The Red Barn Shoppe: Anatomy of a Small Business Start-Up

Yesterday we talked about a hallmark of socialist societies: government run and government directed businesses. As contrast, let me share with you how my parents started our family’s small business. As you will see, it was a very organic and responsive-to-market-demand process.

My dad was self-made. He had quit high school after the tenth grade to help his grandfather farm and already made a good salary as a train conductor. He also farmed a small amount of that same property that we had purchased following his grandfather’s death. Mom, after being a stellar mother and homemaker, was now an empty-nester and had begun her own career as an interior decorator.

Since Mom’s friends kept asking her for decorating advice, she got the idea to add an addition to our 100-year-old barn and sell home decor. That idea was birthed somewhere between the kitchen table and our backyard. The Red Barn Shoppe was soon open for business.

We soon realized that we needed a broader array of goods to sell, so we decided to tap into local talent. We soon featured locally made pottery, handcrafted dolls, paintings, stained glass, wreaths, ceramic goods, organic wood furniture, Christmas items, etc.

Many first-time customers assumed we sold antiques. The light bulb went off, so to speak, and we expanded into the actual barn where we could do so. Rather than purchase them, we decided to take antiques on consignment. Soon we had local suppliers that brought us new pieces regularly.

Many customers lamented that they had to travel like I did to purchase fabrics. Since we had vibrant 4-H and quilting communities, we next arranged with an outlet we shopped at in another state to purchase fabrics at a discount because we were now buying in bulk. The Red Barn now included a home decorating line, antiques and a fabric outlet. This happened within about five years.

Take a look at what we did: our family didn’t need the money. We instead worked hard because we loved the business. We enjoyed the community it reflected—and the new one it created.

Also note the cottage industries it spawned: our pottery supplier became so successful that we could no longer get her items. Our little old ladies who handcrafted our dolls and Christmas ornaments couldn’t stitch fast enough to fill their more popular items. It became a creative outlet for a painter - a widow who loved this new lease on life. It provided much needed family income for another. And as a bonus, many suppliers often bought more when they made deliveries than they even made!

In short, it was a win-win for all of us. It was very responsive to our market because we could identify new opportunities because of direct daily interaction with our customers. We were then free to fill those customer wants and needs – or not.

That is very different than someone far-removed at the top of a government system deciding what we would sell, whom we would sell it to, and how much of our earnings we would be able to keep. Trust me, if that had been the case, we would have all lounged out by the pool rather than work when we didn’t need to!

In sum, we demonstrated that the overall economic “pie” can expand. We didn’t take out of our community’s economic system, but instead helped it grow. We added to the tax coffers and contributed to community wellbeing. In sum, we created wealth, jobs and opportunity.

That is so typical of how American small businesses are formed. Many of you may have done similarly with your own families. But if you haven’t, you might think about how you could. It can turn into a great adventure!