KALONA

The startup phase of a business is always exciting. The brain buzzes with ideas and you can’t beat the rush of seeing them become real in front of your eyes. There are setbacks, sure, but for the most part you’re focused on building and growth and success, however you might define that.

But life as a business owner isn’t a straight-up trajectory. Your desires change, your needs change. You may not anticipate that when you start, because at that point you’re just looking for solid footing, but from the beginning new entrepreneurs are counseled to consider their exit strategy.

Last year when The News talked with Lyndon Hershberger at Kalona Chocolates, he and wife Mattie’s exit strategy was already on their minds. Even as they adapted to changes in the cocoa market, they were thinking about a day when they might sell the business. It was no longer 2009, when the couple had four daughters eager to help them develop a home-based chocolates business. Now, retirement was looking attractive.

Meanwhile, Ryan Bontrager, who is 27 years Hershberger’s junior, had been eyeing Kalona Chocolates. The younger man, who grew up on a Kalona dairy farm with eight sisters, had grown the family farming business in his 20’s and then became involved in other companies. He wondered if he might add the chocolate shop to his portfolio.

“My grandpa always dreamed of having chocolates, an ice cream shop, something down that alley, and that was always in my mind,” Bontrager says. “I admired Lyndon, and I thought, well, if I could pair up with Lyndon and make things work, I think it’s a good opportunity. If Grandpa never had his dream done, I can help.”

The two weren’t strangers to each other; they have known each other since Bontrager was a kid, back when Hershberger would stop by the farm to pick up milk.

“Our relationship goes back a long way. I’ve always respected Ryan,” Hershberger says. “That’s part of what made the decision easier, the fact that we had a relationship and kind of knew each other. [He was] somebody I trusted, and somebody that I knew was local and was going to stay in the community. Those things were all important to me.”

The pair reached an agreement: the Hershbergers would sell Kalona Chocolates to Bontrager, and Lyndon would stay on as manager for at least five years. They signed the paperwork and made that official on March 21.

While it’s unlikely customers walking into the storefront on 5th Street will notice any changes, there is a subtle shift in culture happening behind the counter and in the kitchen.

“I’m excited to work with Ryan,” Hershberger says, “but we’re also very different.”

While Hershberger may t need time to think things through before taking action, Bontrager likes to jump right in and work out the details later.

“He’s very strong at understanding people, which is one of the things I marvel at,” Hershberger says. At age 32, “he’s had many experiences that I haven’t, and just wisdom and understanding people that I’m still learning. That’s one of the benefits of our relationship. I feel like I’m already more patient and understanding with people in general, specifically our employees. It’s a benefit that I wasn’t expecting.”

Bontrager has prioritized building relationships with employees; he’s been attending staff meetings and makes a point of thanking them when he stops by the shop.

“I want them to feel we need them and they’re valuable,” Bontrager says. “I sometimes feel like a thank you is something they need. If I’m not here every day, I want to at least tell them thank you, because I really do appreciate what they do.”

In a year where researchers have found some 56% of employees are looking for new jobs, most of them citing being undervalued as one of the reasons driving them, Bontrager’s approach is a smart one, even if it comes naturally.

“We had two employees celebrating birthdays this week. We sometimes do a little something, like here’s some free chocolates,” Hershberger says, giving another example. “Ryan said, ‘No, go get pizza for everybody. Let’s celebrate a little bit.’ I think that is really going to be part of our culture.”

Another shift at Kalona Chocolates that customers entering the Kalona shop wouldn’t necessarily notice is a renewed focus on wholesale. This is one area both Bontrager and Hershberger see as ripe for growth.

“Our niche seems to be independently owned shops,” Hershberger says. “Just this morning I had a good conversation with Mervin [Yoder] at Dutch Market, and he was excited about having our product because it’s local and something unique, so that seems to be a good fit for us.”

The Birthday Company, a business in North Liberty that mails cards and gifts to a businesses’ employee or client lists, is another important wholesale account for Kalona Chocolates, one that also has growth potential.

Looking ahead, Bontrager doesn’t anticipate developing a chocolate addiction himself, although he does say his five children are asking for samples when he returns home after being at the shop.

And looking behind, Hershberger is “really grateful for the support of the community” that he and Mattie have felt over the years. He says that “we didn’t really have a vision” when they bought up some chocolate-making equipment 16 years ago, but they wanted to give it a go.

“One of the things that especially blesses me is when someone will stop in and say, ‘I’m going out of town to visit relatives or friends, and I want to take a little part of my town with me,’” he says. “That we fill that niche is especially meaningful.”

“Our mission is to add value to special moments,” Hershberger continues. “To think about all of those special moments that our chocolate was a part of and we’ve added value to is meaningful.”

Long may it continue, as the baton passes from one generation to the next.