By Todd Nelson

At one time or another, many people entertain the idea of running their own company.
"You walk into any business and say, 'I could do this' or 'I could do that,'-" said Amy Hauge, owner with husband Darrell Hauge of Amy's Classic Confections in downtown Minneapolis. "Then you go, 'Wait a minute, could I really do it?'-" In their case, the answer appears to be yes.

Three years after opening, the Hauges are just completing an expansion of their specialty shop, where they sell chocolates, candy and gift baskets. The addition will double their space, giving them more than 1,400 square feet on the skyway level of the 6 Quebec building.

The Hauges hope to occupy the new space sometime this week. The larger Amy's Classic Confections will feature cupcakes, cookies and other treats customers have requested, along with at least 16 flavors of gelato that they'll make on site.

Unlike those who merely dream of going into business for themselves, or those who try and fail, the Hauges had plenty of experience working in, managing and even owning similar companies. They also have been persistent and flexible in pursuing their long-standing entrepreneurial goals.

As a child, Amy Hauge played business owner and later owned a flower shop and two candy stores with siblings in her native Ohio. From the time he took a restaurant job as a teen, Darrell Hauge saw ways he could do things better if he were his own boss.

"I'm, like, 'put up or shut up,'-" Darrell Hauge, who grew up in Minnesota, recalled thinking to himself. "Either deal with the corporate stuff or go do it yourself. I was just so frustrated but also wanted to know - can I do it myself?"
In addition to their experience, they also have sought and followed advice from counselors with the Minnesota district office of SCORE (Service Corps of Retired Executives).

SCORE counselor Loren Herbst helped the Hauges with lease agreements and a business plan, which helped them get a Small Business Administration loan.

"She had a lot of great experience in the area she was going into, which really struck us and was a very positive part of the puzzle," said Herbst, a retired commercial banking vice president from Norwest Bank (now Wells Fargo). "The thing that she wanted was a career and not a hobby. ... She had thought it through, worked for others and knew what worked well and what didn't. She saw other managers make mistakes, and she learned from that."

From home to retail
Their first challenge was making the transition from a home-based business to a retail location. After meeting in Ohio, they had moved to Minnesota in 1990. While they worked regular jobs, they made and sold gift baskets from home, to corporate clients and to friends and neighbors.

The Hauges first looked into buying a downtown candy shop that Amy Hauge had managed. But the owner changed his mind about selling. She and her husband then set their sights on finding a place to open their own store.

They looked downtown because they wanted to be close to existing and potential business clients. Downtown also offered lower rents and the promise of more foot traffic than suburban malls. The weekday hours were family-friendly for the Hauges, who have two children.

Finding a location and negotiating a lease took some time. The Hauges expected to open in September 2003, in time for the winter holidays. Instead, delays pushed the opening back to a few days before Easter 2004. First-year sales fell below projections because of the delayed opening and because gift baskets took off slowly.

Amy's downsized basket offerings and emphasized popcorn, candy and chocolates, including a full lineup from Twin Cities chocolatier B.T. McElrath. While other stores offered prepackaged assortments, Amy's is the only place where McElrath fans can buy individual chocolates.

A boost came when Caruso's Gelato Cafe in Calhoun Square approached the Hauges in 2004. Gelato sales lifted revenue during the slow summer months, Darrell Hauge said.

The Hauges will make their own gelato in the bigger store, and offer it in sundaes, floats and store-made waffle cones. They also will continue to make almond bark, haystacks and chocolate-covered graham crackers, Oreos and potato chips.

Last year's revenue of $180,000 is expected to rise to more than $300,000 with the expansion, Darrell Hauge said.
"The first year was tough," Darrell Hauge said. "We're cooking along now. You hit a comfort zone where you know what's going on here. I'm almost more nervous about expanding than I was about opening the original store. But we're excited about it."

Those looking forward to the bigger store include regular customers such as Dan Foss, who stops in most days after lunch. "Amy's is my favorite downtown candy store," said Foss, who works at Thrivent Financial for Lutherans. "I could talk forever about the chocolates and candies, but what really keeps drawing me back is just their friendliness."

Ceace Haagensen, senior representative in community affairs at Xcel Energy, said she appreciates Amy Hauge's creativity and personal touch in filling business orders. "You can go to bigger places but you don't get the hands-on approach and guidance that you need," Haagensen said. "They put a lot of personal care into it."

The expert says: Loren Herbst, Amy's counselor from SCORE (www.scoreminn.org), said the Hauges were wise to stay with one location for now, saving the expense of both the space and the employees.

"Managing two places is tougher than one," Herbst said. "Expanding their space is a better opportunity. ... It will enable her to continue to grow in that location and do well."

As Amy's expands, the Hauges need to introduce new items cautiously. "I think she knows her clientele pretty well but she should be careful, not bringing in a lot of inventory that's not been tested with her clientele," Herbst said.
Bringing in the gelato showed flexibility that others can learn from. "That's the nice part about a small business - they can change directions," Herbst said. "She was smart enough to realize the need to try some other things."

Todd Nelson is a freelance writer in Woodbury. His e-mail address is todd_nelson@mac.com.

Amy's Classic Confections
Business: Specialty store that sells candy and gift baskets, featuring local products
such as B.T. McElrath chocolates and Caruso Gelato.
Founded: March 2004
Headquarters: Minneapolis
Web: www.amysclassicconfections.com
Executives: Amy and Darrell Hauge, owners and founders
2006 revenue: $180,000
Strategy: Expand present location as planned, increase gift-basket sales to corporate and
other customers, consider additional location.

Copyright 2006 Star Tribune. All rights reserved.