Woods seafood

1. Jay Kimball Owner of Wood’s Seafood Mom’s Boyfriend Jessica Kelliher Nichols College Business And Society Mgmt. 100-08

2. Wood’s Seafood Wood’s Seafood is a small restaurant and fish market in Plymouth Ma. It offers fresh fish, lobsters, and a variety of fried seafood . Wood’s Seafood is an S-Corporation . Jay’s accountant and attorney recommended the S-Corporation as a way to lower the effective tax rate he would pay since the profits are taxed at a lower rate for individuals rather than C-Corps that pay a higher tax rate . Jay Kimball has owned Wood’s Seafood since August of 1989.

3. Background After graduating college Jay managed various bars and restaurants before switching to the real estate market. As the economy began to decline, he struggled to find success through real estate . He had Wood’s Seafood listed for sale so he decided to purchase it to get out of the real estate business. Jay Kimball was able to purchase Wood’s through mortgages and loans. He was able to obtain a mortgage on the real estate for 70 % of the purchase price The seller took a second mortgage for 10% of the purchase price. The bank provided an equipment loan for 20% of the purchase price .

4. Changes in Business Since Jay bought Wood’s seafood in 1989 there have been many changes. Before it was only opened 6 days a week and now it open all week There are now 55 more seats available for dining The fish market has been enlarged and now offers a bigger variety of fish It now offers the shipping of food and catered clambakes It went from 12 employees to 31 employees There are six times more sales than in 1989

5. Successes Jays biggest success was rebuilding the business. He took a mediocre summer restaurant and turned it into a year-round favorite. Wood’s Seafood was awarded the best seafood restaurant and the best fish market in the metro south B oston area. The most rewarding thing for Jay is to see the happy and satisfied customers who continue to come back and recommend his restaurant to their friends. The biggest factor to Jay’s success is his active ownership. He serves as the owner and the manager of the entire operation.

6. Challenges Low profit margins on restaurants Purchasing quality seafood at a good price for consumers Hiring quality employees who can get the job done Adjusting to seasonal slowdowns of sales while fixed costs stay the same Making sure that the seafood is fresh every single day He overcame these challenges through trial and error. He had to monitor everything on a daily basis to see what worked and what didn't ’ t work. The fatal flaws of his type of business are that restaurants have the biggest failure rate. Profit margins are also very low which leaves little room for error.

7. Competition His biggest competition is Lobster Hut and Eastbay Grill He maintains his competitive advantage by: Having customer friendly employees Keeping prices lower than the competitions Advertising specials that catch the customers eye Having a good location right next to the Mayflower and Plymouth Rock He keeps his customers satisfied by: Having quality food. A satisfied customer will always come back Having friendly and knowledgeable employees Keeping consistent hours of operation Having active ownership who know the customer base by name

8. Marketing/Employees He markets his business through word of mouth. He has connections to: 6 campgrounds and hotels Various charities 300 members of his country club He will send them gift certificates, donate money to them, and give them group discounts so that they will stee r customers towards Wood’s Seafood. When hiring new employees he looks for people who are: Friendly Knowledgeable Able to fit in with other employees He often hires people who had good grades in high school or who are athletes because that shows that they are hard working and can work together on a team.

9. The Future Jay’s short term goals are to survive the winter where sales decease dramatically His long term goals are: To remodel the restaurant, which would include and addition The process takes about a year so he would start in the fall of 2013 Expand the clambake business He would hire college kids to help so that he could offer clambakes every weekend from memorial day to labor day which is not possible now due to his hectic work schedule He eventually plans to retire and possibly hand the business down to one of his daughters

10. What are advantages to owning Wood’s Seafood compared to other businesses? “The advantage for me is that I work three mile from my home so my commute is only 5 minutes. If I managed the business the right way, I was able to watch all three of my daughters high school and college soccer games. I also found time for my self to play golf on a regular basis. I get to work in shorts for most of the year. No suit and tie and no long commute to Boston .”

11. Summary Jay had this advice for the members of this class: “In a nutshell, America is built upon the premise of small businesses being the fabric of the nation where many times your dreams are realized by determination and hard work. If you decide to go into business, whether you start your own or buy an existing business, understand that hard work, good business planning and location of your business are keys to success .”

12. What I learned Owning your own business take A LOT of dedication and hard work. If you don ’ t truly care about what you are doing then you will never see any rewards. It takes a lot of time out of your day but in the end it is worth it. You get to manage things however you want and you never have to answer to anyone else. From working for Jay I get to see how he is as boss. He cares so much about his restaurant, his customers, and his employees. He is devoted to his business and all the work that he puts in shows through the quality of the product and the satisfaction of the customers.