smallknot

We recently had the opportunity to write a post on social entrepreneurship for the Huffington Post.  The post is reproduced below.  

My company, Smallknot, is propelled by a dash of rage and a spoonful of optimism. We are angry about how the financial system works for real people. And we believe we can make it better. This is what drives us.

But between the tech and social enterprise spaces, it’s not always easy to know where we fit. As a business, our product is a community crowdfunding platform for local businesses. We help neighbors fund small businesses in exchange for premium goods, services and experiences. Our mission is to empower communities to cultivate local economies through social finance. But even though our goal is to replace bankers with a nurturing neighborhood, let’s be honest: tilting your head and squinting just so could make our pre-sale model resemble a saintly nonprofit lender like Kiva or the not-so-saintly Groupon.

Fortunately, we’ve been behind the curtain in both the tech and social enterprise worlds. After immersing ourselves in tech as part of TechStars NYC, we had a rare chance to peek into the impact and social enterprise world by joining the Civic Accelerator. Here we are surrounded by a group of ambitious people setting out to improve the world. It was like cracking open a can of crazy — the good kind. For you social entrepreneurs out there, here’s what the team at Smallknot thinks we’ve figured out so far:

1. Talk dirty. If you’re building a business, then build a business. Use all of the dirty words: sales, marketing, monetization, exit strategy, and, god forbid, profits. You will live or die by these concepts so don’t run away — lean into them. (Unless you have an endless supply of money that people will happily plow into your bank account. That also works.)

2. Impact ≠ Soft. You likely will spend hours wondering why money seems to be split between investors seeking a return and philanthropists who just gave away $300 billion last year. Especially when, obviously, your world-changing idea will do both and you only need a measly half million. But the reality is crystal clear: Impact investors still need to see a strong business case. Do not expect breathing room on a soft business case because you might produce positive social outcomes. Focus on your business case. Be ruthless. Pitch investors with your vision for change, but I promise you — the second meeting will not be about that vision.

3. Don’t overthink it. Social entrepreneurship is red hot — #socent is the new black. You will find any number of conferences and write-ups about social innovation, social entrepreneurship, venture philanthropy and impact investing. You might feel bewildered by it - I certainly am. Next to traditional nonprofits self-styled as social entrepreneurs, you’ll find massive company bureaucrats in charge of social innovation, giving lessons to nonprofit microfinanciers. Someday I hope the wind companies that monetize tax credits will no longer be lumped into the same category as voter engagement software - but for now, don’t overthink the categories. Just do what you do

4. Keep your mission out of your product. Be passionate about your product, but don’t inject your mission into the product itself. Mission-driven startups have a hard time bridging the gap between fixing a social problem in the world and building a successful product that people want. Just because your mission is to empower at-risk youth through educational games doesn’t mean any kid is ever going to play them. There is tension between validating customer feedback on your product and the social outcome you want to see. For most of us, our customers shouldn’t have to care about our social mission for us to succeed. Let your passion drive you and let it drive your company. But not your product.

5. Above all … Persist. I love what I do and you should too, but entrepreneurship is not sexy — it’s hard. That’s okay. Don’t get discouraged. This is a chance to be something new in the world. Whether consumer preferences change to the extent that high-impact products will feed a growing demand (and, thus, profitability), or the tax code changes to make it easier for foundations to fund for-profit startups, something is happening. A transformation is coming - a new generation demands more from their business sector. Get started. Keep going.

After Hurricane Sandy, Tina Roth Eisenberg (aka Swiss Miss) ran a Smallknot campaign on behalf of Galapagos Art Space to help rebuild after the storm.  The community response was overwhelming and immediate.  We wanted to share a part of the note from the director, Robert Elmes, that was sent to his supporters after the campaign.  

“But we still felt like there was a huge hill to climb and that we were stuck milling about the bottom of it wondering what to do. We were spending a lot of unplanned / un-budgeted money to clean, and the essentials that we needed to replace in order to operate the venue and get open again were just out of reach.

And then, from absolutely nowhere, came Tina’s Smallknot campaign. It’s hard to describe what it felt like and what it meant to us when we found out. Tina didn’t ask us, she didn’t let us know, she just did it knowing that we needed help and that she could do something that would help us. It felt like the clouds parted ten feet and sunshine poured down on us, like someone - a bunch of you, it turns out - cared. The affect on us as a staff was immediate and sudden; we were awed. We got to work.

Sometimes all we need to know is that someone cares, that in a city as big as New York City that there are people looking out for you and who want to help if you fall down. None of us gets to feel that all of the time, it’s a part of living here not to be able to, and part of the challenge. But in the big moments, the really important moments, we all hope that our friends will be there for us near or far - and you were. We’re deeply grateful for that.”

The outpouring of support by neighbors to help rebuild small businesses affected by Sandy has been a moving thing to witness.   As business owners talk with us about the damage inflicted by waist deep floodwaters, the scope of the damage has been stunning.  But we are also stunned by the resiliency of the entrepreneurs we work with and the deep love and support they have in their communities.  

Rebuilding is a slow process.  The fallout will linger for months and efforts will continue quietly and persistently for even longer.  To make sure we do our part, we have extended the deadline for our offer for free crowdfunding services for businesses rebuilding from Sandy to November 30.  If you are a neighbor who wants to help a business in need or a business owner seeking to rebuild your business, send us a message at rebuild@smallknot.com and we’ll help you get started. 

We should never be surprised by generosity of neighbors — but, thankfully, it still happens.

Recently, three women in Brooklyn and Manhattan stepped forward to run campaigns on behalf of neighborhood businesses that were damaged by heavy flooding.  

Tina Roth Eisenberg (aka swissmiss) started a campaign on behalf of Galapagos Art Space, a cultural venue near the East River waterfront in Dumbo that was flooded by the storm. Setting a campaign goal of $2,500 to help cover some of the costs, Tina was able to mobilize over a hundred people and shoot past the goal in less than 24 hours. Locked up in our respective apartments throughout the storm, we could hardly believe the pace of the outpouring of support. 

But Tina’s reach didn’t end there…   

Responding to a tweet from Tina, Colleen Deng, one of the co-founders of OMG Foodie jumped in to start a campaign on behalf of One Girl Cookies — a charming bakery in Dumbo damaged when debris carried by flood waters smashed open a window and escaped with cakes and cupcakes that were strewn nearly 100 yards from the storefront — damaging every piece of equipment and every inch of the store.  With a goal of $2,500, Colleen will help the store make some of the repairs they need to get the bakers back to what they do best.  

That same day, we heard from Ally Kostick, a Manhattan resident who was shocked by the flooding along 14th street that spilled into Manhattan Kids Club II, a day care center on the south side of Stuy-Town.  The daycare and school suffered from 4 feet of flood waters pouring through the doors, destroying nearly everything.  

The space, a second home for her children, has to be dried out and repaired to return to normalcy.  A group of parents, led by Ally, built a campaign as a way to raise money to breathe life back into the space.  Within 2 hours of launching the campaign, they blew well past the goal.   

We are inspired by the tremendous displays of generosity by these enterprising neighbors and are hopeful that together with their communities, they can provide an early hand in getting these businesses get back on their feet. 

Seeing such kindness in action, we are opening up our platform to allow rebuilding campaigns not just for business owners, but to anyone who wants to lend a hand.  If you or a group of friends are interested in running a fundraising campaign on behalf of a business affected by Sandy, please send us an email at rebuild@smallknot.com. 

[Updated: 11/13/12]

As we learn more about the damage from Hurricane Sandy across our own city of New York and the East Coast, we are saddened by the devastation on homes and livelihoods across the region.  At Smallknot, we are dedicated to helping small businesses grow through community finance — support from the neighborhoods where they are integral building blocks — and we would like to lend a hand any way we can. 

If your small business has suffered damage or losses related to Hurricane Sandy, we would like to help you get the funds you need to repair, rebuild and get back on your feet.  For affected small businesses, we are offering the use of our community crowdfunding platform and advising services free of charge.  To be eligible, you must 1) be in a storm-affected area and 2) use funds raised to undertake repairs or maintenance related to storm-related damage.  Eligible campaigns must be submitted by November 30, 2012.  

If you or any small business owner you know has been affected by the storm, please send an email to rebuild@smallknot.com.  

What is Smallknot? 
Smallknot is a community crowdfunding platform for small businesses.  Independent businesses can run campaigns to raise funds that are repaid to supporters in kind — at a premium — in the form of goods, services and experiences.  To learn more, please see our Frequently Asked Questions. 

What businesses are eligible to use Smallknot for this offer?
To be eligible, small businesses must 1) be in a storm-affected area, 2) commit to use funds raised to undertake repairs or maintenance related to storm-related damage and 3) submit a request or inquiry by November 15, 2012.  Inquiries and requests can be sent to rebuild@smallknot.com.

Do you provide any services in addition to use of your crowdfunding platform? 
Yes.  In addition to free use of our crowdfunding platform, we also offer one-on-one consultation to help you build an effective campaign and conduct outreach. 

Are there are any fees for using the platform?  
Although we are waiving our own fees for affected businesses, a fee of approximately 3% will be levied by our credit card processor.  We are currently in discussions to have this fee waived and hope to have these fees reduced or waived as well. 

When and how will I receive the funds? 
Funds will be deposited directly to your business bank account within 5-7 days of the successful completion of your campaign.  Normally, Smallknot campaigns last between 30-45 days but given the circumstances, campaigns can be as short as 7 days.  

Do businesses need to provide anything in return for the funds received? 
No.  Although typically Smallknot campaigns require participating businesses to offer premium products, services or experiences in exchange for funds, under these urgent circumstances no returns to supporters are necessary.  If businesses would prefer to offer returns, we are able to help you put those together.  

Are campaigns raising funds from Hurricane Sandy “All-or-Nothing?’

No.  Given that many of these businesses aren’t building specific limited projects, but instead need additional funds to repair and rebuild, campaigns with the “Rebuild from Hurricane Sandy” will not require businesses reach their requested goal in order to receive funds.  

I’m not a business owner, but I want to get involved and help a business.  Can I run a campaign for a business?

Yes.  Although the business owner must give their consent to the campaign, supporters are encouraged to run campaigns for affected businesses in their area.  In these situations, funds will be deposited directly to the business.  

By Roger Sachar, Guest Contributor

I will gladly admit to being a Smallknot addict. At first it was a fun game to “win” as the last investor in every campaign, but when I found out I was moving to New York, my interest in the company became more than passive.  I invested to get yoga lessons from Makara Studio, contributed to Ruffeo Hearts Little Snotty’s campaign and nabbed a gift bag, and have been anxious to redeem my lunch at Egg in Brooklyn. The reward I was most anxious to try was the Vietnamese Food Tour I’d earned by contributing to the Saucey Sauce Company, and as soon as she found out I’d arrived in the City, Mahira from Saucey Sauce was in touch to schedule it.

The food tour opened at the Hong Kong Supermarket in Chinatown, where Toan, Saucy Sauce’s CEO, President, Resident Sauce Guru and all around fantastic person, gave the gathered group a lesson in Vietnamese culinary culture and tradition.  I joined them just as they sat down for dinner at Cong Ly, a small Vietnamese restaurant at Hester and Chrystie. Since none of us could read the menu, we left ourselves in Toan’s hands, and she did not disappoint. We started with drinks, salty lemonade and a sweet basil concoction, which we all enjoyed (despite Toan’s likening the basil seeds to tiny tadpoles).

Then it was on to the main course, with the emphasis squarely on main. There was an absolutely delectable Pho, Banh Beo (steamed rice cakes), Banh Hoi (grilled pork), egg rolls, two different types of soup, a pork chop, shrimp in various forms (including tiny little shrimp that are ground up and sprinkled about), and spring rolls. Toan ordered so much that our poor waiter was forced to find a second table to hold some in reserve.

Once the food was all in front of us, we were let in on a little secret; the magic of the fish dipping sauce. As Toan explained, the key to Vietnamese food is to dip it; for example, taking a portion of the spring roll, wrap a little lettuce about it, and dunk it ever so gently into the dipping sauce. Each Vietnamese family has a special recipe which is passed down from mother to daughter, and Toan’s family’s recipe comes complete with a nice little spicy kick. You can try it by ordering a bottle of the spicy ginger sauce here, or better yet, help yourself to a basket of three sauces. If you’re feeling brave, you can try the extreme version of ginger sauce.

Of course, it wasn’t just Toan and I dining, and I had the pleasure of meeting some fantastic people (not to mention that I got a lead on an apartment and a blind date). To me, the evening demonstrated the reason I’m an addict.  Not only was there a great, one-of-a-kind experience I would have been unable to find elsewhere, but I had discovered a new restaurant, and met new friends and neighbors. Smallknot’s slogan is “Make Your Neighborhood Awesome,” and one of the best ways to make your neighborhood awesome is to go out and discover the fantastic people and places that are in it.  

In the interest of full disclosure, I went to law school with Jay Lee, one of Smallknot’s co-founders, so I’ve always kept a close eye on Smallknot. 

Forget Bordeaux, did you know you can get incredible wines grown right her in New York state?  And you don’t need to head all the way out to the countryside to enjoy a wine tasting – you can do it right in Williamsburg at Alie Shaper’s cozy Brooklyn Oenology Winery Tasting Room.  Opened in 2006, this former warehouse space has been transformed into an adorable farmhouse and feels like you’re just steps from the vineyard.

Brooklyn Oneology, or BOE, stocks a variety of New York made wine, beer, cheese, charcuterie and other picnic items. They also hire Brooklyn artists to display their works of art on the peelable labels on bottles, and have an event space for musical guests.  

And the wine is no joke.  Alie gets her grapes out in the North Fork of Long Island and produce it in the neighboring town of Mattituck. Did you know Long Island is home to a vast number of vineyards, rivaling the Finger Lakes winescapes. New York state ranks third in wine production behind California (of course) and Washington.  

Brooklyn Oenology Winery is on Smallknot with a campaign to replace their broken down refrigerator — and they’re using this as an opportunity to offer you some awesome perks.   The little fridge that Alie bootstrapped when they opened the tasting room has gone to refrigerator heaven, and the new one will showcase more locally made goods for you to enjoy.    

There’s only a few weeks left, so invest in BOE today and enjoy a wine tasting class (or two) or even a wine country tour for up to 6 people! Through a little Smalknot magic you can get a great price on BOE’s offerings while helping to support a local business. Your investment will help this entrepreneur grow their small business and mission to bring amazing and locally sourced wine right into your neighborhood.

Indulge in some crisp wine, stay for the music and enjoy the slow ambience in the heart of Brooklyn.  

You can find the campaign here. 

Brooklyn Oenology Winery
209 Wythe Ave.
Brooklyn NY
www.brooklynoenology.com
Twitter: @bklynoenology 

Smallknot is a way to help local businesses in your community achieve great things.  Invest in a Smallknot campaign and you’ll get great value for your contribution in the form of goods, services and special benefits — all while helping passionate entrepreneurs grow their dreams.  Today, we’re featuring Juice Hugger Cafe in the Crown Heights neighborhood of Brooklyn.  You can find them on Smallknot here. 

Juicing is all the rage these days, and with good reason.  With obesity rates and diabetes on the rise, it’s no surprise that people everywhere are looking for healthy alternatives and making more health-conscious food choices.  Cold-pressed juices made with fruits and vegetables are an increasingly popular way to lose weight, detox, or boost your veggie intake.  While it’s not unusual to find cold-pressed juices around the city, they’re often expensive and almost always in high-priced neighborhoods.

And that’s one of the reasons why Juice Hugger Cafe is so exceptional.  Opened in October 2011, Juice Hugger’s storefront is in Crown Heights, Brooklyn on Rogers Avenue, and they’re committed to bringing fresh and affordable organic juices to a neighborhood that often lacks a lot of healthy choices.  They sell their own line of cold-pressed juices and nut milks, and a variety of juice cleanses that will get you feeling energized in no time.  And with prices starting at just $3.50 for a juice, anyone can enjoy it.  Oh - and did we mention they deliver?  

Co-owner Carl Foster knows the power of juicing first hand.  Just a few years ago he was 5’9” and 220 lbs., and desperately looking for ways to get healthier.  After a friend introduced him to fresh pressed juices, he lost more than 60 pounds through a combination of healthier choices and moderate exercise.  When friends started asking him to make juices for them too, the company began to grow organically.  Together with his fiancee and business partner Kelly Keelo, Carl began bottling juices and selling them online and at festivals and corporate events.  Last year, they opened their first storefront and have quickly become a mainstay of the neighborhood.  

Juice Hugger is on Smallknot today looking to upgrade the cafe and make it more comfortable for everyone to enjoy. Carl and Kelly are looking to build additional seating that will create more of a lounge area in the space, and they plan to upgrade their refrigerators, freezers and ovens so they can expand their offering and selections.  

Invest in Juice Hugger Cafe today and you can get great values on juice packs and juice cleanses.  It’s rare indeed for Juice Hugger to offer any kind of a discount, and this is a great way to jumpstart a healhty lifestyle.  Your investment will help these entrepreneurs continue to grow their business and bring even more healthy, delicious juices.  There’s only about a week left in the campaign, so now’s the time to get in on the deal!  

Feel good, get healthy, make a difference in your community.  What’s not to like?  

Find Juice Hugger’s Smallknot campaign here. 

Juice Hugger Cafe
85 Rogers Ave.
Brooklyn, NY 11216
http://www.juicehugger.com
Twitter: @juicehugger

Smallknot loves local business, and every week we’re profiling the people and places that make our neighborhood special.  Want to get covered in a Smallknot profile, or know someone who should be? Shoot us a message here.

This week, Smallknot visited with Judith Norell, the owner of Silver Moon Bakery.  Silver Moon Bakery is located at 2740 Broadway, and is known for having the best breads, pastries, and coffee in the neighborhood.  I stop in at least once a day!

How long has Silver Moon Bakery been open?

We opened in November of 2000, so we’ve been open for 12 years on November 8^th.  

How did you come up with the name?

Well, I’m a meditator, and I really wanted to call it Silent Moon, and I was told by my husband that nobody would understand what I was talking about.

Oh, what’s the concept of “silent moon”?

There is a poem, saying, “The Buddha is like the silent moon, seeing all, illuminating everything.”  I love the idea of moons – it’s calm, and it’s beautiful.  So, after trying several variations, we came up with Silver Moon Bakery.

Do you have a baking background?

Yes, I’ve baked all my life, and I did go to the French Culinary Institute, which now has another name.  I think it’s called the International Culinary Institute.  I did that when I felt that nobody was hiring me because I didn’t have any credentials.  And I baked in Paris also for a while. 

What do you find to be the most challenging part of the business?

I would say the most challenging part is human relations and money.  Trying to make sure that everyone who works for us gets a decent salary.  In this particular economy, it’s very difficult to juggle because prices are going up regularly, and yet we cannot really raise our prices.  The economy’s no good, and we don’t want our customers to suffer.  So, we’re really struggling; it’s a balancing act.

What’s your favorite thing about running your own business?

I love baking.  I love baking bread. 

Do you have a favorite bread that you sell in the store? 

Well, our baguettes are probably our most popular, but then after that, I would say our sourdoughs.  I don’t know if you’ve looked at our breads or our website, but we do a lot of different kinds of bread, and I keep coming up with new kinds of bread because I love to experiment.

Do you have any advice for other small business owners?

Well, in my own personal experience – I had a background in non-profits before I started this – in order to sustain yourself, you have to do what you love, and not start something just to make money.  You may as well go into finance or banking to make money if that’s what you care about.  You have to be prepared for long hours and a lot of anxiety, and being able to multi-task.

I also saw where you also have baking classes.  

Well, they’re baking demos.  They’re demonstrations.  Because I am very passionate about bread, it really forms a lovely bond between me and the people who come, because they’re all people who love doing what I’m doing.  I can critique them, or become a mentor in a certain way. 

Is there anything else readers should know about Silver Moon?

They should watch our website, and get on our mailing list because we’re always coming up with new products.  And we love celebrating holidays!  We search out holidays, so we can make special things for them.  For example, the Jewish holidays are happening now, so I found a 15^th century Italian bread that was brought over from Spain by the Jews, fleeing the Inquisition, which we are now making.  It’s called “il bollo.”  It’s absolutely wonderful, and it has a wonderful history also. 

Next week on the 29th starts the Chinese Mid-Autumn Moon Festival.  So, we are making moon cakes with a French twist but with all the beautiful designs of the Chinese.  We have a lot of holidays that we celebrate.  

Thank you, Judith!

(And special thanks to our Ambassador Christine Thompson!)

On Wednesday, representatives of Smallknot, Etsy, Getaround, Airbnb and Zaarly were invited to the White House for an off-the-record discussion with the Office of Social Innovation and Civic Participation, an office of the Domestic Policy Council seeking bottom-up, innovative and results-oriented community solutions.  Without reservation, the experience was an honor.  

Each of us had the opportunity to explain our own visions of collaborative consumption / the peer economy / the sharing economy / [insert other moniker] and the broader implications on our businesses and the wider economic landscape.  The conversation was engaging, intelligent and brought together an inspiring collection of visions for building a stronger, more connected economy through innovation and re-imagination.  After learning more about each business, I left more convinced than ever that a massive shift is afoot — large institutions are increasingly being disrupted by platforms that simultaneously unleash and harness the assets and motivations of large groups of people.  

(On more substantive matters: I had the chicken (which was delicious), and noticed that even the sugar packets and pat of butter had the Presidential seal. We also got a copy of the White House menu with two boxes of the coveted White House M&Ms.  All in all, a resounding success.)  

Smallknot is thrilled to announce today a new partnership program with Accion serving the East Coast and Online, a leader in U.S. microfinance.  The Smallknot/Accion East program is a revolutionary co-funding alternative for small business owners, blending crowdfunding and microlending.  Under the partnership, small businesses can leverage crowdfunded capital raised on Smallknot to unlock business loans from Accion.  Crowdfunded collateral raised via Smallknot will help small business owners get access to potentially larger loans than those for which they would otherwise qualify, while building meaningful business credit for the business owner. 

We couldn’t be more excited to combine forces with Accion in bringing this program to market.  Accion East and Online is part of the U.S. Accion network the largest microlending network in the U.S. With over $340 million lent since 1991, Accion is committed to bringing affordable microfinance solutions to small business owners nationwide and has helped thousands of small businesses grow and thrive. 

Our very first campaign in partnership with Accion launched yesterday: A7, makers of hand-crafted leather camera straps here in Brooklyn.  Co-owners Melissa Patenaude and Craig Hackney are seeking $7,500 to fund their new fall line and increase their distribution.  It’s a beautiful product, and their previous limited edition run received great reviews in magazines like GQ and across the internet.   

The Smallknot/Accion program is an innovative new way of leveraging the power of crowdfunding to bring increased access to capital for small businesses looking to expand and grow. In addition to building business credit and unlocking capital, the partnership will help promote the visibility of all our Smallknot campaigns.  

For more information about the Smallknot/Accion co-funding program, and to find out how to apply, click here. 

Want to get involved with Smallknot? We’re looking for creative, passionate people to join our mission of building strong local economies and supporting small business. Get on the front lines of the NYC startup scene while getting real experience in social entrepreneurship and economic innovation.  

We’re looking for interns to work closely with the team and founders in our NYC office (at least part-time), and we’re also looking for brand ambassadors that can help us organize communities across the country. 

Intern duties will include drafting blog posts, interviewing small business owners, helping with social media, community outreach and events planning, conducting research and day-to-day operations. Ideal candidates will have strong writing and social media abilities, able to work independently in a fast-paced environment. We’re a young startup - so things move quickly! 

Intern positions are unpaid, but we promise you’ll get great, real experience. This isn’t a “please get us coffee” gig, it’s a chance to roll up your sleeves and help us build a company.

If interested, send us a message at info@smallknot.com with some background about you and why you’d like to join our team.  We look forward to hearing from you! 

Smallknot loves local business, and every week we’re profiling the people and places that make our neighborhood special.  Want to get covered in a Smallknot profile, or know someone who should be? Shoot us a message here.

This week’s profile is about Laura Paterson and Lorin Rokoff, co-founders of Hot Blondies Bakery, a popular online bakery based in Manhattan. They’re known for their delicious blondies and “brunettes”, and their edgy yet fun brand.

How did you two meet?

We worked together at Museum Moving Image; Lorin was in development and Laura in marketing. Once we met, we made an instant connection and have been great friends since then!

 

Why did you decide to open a bakery online?

We were so miserable with our desks jobs and we both wanted to do something where we could be creative and have our own thing. We both wanted to open a bakery and saw the opportunity in the market — there were so many cupcake places but not as many brownie and blondie places. So, we put a small amount of money together and went for it.

 
What are the advantages and disadvantages of operating an online store?

The advantages are the lower overhead costs and that our schedules are more flexible. We’re here all the time, but we can bake on our own schedule. The main disadvantage is that we don’t have a real face-to-face with our customers. Everything is online, so there’s no way for them to come in and see the product.
 

Do you have plans for a store?

Right now, we have a commercial kitchen in Chelsea, which we use for baking and wholesale orders. We’d like to open up a retail shop soon!

What’s the best part about having your own bakery?

The freedom that you have and the flexibility and creativity. It’s nice that everything you’re doing is going towards your goal of making the business successful, whether it’s washing dishes or doing finances, it’s all apart of the goal that you have set for yourself. Even though it’s work, it’s still a tangible pinpoint for self satisfaction.

 

Are there any downsides?

I would say the downside of being your own boss is that we work all of the time; it’s very demanding. If anything happens, we’re responsible no matter what. It’s also financially straining. Ultimately, down the road, we’ll be able to make more out of it, but the beginning stages involve a lot of front work, and it’s tough! But its all very satisfying!

 

What’s one thing you’ve learned from having your own business?

We’ve learned to let things take its course. There’s a lot of times when something happens and we have down moments and feel disheartened. But it’s important to remember that there are a lot of up moments around the corner! That’s something important that we’ve learned, and I think that’s great advice for other small business owners.

 

Any updates or news about Hot Blondies Bakery? 

Recently, our blondies were featured on Good Morning America! We’ve also started teaching classes at the bakery now. We hold baking parties for up to twelve people, it’s excellent for birthdays, corporate events, and even bachlorette parties!

Visit Hot Blondies Bakery online here

From Around The Globe To Around The Block: An Interview With Jay Lee, The Founder Of Smallknot

“In the world of startups innovation can often become a hollow buzzword. With technology advancing at a speed only rivaled by the industrial revolution, many in the industry are looking to change not only the the technology that runs the system that we live by but the system itself. I sat down with Jay Lee the founder of SmallKnot, and I can firmly say that he is one of these people…” read more here.

Smallknot loves local business, and every week we’re profiling the people and places that make our neighborhood special.  Want to get covered in a Smallknot profile, or know someone who should be? Shoot us a message here.

This week, we spoke to Craig Cochran, co-founder of Terri, an all-vegetarian quick service restaurant in Chelsea. Craig and his business partner, Michael Pease, have designed a healthy menu featuring a wide range of easily accessible yet wholesome foods. 

What’s the story behind Terri?

Michael and I became friends in college; his brother was my roommate. We had both independently become vegetarian, but shared the same vision of a restaurant that had a better selection of vegetarian food, particularly transition foods for those who still liked the flavor of meat. Our vision was to make a place for people who want to eat more health consciously. We waited a while before we opened up Terri, and sacrificed a lot to save up enough money to open the restaurant. Finally, we did it, and have had a successful restaurant for two and a half years now. 

Why did you decide to open a restaurant in New York City?

We’re both from upstate New York. The original plan was to move to New York City, learn how restaurants are run here, and take what we’ve learned back upstate. It didn’t really happen that way. Michael and I were both previously managing another company that was rapidly growing, and we were looking to open up new locations for the restaurant. One of the customers owns the building that Terri is now in, and he approached us with this open spot. He really liked the restaurant we were managing, so he gave us a good deal to put something here because he trusted that we would do a good job. We took the opportunity and have been in this spot since then.

Did you both always know that you wanted to open a restaurant?

Not exactly, we had managed restaurants for 10 years before Terri, but we did a lot of other things beforehand. I’ve had many different jobs, between being a personal trainer and drawing for Marvel Comics. Michael has a masters degree in economics from NYU.

I read that the restaurant was named after your mothers, do you feature any of their recipes on your menu?

Yes, my grandmother and mother gave me my love for cooking and food, and I use a lot of what I’ve learned from them for our menu. Our banana bread is actually my grandmother’s recipe.

What have you learned from having your own business?

We’re learning all of the time! I’ve learned that I’m happiest and proudest of the fact that we can build a successful business around the idea that you can have a great relationship with your staff, who are motivated not by the threat of being fired, but by the rewards of doing good work. We absolutely love our staff. I have definitely learned that you can have a successful business and still be nice to everyone and maintain a comfortable, family atmosphere.

What do you enjoy most about having your own business?

The most enjoyable part is the people I get to work with. I work with such incredible people, and we all share this happiness for working here. Owning my business gives me the power to maintain this enjoyable environment. In other situations you may not have as much control over that. 

What is the most challenging aspect?

I think all of my employees are worth 6 or 7 figures, but I can’t pay them that much! There are other challenges, but that’s the one that bothers me the most.

Any advice for other small business owners?

I love to help others out, I often do free consulting because there’s such a huge learning curve with owning your own business. But the biggest piece of advice I have is to surround yourself with great people and treat them fairly and kindly. I think if you follow that, it’ll be hard to not succeed!

Terri is located on 60 West 23rd Street in Manhttan

Smallknot loves local business, and every week we’re profiling the people and places that make our neighborhood special.  Want to get covered in a Smallknot profile, or know someone who should be? Shoot us a message here. 

This week, we’re speaking to Gaige Clark, founder, owner, and creative director of Spruce, one of the most highly acclaimed flower boutiques in New York City. Spruce was founded in 1998 and is based on 8th Avenue in Chelsea, soon to expand to Los Angeles. Their storefront is one of the most high-tech, beautiful shops you’re likely to find anywhere — definitely worth a visit if you’ve never been! 

We caught up with Gaige earlier this week and talked about her passion for flowers, her signature style, and what it’s like running her own business. 

Why are you passionate about flowers?

Growing up, I was always helping my mother out in her garden, and I really loved that. My great grandmother also used to sell flowers and had a farm, so it was in the blood.

I read that you’re originally from New England, what brought you to New York?

I actually moved to the city to publish magazines; I didn’t plan to be a florist. The magazine I worked for was in the corporate event industry, and I was doing consulting on the side. I was doing consulting work for a floral designer and suggested that she purchase a flower shop. She didn’t want to, so I took the opportunity. I quit my job and purchased the shop, rebranded it, and turned over the existing clientele. I worked very hard to make it into what Spruce is today.

Do you have a signature style for your arrangements? 

My style is called the New England Garden, which I developed entirely by myself. It’s clean, fresh, and tailored. What sets this style apart is that the flowers look as if they’re growing out of the container. 

What is your favorite thing about having your own business? 

Autonomy. I’m able to basically spend my time exactly how I liked to spend it. This gives me a lot of creative freedom. 

What is the most challenging aspect? 

Managing employees!

Any advice for other small business owners?

Be true to your own visions; become clear on exactly what that is yourself. This is especially important in the creative business.  Yves Saint Laurent never waivered from his ideas, and that’s what made him successful.  I employ that with my design and creativity.  A great designer is true to herself. 

Spruce is located on 222 8th Ave. between 20th and 21st St. in Chelsea.

Thank you to everyone who came out last night for our first ever event at the DeKalb market, an Entrepreneurial Story Slam about Lessons Learned the Hard Way, tales of horrible mistakes, life lessons, ridiculous adventures, and plans gone awry.  We had a blast and hope to do more events like these in the near future. 

Comedian Max Silvestri MC’d, and we heard from 11 great speakers. All the presenters did a fantastic job braving it in front of the crowd, but I particularly loved Allison Robicelli’s story of making her way from Bay Ridge as a self-taught pastry chef, Jonathan Schnapp’s life lessons from selling CutCo knives (fair enough?) and Tom Mylan’s dashed dreams of partying in a new Trans Am.  

Thanks to everyone for joining us, and thanks especially to Nicole Davis and Brooklyn Based for organizing, and DeKalb Market for hosting. Let’s do it again sometime soon! 

Check out our article by Katrina Daniel in Greenville Business Magazine, Emerging Companies: Smallknot.com

Smallknot.com is an innovative business launched by former Greenville resident Jay Lee.  Smallknot is a creative use of social media we will see more of in the future. Billed as a “social finance platform for local businesses and their communities,” Smallknot helps small businesses raise capital from the areas and people they serve in return for repayment through in-kind goods and services… Read more here

Come to DeKalb Market on July 10 at 6pm for a story slam with Brooklyn entrepreneurs telling life lessons about horrible first jobs that taught them everything, misguided choices, life lessons and inspiring stories of hard work and risks taken. 

Hosted by comedian Max Silvestri and featuring Tom Mylan from the Meat Hook, Jonathan Schnapp of the soon-to-be Royal Palms Shuffleboard in Gowanus, Allison Robicelli (maker of the greatest cupcakes in the world), and many, many more. 

$2 off beers and 10% off select food and retail.  Come by and hang with us! 

Smallknot loves local business, and every week we’re profiling the people and places that make our neighborhood special.  Want to get covered in a Smallknot profile, or know someone who should be? Shoot us a message here.  

We spoke to Bonnie Slotnick this week, a small business owner with a strong passion for cookbooks and preserving the history of the West Village.

Where did your passion for cookbooks come from?

I tend to attribute it to a little booklet my mother had. It was a promotional booklet from a bread company, a type of advertising that evolved in the late 19th century. It had recipes and useful information in it, the idea being that the woman would keep it and it would be useful to her. When I discovered it in a house as a kid, I just fell in love with it.

 

Did you start collecting them after that point?

Not just yet. The booklets were something that came back in my life later on. I moved to the city in 1972, when there were still a lot of bookstores and flea markets where you could find old booklets and cookbooks. I started buying them and discovered that I was fascinated with old cookbooks; they really took me away from my everyday life. But my career path was not without twists and turns, and about twenty-five years went by before I opened my cookbook shop.

 

Why do you choose to sell older books in your store?

I love the history and the physical qualities of the books — the feel and smell, how the page corners might crumble under your fingers, marginal notes, recipes tucked in. They’re about comfort, history, and nostalgia. The books fit in with having a store in the Village, which dates back more than three hundred years. The older cookbooks give you a real feeling of what life was like in those times.

 

You seem to have a strong connection to the West Village.

I’ve been in this storefront for twelve and a half years, but I’ve been in the Village for forty. Having a bookstore is a nexus for the community, a place for people to stop by to meet friends and talk about local matters. There used to be a lot of stores like mine in the Village, but not anymore.  A lot of small businesses have a difficult time competing with big chains and end up having to move out. Having this store helps preserve the history and community of the West Village.

 
Do you have a favorite cookbook?

I have a favorite type, but not a favorite book. I love baking books! I also really love books with a story, especially ones that weave recipes right into the narrative; it’s called a memoir of a recipe. These were written between the 1920’s and 50’s by people who just loved food and had interesting stories to tell. They were written by everyday people as opposed to celebrity chefs.
 

Would you say that your favorite aspect of owning your own business is using your expertise to help customers choose books?

Yes, I love helping people find the perfect books for themselves, but it’s especially fun for me to help customers choose gifts!  When you come in my store, you get to really see and read the book and once I get to know you, I can help suggest similar ones that you’d probably also like. Most people are not used to that kind of relationship with a store owner.

 

How do you get your cookbooks?
The way I get books in the store is completely different from chain bookstores. I don’t order from a catalog, rather from local people in the area who have books that they’d like to sell, sometimes just one or an entire collection of thousands. There’s a whole economy going on that doesn’t involve large corporations, just the local community. For that reason, I really try to shop locally. Sometimes you have to pay a higher price to help keep a business that you like going. You could easily order anything that you’d find in a small store much more cheaply on Amazon, but then you’ll turn around and find that your favorite little store has closed.

Bonnie Slotnick Cookbooks is located on 163 West 10th St. in the West Village

We’ve been featured in an article by Erin Griffith on PandoDaily, where she discusses the importance of supporting small, local businesses. 

Smallknot, a TechStars NY company, debuted its local crowdfunding product at the incubator’s demo day this morning. By now Crowdfunding is a well-trod idea, but the company has a heartwarming take on it that, if successful, will bring together online and offline communities while benefitting small, local businesses.

This week, we caught up with Andre Wechsler of Wechsler’s Currywurst in the East Village.

Where are you from originally?

I’m from a very industrial area in the western part of Germany.

Why did you decide to move to the US?

I came to the US to work in finance; that’s how I got to New York City.

So why did you choose to open up a restaurant in the East Village?

I used to work in accounting and banking, and at one point I just got tired of it. My first idea was to build a zero-energy home, but after the market crash it wasn’t a good idea anymore. My next idea was the restaurant. I grew up with currywurst - it’s very popular, like hotdogs in New York - and I really missed it. 

Are any of your dishes based off of family recipes?

Yes, all of our side dishes are. They’re my mom’s recipes.

What is the most challenging aspect of being a business owner?

The most challenging thing is that I do everything. We don’t have floor managers, so I’m here all the time. But I really enjoy learning how to do it all. 

And what aspect do you enjoy the most?

Interacting with customers. It’s the best part of the business! Also, doing everything on my own.  For example, I do my own books; it’s important to know all of my numbers.

Any advice for someone looking to start a business?

You’re going to make mistakes. I haven’t done everything the right way but I’m learning, sometimes the hard way, but that’s life. You try and you make mistakes so you know for next time.

Your favorite menu item?

The currywurst! We also have a great selection of german beers. German beer is great, it’s special because it is only allowed to have four key ingredients, which makes it very pure. Even with just four ingredients, you can get so many different variations.

Wechler’s Currywurst is located at 120 1st Ave in the East Village. 

There will be a beer tasting on Monday, June 18th from 7-9pm. They will sample 3 US micro brews then compare them to a similar style German beer. In total, 6 8-oz beers. Admission is $20 and there will be 20 tickets available. 

Smallknot loves local business, and every week we’re profiling the people and places that make our neighborhood special.  Want to get covered in a Smallknot profile, or know someone who should be? Shoot us a message here. 

This week, we spoke to Chloe Epstein, co-founder of The Soft Serve Fruit Co., an assistant district attorney turned entrepreneur.

What was the inspiration behind the idea for The Soft Serve Fruit Co.?

I have always had an intense sweet tooth and an obsession with healthy eating and exercise. When I was pregnant and thinking about feeding myself and my kids, I became more conscious of the ingredients in the foods we ate. Especially discouraging were the artificial ingredients in frozen yogurt. I love that the soft serve fruit is relevant to conscious eating and allergies, and thus is a great alternative to frozen yogurt.

How do you come up with new ideas for flavors and toppings?

We always stick to our core philosophy: simple and wholesome, and of course natural. The toppings never include high fructose corn syrup or hydrogenated oils. For the fruit, we try to keep everything seasonal, but nothing is off limits when it comes to experimenting. All of our soft serve is made with only three ingredients: fruit, water, and organic cane sugar. Our goal is to have the product taste amazing while keeping within the nutritional standard that we’ve set. 

What inspired you to jump from being an attorney to a business owner?

I used to work as an Assistant District Attorney in Manhattan. When I started having kids, I wanted to look for something more flexible. I had always dreamed of having my own business that incorporated my fondness for sweets and a healthy lifestyle. This idea gave me the inspiration and the courage to pursue that dream. When I came together with my business partner, Michael, a triathlete who also has a sweet tooth, but was coming from a totally different perspective, we both agreed it was such an irresistible idea with which so many could relate and I had to go for it! 

What is your favorite part about running your own business? 

It’s two-fold. First, I love seeing how excited my children get about being the first to try all of our new flavors. Second, I love the nature of the business, how our product allows those with food sensitivities to partake in the frozen dessert genre.

What is the most surprising thing you learned about running a small business? 

I didn’t think that after having kids, anything could be as time consuming and exhausting, yet so rewarding.

Any tips for new business owners?

It’s tempting to make compromises along the way. For instance, quality and trendy ideas may deviate from your philosophy. You must make every decision with your core values in mind. Know who you are and what you believe in. Stand for and stick to it. 

The Soft Serve Fruit Co. has two locations in Manhattan:

Upper East Side: 1371 Third Ave (at 78th St.)

Union Square: 25 East 17th St. (Broadway)

Our first Greenville, South Carolina Smallknot campaign has kicked off with Cake Notice, a custom cake business run by a stunningly talented young entrepreneur, Molly Simons.  Take a look at what she’s offering in return — you won’t be disappointed! 

We kicked off our first day in Greenville with a cash mob in Downtown Greenville.  It couldn’t have been a more beautiful day. 

Starting around six o’clock by the stairs near Falls Park, folks from all over Greenville began trickling in.  Little by little, the area grew into a group, then a gathering, then a full grown mob.  A Cash Mob.  Our Cash Mob was simple: A group of folks coming together to spend money at a local business and signal their desire to support a thriving local economy of small businesses.  Greenville has been undergoing tremendous growth over the past decade and amazing small businesses have been springing up all over.

At least 50 strong, people introduced themselves to total strangers, striking up conversations with new people and just enjoying themselves.  From teenagers to senior citizens, tech entrepreneurs to YMCA directors, and from Asian parents to talk radio hosts, a fantastic group had come together.

Some of us made very high-tech signs.

One of us looked very silly standing on a ledge, but did his best to give a quick little speech.

At 6:30, we announced the mystery merchant: Chocolate Moose on Main Street.  Although the owner, Kristin Kuhlke Cobb, couldn’t be there for the event, we chose the Chocolate Moose because 1) their products are fantastic, and 2) they give back to the Greenville community.  

And seriously, those were some fantastic cupcakes.  Unlike most cash mobs, ours was somehow orderly, with folks lining up single file and spilling out the door into the street.  Impressive. 

Afterwards, satiated with rich, delicious cupcakes and frosting, the mob headed over to Coffee Underground for drinks (hard and soft) and conversation.  All in all, an amazing event.  Thank you (so so) much to everyone who made this cash mob the success that it was and see you next time!  

Crowdfunding is crazy.  Today, we saw two campaigns hit 100% funding with just minutes to spare (if that).  Two campaigns that we love, for companies run by some inspiring, dedicated hard-working entrepreneurs: Bon Chovie and the Bistro Truck. Both campaigns had come out of the gates with a flurry of activity — but leveled off (as so often happens with campaigns like these).  

It was amazing to see so many of you come out and rally as the minutes ticked down.  In the end, more than 70 supporters came out to help Neil and Renae Holland of Bon Chovie fund a new van that will help them get their equipment to market without making 25 trips, allow them to expand to a bigger presence, and make their lives an awful lot easier! Meanwhile, Yassir and Elsa Leon of the Bistro Truck got a major boost from some big investors in the final moments of their campaign, and their new restaurant is well on its way to winning the hearts and minds of the Lower East Side of Manhattan. 

It is amazingly heartening to see the community come out to support these local businesses as our fledgling company gets off the ground.  Smallknot is still just the beginning of a big idea — a way to bring communities together to build the kind of community you want to live in.  It is a beautiful thing to see so many of us come together to support the small businesses that bring so much vitality and joy to the neighborhoods we inhabit.  Thank you all for helping to make these campaigns a success — and we look forward to bringing you many more very soon. 

A bit of Smallknot press to report! We’re featured in Street Fight talking about the benefits of hyperlocal crowdfunding, why small businesses don’t need to wait for the JOBS Act to start taking advantage of the phenomenon, and why everyone can benefit by supporting small businesses in your community: 

For small businesses, which are in the early stages or are operating a cash business, repayment can be a major obstacle. And for the most part, this is not a function of how well they are doing but rather a consequence of managing cash flow and committing to payments on a regular basis. The standard investing model — invest $1,000 and return $1,500 in interest — is ill-suited for a small business and often difficult to manage, so why not let businesses repay interest at cost through services, goods etc., instead of in currency. When you repay at cost it’s a positive for each side of the equation: the business can raise funds and complete a project without a large cash outlay in the future, and investors can receive a larger return than they would otherwise.

Smallknot loves local business, and every week we’re profiling the people and places that make our neighborhood special.  Want to get covered in a Smallknot profile, or know someone who should be? Shoot us a message here.  

This week, we’re talking to Keith Beavers, a co-owner of In Vino Wine Bar and Alphabet City Wine Co. in Manhattan’s East Village. 

Keith Beavers is a wine geek. In the best possible way.  Self-taught and super, super passionate about wine in the least pretentious way you can imagine, he is the co-owner of In Vino Wine Bar and Restaurant  and the wine shop around the corner, Alphabet City Wine Co.  We caught up with him in the store this week and talked to him about how he got started, the meaning of “Wine to the People” and running a small business in New York City. 

How did you get started in wine? Where did your passion start? 

I was working as a waiter at Max, an Italian restaurant in the East Village, back in 2003. Right when I got the job, the owner there decided that the staff really need to learn about wine. I started researching wine, and had this moment where I was like “Wait a second, wine is really interesting!” I had that moment in my life when it suddenly hit and I realized “I’ve got it!”  Pretty much since then, I’ve been obsessed with wine; it’s never gone away. I am obsessed with reading, drinking and blogging about wine.

How did you wind up at In Vino?

I was always trying to educate the customers about wine when I was at Max. The owner moved me to his wine bar, In Vino, because I was being so ‘geeky’ about wine. I steadily became a manager, a wine director, then I helped the owner run the place. In 2006, I hired David, my co-owner, and we opened a wine shop. At the same time, the owner of In Vino was looking to sell the restaurant, so we decided to take it over. 

What are some of your favorite things at In Vino and ABC Wines? 

At In Vino, I love the meatballs — they’re my grandmother’s recipe! And the skirt steak too — it’s always made so well.  At the wine shop, I’m really proud that the majority of wines are all between $15-20.  You can get great wines without spending a ton of money, and that’s something I care a lot about. 

Is that ‘Wine to the People’ means?

Yes! I’m self-taught when it comes to wine. I would buy books, buy wine, research it, understand the science and history behind it, and then blog about it. That’s how I learned about wine and how my blog got started, East Village Wine Geek. ‘Wine to the People’ was a term I came up with because I really believe wine doesn’t have to be expensive to be good. It’s my movement to teach people how to enjoy wine on an everyday basis.  A lot of people just don’t realize that it’s a part of life!  

Ever make your own wine?

I could tell you anything about wine, but I’ve never made it before. It’s my next project. I actually want to make a video of myself making my own wine press, finding grapes, then screwing it up completely. That humility is a part of it: I want to learn something new about wine every day and show it to people.

What’s the best thing about owning your own small business?

I love having my own business, especially here in New York. I love seeing people enjoy the food in the restaurant, watching people smile when they drink a bottle of wine, especially if it’s a wine they’ve never heard of before. I also love when people come back to the wine shop and say “Thank you for helping me pick that bottle out!” 

Why the East Village?

The East Village will always have a sense of creativeness to it that I don’t think other neighborhoods can maintain most of the time. It has a long history. I love that we don’t have a lot of subway stations here.  Because we don’t have that much high traffic, it makes it easier to feel like a real community. 

In Vino is located at 215 E. 4th St. between Avenue A & B.  

Alphabet City Wine Co. is at 100 Avenue C between E. 6th & 7th. They have wine tastings every Friday and Saturday night from 6-9pm — stop in and see what’s good! 

The best part of working at Smallknot is the constant interaction with small business owners. The world hails tech entrepreneurs setting out to disrupt entire industries, but the stories of the folks who set out to build small businesses out of love and personal conviction are no less powerful.  Throwing away a stable job to open your dream coffee shop is as daunting as doing the same to code up the latest web app for your startup.  

During the last few months, we’ve met aerospace engineers who now produce incredible wines.  Poets who opened soulful restaurants.  Biomedical engineers who make the city’s best mac ‘n cheese.  It’s amazing and inspiring.  

Today we will begin telling the stories of small business owners we meet in regular segment on the blog: Smallknot Profiles.

This week, we spoke to Lily Funmi Johnson-Dibia, the owner of Lily & Fig in Crown Heights, a biotech drug executive turned Crown Heights bakery owner.  

Where are you from?  

I’m originally from Nigeria, but I grew up in England.  I moved here in 1993 and worked for a biotech company for 13 years before I came here to Brooklyn.

What inspired you to open Lily and Fig?

I always baked.  And I always wanted something of my own.  So when I got married and moved to Brooklyn with my husband in 2005, I decided I wanted to do it.  In 2007, we started construction and opened.

What’s the most surprising thing you learned about running a small business?

That I can operate on very little sleep. Ha!

No no no, I think it’s difficult to overestimate how much work needs to be done.  It’s always something.  Accounts, finances, the cleaning and also for a food business, it’s fairly highly regulated.  I have occasional employees and so I have to deal with worker’s compensation and insurance…It’s always always something.

What is your favorite part of running your own business?

My favorite part is getting emails from customers who had a cake and are just…overjoyed.  There are times when I think “why am I doing this?!” and then I get a message like that and it makes it all worth it.   And I also enjoy the creative aspect, late at night when I’m here by myself, I like creating new things.

What’s your favorite item at Lily & Fig?

The strawberry cupcakes.  Oh, and the almond cupcakes!   (Note from the editor: Yes. strawberry cupcake.)

What is the customer favorite?

The red velvet cupcake.  

Is there any advice you’d give to someone starting a small business?

If you want to start a business do it.  It took me awhile to get over the hurdle of leaving behind a good salary and a regular salary.  But it has its rewards.  Just try it.  If you don’t try it, you’ll  never know.  

But have a support system.  My husband is very supportive, I have friends who rally around, and since I started a business, customers have become friends and pitched in.  I have no regrets!  

This past Sunday in Crown Heights, Smallknot and Ioby teamed up to hold the Mother of all Cash Mobs.  (Edit:  We held a Mother’s Day Cash Mob.)  

Together with our enthusiastic pre-schoolish signs, we met in front of Chavelas just a block away, meeting new friends and mingling amongst ourselves.  At 2:15, on our signal (“unleash hell”) we proceeded en masse to Lily & Fig, a family-owned bakery operating in Crown Heights since 2007.  Lily Funmi Johnson-Dibia, the owner, greeted us enthusiastically with a “Hellooo Cash Mob!” and promptly got down to business, doling out amazing cupcakes, brownies, cookies and cheesecakes to the hungry mob.  (I had the strawberry cupcake.) (And brownie.) (And butter cookie.)   

At the start, we noticed that Lily was the only one working, diligently preparing everyone’s orders and handling the register.  10 minutes later, we noticed another young woman working behind the counter, cheerfully serving mobsters and taking orders.  15 minutes later, we learned that she was merely a neighbor-turned-friend of Lily’s (in the photo below) who merely stopped by to say hello, but quickly hopped behind the counter to lend a hand.  Incredible.  That is community.  

(Join the fun and tell us what places you’d like to cash mob on Facebook or Twitter!)

You may have noticed that things are suddenly a little different at Smallknot.  We’ve made some big changes both to the look and feel of the site and to the way our campaigns run. 

The biggest change is that we’ve moved away from a microlending model for small businesses. This was not a decision we made easily, but it is important to us because it allows us to make our platform available to a wider variety of businesses in all stages of growth. 

Instead of repayment in cash with a reward, supporters of future Smallknot campaigns will be paid “in kind” - with goods, services, perks, or other benefits. We’re excited about this new direction and the opportunity to reach more businesses that are looking to expand and grow and connect them with the communities that care most about their success.  

In the coming weeks, we’ll be rolling out new campaigns and new features that will make it easier than ever to support local businesses while getting excellent value in exchange.

And today we’re excited to announce two new campaigns: Bon Chovie of Smorgasburg fame and the Brooklyn Flea, and a new brick and mortar restaurant in the Lower East Side called Rustic L.E.S., brought to you by the folks from the Bistro Truck! They’re both offering some pretty amazing rewards in exchange for your support — like fly-fishing lessons, home-cooked meals, invitations to friends & family dinner, and even a lamb roast block party!  We’re thrilled to be able to work with them and offer such incredible rewards to their supporters.  Take a look! 

Thank you for supporting Smallknot! As always, we’d love to hear your thoughts about what we’re doing. You can always reach us directly at info@smallknot.com. We’d be happy to talk! 

Jay, Ben and Jason 
The Smallknot Team  

We had a great turnout this weekend at By Brooklyn on Smith St. in Carroll Gardens (or maybe it’s Cobble Hill?) for our second attempt at a cash mob! NBC Nightly News and PIX 11 came out to do a story on the growing cash mob movement, and got some great coverage of the event and some pretty heartwarming clips of owner Gaia DiLoreto describing it as feeling “like Christmas in April”.

Join the fun! Like us on Facebook and get notified of the next Cash Mob! Videos here: PIX11: http://youtu.be/k2_Po95sIR8 NBC: http://video.msnbc.msn.com/nightly-news/47055535#47055535  

Because it doesn’t make sense.  Or cents.  (yes.  that *was* terrible.)

It’s basic economics.  You are the CEO of BigBank:  if you could devote 200 manhours to prepare 1) a billion dollar investment grade loan to Wal-Mart at 5% interest or b) one hundred $20,000 higher-risk loans at 15% interest to small businesses, which would you choose?  (Without actually doing any real math, the caveman calculation of the profit on the former is about 167x larger.)

You can’t argue with that.  It’s math.  This isn’t about the one percent or greedy assholes or vampire squids.  And it’s not about corruption and the evil that men do. (Though there is plenty of that.)  There are assholes in public service and there are saints on Wall Street.

This is about a broken system.  A broken financial system that is not built for the human-scale businesses.  Banks can’t make enough money from Mom ‘n Pop unless they squeeze them to death on interest rates or just ignore them altogether.  We see both outcomes every day.  Merchant cash advances, high interest rates, personal collateral and the specter of personal ruin:  That’s what it takes to make small business finance work, right?

We disagree.  Big time.

On a beautiful Saturday afternoon, Smallknot joined Brooklyn’s First Cash Mob. The target? Community Bookstorein Park Slope.  The goal?  Show your love for your neighborhood businesses and meet some of your neighbors.  I’m happy to report that everyone bought a lovely book of their choice and no non-mobbers were injured, though someone did snatch three cookies from the cookie tray. (yes, it was me.) Highlights of the Cash Mob include:

• Babbling like an idiot to a Japanese television reporter *on camera* while clutching a book on “Debt: The First 5,000 Years”.
• Resisting the urge to photobomb the journalist at least 7 times.
• Not resisting at least once.  But executing the mission tastefully.
• Grabbing a celebratory drink with fellow cash-mobbers on the patio of High Dive.
• Watching my publisher-employed girlfriend pitch one of her favorite new books to a rapt mini-crowd.
• Supporting a fantastic local business and watching their surprise as supporters, over twenty-deep, showed their support.

The Cash Mob rules were simple.  We met at an agreed upon meeting spot and only the organizers knew the soon-to-be-mobbed business.  We strode in amicable (mob) fashion towards our destination, warmly greeted the employees and spread out across the store looking for our next good read.  Afterwards, we all headed over to High Dive on 5th and Carroll for a beer and to get to know each other. Conclusion?  1)  Not a bad way to spend a Saturday afternoon. In fact, it’s a great way.  2) Cash mobbers are good people.  Join us for the next one!

Smallknot is so excited to announce that we’re a part of the TechStars NYC Spring Class of 2012! We are super pumped to move into the new offices in the East Village (though our hearts, or course, remain in Brooklyn) (no offense, Manhattan, you’re great too!). We have already been so inspired and amazed by the 13 other companies joining us at TechStars, and can’t wait to see what the next three months bring while we do more, faster. In the meantime, we’re so thrilled to see the support coming in for Egg Restaurant, where we’ve already seen nearly $2,000 come in over the just the past few days. Lots of big news to come soon, so stay tuned!  

Smallknot is a local social lending platform for small businesses and their communities. Through Smallknot, you can provide a social loan to a locally-owned small business that will be repaid to you in full without interest. As their way of saying thanks, you will get a personal reward or insider perk like cooking lessons, party invitations, a wine tasting or whatever else the business can dream up. With Smallknot, you can “invest” in your community by providing small loans to your favorite local businesses. Today, we are very proud to announce that we working with Egg Restaurant in Williamsburg to help them raise funds to build beautiful, locally-sourced tables and to purchase new, comfortable chairs. For those of who have had the good fortune of scraping your forks to pick up that last piece of Eggs Rothko or witnessed Egg’s dedication to building a principled community business, you’ll know why we are so excited!  For those who don’t, here’s a map:  Run. Help support Egg (literally) build a setting for you to enjoy a meal and see your money put to work in your own neighborhood. And then reap the rewards — join them at their soon-to-be new restaurant Parish Hall for a private party or even learn to make those biscuits yourself!  (We are totally there.) Thanks! Team Smallknot

Welcome to the Smallknot blog! In case you want the quick and dirty, here it is:  Smallknot is a local social lending platform.  For you New Yorkers and Brooklynites, we offer you a way to “invest” in your favorite local small businesses – the ones that make this the best damn city in the world.  We’ll also bring you closer to businesses you love.  Really. With Smallknot, you’ll be able to help your favorite small businesses in your neighborhood achieve some really big things.  Lend as little as $25 and you can see a business project you funded come to life, get repaid over about a year, and get personal rewards at a business you love. If you want the full spiel, check out our FAQs, follow us on Twitter, and make sure you sign up on our homepage to be the first to hear about our beta launch — coming March 2012.

A few months ago, we had the distinct pleasure of meeting Amy Cortese, the author of Locavesting, a book about local finance and local investment. After tearing through the book in a matter of hours, I was happy to chip in my own 2 cents to Amazon and give my own review of the book, which I have reproduced below. Find Locavesting here (or, of course, at your community bookstore).

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If Michael Pollan changed the way you think about food, let Amy Cortese change the way you think about finance.

Modern finance helps you invest in offshore drilling rigs 10,000 miles away within a matter of seconds but makes it nearly impossible to keep your favorite dive bar or local bakery from being shut down because they can’t get the simplest of loans. It greases the wheels to turn your dollars into another Starbucks, but will stand in your way in keeping the corner coffee shop open. It strangles small businesses in their infancy and channels the world’s financial resources towards the biggest and most well-connected companies. This senseless perversion of finance is the same reason that the recession shuttered independent store fronts across the country, while their chain-store counterparts never closed and even expanded into the very same empty storefronts, never to close. This fundamental misalignment is addressed head-on by Locavesting, which confronts Big Finance directly, with art and an intelligence that comprehends the big picture of modern finance (and its distortions), and opens the door to the solution: local investment, an option that provides a host of solutions, all ripe for the picking.

By way of background, I worked as a financial professional drafting and polishing financial disclosures for Fortune 500 companies and dabbling in the superstructure of Big Finance and feel like I have a good grounding in the world of finance. To that end, Cortese has clearly done her homework and has synthesized her deep understanding of the financial system to skillfully highlight the pressure points in the system, the bottlenecks preventing a more productive financial system and has clearly put her faculties to work in diagnosing the illness and prescribing the treatment. Yes, there are piles of brilliant books that tell you what went wrong with our financial system and what we should have done – but Locavesting tells us the way forward.

Even her unadorned statistics make for powerful arguments:
- Every dollar spent at a locally-owned business generates three times more direct, local economic activity than a dollar spent at a corporate-owned peer.
- Small businesses make up 99% of all U.S. companies, employ half of all private sector employees and contribute half of private GDP, yet of the $26 trillion held in public securities, not a penny goes to local business.
- Of all of the money that flows through our stock markets, 1 percent goes to productive use and the other 99 percent is trading and speculation.

We recognize that buying products is a vote — whether commodity corn or sweatshop sneakers. We should equally recognize that an investment dollar is also a vote — whether it goes to big box retailers and feedlots or your community bookstore and butcher. It is astounding that local finance, such a simple concept, has been so lost in the financial casino that its re-introduction feels like a revolution. We want our food to be local, we buy local to support our communities, we wax nostalgic about the un-defining of our distinctive communities, yet we still funnel all of our money into the hands of a few financial institutions (who, incidentally, recently threw themselves into chaos, took a buzzsaw to our economy and promptly continued on their merry way). Locavesting is a powerful call to re-imagine the meaning of investment and to reconsider what it means to invest — that a thriving community and the preservation of local identity and independence can itself be a return on investment.

If you know nothing about finance or are a steely-eyed vet of the financial services industry, I would suggest that you take the time to consider the revolutionary (and ironically historical) option of investing locally, where you live. We all have to make choices and Locavesting is an indispensable tool to begin thinking about how to make those choices.