The Rent Runs Anyway

Venture in Play · Case 1 — A Masa Madre Story

He had spent eleven years being handed things that were already on fire. This was the first thing he had ever been given at the start.

It's about a specific kind of decision: the one where both answers are defensible, the person arguing against you is right, and the clock belongs to neither of you.

As you read, notice what Wouter checks and what he never thinks to check. Partway through, the case will stop and ask you to decide before you find out what he did.

The decision

Whether to open before the product is ready.

What you'll practise

Weighing a first impression you only get once against a runway you cannot refill.

Where things stand

Six months since the lease was signed, two weeks before the doors open, and nothing has been sold yet.

The plan

Each case contributes to Masa Madre's Lived Business Plan. See what this one added:

§1 The concept · §6 The operating day · §8 Capital structure

3 of 11 sections filled


Part One

The sign had been up for nine days. Nothing behind it was for sale yet.

Wouter had counted the people who slowed down. Not a formal count — he had started it out of something to do while waiting for the electrician, and then kept going, because it was the only data he was going to have on the street before he had to commit to it. Fourteen on the Tuesday. Nine on the Wednesday, which had rained. Twenty-two on the Saturday, when the street filled with people walking through to the market at the far end.

They slowed, they read the word on the glass, and they went on.

Volta, the sign said. Charcoal on a cream ground, the letters wider than they needed to be, because André had spent a fortnight on the spacing and Wouter had stopped having an opinion about it around the ninth draft.

The child came on a Thursday afternoon. Eleven, perhaps twelve, a school bag on one shoulder and no adult anywhere near her. She did not slow down like the others. She stopped square in front of the glass, put both hands on it, and stayed there long enough that Wouter came out from behind the counter and opened the door.

Is this going to be a shop? she said.

A bakery.

She looked past him. On the bench inside, on a sheet of baking paper, sat one of André's trial pieces — a coil, wound flat, deep gold at the ridges and paler in the grooves, the size of a side plate. It had been there since morning. It was a trial piece, not stock.

What's a Volta?

That is. He stood out of the doorway so she could see it properly. It's bread. Sort of. Sweeter than bread, and there's butter in it. It comes from an island in Spain, except there they make it with something else instead of butter, and we leave ours a lot longer than they do.

Longer than what?

Than normal bread. A day and a half, near enough.

She thought about that. Why?

Because it's better that way.

He heard himself say it. Ten months of explaining this to suppliers and bank staff and his own mother, and the eleven-year-old had got the short version.

Can I have one?

Not yet. Two weeks.

She looked at the coil a while longer.

Het lijkt wel een slakje, she said.

Then she nodded, once, and went off up the street with the bag swinging.

Wouter shut the door. Behind him André was moving the counter again.

It was the third position that day. He had it at an angle now, the short end towards the window, and he was standing back from it with his head tilted and one hand flat on the top.

If it sits here, André said, whoever is on the counter has to turn their back to serve the coffee.

You said that about the last one.

The last one was worse. He crouched, sighted along the floor, and stood up again. But they can see the oven from the door. That matters more.

There were chalk marks on the concrete from four earlier positions, and a fifth that Wouter could no longer remember the argument for. He had stopped taking part around the same time he had stopped having opinions about the lettering.

He went back to the ledger he had been keeping since March. He had wanted to say something for eleven days now — that any of the five positions would have worked, and that what mattered was the counter being bolted down — and he had not said it.


Part Two

Ten months earlier, on the third night that week they had sat up past two, they were in Wouter's kitchen with a laptop, a notebook, and a bowl of something that smelled faintly of apples.

André had been out of work for four months by then. The restaurant had closed in July — not because of him. Wouter had eaten there enough to know that. He had been going for two years, mostly alone, mostly on Thursdays, and had watched the room fill and thin and fill again while the wine list got shorter. The owner had priced the menu from what he wanted the place to be, and had not once sat down on a Monday with what the previous week had actually cost him. The room filled. It lost money while it was full, and it took the owner eleven months to find that out, by which point the only lever left was closing.

The food was not the problem. The bread had been the best thing in the room, and the room had closed anyway.

That was the fact Wouter had brought with him to the kitchen table, and it was the fact he was building on: that a good product in a badly-run business dies with the business.

He had said as much, in a shorter form, and André had not argued.

The bowl on the table was the starter. André had begun it the September before that, in a rented flat with a domestic oven he complained about, a month before he had any idea of a business and half a year before there was a room to put it in. The mother was older than the plan. He fed it twice a day. He had brought it to Wouter's kitchen because he did not like to leave it a whole day, and he had said this the way a person says they need to let the dog out.

It travels badly, he had said. Everything about it is the room it lives in.

Wouter wrote it in the notebook, on the page he was using for things to sort out later.

What he did know how to do was the rest. Eleven years of it, most of them spent telling a customer why a delivery had not arrived and then finding out why. He had been promoted twice for being good at that, and both promotions had given him more of it and nothing to build.

What he wanted — and he had never said it to anyone, because said plainly it sounded like very little to want out of eleven years — was to build something that ran properly, and to still be there when it did.

André had a product and no business. Wouter had a business in him and no product.

They put in what they had. Wouter's savings, which were most of eleven careful years, and André's, which were what was left after a divorce and a quarter with no income. It was not close, and neither of them said so.

It was still not enough. Wouter's mother made up the difference in February, in one transfer, after a conversation in her kitchen that lasted under twenty minutes.

She wanted to know what the business was. He told her, and she listened the way she listened to everything, which gave him nothing to read.

Then she asked whether he was certain about leaving his job. That was the part she pushed on, and she pushed twice.

She asked when he thought he could start paying it back. He said after the first year. She said that sounded about right, and then she said she would rather have it back late than have him not ask her.

It was a loan. Both of them used the word. Nothing was written down — he did not offer and she did not ask — and it was only driving home that he understood offering would have been the unkind move.

A bank loan can be restructured.

You can ask for a payment holiday, extend the term, argue the case, and the relationship survives it, because there was never a relationship. Money from family has no mechanism. There is nothing to reschedule, so the only two moves available are paying it back or disappointing someone.

If you have taken money like that: what would you now not be willing to try in the business, because of who you would have to tell if it failed?


Part Three

The lease was signed in March, for a unit on a street that emptied out after lunch: a cheesemonger, a hardware shop that had been there longer than the hardware, two hairdressers, and a bank branch that closed in April and had not been re-let. Not a busy street. Enough people before noon, provided they were coming for you and not passing through.

Rent-free for the first two months, which Wouter had pushed for and got, and which had expired in May.

The building permit came through in June, five weeks later than the architect had said, because the extraction ran through a wall the plan had drawn in the wrong place. The oven came in July, eleven weeks after it was ordered, reconditioned, two decks, from a dealer outside Antwerp who apologised every time Wouter called and never moved the date.

Neither delay was anybody's fault. Wouter would have preferred it if one of them had been. He knew exactly what to do about a supplier who had let him down, and nothing at all about a wall being in the wrong place on a drawing.

The rest he had done himself, and all of it came in on time. Registration filed in April. The hygiene plan bought from the trade body and worked through over two evenings — the temperature logs, the wash stations, the allergen sheet, the schedule of who cleaned what, how often, and which sheet it went on afterwards. He had built worse systems than that for larger businesses and been thanked for it.

André read it in a single evening and gave it back with two corrections. The cleaning schedule had come with a fryer in it, which they did not have and were not going to have. And the template logged the retarder at the same setpoint as the fridge, which was wrong by four degrees and would have had them recording a fault every morning for a year.

They sell that to everybody, he said. Nobody reads it.

Then he asked whether the logging meant the retarder had to be opened at a fixed time. Wouter said it did not. He nodded and went back to the bench.

By the second week of September the money left was measured in weeks. Not months. Wouter had the figure to the day. He had built the sheet himself in March and updated it every Sunday since.

The rent ran whether or not the doors opened. So did the two counter staff he had hired in August, on the assumption of an August opening. So did the pair of them, drawing less each month than either of the two women they had hired to work the counter.


Part Four

It isn't right, André said.

He said it on the Monday, ten days out, standing at the bench with four coils in front of him and his hands flat on either side of the board.

Wouter looked at them. They looked to him the way they had looked in August, which was very good.

Show me.

André turned the second one over and pressed his thumb into the underside. It gave, and held the shape of the thumb, and did not spring back.

There. He turned it back. In the flat it went twelve, thirteen hours and it was ready. Here it wants sixteen and I get this. Same flour. Same feed. Same everything I can measure.

So give it sixteen.

I do. Then the next one is fifteen and I've got a rack of them and half are over. He wiped his hands. It's the room. New building, new water, new air. It'll settle. They always settle.

How long?

I don't know. Weeks. He said it without hedging. That was what Wouter had come to rely on in him: he did not pad an answer to make it sound better. Could be three. Could be eight.

And if we open Thursday week?

Then some days it's what it should be and some days it's what you're holding. He put the coil down. The ones who come in the first month are the ones who decide whether there's a queue in the second. They each tell four people. I'd rather they told them later.

Wouter had worked with chefs who argued about differences no customer could detect. This was not that. The coil cost what three supermarket loaves cost, and the entire case for the price was that it was better than three supermarket loaves.

A fifteen-hour coil was not a slightly worse coil. It was heavy, and it sat in the mouth, and it tasted faintly sour rather than of butter. Somebody paying three loaves' worth for that would not come back, and would not be wrong.

Wouter knew all of that. He had built the pricing himself.

What are you asking for?

Three weeks. André pushed the board away an inch. Four would be better.

André cannot say how long the dough needs.

Not because he is hedging — because nobody can. The answer only exists in the weeks after the choice has to be made.

Think of a decision in front of you where the fact that would settle it is genuinely unavailable in the time you have. What are you actually doing about that? Waiting for it anyway. Treating your best guess as though it were the fact. Or deciding on some other basis and describing it afterwards as the reason.


Part Five

He did the sheet again on the Tuesday night, at the kitchen table, after his son had gone up.

There was nothing wrong with it. That was the difficulty. He had built it in March with a contingency that felt cautious at the time. The permit had taken five weeks of it. The oven had taken most of what was left. What remained would cover a bit under a month of paying for everything and selling nothing.

Three weeks of delay did not cost three weeks of rent.

It cost the rent. It cost two counter staff, hired and waiting. It cost three more weeks of the two of them paying themselves. It cost the gas on ovens run daily to prove a dough nobody could buy.

And it cost three weeks of the run-up. The weeks before Christmas would carry their year, and every week the shop stayed shut now was a week the street did not learn they existed before it mattered.

And on the other side of it: one first month, at a price that only held if the coil was better than it currently was.

He turned the sheet over and wrote three lines on the back of it, because writing something down was what he did instead of turning it over in his head, and then he sat with them.

Upstairs the floor creaked twice and went quiet. His mother's transfer had cleared in February and neither of them had mentioned it since. It arrived on him now, uninvited, that she thought she had lent money to a bakery. What she had actually lent it to was this: a room with the counter still loose in the middle of the floor, and a man in it who could not say when the bread would be right.

He looked at the three lines for a while.

A decision

The fit-out has taken six months against a plan of four. What is left in the account covers a bit under a month of paying for everything and selling nothing. André wants three weeks, and he is right about the dough. The doors are advertised for a week on Thursday.

Which do you take — and name the one thing you are refusing to risk.

What's actually on the table

If you opened: you took the position that a business which runs out of money has no product at all. Rent cannot be recovered; a reputation can be rebuilt. The cost you accepted is that your first hundred customers each tell four people, and some of them will be describing the heavy one.

If you delayed: you took the position that the price is only defensible if the product is better, and that a bakery is judged on what people carry home in its first month. The cost you accepted is three more weeks of paying for a shop nobody could buy from, and opening with almost nothing left in the account.

Neither is the safe one. The difference is whether you would rather be short of money or short of a reputation — did your reason name which of those you were protecting?

He took the third one.

They opened on the Thursday with the coil, an almond pastry, and a plain one. No bread. He telephoned the two counter staff on the Wednesday to say there would be less to sell and the same hours to work.

You said: — because

Carry this forward: the option he took was not on the table when the conversation started. It arrived because he wrote the other two down, read them back, and would not put his name to either. When did you last write down the options you had been given, and find you would sign none of them?


Coda

Thirty-one people came through the door on the Thursday. Wouter counted those too.

They sold out of the coil by half past eleven, which was not a triumph. They had made ninety-four, and that number had been set for a range that no longer existed. The almond went slower. The plain one did not move at all and they ate it themselves for four days.

On the Saturday it was a hundred and sixty-eight, and they ran out at ten past ten, and a woman who had come from Tuindorp because someone had told her about it stood in the doorway and looked at the empty tray and said, without heat, that she would try again next week.

André was in from four every morning and did not leave before three. On the second Saturday he came out from the back to look at the queue and went in again without saying anything, and Wouter, who had been on the counter since seven and had not eaten, could not tell whether he had gone back in pleased or worried.

The dough settled in the fifth week, roughly. André said it was better, and then said it was not there yet, and then stopped saying either.

Nobody who came in that first month asked what a volta was. Three or four asked for a slakje. It was not a word either of them had used. Nobody had put it there. It had travelled up the street on its own and come back through the door in other people's mouths.

André did not like it. He said the name described a snail and not a pastry.

Wouter put a second tray on the counter on the Wednesday, and by the end of October the two of them were selling out four days in five and had started, without ever discussing it, to answer to a word neither of them had chosen.


What This Case Is About

Wouter watched the money, because money was the part he could count. Everything else in the shop was a judgement somebody else was making. He built the sheet in March, updated it every week, knew the figure to the day, and made the call ten days out on better information than most people get.

There was one line he never put on the sheet. Nobody but André could tell when a dough was ready — not by a clock and not by a number, but by pressing a thumb into the underside and reading what came back. It had been that way in the flat and it was that way now, and it would be that way in any room they ever opened. Wouter did not ask what happened on the first morning the thumb belonged to somebody else, because from where he stood it did not look like a risk. It looked like a man who was good at his job.

Wouter checked the runway, the permit, the oven, the hygiene plan, the pricing and the calendar. Six systems, and he was right about all six.

He did not check whether the product could be made by anyone other than the man making it.

Most operations have one of these: a step that works because a particular person does it, and which has therefore never been written down, timed, or handed to anybody else. Name yours.

Then answer one question. If that person gave four weeks' notice on Monday morning, what exactly would you do with the four weeks?


Read what's next

Seven months on, André has to put the reading of the dough into somebody else's hands, and finds he cannot say how he does it.

One Day a Week →

See the business plan

This case set down what Masa Madre is, what a five-day week costs to run, and who put in what to open the doors.

Masa Madre's Lived Business Plan →

The individuals, companies, and events in this case are fictional composites, created for illustrative and educational purposes. Any resemblance to actual persons, businesses, or events is coincidental.