November 5, 2021 | Antronette Robsinson’s life has taken her down many paths: she is a Veteran of the United States Armed Forces, and a Registered Nurse serving as the Nurse Service Chief of Community Care with the Veteran Administration Health Care System. Most recently, she has taken on the role of entrepreneur, running Maestro Coffee House in Natomas while maintaining her full time job. In many ways, says Antronette, her training in the Army prepared her for the particular challenges of entrepreneurship.  

Antronette began her career in nursing in 1994 as a Licensed Vocational Nurse, going on to obtain her Registered Nurse license and serve as a critical care nurse in the Army for 12 years. After an honorable discharge, Antronette went on to work with the Veteran Administration Health Care System in Community Care. “Being a platoon leader in the military overseeing over 500 soldiers, in addition to the leadership classes they required, prepared me for management on the civilian side of things,” Antronette says, explaining her current role as the Nurse Service Chief, where she manages over 150 employees.

Working Towards Entrepreneurship

It took time, however, for the idea of business ownership to enter into Antronette’s plans. Around 2018, she visited the business of a friend from church, a coffee shop named Maestro Coffee House. After talking to her about what owning a coffee shop was like, she began her own research. 

“That’s when the wheel started turning and I thought, ‘I could totally do this’,” explains Antronette. “I decided I would open up a business that could give back to the community, something that I would love to keep and pass down to my kids as a family-owned business.”  

Building on her love of tea and coffee, owning a coffee shop felt like a natural choice. After visiting numerous local coffee shops, networking with other cafe owners, and completing barista training courses, the opportunity to enter the arena presented itself. When the owner of Maestro Coffee House closed her business, Antronette worked with the property owner to start a new lease, and opened her revamped Maestro Coffee House in July of 2019. She decided to keep the name that two previous owners had used for the business, building on the established reputation. With this opening under new ownership, Maestro Coffee House became the only non-franchised and black-owned coffee shop in the immediate area.

Army Training Informs Business Journey 

Antronette became certified as a Service-Disabled Veteran business owner, and through the entirety of her business journey, she has returned to her training in the Army for guidance. 

“I attribute my confidence as a business owner to the leadership courses I took during my time in the military, and my abilities as

a manager to my experience as a platoon leader,” she explains, adding that her time in the Army also made her more resilient and determined as a business owner, equipping her to think outside the box. 

Thinking outside the box has certainly been necessary during Maestro Coffee House’s first two years in operation, as the Covid-19 pandemic hit just a few months in. While working full-time at the Veteran Administration, Antronette pivoted her cafe operations to be covid-safe. She added curbside pickup options and began selling via food delivery apps like DoorDash and Grubhub. Working with California Capital business consultant Danielle Marshall–a fellow veteran and entrepreneur, who Antronette met at the cafe and connected with immediately–Antronette has successfully pivoted and stayed up to date on the resources available to help businesses succeed during Covid-19.

Well-Deserved Recognition

Reflecting on the early days of the pandemic, Antronette says that she is glad that she kept her full-time job. Despite the long hours and competing priorities, having extra income was crucial to Maestro Coffee House staying afloat. 

“My income from the VA helped me to continue to pay my employees [at Maestro],” she explains. “I did not want to lay anyone off. Using my income from nursing to supplement business costs, I was able to keep everyone employed.” 

This dedication to her staff did not go unnoticed. Maestro Coffee House was visited by California Governor Gavin Newsom in January of 2021 to highlight the importance of the proposed provisions in the State of California budget that ultimately established the California Relief Grant. Joined by Danielle Marshall, Antronette shared her perspective on what challenges small business owners face, and services that the State could offer to address them. Following this visit, Maestro Coffee House was also featured on KCRA 3 News for a piece discussing Governor Newsom’s initiative.

Connecting with Community

Looking ahead, Antronette and her team are eager to continue growing her business, and, while being mindful of covid-19 safety restrictions, looks forward to partnering with local groups to host events that uplift the community. Before the pandemic, Maestro Coffee House hosted art showcases for local high schools, and rented out their space to churches and other community groups. These types of events are key to Antronette’s vision for a business that functions as a hub for community networking, and are a great opportunity to show the youth what type of success is possible with the right mindset.  

Overall, Antronette says that her staff, her daughters, and the customers that have become regulars at the cafe are the highlights of her business journey. “I’m really blessed to be loved by my family and work family,” she says. “They’ve all taken ownership. You can’t ask for anything more than for employees to do that–that’s hard to come by.”

October 29, 2021 | The California Capital Women’s Business Center’s second annual Small Business Success Series wrapped up today with the Small Business Awards & Recognition Ceremony. The series featured five days of business celebration, advice, and friendly competition. If you weren’t able to attend, check out the highlights below, and get excited for next year.

Monday 10/25: Get to Know Your Women’s Business Center Team

During this hour-long session, the counseling, program, and communications staff of the California Capital Women’s Business Center (WBC) introduced themselves and shared their “Top 5” tips and words of encouragement for entrepreneurs. 

Recurring themes included the importance of resilience, networking, and making use of free resources and services offered by California Capital FDC and other business development groups. To become a WBC client, click here. 

---

 

Tuesday 10/26: Small Business Owner Panel

The Small Business Panel featured entrepreneurs from a variety of industries in conversation with moderator and WBC business consultant Danielle Marshall. Panelists discussed their reasons for getting into business in their particular industries, the challenges they have overcome during the covid-19 pandemic, tips for keeping customers engaged, and their advice for aspiring business owners. Key takeaways included the importance of networking, the constant redefinition of “success”, and how large accomplishments can result from momentary failures. 

Click here to view the full panel

---

 

Wednesday 10/27: Pitch Competition Winners Announced 

The 2021 WBC Pitch Competition wrapped up on Wednesday, with five finalists selected for prizes ranging from $100 to $1000. The winners were: 

• Dipped N Color, founded by Monet Dyson
• Hearts Connecting, LLC, founded by Tahirah Taalib-Din
• ShareVgo, founded by HooiMing Lee
• Pair Anything, founded by Christy Serrato
• Sunexis, founded by Mahima Rupakala 

To learn more about each winner and tips for a successful pitch, watch the recorded session here.

---

 

Thursday 10/28: WBC Virtual Marketplace

The WBC Virtual Marketplace allowed small business owners to showcase their products and/or services to buyers and procurement specialists from boutique retailer Marshall Retail Group (MRG) and the Sacramento International Airport (SMF). 

The Virtual Marketplace featured six vendors, who are currently being highlighted on the California Capital website, (click here to view and get a head start on your holiday shopping!) and a live session during which representatives from MRG and SMF shared about upcoming opportunities and the process of doing business with them. 

View the full session here. 

---

 

Friday 10/29: Small Business Awards & Recognition 

The Small Business Awards & Recognition Ceremony capped off the week of celebrating the resilience and success of California’s small businesses. The title of Small Business of the Year was given to businesses across eight categories. Join us in congratulating the winners of the 2021 Small Business Awards! Click here to view the full awards ceremony.

 

Start-Up/Entrepreneur of the Year: Clutch

Founders: Anne Descalzo and Rachel Zillner
About: Clutch provides event management, project coordination, and staff management services. They connect organizations to the resources they need to achieve their goals including staffing, strategies, business services, and project management.

Website: clutchontracts.com

Community Engagement Business of the Year: Kaplan Solutions, Inc 

Founders: Glenn and Jill Kaplan
About: A small business focused on international trade and chemical distribution and expanded with the help of PTAC as an SB Vendor supplying Personal Protective Equipment (PPE), sanitizers, and disinfectants to State Agencies.
Website: kaplansolutionsinc.com

Small Business Community Impact Award: Resilient Families 

Founder: Jillian Van Ness

About: Resilient Families connects new and growing families through classes and discussion groups—outdoors and on Zoom—through touch, sound, and movement.

Website: growresilientfamilies.com

Small Business Expansion of the Year: Wear Your Love 

Founder: Jillian Lotz

About: Wear Your Love sells custom made wedding dresses all over the world via the internet. Each dress is made to order based on each bride’s measurements. Their gross sales grew significantly from $10,000 in 2015 to $550,000 in 2020. 

Website: wearyourlovexo.com

 

Veteran Owned Small Business of the Year: Words Unite Bookstore 

Founder: Ashley Booker-Knight 

About: Ashley Booker-Knight is a US Army Veteran and bestselling author. Words Unite Bookstore It is a traveling bookstore that operates as a pop-up bookstore that presents signed copies of books written by independent authors. She partners with AAFES Military Exchange to operate pop-ups.
Website: wordsunitebookstore.com 

Sustainable Small Business of the Year: All Events & Management Group

Founder: Lisa Montes

About: Formed to specifically benefit service, non-profit and local organizations that are community oriented. They pivoted during the pandemic to offer covid-safe events and support community organizations. 

Website: alleventsplus.net

Small Business Innovator of the Year: Kalbinur Tursunjan, owner of Deluxe Limousines LLC.

About: Kalbinur Tursunjan began working as a limousine driver, and at just was 22 years old, in March 2016 she took over ownership of Deluxe Limousines LLC from the previous owner. In that time, she has grown the business from one to four vehicles.  

Women’s Business Center Business of the Year: Connect Consulting Services 

Founder: Nora O’Brien

About: CCS consults with businesses to help them launch or enhance an emergency management program. They take a holistic approach to emergency management, business continuity and disaster recovery for organizations, businesses and government agencies.

Website: connectconsulting.biz

September 16, 2021 | Yesterday morning marked two significant achievements for the California Capital Women’s Business Center (WBC). During the annual meeting of the Association of Women’s Business Centers, Sophia Kanaan, Director of California Capital’s WBC, was inducted into the association’s Board of Directors, and Charles Thomas was announced as the winner of the Advisor of the Year award.

The Association of Women’s Business Centers (AWBC) is the leading non-profit that sustains the national network of Women’sBusiness Centers, bringing together more than 100 WBCs across the country. As a newly inaugurated board member, Sophia joins not only the largest, but the most diverse Board of Directors in the organization’s history. This new position will allow Sophia to build on her passion for connecting small businesses and entrepreneurs with the resources and mentorship crucial to their success, and to take her leadership to the national level.

Charles Thomas was named as the 2021 Advisor of the Year for his years of work helping hundreds of entrepreneurs and small businesses at various levels of maturity to achieve and surpass their goals. In her nomination statement, Sophia Kanaan noted that Charles’s determined service to his clients is grounded in his philosophy of the Three Ps: positivity, purposeful action, and paying it forward. Charles first began peer-to-peer mentorship as a teenager, volunteering as a peer counselor for elementary and middle school students in under-resourced communities, and has maintained his mission to uplift individuals from all walks of life. Eight other highly impactful business advisors were nominated from across the country, which speaks to the depth of expertise represented in the organizations that comprise the AWBC. 

“The accolades received, as well as our accomplishments and commitment to small businesses are a testament to our WBC Director, Sophia Kanaan and her leadership,” says Deborah Lowe Muramoto, President and CEO of California Capital. “We just celebrated her sixth anniversary with California Capital, and I am so proud to congratulate her.” 

 “And, a very well deserved congratulations to Charles Thomas, our WBC Business Counselor,” Deborah continues.  “Thank you Charles for your true commitment to helping small businesses turn their dream of business ownership into a reality.” 

These achievements are a testament to the commitment that the California Capital WBC team makes on a daily basis to continue providing excellent guidance and service to California’s ambitious and hard-working small business community. 

Congratulations, Sophia and Charles!

For Megan Wyatt, owning and operating Wit & Whimsy Toys in Granite Bay, California has been a dream come true. Her first job was at a toy store when she was 16, and in the four years that she worked there, one of her major life goals was solidified: own and operate her own toy shop. Despite the hectic seasons–and the 12-hour shifts during the holidays–Megan never questioned her belief that it was the best job there is. For years, life circumstances and other career pursuits stood between Megan and business ownership. But a job loss at the beginning of 2020 caused her to reevaluate her path, and she turned to the Women’s Business Center (WBC) to figure out what it would take to make her dreams a reality. 

“I was lost for a little bit at the beginning of 2020,” explains Megan, who had previously been working as the marketing coordinator at an environmental firm. “But some friends own a store in a shopping center, and kept saying how great it would be if a toy store opened in the vacant spot next door.” 

 

Usually, Megan would answer the friendly encouragement with vague apprehension. “My response was always ‘maybe one day, maybe after I do xy or z’,” she says. “But every excuse I gave, they had a work around!” The possibility of starting a shop that focused on high-quality, educational toys, gadgets, and games for customers of all ages began coming into clearer focus. 

 

SEEKING GUIDANCE

Eventually, after receiving a recommendation from a friend to work with California Capital to explore the first steps of opening a business, Megan contacted the WBC and was connected with a business counselor. She began working with Charles Thomas, who has helped hundreds of clients across industries start or grow businesses. 

“[Charles] really went to bat for me,” says Megan. “He was instrumental in helping me create a business plan, and helping me determine what to consider to begin the process. I had no idea where to start.” 

This was in July of 2020, and there was much to do. But working with Charles, as well as WBC Business Consultant Danielle Marshall, Megan spent the summer and early fall nailing down her business plan, learning cash flow analysis, and negotiating a lease for the storefront next to her friend’s shop. Early on in her entrepreneurial journey, Megan made the decision to “bootstrap” the business, meaning she would build it up without taking out loans or securing outside funding. Through personal investments, she and her husband were able to secure a storefront and build up their inventory for a grand opening at the beginning of the holiday buying season. 

They opened the week before Thanksgiving of 2020, and their customer base caught on quickly. “I think our biggest accomplishment so far is the customer base we have built. I was really surprised by our sales last Christmas, despite only having been open for six weeks,” Megan says, reflecting on the last nine months. 

 

STEADY GROWTH, HOPES FOR EXPANSION

Continuing to work entirely off of revenue and personal investments, Megan and her husband have doubled the inventory of Wit & Whimsy Toys, and made significant improvements to the store front. The customers notice, Megan asserts, and they continue to be the driving force of the business. 

“We have such a great community of supporters,” she says. “They have helped us partner with Little League teams and local schools for partnerships, and any time they share us on social media, it results in a big new batch of customers.” 

Moving forward, Megan’s immediate goal is to hire new staff. She currently runs the shop 7 days a week with help from her husband, and knows that extra support will be needed entering into the holiday season. Five years down the road, she hopes to be able to upgrade to a storefront with more square footage. 

Little over a year ago, Megan Wyatt began building her business plan from the ground up, taking advantage of the free resources available through the WBC–and thanks to her determination and this strategic partnership, there is now one more small business serving its community.  

Getting a small business loan is no small feat. It takes organization, foresight, and the ability to be realistic about business objectives–even if you are maintaining ambitious goals. But the need for a capital infusion is something that most business owners run up against during their business journey: according to Fundera, 43% of small businesses across the U.S. applied for a loan in 2020. 

For entrepreneurs and business owners looking to access financial services, knowing what lenders look for in loan applicants is key. Specific criteria can vary based on the type of lending institution one is looking to work with, but most lenders determine the loan readiness of a potential borrower by looking at The 5 Cs of Credit. This method incorporates both qualitative and quantitative aspects to determine creditworthiness–leading to a well-rounded, contextualized profile of a business. 

So what are The 5 Cs of Credit, and how does a mission-based lender like California Capital use them when working with clients in need of a loan? 

CHARACTER

The applicant’s credit history  

An applicant’s history of loan repayment or defaults is a major factor in determining creditworthiness, and in many cases is considered the most comprehensive element. Lenders will look at an applicant’s credit report, which is produced by one of three major credit bureaus: Equifax, Transunion, or Experian. Credit scores–a number produced by an institution like FICO rating an individual’s credit health–are used by lenders to help evaluate a borrower’s creditworthiness, but the full credit report is essential. Often, mission-based lenders like California Capital take a more comprehensive approach. 

“California Capital does not have a minimum credit score. We are more interested in understanding the story behind the credit issues of a borrower,” explains Judy Fletcher, California Capital’s Chief Lending Officer. “In other words, we offer the borrower the opportunity to explain the situation that led to a less than healthy credit score and what [they are] doing to improve their credit standing.” 

While mission-based lenders take a holistic view of applicants’ credit histories, Ms. Fletcher cautions that there are standards. “If there is an extensive number of late payments, collection accounts, or charge offs, then we may not be able to approve a loan request.”

In addition to keeping records and documents as organized as possible, business owners preparing to apply for funding should take care to address credit issues to the best of their ability before applying. 

CAPACITY

DEBT-TO-INCOME RATIO 

Also referred to as “cash flow”, capacity looks at whether a business has the capacity to handle debt, in the form of a new loan, based on their income. Will the business have sufficient cash flowing in every month to cover loan payments? 

Historical cash flow is important for most lending institutions. Traditionally, most banks want the cash flow existing businesses over the previous three years to have a ratio of 1.25. California Capital’s underwriting guidelines allow for a 1.0 cash flow ratio. 

Unlike most banks, Ms. Fletcher points out, California Capital will consider applications from start-up businesses–not just established businesses. “[We] look to how prepared the borrower is in regard to the business plan and projections. Is the business plan well thought-out, complete and [does it]explain the ‘why the business, why now and why me?’ questions of a solid business plan,” she says.  

Along with working with a business counselor to ensure their business plan and financial projections are pristine, start-ups who are new to their industry should make sure they know the difference between a balance sheet and a Profit & Loss statement–also known as an income statement–to accurately determine their capacity.  

CAPITAL

THE BORROWER’S CONTRIBUTION 

Applicants are expected to contribute funds separate from the loan into their businesses, a contribution called an “injection”. This is essentially the cash–“capital”–put towards a potential investment by the applicant. When borrowers have what is called “skin in the game”, lenders consider them to be less likely to miss loan payments. 

This means that if a business owner is applying for a loan to purchase, for example, a new food truck for their restaurant business, they will need to invest a certain percentage towards the total cost, as a down payment. Most lenders will require at least a 20% injection in the business, while California Capital allows for a 10%-20% injection depending on how much the applicant has invested in the business already. (Factors such as industry experience and credit history also affect a lender’s ability to be flexible with cash investment requirements). 

For potential borrowers looking to strengthen their ability to contribute towards an investment, Ms. Fletcher’s advice is straightforward: save your money, as well as any receipts or invoices for business spending, as they could count towards your contribution. 

COLLATERAL

A TANGIBLE ASSET TO BACK A LOAN 

To ensure against a complete loss, most lending banks require some tangible asset to be taken as collateral. This could be land, property (such as a vehicle or other physical capital), or residence. To ensure equitable access to financial services, California Capital approaches collateral slightly differently.  

“Many of our borrowers do not own homes or have collateral they can pledge, which is why they come to us for financing,” explains Ms. Fletcher. California Capital does require, at minimum, a UCC-1 filing on business assets. “If we are financing a truck or a piece of equipment with a cost or value that exceeds $5,000, we will take a lien on that equipment or truck.” That is fairly standard practice. 

“But if, for example, the loan is for working capital (salaries, utilities, marketing, advertising, lease payments), and there is assets to take as collateral, then California Capital will still offer a loan assuming the business demonstrates the ability to repay the loan and other of the 5 Cs of Credit are met (i.e. industry experience, cash contribution, healthy credit).”  

One way in which California Capital operates loan guarantees similarly to traditional lenders is that any business owner who has 20% or more ownership interest in the company must personally guarantee the loan–meaning they promise to pay back the loan if the business fails. 

CONDITIONS

DETAILS OF THE LOAN AND ITS PROPOSED USES

The details of a loan, such as the interest rate and amount of the principal amount, can be affected by the conditions of a business, the industry, and the economy. This can also be the proposed uses of the loan (i.e., if it is intended to be used on specific physical capital), and is influenced by the applicant’s preparation. 

“We [also] take very seriously the experience a borrower has in the industry, how prepared they are in asking for a loan, the types of training they have taken, if they’ve reached out for technical assistance when needed, who they have on their team –CPA, bookkeeper, attorney, business advisor,” explains Ms. Fletcher. 

KEY TAKEAWAYS

While all lending institutions approach The 5 Cs of Credit a bit differently, applying for a loan is a thorough process. Potential borrowers should be ready to provide detailed documentation, but should also be hopeful about the opportunities available to them. Criteria are strict, but resources are available. California Capital considers all applications, whether start-ups or existing businesses, and does not restrict lending to particular industries. 

Any entrepreneurs ready to take the next steps towards loan-readiness should connect with a business counselor, or attend one of the Women’s Business Centers free webinars.  

When assessing the progress a business owner has made toward their goals—whether they are aiming to start a new business, franchise an existing one, bid on government contracts, or anything in between—California Capital’s business counselors and consultants ask them about their recent achievements. What steps have they taken that have put them closer to their definition of success, and what results have they seen? 

Last month, the California Capital blog featured an article introducing the winners of the first-ever Startup to Success Pitch Competition. Since completing the Startup Generator to Success accelerator program offered through the Women’s Business Center, participants have put their entrepreneurial education to use and many have already reached turning points in their business journey. Progress looks different for every entrepreneur, depending on their goals and business type—and Startup Generator alums are no exception. Some have seen results in the form of entering into negotiations to lease the perfect spot for a flagship cafe; others have successfully pitched their non-profit to secure sizable grant funding, or have begun networking with powerful players in their industry. (The Startup Generator to Success accelerator program is back starting on July 30th. Click here to learn more).

Because success and the steps it takes to achieve depend on a variety of factors, California Capital’s programs cater to the specific needs of entrepreneurs, business owners, and leaders. There is no one-size-fits-all approach to entrepreneurship, so individualized education, counseling, and guidance is key to developing California’s small business ecosystem and ensuring that entrepreneurs from low and middle-income communities have the same opportunities.

Well over a year into the COVID-19 pandemic, Ernestine Winston is on an entrepreneurial journey she never envisioned for herself. With over ten years of experience as an independent hair stylist, Ernestine is now on a dual mission: she is growing her styling business, while also building a new enterprise offering textiles and other products with custom designs—and several Women’s Business Center courses have played a key role in setting her on that path. 

Creative by nature, Ernestine Winston had long dreamed of being able to provide for herself and her family through self-employment. “I’ve had a job since I was 14. I always worked for someone else because the security of a steady paycheck was important,” she explains. “But I always wanted to be my own boss.”

STEPS TOWARD SELF-EMPLOYMENT

Ernestine began chipping away at this goal in 2009, attending cosmetology school at night, while maintaining a full-time corporate job and raising three children, aged 10, 11, and 13. After graduating, Ernestine did hair part time and built a client base while working various full-time jobs, including two years teaching sales classes at the cosmetology school she had attended. Eventually, a full-time job at ULTA Beauty led to a 5-year hiatus from independent styling, due to the possibility of conflict of interest—but when ULTA shared the news of company-wide layoffs in October of 2020, Ernestine took it as an opportunity. 

“I signed up for the [Women’s Business Center’s] Entrepreneurship Empowered course with the intention of getting a running start at self-employment,” explains Ernestine, who first discovered California Capital’s services as a manager at ULTA looking to improve her managerial skills. “[The instructor] Natasha Palumbo helped me set up a business checking account, build a business plan, and basically get prepared to run a business.” 

SEWN PRODUCTS TRAINING OFFERS PATHWAY TO ENTREPRENEURSHIP

Around the same time that Ernestine was taking the steps toward full self-employment through styling, another business opportunity was percolating. In September of 2020, Ernestine enrolled in the Sewn Products Manufacturing Training course offered by Agee Fashion Institute through the WBC. Knowing how to sew personal protective equipment (PPE) such as masks and hospital gowns seemed like a good way to earn supplemental income, says Ernestine, if subcontracting opportunities 

ever became available. But the skills she gained in the 4-part course—sewing, cutting, reading and creating designs—dovetailed conveniently with another “pandemic-project” she had recently started. 

“While we were stuck at home, I had started dabbling with my husband’s heat-press, mostly pressing vinyl designs onto t-shirts,” says Ernestine. “It unleashed a new side of my creativity.” As she got more comfortable with the press, Ernestine began taking orders from friends, and applying what she had learned during the Sewn Products Training. Being able to create and manufacture designs from scratch—including scrunchies and hair bonnets—has allowed her to create products that are made with high quality material and fully customizable, creating a competitive edge over similar businesses who print on mass-manufactured textiles and positioning her to operate at a higher price point.

Ernestine went on to take advanced prototyping courses at Agee Fashion Institute, and now works as a trainer for the same Sewn Products classes that set her on this new avenue to self-employment. Ernestine is quick to point out that, prior to the first course she took, she had never touched a sewing machine. Now, not only has she gained employment as a sewn products instructor, but building her

technical manufacturing skills has been key to her entrepreneurial inspiration. “Now I know how to take an idea, turn it into a prototype, and create a product I can sell. I am always thinking of new skills or processes I can incorporate to make manufacturing easier or create more unique products.” 

ENTERING THE STARTUP LANDSCAPE

With a strong manufacturing skillset, Ernestine set out to develop her business acumen, signing up for the Women’s Business Center’s first Startup to Success Generator series. During the 16-week Startup to Success series, Ernestine joined a cohort of aspiring entrepreneurs and worked with instructor Natasha Palumbo to develop a business plan, position financial projections, and prepare for the competition of the startup ecosystem. 

“What I love about [Ernestine] is her eagerness to learn and her ability to execute on what she has learned. She is a lion! And a very talented one at that,” explains Natasha Palumbo, who has continued to work with Ernestine since the course concluded and provided key insights on how to manage the growth of both of her businesses. “And though this journey hasn’t been the easiest, she has continued to show up week after week and put in the work. There is no stopping Ernestine.” 

When the course wrapped up in mid-June, Ernestine joined her cohort in a Pitch Competition, putting to use the pitch deck she created and getting a first look into what the process of securing funding will look like. 

“She truly shined during the pitch competition,” says Natasha. “Her energy was by far the best of the bunch and she gave an incredible pitch. 

Starting and operating a business takes remarkable resilience and patience, but Ernestine is optimistic that the services she offers will continue to pay off. “This is the first time that I know for certain I will be able to have an income just working for myself,” Ernestine explains. Her immediate focus now is creating a high-quality website for her design business that streamlines the ordering and customization process for customers. Further down the road, she says, her goal is to find a brick and mortar location from which she can operate both of her businesses. But for now, she continues to research and learn about the business landscape and let her creative side get the best of her as she dreams up new ways to put her manufacturing skills to use.

JUNE 22, 2021 |  In March, a survey conducted by Yelp revealed that nearly half a million new businesses opened in the U.S. during the Covid-19 pandemic, suggesting that the entrepreneurial spirit is difficult to quench. Illustrative of that fact is the Start-Up to Success Generator series offered by California Capital Business Consultant Natasha Palumbo, which just wrapped up its first 16-week run and saw a cohort of students graduate with a comprehensive startup business plan.

 As a first foray into the culture of entrepreneurship, the course wrapped up on Friday, June 11 with a “Pitch-Off”: each student presented their business plan to a panel of guest judges, fielded questions, and worked through feedback. Judges selected the top 3 pitches for recognition. Meet the winners of the first Startup to Success Pitch Challenge, and stay tuned for more information on the next offering of the course. 

MARINA ONACA, BOBA WITH ME

Marina Onaca is a mother of three whose business idea sprouted in response to a need she saw in her community: more spaces where teenagers and pre-teens can socialize, express themselves, and enjoy the boba beverages that are climbing in popularity among that demographic. Parents in the community, like Marina, who wanted their children to enjoy these benefits were regularly driving 15 to 20 miles several times a week. As an answer to the gap in the local market, Marina decided to start Boba With Me, a boba cafe designed as a safe space for community members of all ages to gather. Marina spent much of the Covid-19 pandemic exploring the resources available through the Small Business Administration (SBA), and working with Natasha Palumbo to develop a thorough business plan. Boba With Me’s flagship location opens this summer, and Marina has high hopes for the future. 

What are your dreams for your business? 

“We see our business as a place where ideas will be generated, artists will be promoted, friendships will develop and community will come together, which is why we look to grow to many new communities and open our doors to friends all over the state. We see our concept embraced by each community looking for a positive environment in which our young generation can interact and collaborate. Our goal is to open a new store every six months.”

JUNE ARMSTEAD, BRAIDZ N’ THANGZ

June Armstead is the owner of Body, Soul, and Spirit Salon in the San Francisco Bay Area, whose latest venture, Braidz N’ Thangz,  is a nonprofit beauty school that will provide young women from underserved Bay Area communities the opportunity to develop professional styling skills and secure apprenticeships. The inspiration for this mission-based organization came when June, a Bay Area native, began working in the beauty industry and notice that her first clientele were young women Black in need of opportunities for gainful employment. She made it her mission to create pathways to entrepreneurship in the formal sector for at-risk youth, and has self-funded the training program for 20 years. Now, seeking funding as a 501c3 non-profit, June plans to expand her offerings and elevate the impact in her community.

What are your goals for Braidz N’ Thangz?

“Our salon and training facility has a dedication to education and empowerment. We are targeting 16 to 24-year-old females at risk, and we want to build employment skills within the natural hair industry because they are far too often turning to sex work. We provide a pathway to success with a career focus, and our vision is to be the leading cosmetology training institute for black youth and young adults in Northern California. Our program values Power, Purpose, and Poise!”

LAMERE CARTER, NEW MILLENNIUM DRONE RACING 

Lamere Carter is the founder of New Millennium Drone Racing, a premium drone racing startup currently in its planning phase. With the ultimate goal of being self-employed, Lamere spent years searching for a passion he could tap into to bring that goal to life. Eventually, with support from Natasha Palumbo (a.ka. “Professor P”), Lamere landed on drone racing, and began researching the market, from industry leaders to Federal Aviation Administration (FAA) regulations. He hopes to spend the next year scaling up his capacity, launching a web presence, and have New Millennium Drone Racing off the ground by summer of 2022. 

Do you have any advice for other aspiring entrepreneurs? 

“Be consistent. So many people start then stop. I’m guilty of this bad habit as well. Secondly,  business is all about problem solving, that’s a majority of it. Forget solving your own– can you solve someone else’s problem? If you can answer this question, congratulations you’ve taken your first step to being an entrepreneur.”

Two small business owners recently found success after a California Capital matchmaking event that connected them with large retailers at the Sacramento International Airport (SMF). While their stories showcase individual success, they also highlight the ways in which minority-owned small businesses can expand through unique avenues, and the growing breadth of airport-based concessionaire opportunities. 

California Capital clients Truthful Kernel and Sugar Coated Cupcakes began talks with international retailers Marshall Retail Group and Travel + Well, respectively, last month. The opportunities each business pursued are part of the Sacramento International Airport’s broader efforts to connect local business owners with airport retailers—an outreach strategy that was reflected in a Small Business Working Group (SBWG) event in February. The virtual event, hosted by California Capital and the Black Small Business Association of California (BSBA), allowed small business owners to meet with representatives from the Sacramento County International Airport and learn about procurement opportunities with airport concessionaires. 

“Through our concessionaires there are many opportunities for small businesses to sell their products,” explains Renata Romero, Airport Economic Development Specialist at the Sacramento International Airport. “We conduct outreach events to reach the small business communities and partner with local agencies to promote our available opportunities.” 

Procurement an Avenue for Expansion

Selling at the Sacramento International Airport was of particular interest to LaQueanya Henry, who founded Sugar Coated Cupcakes with her daughter Mechiala and is focused on contracts with companies or government agencies as a way to expand beyond e-commerce. 

“I have been looking for a storefront for us for a while, so I reached out to [Airport Economic Development Specialist] Andrew Durkee who suggested working with established vendors,” explains Ms. Henry. Mr. Durkee put Sugar Coated Cupcakes in contact with the owner of the Travel + Well kiosk, and once the relationship was established, business followed. “He really went above and beyond facilitating that connection.” 

Similarly, Truthful Kernel co-founder Jon Jew recently expanded his capacity, and was looking for ways to reach more markets with his health-conscious popcorn snacks. Having worked with a California Capital Women’s Business Center business counselor as he built the foundations of his brand, Mr. Jew knew that California Capital would be a valuable resource for leveraging growth.

“California Capital put me in contact with Marshall Retail Group’s local sundries buyer, and everything clicked right away,” explains Mr. Jew. “We’re starting off by selling at their locations at Sacramento International Airport, San Francisco International Airport, and Los Angeles International Airport. Who knows how far this will go?”  

Community-Focused Buying

Facilitating the expansion of small businesses in localities across the country is a key element of Marshall Retail Group’s operations, says Renee Ellis, Local Sundries Buyer. “The Marshall Retail Group prides itself on being part of every community we are given the distinct honor to be part of. We firmly believe in promoting small business in the area and helping them to grow. We currently work with over 300 vendors across the US and in Canada and that list grows everyday,” explains Ms. Ellis, emphasizing that Marshall Retail Group also works with their vendors to expand beyond their community, as they have with Truthful Kernel. 

In many ways, Truthful Kernel and Sugar Coated Cupcakes are examples of typical Sacramento entrepreneurs: ambitious, resourceful, and dedicated to the quality of their product, often  leveraging the Sacramento region’s farm-to-fork culture to source local, fresh ingredients. And this homegrown ethos was a perfect fit for SMF. 

“The Sacramento International Airport strives to highlight local businesses in our retail and food and beverage programs. We have been participating in local outreach events in efforts to become more visible to the local community,” explains Ms. Romero, whose team is also currently revamping their website to include resources and guides for businesses interested in selling at the airport.  

Business Opportunities Through Partnerships

A valuable resource in building business connections are events such as the Small Business Working Group, which inform business owners of the opportunities available and put them in touch with the necessary decision-makers. 

“Through these partnerships [with community-based organizations], small businesses become aware of the opportunities and gain insight into the process. With the assistance of the resources provided, small businesses are better prepared and equipped to compete for the available opportunities,” explains Ms. Romero, adding that while many businesses do not think of airports as a viable location for their operation, the traveling public are a dynamic population, and opportunities to sell a variety of products and services will evolve and increase as air travel begins to return to pre-pandemic levels. “From 2022 through 2026 we will be issuing Food & Beverage and Retail Requests for Proposals (RFPs) that will effectively open most of the airport concessionaire spaces to new concepts. Now is a great time for local companies to learn and prepare for doing business with the airport to ensure they are competitive in the upcoming RFP processes.”

With communities across the nation returning to air travel, the express commitment of large entities like the Sacramento International Airport to increase participation of small businesses—and particularly small businesses that hold Airport Concessionaire Disadvantaged Business Enterprise (ACDBE) certifications—will be crucial to elevating small business ecosystems across the nation. By working with organizations like California Capital to complete the ACDBE application and stay up-to-date on RFPs, taking advantage of these evolving opportunities can be a reality.

May 28, 2021 | When Leslie Valdivia and Joanna Rosario-Rocha started Vive Cosmetics, the beauty industry was overdue for change. What has grown into an acclaimed national brand with a wide range of lip products began as a problem the pair knew they could solve: the need for authentic representation of the diverse Latina and Latinx communities that constitute the make-up industry’s largest consumer demographic. Now, as their influence grows, the founders are using a loan from California Capital’s Lending Center to expand their reach and continue effecting change.

ENTREPRENEURSHIP INSPIRED BY WOMEN

Leslie and Joanna met through their partners—now husbands—, who have been friends since high school. The two became friends, but did not have designs to enter into business together—until  2016,

when Joanna accompanied Leslie to BlogHer, an annual conference for Latina business owners, bloggers, and social media influencers.

“There was a lot of energy around creating digital content and being online at that time,” says Leslie, who was working in social media and attended the conference every year. “There was innovation happening, and Joanna was interested in learning more.”

During a session where entrepreneurs pitched their business ideas, the pair shared an “aha moment”. Participants framed their businesses as solutions to problems they had yet to see anyone tackle, and one entrepreneur in particular stood out. She preferred to dress conservatively because of her religious faith, and was frustrated by the lack of options that were both cute and modest.

“At one point she said, ‘Why should I have to compromise?’,” explains Leslie. “That’s when it clicked. Joanna and I looked at each other and said, ‘We have to do something’.”

A NEED FOR BEAUTY CON CULTURA

They immediately began to brainstorm around their shared passions, and quickly landed on make-up: Leslie has been a beauty enthusiast since middle school, and Joanna even had a make-up tutorial channel during the early days of YouTube.

From there, a vexing question naturally presented itself: Latinx beauty shoppers outspend other demographic groups by nearly 30%, so why was it so difficult to find Latinx representation in the industry? Why aren’t their cultures celebrated authentically?

What Joanna and Leslie saw the more they researched the industry they had supported for so long was a system that relied on stereotypical and narrow depictions of Latinas to make a profit, ignoring the differences in ethnicity, skintone, gender, and shape that exist amongst Latinx beauty aficionados. What’s more, they struggled to find cosmetic or beauty brands that were founded, owned, or operated by Latinx entrepreneurs. It was clear that the industry could do better—Leslie and Joanna were no longer willing to compromise. They would create a brand to speak to and represent the Latinx beauty community as a whole.

VIVE COSMETICS: A LABOR OF LOVE

Joanna and Leslie got to work quickly, researching all elements of what it takes to develop, produce, and sell high quality beauty products. They worked with a California Capital Women’s Business Center Business Counselor to develop a business plan, all while maintaining their full time jobs.

Initially, the learning curve was steep. Neither founder had a background in beauty, retail, or even e-commerce—they were starting from scratch in a $62 billion industry.

“The biggest challenge was finding a manufacturer,” says Leslie. “It’s extremely difficult for small brands to even get a response most of the time, because so much is based on having the right contacts to get traction.”

Eventually, they connected with a manufacturer from New York, and continued to leverage resources

for business development available in the Sacramento community. They put their business plan into action, and received a start-up loan from the U.S. Small Business Administration via Opening Doors, a Sacramento-based nonprofit. With their first line of product ready, Vive Cosmetics was officially launched in 2017.

BUSINESS AND COMMUNITY: GROWING TOGETHER

Vive Cosmetics launched as an e-Commerce shop with a website and social media presence to live up to its mission of beauty con cultura—and beauty shoppers responded. To this day, the company has not invested in paid advertising or public relations campaigns, but their Instagram profile has grown to have over 40,000 followers—and was even highlighted by Congresswoman Alexandria Ocasio-Cortez last fall. As a result of this organic online success, Vive Cosmetics has been featured in Teen Vogue, The Huffington Post, and “O” The Oprah Magazine, among other national publications.

“We are built for community, by community,” Leslie explains, reflecting the role that social media, and Instagram in particular, has played for them over the past four years. “The way folks have responded to

what we’ve offered has made us realize that it’s going to work. We’re doing the right thing.”

Vive Cosmetic’s digital presence, which now includes growing YouTube and TikTok profiles, has become central to the brand’s existential project of honoring Latinx communities and building equity in the beauty industry. Followers and online shoppers are able to see lip products modeled by Latinx talent that represents a range of skin tones, body types, and ethnicities, and browse lines that are “created with inclusivity in mind” . Moreover, they are invited to participate in the process of inclusivity.

“We find so many of the models, photographers, and creative directors we work with through Instagram,” Leslie says. “We’ll put a call out to our community when we’re working on a campaign and need talent, and we will get hundreds of people tagging their friends or reaching out themselves.” That’s one way, says Leslie, that Vive is working to increase opportunities for BIPOC beauty professionals on all sides of the industry. “Representation does not just mean on camera or in campaigns.”

NEW PRODUCTS, SAME PURPOSE

Thanks to their quick success since the 2017 launch, Leslie and Joanna were able to pay off the start-up loan. Now, their ever-increasing fan base is eager for new products. But the nature of product-based businesses means that new offerings must be formulated and developed before they can be

sold, so any hopes for expansion would require a good deal of up-front investment. Still, explains Leslie, innovation is crucial.

“Looking at our metrics, we understand that when we launch new products, our customers come back,” she says. “We need to do new things. That will in turn help us grow our revenue and expand the company.”

Luckily, they had stayed in touch with California Capital, often having their Business Counselor review their applications for grants or pitch competitions—so they knew where to look when the company was ready for a larger capital infusion. They worked with California Capital’s Lending Center to apply for a sizable loan, and were approved for the full amount in February of 2021.

“It was a thorough and intense process, which is understandable given the amount we were applying for,” Leslie explains. “We had to create financial projections for the next three years, which was tough in the middle of a pandemic. But when we applied, our sales were growing, so we were confident that it was the right time.”

Collaboration Over Competition

Now, with capital to work with and a clear picture of their financial goals, the founders are busy expanding and planning for the future. Leslie now works for the company full-time, and they are working with a product development consultant who is providing valuable guidance as they create new products and reformulate some of their traditional offerings. They have already launched a new line of tinted lip balms, and collaborated with Brujita Skincare, a Latina-owned skincare company out of Los Angeles, to create a Rosewood Hibiscus Facial Mist.

As they seek to continue innovating their products to meet the changing needs of customers—including a foray into product lines beyond lipstick, and revamping their packaging to make it more sustainable—, synergy with other Latinx beauty companies will remain a priority. Since 2017, they have seen a shift in how many Latinx-owned companies are around, and that has come with different types of representation and different stories being told.

As they seek to uplift the Latinx community as a whole, the focus will be on collaboration rather than competition—staying true to their passion for beauty con cultura.

LISTEN: LESLIE AND JOANNA SHARE THEIR STORY ON LA RANCHERA SUPERSTATION (IN SPANISH, ORIGINAL AIR DATE AUGUST 8, 2021)