Gerick Cycle Q & A

...an edited interview with Gerald Klassen, Owner

1. How did this store come into being?

Our first store was a little 900 square foot place on Bay Avenue. We stayed there for a year. Then we moved to my old location on Rossland Avenue, that was a bit less than 3,000 square feet. Three and a half years ago I purchased the building next door to me, the old Home Goods. It has 11,000 square feet and I'm using every inch of it at this point.

2. Were your parents entrepreneurs?

My parents were both schoolteachers. My mom retired when she had her first child. Dad taught at L.V. Rogers in Nelson, he taught the commerce end of things. When we first opened he was all over us because we just wanted to sell the product and fix the product. He really made it clear to us you have to pay attention to the accounting end.

3. Who are your competitors?

Anybody who is in retail is a competitor. If somebody buys a pair of pants that money could be spent in my store. We've always had Sears, the Bay, Zellers, and Woolco. Back when we started there were tons of people who sold bikes. When we opened we really had to make a mark for ourselves and really educate people. I know people do appreciate quality but there's still a price point. There's always competition.

4. Does being 'B.C.'s # 1 Sports Town' help business?

In Trail, the hockey has been good for us. When we first started selling hockey I had two competitors that sold it. Now I'm the only one in town that does and I carry a whole ton of it. People are really sports oriented they take it very seriously. That's a good thing for me.

5. Is your business still growing?

Anytime someone is in business they have to always look for growth. I'm always looking at new product to bring in. New things we can do in the store to create more business. We're selling all the new and innovative stuff and that's what people want. There's so much of it in our industry. Twice a year running shoes change, once a year bikes change, hockey stuff changes. There's innovation like there's no tomorrow.

6. Do you want your children to take over the business when you retire?

I have two kids. My business is very hard work. Not that I don't think they can do it. You have to spend so much time at it. I've been doing it for 22 years and I'm still putting in 14 or 15-hour days. Do I have to be putting that much in? Yes and no. If I'm going to be putting my neck on the line I want to see every penny that's leaving out the door and every penny that's coming in. Ideally, I would love for my children to get an education and have more options to decide.

7. What support did you have in the beginning when you were starting up?

I had my dad. He loaned us the start up money and helped us out with the business side, bookkeeping and stuff. I owned a bike.

8. How many staff do you employee?

Including myself, six full timers.

9. Have you achieved the milestones you anticipated?

I think I've exceeded 100 times. I'm not starving by any means. I guess I never dreamed that I would own real estate. I never dreamed I'd be where I am today. Which is cool.

10. What do you credit for your success?

Hard work; we're full on! But we've had some tough, tough times. When the banks were wanting their money. We've been tight and looking back at those days I wouldn't want them for anything. They were really really scary.

I do all my own books, except year-end stuff I take to the accountant. I want to have a real close touch with it and I believe that's really important.

11. As an entrepreneur, if you could, what would you change?

The amount of taxes we have to pay. Every time you turn around the government wants part of it. You pay your employees, and you've got to give the government money on top. You make a profit; you've got to pay the government part of that profit. You take a paycheck personally home and you've got to pay the government.

12. Is the Rossland development good for business?

I think any development is great for business. All growth is positive in one way or another.

13. Do you sell golf clubs?

I don't sell golf. Golf clubs you are either going head to head with Canadian Tire or you're going head to head with the pro shop. The pro shop guys I don't want to compete with - we sell golf balls, golf shoes, and golf gloves.

14. If you could do it over, would you?

I saw an opportunity and I went for it. Being in the same position I would do it again; however, knowing how many hours I put in and continue to put in and the financial worries, I think I would have worked harder in high school to further my education.

15. Has the Internet made a difference?

In this area, the Internet is definitely a factor not so much for bikes but for hockey. We're fighting the Internet steady and it's all about prices. The Internet makes it tough to make money.

16. How can our community support innovation?

I believe the base of community is small business. The base of our country is small business. If you look at how Nelson has prospered over the years it's not because of big business, it's because of small business.

I think 50% of learning is going through the hard knocks school but now I look back when I started I knew nothing and had I been able to take some courses on it I would have jumped all over it. It would make life easier.