Ka Wai Ola - Office of Hawaiian Affairs, Volume 14, Number 2, 1 February 1997 — Hekili Painting hangs tough in the '90s [ARTICLE+ILLUSTRATION]

Hekili Painting hangs tough in the '90s

by Deborah L. Ward It's a long way from being a "surfer dude of the 1970s" to becoming a self-employed painting contractor in a competitive 1990s market, but the competitor's spirit is strong in contractor Ken Bailey, owner of Hekili Painting and Decorating. Bailey's gone from collecting surfing trophies to racking up jobs in both commercial and residential painting (interiors and exteriors. His main focus

is on the commercial work that has kept his business alive. He's had steady work on retail jobs at Ala Moana Center, Kahala Mall, Royal Hawaiian Shopping Center and other Waikiki locations. With his specialty license, he ean do drywall taping and different kinds of wall coverings (paper, foil, grass cloth, and Zolatone for example). Hekih Painting does both airless and convention spraying, brush and roller. Bailey began painting for a friend of his parents during the summers while he was attending Kalani High School. He graduated in 1968, then went to community college for a year

and a half. He joined the painter's union, whieh offered him a four-year trade school with Saturday classes, and gave < him employment during the week. He started as an apprentice to union contractors, but | decided he wanted to learn a ' broader range of painting skills. After three years he went 1 to work for non-union contrac- | tors, whieh he did for 20 years, twelve of them with Kawika's 1 Painting. He wanted to start his own , business but as a single parent '

with custody of his daughter Erin, he felt he needed the steady paycheck and benefits to support his family. Even so, he knew work as a painter offered little job security. "If they have work — you work," says Bailey. "When in construction it's always, 'Does your employer have work for you? Does he see you favorably?"' When daughter Erin was ready to graduate from Kamehameha Schools in 1994 and was headed for University of Puget Sound on a Kamehameha Schools scholarship (she's a junior there now), Bailey felt he could take

the big step to launeh his own business. He's grateful that obtaining a scholarship for Erin took off a lot of pressure on him as a parent. "In my book they (KS/BE) put me in a position where I could do something I wouldn't have been able to do otherwise." He got his contractor's license in 1993 after studying six months for the test. Today, he is one of only a few Hawaiian licensed contractors in a phonebook full of listings. He started off Hekih Painting and Decorating as its sole employee, with just $100. The name was suggested by his daughter Erin, and means "thun-

der." His equipment consisted of one ladder, one plank, no compressor. He had basic hand tools (brushes, rollers, putty knife, two drop cloths). "It was spooky. Just me," he recalls. Slowly, by word of mouth, Bailey began to build his client base. Bailey's family contacts were important to help bring in business. He says, "I know I don't look Hawaiian, but I was born and raised in Hawai'i. This means in business that your word is good. You must be fair in price and do a good job."

After a while he was able to hire one employee, then a second. He bought equipment as he needed it. Now he uses Altres employment agency, paying a percentage to them to do his payroll and pay the workers' compensation. Altres also offers medieal insurance to his employees — he pays half. "This arrangement took a lot of pressure off," he says. "I didn't have to do all of this by myself." While Bailey does residential painting jobs, he says to rely only on that for jobs is difficult since it's hard to compete with imhcensed contractors who don't have overhead to pay. Bailey is required to carry liability and workers' compensation insurance, and pay half his workers' medical insuranee. "Most people will hire anybody, cash guys who don't pay taxes," he says. - -

Bailey credits his business

growtn to ^ p e r s i s - tence, mak- * ing good contacts, and doing good

work, so satisfied clients are willing to refer him work.

Even so, things were still touch and go. Waiting to ge1 paid is scary, Baile

says. "It ean take 30 days, 60 days to get paid in commercial work."

Bailey was encouraged to apply for a revolving fund loan by OHA Trustee Rowena Akana, and he persisted with the application process even though he was at first discouraged by the many forms to fill out and tough [questions from loan officers that he had to answer. "You're coming in with a dream. They're the breath of I reality." Yet the competitive spirit he p learned in surfing events as a teenagI er, and a survivor's determination to make a success of his business, kept him going. Persistence paid off with a $75,000 OHA business loan made in 1995. OHA loan officer Richard y? Yanagawa said "Ken's long work V experience, and profitabIe track j| record made him a credible candiB date for a business expansion loan." The money is to be used for new || equipment, operating capital and ,t bonding for state work, and for a computer system for accounting.

With

the loan, Bailey says his whole business turned around. "The banks just said, 'No Way/ to loaning venture capital to a single parent in construction work. ... _But I now had the working capital to meet payroll, cover insurance, pay suppliers and be covered while I waited to get paid by clients." Bailey says in his first year in business, he found he couldn't keep up with the taxes. "The loan from OHA helped me to put away for quarterly taxes and last year I got a federal refund for overpaid taxes." The loan also made it possible for him to assure that his employees worked all last year in a tough economy. By ehoiee he keeps his employee rolls small in order to offer security to his workers and keep them working steadily. '"My goal is to keep it simple."

Hekili Painting and Decorating now has three employees, Bailey, and painters

Keoki Wagerman and Tony Pena. His mom, Gypsy Bailey, handles their tax accounting, and quarterly general excise license tax

account. He has a certified public accountant to keep his books. He says he continues to

learn about runmng a business every day. Daughter Erin is a

steady source of support and encouragement when times are stressful. She says, "People that work for

Dad see other guys at job sites. They know that they won't be laid off, and that he'll do whatever it takes to keep them working. They don't mind the extra work. They appreciate the fact that they still have a job." Bailey advises other Hawaiians wanting to start or expand their own business, "Do not be overwhelmed with the bureaucracy of the state in getting your hcense." He says, "Make your word good. Say what you're going to do. Do it when you say you're going to do it. Treat your employees fairly and they'll take care of you." With the sportsman's spirit of competition that he maintains to this day in kayak racing and paddleboarding (he's done Moloka'i to O'ahu twice), Bailey says pragmatically of his business, "Being a millionaūe is not in the cards," says Bailey. "What was in the cards is providing steady employment."

To reach Hekili Painting and Decorating, eall 237-8337. For information about the OHA Native Hawaiian Revolving Loan Fund, eall , 594-1921. i k.

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Hekili Painting and Decorating's Ken Bailey and employees Keoki Wagerman and Tony Pena on the job at a new store opening at Ala Moana Center. photos by Deborah L. Ward

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