Today we’d like to introduce you to Brooke Talbot.
Brooke, please share your story with us. How did you get to where you are today?
I can honestly say that I never set out to become an entrepreneur. It was by chance. My husband, Paul, is a serial entrepreneur. Over the course of his lifetime, he has started many businesses and raised funding for many more start-ups. When we were in our first year of marriage, he decided to begin a new business endeavor. It was a company that provided cash handling and payment processing services to municipalities and correctional facilities. Not exactly glamorous stuff, but a learning opportunity none the less. Armed with my MBA, and a love of learning, I naively believed that if I worked hard and took all the right steps to help my husband set up the business, we would inevitably be successful.
Entrepreneurship requires the ability to wear many hats, often at the same time. You’re not doing just the part that you love when it comes to establishing a business. I had to learn complex corporate accounting (and thankfully had an amazing mentor that I worked closely with for many years), I had to become well versed in employment laws, with ten employees it was vital to protect ourselves. I quickly became immersed in not only learning myriad new software programs but in turn teaching others on the team how to fully utilize these programs. I was putting together responses to large RFPs from municipalities and had to learn the rules and guidelines for responding to a government RFP. Don’t be afraid to learn, and be honest with yourself, there is a lot that you don’t know about the many facets of your business. That’s ok. But it’s important to recognize and be willing to seek out help, education and mentorship.
We ended up starting a subsidiary of the payment processing organization that focused on one state territory. We had two other business partners in the company. While Paul and I managed the day to day operations of the business, we were accountable to these partners. We worked hard to make this territory profitable, and to keep the partners happy. Despite our best efforts, we ended up getting sued. I remember the day I was served with a 65 page summons and complaint. My heart sunk, and as I read the complaint, the words hit me like a boxer’s left hook, “Racketeer Influenced and Corrupt Organizations”. For those who are not familiar with what RICO charges are, here’s a quick overview:
(1) “racketeering activity” means (A) any act or threat involving murder, kidnapping, gambling, arson, robbery, bribery, extortion, dealing in obscene matter, or dealing in a controlled substance or listed chemical (as defined in section 102 of the Controlled Substances Act), which is chargeable under State law and punishable by imprisonment for more than one year: (https://www.law.cornell.edu/uscode/text/18/1961)
Ummm, what? I’m a suburban housewife and business owner, not a mobster running illicit gambling operations. This wrecked me emotionally. I couldn’t wrap my mind around how the time, energy, and dedication we put into this organization, which was not only profitable but growing, could lead us to this. I felt hurt and betrayed by these business partners. Paul and I had many late night discussions about how to proceed. The ultimate decision was to fight the suit, aggressively, because we knew in our hearts that we did nothing wrong. We were determined to bring the truth to light and to set the record straight. We did everything above-board. Our work and all transactions were well documented. It took 18 months to fight this case. Eighteen grueling, emotionally draining months. The result was a six figure legal bill. We won, and the ex-partners ended up paying our legal fees, but they couldn’t restore the emotional damage that my entire family endured. Even if you do everything right, something can go terribly wrong. This was a valuable lesson, one that I wasn’t emotionally prepared to face at the time. I was hurt and angry. I took the suit very personally and really struggled to separate myself from the business. It felt like my identity was being attacked. It’s very easy to begin to incorporate your business into your identity for your self-worth to be tied to the company, especially when the business is going well. It was a valuable lesson to learn about this precarious trap.
Knowing the bad taste this company and the lawsuit left, a shift in gears was necessary, and to be honest, needed. So, my starry-eyed husband brought me his new idea, “let’s open a restaurant!”. Well, if that’s not a 180 degree turn from what we were doing, I don’t know what is! I had worked off and on in the hospitality industry for many years. I’ve been a hostess, a server, a bartender and fry cook. While I did enjoy much of my tenure in the industry, I am fully aware of the challenges this type of business presents. Paul on the other hand, had never worked in a restaurant or bar. I understand the lure and perceived charm of owning a bar or a restaurant. In theory, it’s wonderful to fantasize about your friends and family patronizing your establishment, meeting and greeting customers, hosting events, and sharing great food and novelty drinks.
For those of you that have spent any amount of time in the “Industry”, you know all too well that restaurants and bars are a different animal. They operate on a different set of unwritten rules. There’s a reason the late Anthony Bourdain referred to the back of the house staff as a motley pirate ship crew.
It took a year for the vision to come to fruition. The result is a stunning, renovated 1900s mansion in Capitol Hill, turned neighborhood destination, known as Capitol Hill Tavern. The interior, keeping the beauty of the original house, with marble slab walls, ornate carved wood ceilings, sparkling crystal chandeliers, was courtesy of my husband’s excellent eye for design. The restaurant became another learning opportunity. Restaurants are very hands-on business venture. There are long lists of details that must be managed daily. Food shopping and prep, cleaning, inventory, staff training and management, timekeeping and payroll processing, calculating and paying sales taxes, disputing unemployment claims, completing audits for workers comp insurance, and so many more.
There are times when the restaurant runs like a well-oiled machine, the staff works and functions like a cohesive team, serving up great food and experiences to our guests. And then there are times, where it really does feel like a pirate ship!
Although I have many years in the “Industry”, the lessons being taught this time around were about working with your spouse as business partner. On the surface, folks think “this will be great, we get to work together!”. The reality is that having your spouse as your business partner does have some benefits, but it also presents its own unique set of challenges that a couple must work through.
One of the perks of working together has been the ability to share the excitement and enthusiasm of the vision and building out your dream. It’s fun to see the child-like exuberance from my spouse as he executes on the blueprint in his mind. One pitfall is the difference of opinions. These differences might be slight, such as choosing paint colors, or the differences might be mountains, such as how to run operations. To be frank, Paul and I struggled with being business partners for a long time. For us, it took seeking the advice and guidance of a counselor that works with couples that are business partners in order to gain the knowledge and skills to make our endeavors work. We have had many differences in opinion ranging from how to manage staff to how to complete inventory.
Dividing responsibilities and defining roles is critical to your success as a couple that chooses to be business partners. Good communication skills are another mandatory tool. These differences are no longer a wedge in our relationship. Instead of feeling like we are adversaries, there is a partnership and a quiet understanding. The key has been to keep the channels of communication open, know that we can always revisit a decision and change our minds and that at the end of the day, having each other is paramount.
Overall, has it been relatively smooth? If not, what were some of the struggles along the way?
My journey has not been smooth, but I do whole-heartedly know that the obstacles and struggles were important and shaped the progression of my journey. If I could go back to myself ten years ago and offer words of wisdom, I’d share the following with myself:
– You need to have a mindset of tenacity and perseverance, struggles will arise, and its these two traits that will help drive you forward.
– Sometimes you will do everything right, and the business still doesn’t work out. That doesn’t mean it’s a personal failure. It will be far too easy to blame yourself. Accept responsibility for your decisions and remove the blame for what was out of your control.
– Failure is not an end, it’s a new beginning.
– As a business owner, don’t be afraid to outsource certain tasks. One, it frees up time for you to do more important work, such as strategy, and cultivating the talent needed to run the operation so that you are not responsible for working “in” your business every day. Two, other professionals are better equipped to handle such tasks, and this helps remove some of the liability from you. As a business owner, you will need and want to have access to a CPA, an attorney, and if you have employees, a payroll company. These folks will help you protect yourself in ways that you may not recognize as threats when you begin your journey.
– Document. It may sound silly and cumbersome at first, but you’ll be thankful for the extra time and energy spent if you ever face an audit or a lawsuit. This means using contracts instead of handshakes, saving and organizing all necessary paperwork to ensure your books will survive an audit, save email exchanges relating to business matters. Take the time to protect yourself.
Alright – so let’s talk business. Tell us about Cap Hill Tavern – what should we know?
Cap Hill Tavern is our family’s labor of love. It’s a great neighborhood place where people can enjoy and good meal and drinks, in an inviting atmosphere. The menu delivers tavern favorites, late night eats, weekend brunch, and ever-changing specials. We have a gorgeous room for private events and frequently partner with local non-profits to have fundraising events.
As a small business owner, I know the importance of supporting the community. As an avid volunteer, I see the immediate impacts of community support. I have witnessed community programs get saved through much needed monetary gifts, I have watched new programs blossom and flourish because of increased awareness. It is part of my core values and the values of the restaurant. Over the last several years, Capitol Hill Tavern has had the pleasure of working closely with several non-profits to bring their missions to light and help garner financial support. Capitol Hill Tavern continues to support local schools in need with monthly financial support, we have sponsored youth athletic leagues, and are quick to donate gift certificates to local fundraisers. Owning a restaurant has allowed me to donate time, money and an event location to causes near and dear to my heart. I believe the commitment Capitol Hill Tavern has to the community in which it operates is one of the many ways the company sets itself apart.
Do you feel like there was something about the experiences you had growing up that played an outsized role in setting you up for success later in life?
Yes, I know that my love of learning and curious nature are wonderful tools for the entrepreneurial experience. When you start a business of any kind, it’s not just about knowing how to do the core of your business model (in my case making food and cocktails). You really need to acquire knowledge from many different areas that all tie into operating a business. There are laws and regulations that govern how the business is operated. I might own a restaurant, but I’ve had to learn about commercial leases, liability insurance, employment laws, tax regulations, etc. I had to take on responsibilities that were out of my wheel-house at first, but a strong desire to learn became an asset in the process.
My parents instilled in me at an early age the value of service and giving back. They would bring me to service projects similar to Habitat for Humanity, we gave financially, we donated clothing and other household goods. I learned from watching them exhibit charitable values. I was very aware that there were others less fortunate in the world, and that giving, be it time or money, could help make the world a better place. For me, making someone a meal is an act of love. I’m fortunate that the restaurant represents a love of food and service, and acts as a conduit to serve and support the community.
Contact Info:
- Address: Capitol Hill Tavern is located at 1225 N. Logan St, Denver, CO 80203
- Website: http://www.capitolhilltavern.com
- Phone: 303-861-3777
- Facebook: https://www.facebook.com/ocaphilltavern/
Image Credit:
Paul Talbot
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