Emma´s Parlor

Emma Lathbury's shoulders sagged as she flipped the cardboard sign hanging in the
window of her tea room's front door from 'Open' to 'Closed'. The normally indefatigable
52-year-old owner of Emma's Parlor was tired. Any doubts she'd harboured about the
wisdom of seriously considering some major changes in her business were fast
disappearing.
She hadn't felt this weary since she'd left nursing in the early 1990s. After years of working
as an intensive care nurse with its gruelling hours, emotionally draining work, and lack of
both respect and autonomy she'd developed a bad case of burnout. At the time, she was
convinced she could walk away from a secure, if difficult, profession and figure out a way
of making a living that suited her high energy, outgoing personality. Then one day, noticed
1870s Grade 2 cottage for sale in the small village of Southwell near where she'd grown
up, and the answer to her dilemma came to her with a startling clarity. She'd get the
financing, buy the house and open cosy Victorian tea room. Emma was certain she could
make it work.
And she had. Her success was due in part to her unintentionally perfect timing. Specialty
teas had taken off during the 1990s, with no end in sight to its current double-digit annual
growth rate. But of course the solid performance of Emma's Parlor owed a good deal to
its owner's hard work and all those 60- and 70-hour weeks she'd put in, which was more
fun when she worked for herself. She'd personally chosen the precise shades of purple
and plum for the cottage's exterior, hung the lace curtains, selected the fresh flowers that
graced the small Circular tables, hired the staff, and tracked down and tested recipes for
the finger sandwiches, scones, jams and Roman Castle Bundt cake that earned her glowing
reviews in numerous guidebooks and a national reputation. Quickly realizing that special
events were key to attracting customers, she organized and publicized fanciful gatherings
that drew everyone from children toting their favourite stuffed animals to an Alice-in-
Wonderland affair to women dressed in their best outfits, complete with big floppy hats,
to the Lincolnshire's version of a royal garden party. The tearoom, which now employed
ten people, was nearly always completely booked.
Most of all, the former nurse developed a real expertise when it came to teas, becoming
particularly fascinated by the medicinal benefits of herbal teas. She started by conducting
evening workshops on the efficacy of organic teas in treating everything from a simple
upset stomach to menopausal distress. Eventually, she began blending her own Emma's
Parlor Organic Teas and selling them to delicatessen stores, restaurants and individuals
over the Web. As more and more publicity pointed to the benefits of tea, her Web-based
business flourished, generating slightly less revenue than she was realizing from the tea
room. The profit margins were higher though.
Despite the fulfilment she found in running her own business, it was getting too big for her
to handle, Emma was beginning to experience the all-too-familiar symptoms of burnout.
After she locked the front door, she made herself a soothing cup of rosebud tea, kicked off
her sensible shoes, and sat down to review her options. Maybe she could drop the
tearoom and focus on the internet business, or vice versa. She could try to master the fine
art of delegation and turn Emma's Parlor over to an experienced restaurant manager, or
she could take herself out of the picture by selling the tearoom outright. Then again, she
could simply close the restaurant or the internet business.

Questions:
At what business stage is Emma's Parlor? At what stage is her Web-based organic tea
business? What synergies exist between the two businesses? How critical do you think
those synergies are to the success of each business?
How does Emma Bunton fit the profile of the typical entrepreneur? Which of those traits
are likely to continue to serve her well, and which might be counterproductive at this
stage of her business?

After listing the pros and cons for each of Emma's options and considering her personality,
which course of action would you recommend?

SOURCES Based on Alison Stein Wellner, 'Business Was Booming But the Richardsons Were Seriously Burned Out', Inc.
Magazine (April 2006): 52—54; Mark Blumenthal, 'Total Tea Sales in US Forecast for $10 Billion in 2010', HerbalGram
(2004): 61— 62; and TeaMap Tearoom Directory, http://www.teamap.com.