Denise Mendiola Hertslet: a woman entrepreneur's journey to coffee, just the beginning.

Santos, Annette Taijeron

INTRODUCTION

On October 16, 2009, a rainy afternoon in Mangilao, Guam, I waited outside I.P. Coffee Co., for the opportune time to dart out of my car into the coffee shop. I had a 3:30 pm meeting with the owner and my goal was to be prompt, but to stay as dry as possible. As I made my brisk entrance to the coffee shop, it seemed I disrupted a staff meeting as Ms. Denise Mendiola Hertslet welcomes me to the shop and the staff knowingly disburses. The coffee shop is bright, decorated with local artwork and exudes an ambiance of diverse ethnic themes. I sat at a table by the coffee bar and was offered a house specialty drink, a skinny green tea smoothie. With a clean notepad and pen in hand, I was geared up to listen. Excitement overcomes me as Mendiola Hertslet tells her story and shares her experiences of being a young woman entrepreneur on Guam.

ABOUT THE WOMAN ENTREPRENEUR

Mendiola Hertslet was born on March 5, 1973 in Tamuning, Guam. Her father, now retired, worked as a department supervisor at the Guam Power Authority. Her mother, also retired, was employed as a secretary at the Department of Education. She has three younger brothers. Mendiola Hertslet attended public school in elementary and middle school, an all-girl Catholic high school for two years, moved to the state of Washington in her junior year and then moved back home to Guam for senior year and graduated from Guam Adventist Academy in Talofofo. She attended college at Chaminade University in Hawaii, University of Southern Colorado, Guam Community College and University of Guam. She lives on Guam with her husband, Boris, and daughters, Alexandria Margarite and Christiana Maria.

THE RIGAMAROLE OF ENTREPRENEURSHIP

On August 13, 1994, Mendiola Hertslet married a young man in the air force and they relocated to his new base assignment in Colorado Springs, Colorado. The move was not an easy one, Mendiola Hertslet had to make some major adjustments having moved from an island whose entire population of 149,620 (1994 est.) would be the same size as the new town she would now have to call home. Without her family and friends, Mendiola Hertslet was in a whirlwind of change surrounded by unfamiliar faces, having to adapt to variable weather, a new lifestyle of marriage, and simply trying to fit in. The move alone was a major adjustment and was accompanied by feelings of being homesick further exacerbated by the difficulties of finding a job. It was a complete shock to her to find out that it was not easy finding employment, especially once the potential employer finds out that you are a military dependent. Military dependents are transient and employers tend to look for long term employees. Being the resilient person that she is, Mendiola Hertslet looked inward for guidance. She found that during her very-lonely days at home, she would watch videos of her cultural dance group and practice the dance skills she learned. She also created new dances and developed dance lessons. She was not one to easily give up. She looked at her strengths and thought that she could use her skills to help others. One day she decided to call around to different dance studios and found one that she could rent for a reasonable cost. She advertised her "hula" dance classes and was able to begin teaching children and women to dance hula. She also included Chamorro (Guam native) cultural dances into her course offerings. This led her to her first self-started venture, teaching Chamorro style dancing to children in Colorado Springs. Excited at this prospective business, Mendiola Hertslet's energy was recharged and she was on her way to starting up her new business. She had to learn the basics of owning her own business such as obtaining a business license, purchasing supplies from Hawaii and advertising. She did not realize the steps she would have to take to get a business started, the processes involved and the costs to start her dance company. She had to learn the basics of owning her own business step by step. Eventually, she formed a dance troupe "Famagu'on Natibu Guahan" which became known as the sister group to the Natibu, a famous cultural dance group on Guam. The cultural dance group was made up of Chamorro, Hawaiian, and Japanese children from the islands that wanted to experience their culture. The dance group became very popular in both Colorado Springs and Denver and Denise was proud of her efforts.

After some time, Mendiola Hertslet decided to return back to Guam when she was in the process of a divorce. It was like starting over again. Upon her return and hopes to start fresh, Mendiola Hertslet would soon find out she would face similar challenges trying to find a job on Guam. She took on a job at a well-known media company. While employed, she became pregnant and had to take a few months off to take care of her newborn daughter. When she returned to work after three months, her manager told her that he did not think she could perform her job effectively since she "is now a mother". There would be many hard lessons that Mendiola Hertslet would learn from this company, ones, which she chooses not to elaborate on. Seemingly, her experiences at this company were filled with upsetting challenges and sparked a fight or flight decision that she would need to make immediately. She left the company.

Gaining her bearings and once again consumed with enthusiasm to move forward, Mendiola Hertslet spent some time reflecting on her life and what opportunities exist in the future. In January 2002, she was excited to open her first retail business enterprise, Real Image Specialty Store, a plus-size store specializing in island wear for women. This idea came about when she and her aunts were sitting at a table and complained about their inability to find decent and trendy clothes for plus size women. Mendiola Hertslet thought this was a great idea because there was no store like this available at the time. She borrowed money from her father, ordered apparel from the United States and opened a 2,000 square foot facility. What she did not do was her homework. She had neither a business plan nor a financial plan, she did not research her market appropriately, and most importantly, she did not ask for help. Mendiola Hertslet describes the opening of her store as a horrifying business experience. Unprepared for the realities of owning a retail enterprise, Mendiola Hertslet quickly realized that the ideal vision of owning a shop and the actual experience of owning it are very different. She was undercapitalized from the beginning, her rent was too high, and she did not have enough of the right kind of clothes. She quickly experienced the challenges associated with lease agreements, inventory, cash flow, and if that were not enough, the damage that resulted from super typhoon Chata'an. In July 2002 Super typhoon Chata'an approached Guam with winds gusting upwards of 110 miles per hour and was enough to spin the business in a downward spiral. Gravely naive, an important factor that Mendiola Hertslet did not take into consideration was the importance of having business insurance. Her landlord failed to secure the typhoon shutters and the powerful winds blew in the glass pane of the shop window letting in rain that ruined most of her inventory. Without inventory and cash, she had no business. Mendiola Hertslet was downtrodden, left for broke, and ready to call it quits. After a year of challenging experiences, she threw in the towel, the business shut down in December 2002.

Fortunately, during the term of "REAL" plus size specialty store, Mendiola Hertslet created a women's newsletter to help her market her clothing line and serve as a networking piece for her customers. This slowly became more popular so she enlisted the help of a graphic artist to create a full fledge magazine. After Typhoon Chata'an ruined the specialty store, Mendiola Hertslet immediately moved on to focus on the magazine company called Real Woman Magazine in January 2003. She relocated her office to the Chamorro Village, originally designed to be a business incubator site, and began pounding the pavement to generate advertising sponsors and infuse cash into the business. The magazine focused on women's rights including identifying various resources available for women, spanning personal, professional and intellectual domains. As owner, publisher and trainer, Mendiola Hertslet operated this company for five years. While she operated this magazine for a good cause, it did not make any money. This also put a strain on her personal relationship, which resulted in further loss. She had a fledgling business, little cash in her pocket, a three-year old daughter to support and lacked the proper resources to continue paying rent for the business. She remembers a very dark moment when she was driving to her office in Hagatna. She had a few dollars in her wallet and she had to decide whether to buy gas or food. She was so overwhelmed with emotion that she had to park her car, turn off the engine and cry. It was at that moment that she had to decide if she was going to give up or keep fighting to make her business work.

With $2 in her pocket, Mendiola Hertslet sought the services of the Guam Small Business Development Center and met Marie Mesa, the Women in Business Director and Business Counselor. They immediately became friends and Mendiola Hertslet constantly looked to her for advice and mentorship. Mendiola Hertslet continued to publish Real Woman Magazine and continued her struggle to attain sponsors and advertisers, while still printing the magazine on a consistent basis. Finally, after much struggle trying to make ends meet, her friend and mentor, Marie, informed her of an opportunity that she could not pass up when Marie accepted another career opportunity, which created a job opening at the SBDC for a Women In Business Director. Mendiola Hertslet had to go through the application and interview process, but because she had the most experience working with women's issues as the publisher of the only women's magazine on Guam, and she had direct experience in business ownership, she was the best candidate for the position. With nothing to lose, Mendiola Hertslet applied for the job and with luck on her side, Mendiola Hertslet got the job. This was a major turning point in her life. She remembers being notified that she was being officially offered the position. It was a surreal moment for her to know that she would be in a position to help other women trying to start and successfully operate a business, and most importantly, that she would be paid to do this. The biggest fear that Mendiola Hertslet had was not feeling confident enough about running a successful business to be able to counsel others to succeed. Mendiola Hertslet was determined to overcome this challenge, so she enrolled in all business training courses available, became a certified trainer and business counselor, and continues to keep abreast of all new information that affect business owners.

The Woman in Business Director position was ideal. The job related to the personal mission Mendiola Hertslet advocated to promote women in business. Where she had no major reach through her magazine, Mendiola Hertslet now had access to a larger following. As business director, Mendiola Hertslet is now actively reaching out and supporting women in need and possesses the credibility to accomplish her life passion through her new job.

THE PRESENT

Mendiola Hertslet once overheard a co-worker say that "Denise likes to keep busy...she is still trying to figure out if that gentleman was giving her a compliment or insulting her." Mendiola Hertslet wears many hats and does admit to being very busy. Having experienced the excitement and disappointment, successes and struggles of an entrepreneur, Mendiola Hertslet has much to boast about today. She is a full time business counselor and program coordinator for the Bank of Guam Women in Business Program and Guam SBDC Microcredit Program. She is also a part time executive director for the Pacific Islands Microcredit Institute, sole proprietor of I.P. Coffee Co., and business consultant. Mendiola Hertslet volunteers her time as the past president and current member of Soroptimist International of the Marianas, and secretary of the Guam Council of Women's Clubs. She also hosts the Women in Business radio talk show on K57 every Friday from noon to one addressing women's issues in business. Being an entrepreneur, holding two jobs, and taking care of her family has its challenges. Mendiola Hertslet believes that "There is no balance." Each day she must decide which takes priority.

In her purse, Mendiola Hertslet carries a list of personal goals to help remind her why she does what she does. Her current list includes goals up to 2011 with a three-year horizon. This helps to keep her focused. Mendiola Hertslet says it is important to have a life plan, a vision. Her vision is to live in a safer, healthier, cleaner Guam that has a new generation of young adults that believe in responsibility and accountability. She believes that the current and upcoming entrepreneurs will be the driving force behind this vision. Her immediate goals include more education, training and professional development, re-organization of her current businesses and personal budget, savings and investment plans for her children, and most importantly, a focus on self-improvement to improve her physical and mental capabilities that will require more energy to accomplish her goals.

As an entrepreneur, Mendiola Hertslet owns and manages I.P. Coffee Co. Owning a coffee shop was not in her plans two years ago. As a coffee lover, she would drive to Hagatna almost every morning to pick up her favorite gourmet coffee, Iced Mocha, and drive back to Mangilao to try and get to work on time. In 2008, she happened to be in the right place at the right time. Arnold's, a coffee shop named after its owner was faced with no cash and was having issues trying to stay open. The owner offered Mendiola Hertslet to sub lease the coffee bar inside his restaurant. She agreed and not even two months later, Arnold informed Mendiola Hertslet that he was closing his business and offered her to purchase the contents of the restaurant. Being rather "bull headed" and an optimist, Mendiola Hertslet agreed to purchase the contents, opened the coffee shop and hired family and friends to work there, all without the consultation of her husband and family members. Needless to say, her husband has eaten at the coffee shop twice in the last year.

Mendiola Hertslet's daily activities include a wake-up alarm at 5:30am, which means she gets out of bed at 6:30am. She prepares the kids' meals, snacks, and breakfast, drops them to school, stops by the coffee shop to check in, goes to work, checks in at the coffee shop during lunch and late afternoon. After 5pm, she picks up the girls, goes home and prepares dinner. She is very fortunate to have the domestic support of her husband, who cleans the house, makes most of the dinners, washes the clothes, and takes care of the household budget and bills.

When asked what it takes to run smooth operations, she responded that trust is key. You must trust your staff and managers. She learned this through her past business experiences. There must be a fit between the members of the team and the company. You give employees the freedom to make good, sound decisions and this freedom must be based on trust. However, you should also find a way to minimize risk to you and the business by setting up policies and procedures to ensure a check and balance system. When asked what risks exist in owning her own business, Mendiola Hertslet says the biggest risk is waste of consumables. Currently, Mendiola Hertslet compares receipts to cash. She also indicates that periodic training is necessary with a keen focus on customer service. The biggest issue that Mendiola Hertslet faces as an off-site manager/owner is the inability to monitor the day to day operations of the business. Mendiola Hertslet does not advise this to new business owners who lack family support or working capital. This is a risky way to run a business.

The work culture at I.P. Coffee Co. is casual, fun, and a work-friendly environment. She aspires to have her business stand out from other businesses in Mangilao. The company's competitive advantage is offering healthy and fun alternatives and high quality food. This requires preparation of food items as they are ordered so that food is fresh. For customers who do not understand the uncompromising commitment to fresh, high quality food, the restaurant is described as slow. One of the biggest weaknesses of her full- service coffee shop is customer service. This is easier to address when the service requires customers to order at the counter. Once you begin serving the customers at their tables, it becomes challenging to provide efficient service at a fast pace.

Mendiola Hertslet describes entrepreneurs as a special breed of people, they are risk takers. Their attitude must be one that embraces failure as a way to learn. If you fail at doing it one way, you find a different way to do it, a better way. Entrepreneurs are passionate. They are not attached to money. Entrepreneurs view money as a tool, not the end all.

Entrepreneurs seek opportunities in our community to provide something of value. They provide services and/or products and expect to be paid fairly for the work they do. There are great demands that come with being an entrepreneur. They are regarded as leaders and highly responsible. They cannot afford to get sick. As an example, if a person owns and operates a retail establishment, they cannot afford to close the business for a day, let alone a week. The customers will go somewhere else and might not come back.

There is a major misconception about entrepreneurs, Mendiola Hertslet says. They get a bad rap. Most people view entrepreneurs as business people who are in it to get rich. The fact is, entrepreneurs are in business because they are passionate by what they do. Entrepreneurs are individuals and unique in their thinking. Mendiola Hertslet states that entrepreneurs are people who do things their way. Many people with a disability are resorting to opening their own businesses. They have no choice, they have to in order to support themselves. She knows this through her work at the SBDC working with clients from diverse backgrounds.

MAJOR CHALLENGES

When asked what her biggest challenges are with being a woman business owner, she states, "Cash is the biggest challenge." You need it to start a business. Other challenges include obtaining proper licenses and tools. Banks are typically helpful in loaning anywhere between 15,000 US dollars to 20,000 US dollars. Microcredit loan opportunities provide 500 US dollars support. Women entrepreneurs are challenged with a leveled playing field. Seven years ago, women entrepreneurs like Mendiola Hertslet were challenged with perceptions of being young, they were not taken seriously, lacked experience and credibility, and had difficulty building relationships. With the assistance of such programs as the Bank of Guam Women in Business Program, Microcredit Programs, as well as the SBA Women-owned business goals for Federal Contracting, women entrepreneurs are finding that the playing field has been leveled.

HER INSPIRATION

Mendiola Hertslet offers the following advice. Begin with the end in mind. Decide where you want to see yourself at the end of your lifetime. Business is just one component of your life; it is the tool to do other things in your life. Give back to others and leave a legacy for your children. Ensure that your business impacts the community in a positive way. Her inspiration: "Have as much fun as you possibly can, but be careful." She is also inspired by this famous quote, "Be the change you want to see in the world." (Gandhi). Lastly, "If you don't like it, change."

THE FUTURE

As a natural optimist, Mendiola Hertslet believes that the future will be filled with more opportunities for personal and professional growth for her and her family. Mendiola Hertslet hopes to continue to expand her businesses and be able to begin planting the entrepreneurial spirit with her daughters. Eventually, Mendiola Hertslet plans to be able to hand the businesses over to her children and hopefully concentrate on humanitarian projects in her community. If Mendiola Hertslet could view the future of entrepreneurship and small business on Guam, she would predict that the number of entrepreneurs and small businesses will double on Guam, there will be more structure, support and enforcement by the local and federal government, and there will be flourishing entrepreneur-focused programs within the secondary and middle schools.

EPILOGUE

And so our interview comes to an end and it feels like I had just completed a trip through a thrill park or finished watching a really good five-star movie. I run into Mendiola Hertslet every so often and typically a fortnight for our Soroptimist luncheons. As busy as she is, she maintains a bubbly, considerate, and pleasant personality. She is amazing and I was inspired by her story. I hope you were, too.

By the way, that skinny green tea smoothie, it was really delicious and recurring thoughts of it beckon me to return each time I pass the coffee shop on my way to work. Cheers, Denise!

REFERENCES

Mendiola Hertslet, Denise (2009, October 16). Owner, I.P. Coffee Co., Mangilao, Guam. Personal Interview CIA--The World Factbook--Guam. https://www.cia.gov/library/publications/the-world-factbook/geos/gq.html Guam People 1995. Retrieved on January 6, 2010, http://www.theodora.com/wfb/1995/guam/guam_people.html

Annette Taijeron Santos, University of Guam