EVS: A Worker-Owned Small Business since 2016!

May 16th, 2016 looked like any normal busy Monday at Electric Violin Shop. In between answering the usual barrage of customer phone calls our small staff worked in concert to address email inquiries and ship e-commerce orders taken over the weekend.

It was so routine that one would hardly guess this was a business's first day under new ownership. That’s because Electric Violin Shop founder Blaise Kielar had sold his ownership interest to his full-time employees, who restructured EVS into a worker-owned cooperative in what was a smooth and seamless transition of leadership.

 

From One ZETA To An Electric Strings Institution

EVS grew into its present role as world leader in amplified strings quite organically over the course of several decades. Founder Blaise opened Chapel Hill's first traditional violin shop in 1978, handling acoustic instrument sales, doing bow repairs, and providing other traditional music shop services. Sometime early on Blaise put a ZETA electric violin on display, and by the 1980's he became an original dealer of the growing ZETA Music Systems, as it was then known.

Blaise and his wife Cathy would later go on to found Music Explorium, a world music store in Carrboro, where he continued to stock a smattering of electric violins among frame drums and other world instruments. By the late 1990’s, growing interest in electric bowed strings combined with his listing of a few electric violins on the Music Explorium website prompted calls from around the world for advice. By the early 2000's demand was so high that Blaise decided to focus his specialization in this area. Electric Violin Shop and its accompanying e-commerce website electricviolinshop.com, were born!

“Little did I know when I moved here to open Chapel Hill’s first violin shop in 1978, that I would remain in North Carolina and serve the musical public for my entire career.” –Blaise Kielar

 

Becoming a Worker Co-op

For years leading up to his retirement Blaise fostered a flat management structure, empowering his staff with a large say in running the business and delegating the responsibility for sales management, procurement and marketing. By the time he was ready to retire, his employees had been making key business decisions and representing the business at trade shows and conferences around the country. This level of involvement allowed for perfect continuity as the employees took ownership of the company they helped to grow.

But a buy-out requires funding. When looking for help with his transition to retirement, Blaise sought advice from Broughton Consulting, who suggested the idea of a co-op conversion. She put Blaise and his employees in touch with Carolina Common Enterprise, a local non-profit that assists in the startup or expansion of cooperatively-owned businesses, who in turn connected the EVS employees with lenders.

Financing for the employee buyout of the business came from two Community Development Financial Institutions: Local Enterprise Assistance Fund (LEAF) and Shared Capital Cooperative. LEAF has promoted human and economic development for over 40 years by providing financing and development assistance to cooperatives. Shared Capital Cooperative provides financing to cooperative businesses and housing throughout the United States. These entities financed the bulk of the business purchase, with Blaise financing the rest, allowing the employees to buy it out over time in a way that was affordable both for them and the business.

With funding secured, all that was left was the rather complex legal process of forming a new business entity to buy out the old one, and converting the business structure into a worker-owned cooperative with a comprehensive operating agreement. For assistance, Carolina Common Enterprise connected the parties with Duke Law School Community Enterprise Clinic and the Start-Up Ventures Clinic, who providing pro bono legal services!

“I am so grateful for the financial organizations that support the community enterprise movement. Without their funding, we could not have turned Electric Violin Shop into a worker-owned co-op. This has allowed me to retire and my loyal staff to own the business.” –Blaise Kielar

 

EVS: A Team Endeavor

Since taking ownership in 2016 our worker-ownership group has steadily grown the business, participate equally in decision-making, improved worker pay and benefits, reinvested, shared in profits, and extended owner-membership to a new full-time employee. Each team member has areas of specialty, while we all crossover to help one another in every are of the business.

Over our many combined decades of experience we’ve compiled an encyclopedic knowledge of bowed strings amplification solutions that just doesn’t exist in any one other place. We’ve always prided ourselves on working together and sharing responsibility for ensuring highest standards of quality, service and integrity. Electric Violin Shop will continue to carry forth Blaise’s mission to promote and expand the field of electric bowed strings while providing expertise, the highest quality gear and excellent service to string players.

 

Co-op Conversion: You Can Do It!

We are hopeful that our story serves as inspiration to other small businesses that may be single owner LLCs, S Corps, or Sole Proprietorships and who have dedicated teams of employees. So many small businesses like these offer crucial services and niche goods that are otherwise very difficult to find (can you imagine Walmart or Amazon trying to specialize in boutique electric violin sales and service!?). It is a shame for these businesses to cease operation just because an owner retires, as it's a loss not only to the employees but also to the community they serve.

If you are an owner or employee who thinks a worker co-op conversion could be a solution for you, don't hesitate to pursue it! There are many fine organizations around who are willing to help with every step. It is such a win-win for retiring owner, for employees, and for the community who relies on the business's service. Please visit or contact the organizations enumerated above to enquire about how to start the process, and research to see who in your locale may also be able and willing to help.