Ka Wai Ola - Office of Hawaiian Affairs, Volume 10, Number 12, 1 Kekemapa 1993 — Hawaiian small business survives through good times and bad [ARTICLE+ILLUSTRATION]

Hawaiian small business survives through good times and bad

by Patrick Johnston Owning and operating a small business is a challenge. Doing it successfully for 14 years in Hawai'i's fickle eeonomy is a major accomplishment. Chalk one up for Thee Iron Shoppe of Hawaii. Thee Iron Shoppe is a small Sand Island-based business owned and operated by Butch and Sharon Kauhane. They produce steel and aluminum railings and railing ornaments for private homes across the state. For 13 years, Thee Iron Shoppe operated out of a small shop in Kailua. With the help of a loan from OHA's Native Hawaiian Revolving Loan Fund they moved to their present location on Sand Island, expanding both their work space and their operations. Says Sharon Kauhane, "Before we moved out here we had a tiny ofFice and very little space to work. Now we ean

take care of the bookkeeping and welding and have room to breathe." Moving to Kalihi has not only provided more space - it has brought in more business. "I don't know what it was in Kailua. Maybe the distance or something," says Butch Kauhane. "But when we based ourselves in Honolulu more people started calling us up." The Kauhanes share work

duties at Thee Iron Shoppe, Butch taking care of railing production and Sharon doing all the bookkeeping. Their children, the ones old enough to work but too young to be employed elsewhere, also help out. The result is a smooth run-

ning ship with tight accounting and solid craftsmanship. Butch says, "Even with the economy the way it is today we're still really busy. I think what happened is all of the fly-by-night operations have gone out of business and we're one of the few operations left to do the work." The Kauhanes began their business in the late 1970s with a small amount of family finan-

eial support and Butch's extensive welding experience from his years working at Island Steel and Welding. As business grew Sharon quit her job working as a manager and buyer for a clothing warehouse at the Kāne'ohe Marine Air Corps station and eame on as a full-time working partner. Around that time they started looking for money to expand but were rejected by the banks on account of Sharon's quitting her job. With Butch's technical skills and Sharon's hookkeeping experience - gained from her managerial work - they were able to apply for, and receive, a loan from the OHA's Native Hawaiian Revolving Loan fund. They produce railings and ornaments of all shapes and sizes but generally tend to keep things simple. "Fancy rails aren't really in style these days," Butch points out. "Our clients like simple, elegant designs." Some of their more innovative ideas include using petroglyphs as part of the railing

layout. "My son is especially interested in incorporating Hawaiiana into our railings," says Butch. In the future Thee Iron Shoppe hopes to expand to the

point where it is importing its own materials from the mainland, cutting out expensive distributors. To do that they would have to be able to order $30,000 to $40,000 shipments

at a time, no small feat for the an operation the size of Thee Iron Shoppe. Sharon explains, "Materials from the mainland are less expensive but we would have to order in bulk. ... For now though, we're just trying to settle into our new plaee." The Kauhanes attribute their success not only to hard work but to having a good hookkeeping background and to always setting goals for themselves. They eomplain about their money supply but it apparently hasn't prevented them from sending all their kids to private school and taking on golf as a hobby. Thee Iron Shoppe is located at 1933 Democrat St. (ph. 8471269). For information about OHA's Native Hawaiian Revolving Loan Fund eall 5863777. To learn basic business skills needed both to apply for a loan and run a business eontact Alu Like's Business Development Center at 5241225.

The Kauhanes in their office in Kalihi.

Butch Kauhane welding rail.

Petroglyph railing design.