I am a Managing Partner with the Four Skillets Group, an investment team focused on curating hospitality brands. Our first concept is called Conversa Elevated. Located in San Antonio, TX, Conversa is a nearly 7,000 square foot lounge that serves phenomenal food and cocktails.
It was a journey to get Conversa opened. It took us almost five years to open from concept to our first sale. Five long, trying, expensive, difficult years.
In that time frame, I had three corporate jobs, opened and exited two medical aesthetic spas and moved four times. Through it all, my business partners and I were able to open one of the city’s most anticipated concepts of 2024.
As difficult as getting our doors open was… that was only a part of the journey. Staying true to the brand we designed and exposing San Antonio to what we have to offer will be critical to our ability to survive in a crowded hospitality and entertainment market. I go into this venture with my eyes wide open.
With that said, I still celebrate the accomplishment! I took some time to reflect on what it took to get Conversa opened. Through family, work, finances and bureaucracy… we were able to get a multimillion dollar business launched.
I held true to Five Principles throughout my professional life that enabled me to envision and be a part of Conversa Elevated. And yes… It’s PRINCIPALITIES to this!
Principle 1: Financial Foundations. It took knowledge in both personal and business finances for us to build Conversa on solid footing. On the personal side, credit score, savings and budgeting were critical. We needed every bit of buffer we had created. And even then, I took a major dip in credit score and savings as I pushed all of my cards to the middle of the table to make Conversa happen. We needed every ounce of buffer we had and then some!
On the business side, we needed to understand how to leverage different funding options. We needed to truly embrace the idea of an asset as something that generates cash flow as opposed to thinking of an asset as something that we hope appreciates in value over time. And, we needed to have general business knowledge on product costs and pricing, hiring and retaining team members and public relations/marketing.
Principle 2: Maximize Income. I ultimately left my corporate job to help make Conversa Elevated happen. However, rising through the corporate ranks gave me the liquidity to invest in not only Conversa but other assets and capital preserving vehicles. I had real estate assets and other revenue generating businesses along with a high corporate income that made me an attractive partner for other prospective investors as well as a viable borrower for lenders.
Principle 3: Build Your Team, Part I. Day One crews are critical to success. A commonly quoted African proverb states: “If you want to go fast, go alone. If you want to go far, go together”. A profound and accurate statement! I’d known each of my 3 business partners in our investment group for at least 8 years before we decided to go in on Conversa together. I’ve invested on my own before and it definitely made things difficult. My most successful investments–in real estate and for the short time I had one of the med spas humming along–were done through partnerships with people I trusted. It created time, resource and knowledge synergies that were critical to getting things launched and rolling.
Principle 4: Build Your Team, Part II. There will always be knowledge gaps in your Day One crew. The Day Ones… Your “Part I” team … should be a relatively close circle of people. You want the comfort of bouncing ideas off of people that you know with a very high degree of certainty have your best interest in mind. However, it’s important to augment your access to knowledge through an expanded network of professionals that are willing to mentor, support or offer services.
I’ve seen the good and the bad of the “Part II” team that have impacted multiple investments and corporate projects. I can’t express enough how important it is to have access to strong legal, tax/accounting, general contracting and consulting resources, whether it’s in Part I or Part II of your team.
Principle 5: Take Action! Principles 1-4 do not matter if you never pull the trigger. Trust the process and know that investing in your financial foundation, growing your income streams, and having a strong network and professionals in your corner dramatically reduce most investment risks. Being frozen by fear of failure becomes a much bigger risk than investing your resources in cash flowing assets.
And there you have it… my Five Principles that I will expand on throughout the life of the Alpha Jag Chronicles blog! Stay tuned for more advice.
I could be wrong. But, I doubt it though!