I bought my first business at 25 with $10K. Thanks to an excellent mentor!

​

During the ‘70’s I was obsessed with expanding my dad’s Vancouver shop into a chain of the best bicycle stores in the country. My vision was bold and relentless.

In 1971, Dad bought Fred’s Cycle Shop (now West Point Cycles) because he really wanted all of our family to work together on something. His vision was that this business would be the glue that kept his four teenage sons close to home and to him.

While my three brothers were in college or working elsewhere, I was always seeking new opportunities. At the end of the ‘70s, I had started two additional stores under Dad’s ownership. From reading a sports trade journal, I found a store for sale in Alberta. I arranged for Dad and I to visit, spend a couple days in Alberta viewing the store, then fly home. I could tell that after only one hour at the store that he was unimpressed.

George Glasman, the charismatic owner of George's Cycle and Sports had recently pass away, and it was his wife Hilde that was trying to sell the store. During my visit, she had mentioned that she preferred to sell to me, or someone out of town. She wanted to honour her husband, so she didn’t want one of George's Edmonton competitors to own it and change the store name.

That evening at the hotel, Dad asked and answered, “Well that's a disaster area, eh? It’s just 19,000 feet of dirt and chaos!”

After my Dad’s quick dismissal of the purchase, anger mixed with sadness still roiled inside. I tried to calm myself, “Dad, I’m fascinated with the potential, the opportunity is there to get the store at a bargain price and turn it around.”

He was unmoved. “No it won't work. It's too far away, and you'll never be able to turn that mess into a functioning store.”

I had hired good managers, and felt compelled to take on a bigger challenge. Something outside of Vancouver, more on my own. I begged him, “Dad, I really want this challenge.”

“Your home is here,” he said. “You have a good thing going with three stores. What are you chasing?”

I didn’t have a clear answer. I just felt the inner drive to build something of my own, a legacy of my own making. Months had gone by since our inspection of the store, yet the seller's agent was still calling to impress on me the seller’s interest.

Through my church community, I casually knew Dolphe Hoffman, the VP of Western Canada Steel. I mentioned to Dolphe that I had hoped we could buy a large Edmonton bike store, but Dad wasn't for it.

“Without Dad, I see no chance of buying and rebuilding the store in Edmonton.”

Dolphe looked at me and said, “Why don’t you buy it yourself?”

I laughed. “I’ve got $10,000 in the bank, Dolphe. No way! The seller wants half a million, plus the value of the real estate. The building alone is huge—over four times the size of any of the Vancouver stores.”

But Dolphe said, “Come on over for lunch next Sunday.”

I was intrigued and gratefully accepted. I had spent the last eight years taking night courses towards a Bachelor of Commerce, but I had never heard that a mentor could help with business decisions like this.

Dolphe pulled out his accounting pad and started writing. “Grayson, let’s look at the numbers, It seems like Hilde needs a buyer more than you need the business. That puts you in the driver’s seat.”

He worked through the projected financial statements of the first year of operations. He thought it could turn a profit, something the store hadn’t achieved in years.

“Separate the building from the business. Get the broker to sell off the real estate, and take out a lease for the building. You only have $10,000, so ask her for what’s called ‘vendor take-back’ financing. Then create a deal for the business that works for you, and let Hilde figure it out.”

The whole thing felt risky, almost impossible. I held my breath and mailed (there was no email!) the proposal to Hilde.

To my amazement, she agreed!

I flew to Edmonton with $10,000, signed the deal, and did the inventory count. Originally just the bikes, repair parts and skis in inventory were valued at $500,000, but after adjusting for outdated products, it came down to only $150,000.

Hilde agreed to take $10,000 down and with the security of inventory, she loaned me the $140,000 until the one-year anniversary.

I was giddy with excitement as I stood in the cavernous store. Just like that, I owned my very own business!

It was hard to believe all that happened in just a few months: I thought I didn't have enough money to buy a business, but Dolphe came up with an audacious plan.

It was my mentor who believed in me. He showed me what college hadn’t taught me – how business really works. How leverage, lived-experience, and especially relationships can be more powerful than capital.

When I called Dolphe this week and read him this story, he didn't remember much about what happened. But he showed me what a wise mentor can do:

See possibilities you can't. Say what others won't. And help you step into a future you don’t yet believe is possible.

Forty-six years later, I choose to stay transparent in order to hear what my mentors in both my personal and business life can still teach me.

I welcome the opportunity, and feel humbled that some of you may see me as a mentor. If you are now curious as to how a mentor may bring new insights to your life, I welcome your email.

​

​

I would love to connect with you on LinkedIn, Facebook, or Instagram​

See you next week,

Grayson

Did someone forward you this email? Get weekly reflections straight to your inbox by subscribing to The Compassionate Competitor.

Want to share this issue via text, social media, or email? Just copy and paste this link:

[ARCHIVE URL GOES HERE]