It all began in 2001 when Kipri Johnson started baking cakes and pies for her friends and family. She continued this way for six years when she happened upon Partners for Self-Employment, Inc.--a U.S. Small Business Administration microlender in South Florida that follows the Nobel Prize winning peer lending group model for funding micro-enterprises.
After investigating the microlender, Ms. Johnson joined a peer lending group near her home in Homestead, Florida. Through the educational classes that Partners offers as part of the lending process, she learned about entrepreneurship and how to take her baking skills from a delicious hobby and turn it into a viable business, providing extra income. And, so, Kip’s Mix was born.
When she started baking, the effort was half-hearted from 2001-2007. She did no promotion at all and offered only three cakes: pound, pumpkin and lemon pound cake. Today, while Ms. Johnson still appreciates getting customers through word-of-mouth referrals, she now has a website (http://kipsmix.com/default.aspx) where she offers, accepts, and ships orders of ten different cakes, three types of cookies, and two pies. She has also expanded her product offerings to include brownies, cookie doughs, pie fillings, and cake mixes so her customers can do-it-themselves. Her clients still include friends and family, but also now includes commercial clients.
Initially, Ms. Johnson utilized the matched savings fund program offered by Partners from 2007 to 2009 “because it was a good way to save money for my business. Each dollar I put in was matched two dollars” by Partners. In 2 years Ms. Johnson was able to save about $4,500 to purchase items she needed to grow her business: a printer, product labels, mixes and other start-up materials.
While others often reject the idea of the peer micro-lending model, Ms. Johnson is a big fan of it for several reasons. “Each member keeps the others accountable not only to our businesses, but also in repaying our loans. Because we are on the same level starting our businesses, we understand the issues and the struggles. We’re all learning together and support each other.”
Since using the matched savings program, Ms. Johnson has borrowed and benefitted twice from the Level 1 loan program. Loan limits are set at a maximum $1,500. She says she is now ready to pursue Level 2 funding now which is capped at $3,000. The SBA guarantees loans made by Partners to small businesses in South Florida.
One of the many benefits of obtaining a loan from Partners is the ongoing entrepreneurship training that is offered at times beneficial and accessible to business owners. In 2010, Ms. Johnson attended a budget projections class. “It helped me see things I was missing or hadn’t considered when thinking about ways to grow my business.” In fact, the classes helped her focus on various aspects of business ownership, but particularly on marketing her business.
In 2010, Kip’s Mixes enjoyed a 50% increase in sales over 2009 sales. But, for Ms. Johnson, her measurable success is in her entrepreneurial growth and maturity in developing her business, in writing and working on her business plan, in her marketing presentations and promotions, in her website development.
Of the SBA microlender she says, “It’s been really helpful to be in such a program. Partners provides me with information and resources that point me in the right direction to get what I need to see my business grow.”
A Miami native, Ms. Johnson is no stranger to community service. She donates her time and tasty treats to South Florida Habitat for Humanity home dedication ceremonies. She also volunteers her time working with Camillus House, a local homeless advocacy group, and with the Girl Scouts. She is also a member of the Distinction Society, a social club focused on community service. A creative person, Kipri enjoys reading, arts and crafts, music and, of course, baking.
Her short-term goals are to get her pie fillings and cookie dough onto store shelves; long-term, she ultimately, wants to “own a chain of bakeries offering traditional American desserts.”