Denise and Chuck Haney

Some people rearrange furniture but Eller College alumni, Chuck and Denise Haney, owners of Newport Furnishings–a unique lifestyle marketer of fashion-forward, upscale furnishings–are rearranging the furniture business.

The Haneys are hands-on business owners who have successfully built their Phoenix business and wanted to expand to other areas of the country. Their concept of offering quality furniture at big discounts in the warm, friendly environment of a warehouse showroom was a solid one compred with the ever-changing face of the retail furniture landscape. But the Haneys didn't want to go the traditional route in developing their expansion plans. In fact, almost everything the Haneys do with their company is contrary to furniture industry norms.

"We don't believe in doing things in a traditional manner. Our strength is constantly looking for out-of-the-box ideas to implement," says the couple. "We knew nothing about the furniture industry when we started, but that 'ignorance' actually allowed us to develop a fresh perspective on the home furnishings industry. Our motto is 'stay humble, but never be satisfied with the status quo.' Taking risks and anticipating trends helps us stay a step ahead in the marketplace–it's a tremendous outlet for the creativity of our team, and keeps us all on our toes. We like new ideas, and continue to evolve with the times, which makes it fun to come to work. This attitude is contagious, and our customers sense it too!"

The Haneys (front row, center) with employees at their Phoenix store location.

Armed with more creativity than cash, the Haneys opened their first, barebones Phoenix store in April 1998. Their first joint venture partner came aboard in 2001, in Albuquerque. Since then, Newport Furnishings has opened in Denver, Houston, Kansas City, Minneapolis, San Antonio, and Seattle, with the promise of more locations coming soon.

In order to expand without franchising or needing the huge capital infision necessary to open company-owned locations, the couple enters into joint venture partnerships in locations that are a good fit for the business model. The Haneys hold the majority interest, which keeps them involved in the business and demonstrates their commitment for success to their business partners. Unlike a typical franchise relationship, in which the franchisor gets a percentage of top-line sales with no bottom-line accountability, the joint venture partnership is set-up so that partners share in the profits and the risks. Allowing for consolidated financial statements makes the enterprise as a whole more attractive in future growth opportunities.

The prospective business partner puts up the capital and the Haneys supply the business model, training, support, and vendor credit relationships. They also handle all back-office operations, product selection, ongoing product ordering, accounting, and billing. Their business partners make approximately a six-figure investment, a fraction of the cost required to open a traditional furniture store. A new Newport Furnishings typically reaches break-even in 90 days or less, with the potential to reach double-digit net profit margins.

Chuck, who is President and CEO of Newport Furnishings, lettered in baseball while at The University of Arizona and brings all his UA teamwork lessons into the business. Denise, who graduated in 1982 with a marketing major, is Vice President of Newport Furniture.

"Our unique joint venture model was created to allow excited, capable people to become business owners while benefiting from a successful partner. Our plans include opening 10-20 new locations in key metropolitan markets, with joint venture partners in each location, during the next 24-36 months. We believe this is more than achievable, given our history of successful operating experience," says Chuck.

The couple's out-of-the-box approach has been recognized by the business community, as well. Newport Furnishings was a finalist for the Ernst & Young Entrepreneur of the Year Award in both 2001 and 2002. In 2001, Denise was named National Association of Women Business Owners "Woman Business Owner of the Year" and this year Newport Furnishings won the Phoenix Chamber of Commerce Small Business of the Year Award for Innovation.

"I learned many valuable lessons during my UA business education–including the importance of perseverance, follow through, and unleashing your creativity. I also learned that there is often more than one way to accomplish a goal," says Denise. These lessons have obviously been applied by Denise and Chuck in developing their successful business model.