Spring Break
Owner of Narragansett Beer speaks to students
Chloe Thompson
Issue date: 3/7/08 Section: News
He acknowledged a difficult task in business, fundraising, and called it "an incredibly long process."
"Banks don't want to lend you money," he said. "They'll give you money when you don't need it."
Hellendrung said that although entrepreneurs might be tempted to go to their friends and family for loans, he'd stay away from it.
"Entrepreneurial adventures are as likely to fail as they are to succeed," he said.
Instead, Hellendrung said he goes to local groups to advocate on his behalf, noting that he raised $350,000 through the Cherrystone Angel Group, which offers early stage investment funds to businesses in Rhode Island, Connecticut and Massachusetts.
Hellendrung attributes his passion for his beer to its location, and said he is hoping to make it the "New England beer of choice."
"All these parts of the country have this blue collar, hometown beer, and New England didn't really have that," he said. "Your brand is your life blood, and you have to protect it at all costs."
Hellendrung linked a particular problem in his company to other types of business. He discussed his competition with Budweiser as a challenge, but said eventually his beer had to find its own niche instead of overpowering Budweiser.
"For us what we've learned is ... we've become the premium beer, the affordable beer, the drinkable beer, for that scenario," he said. "We're a craft beer."
Though competition is fierce, Hellendrung said marketing always helps out businesses. He said Narragansett Beer spends about $200,000 per year on marketing, whether that's through hats, T-shirts or billboards.
"We value [the] merit [of the market idea] and ask ourselves, will this lead to another market?" he said, adding that competition is always brutal.
Hellendrung also shared another lesson he learned in his business days about judging good publicity versus bad publicity. He told his audience about a time when an unsuccessful convenience store propositioned him to sell his beer on their floor.
"Someone said to me, your first impression [of Narragansett Beer] can't be in a place like that," he said. "My point is, somebody's always trying to sell you something, but you need the discipline to say no."
Hellendrung shared a quote that held particular meaning in his life to the young entrepreneurs about his purchase of the brewery.
"You know, Woody Allen once said, '90 percent of life is just showing up,'" he said. "Well, I showed up that morning ... and after 18 months of negotiation with investors, I purchased Narragansett Beer."
The Entrepreneurship Club, which began this semester, creates networking opportunities and real-life experience through lectures from large business owners.
"Banks don't want to lend you money," he said. "They'll give you money when you don't need it."
Hellendrung said that although entrepreneurs might be tempted to go to their friends and family for loans, he'd stay away from it.
"Entrepreneurial adventures are as likely to fail as they are to succeed," he said.
Instead, Hellendrung said he goes to local groups to advocate on his behalf, noting that he raised $350,000 through the Cherrystone Angel Group, which offers early stage investment funds to businesses in Rhode Island, Connecticut and Massachusetts.
Hellendrung attributes his passion for his beer to its location, and said he is hoping to make it the "New England beer of choice."
"All these parts of the country have this blue collar, hometown beer, and New England didn't really have that," he said. "Your brand is your life blood, and you have to protect it at all costs."
Hellendrung linked a particular problem in his company to other types of business. He discussed his competition with Budweiser as a challenge, but said eventually his beer had to find its own niche instead of overpowering Budweiser.
"For us what we've learned is ... we've become the premium beer, the affordable beer, the drinkable beer, for that scenario," he said. "We're a craft beer."
Though competition is fierce, Hellendrung said marketing always helps out businesses. He said Narragansett Beer spends about $200,000 per year on marketing, whether that's through hats, T-shirts or billboards.
"We value [the] merit [of the market idea] and ask ourselves, will this lead to another market?" he said, adding that competition is always brutal.
Hellendrung also shared another lesson he learned in his business days about judging good publicity versus bad publicity. He told his audience about a time when an unsuccessful convenience store propositioned him to sell his beer on their floor.
"Someone said to me, your first impression [of Narragansett Beer] can't be in a place like that," he said. "My point is, somebody's always trying to sell you something, but you need the discipline to say no."
Hellendrung shared a quote that held particular meaning in his life to the young entrepreneurs about his purchase of the brewery.
"You know, Woody Allen once said, '90 percent of life is just showing up,'" he said. "Well, I showed up that morning ... and after 18 months of negotiation with investors, I purchased Narragansett Beer."
The Entrepreneurship Club, which began this semester, creates networking opportunities and real-life experience through lectures from large business owners.
