pandemic has affected the business Chip explained there has been a dramatic decrease in sales. He said, “the advice I would give to anyone in this position right now is adapt and adapt quickly and consider that change to be permanent.” One of the adaptations they have implemented is a delivery service to Idaho Falls and Ammon.
Chip admits that he deals with feelings of self-doubt and feels it's a common thing with business owner. “I think some of that comes from making entrepreneurship sound sexy,” Chip said, “we have to shift that thinking. We have to realize that those that are successful are closer to us that we realize. We are closer to that success than we know.” He has grown enough in business to know that these feelings will come and once he identifies it he can grid through it and get to the other side. “You have to start doing those uncomfortable things to learn,” Chip said.
A couple of thoughts Chip has for all of us as business owners is to be thinking about your business and how it will transition no matter where you are, start that process earlier than you need to. The second thing is to ignore the naysayers but don't let anyone talk you out of something that will bring you joy.
For more information on Arthur Berry and Co go to their site https://www.arthurberry.com/.
For more information on The Villa Coffeehouse visit their site at http://villacoffeeandcafe.com/. Remember, free delivery on orders over $10!
Business Leadership Moment
Thank you to the Idaho Falls Exchange Club for the Field of Honor!