Lendoor

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[lendoor-blog]

There's Something About Mary O's

On a crisp New York morning, we stand in the kitchen of Mary O’s, an Irish Pub in the heart of Manhattan’s East Village. Mary O'Halloran, the owner, is rushing about–mixing dough for homemade Irish soda bread, Irish stew boiling on the stove next to a huge pot of corned beef and cabbage. It’s St. Patrick’s day.

How do you build a neighborhood bar in a cosmopolitan city? How do you manage a busy business and a large family? What are the challenges and the rewards of owning your own business? Here, Mary spills the beans as she cuts the carrots.

Did you always know you wanted to own a bar?

Yes, ever since I moved to America from Ireland and started working as a bartender 25 years ago. I had worked as a bartender for 18 years before I opened Mary O’s in 2009.  

Do you think you would be able to get your business started the same way today that you did when you opened?

I think so, though the banks have become more difficult to deal with. Getting a line of credit was easier when I was starting, though I started my business with personal savings, not with a bank loan. Now, I get the sense that you have to jump through a lot more hoops if you were trying for a credit.

Other than when you first started the bar, when did you have the biggest need for business funding?

It takes time to build a clientele. I am a one woman show.  The financial pressure was most tangible a year, year and a half into the business. My client base was growing, but 2009 was a very difficult year to start. I was working around the clock - and of course still am.

What are some things you know now that you wished you knew when you opened the bar?

If I had to give advice to someone who is starting their business now, I would say be more cautious about what is going to happen in the first year or two. Consider that you may need backup money if things don’t go as well as you hoped for.

How do you manage to run a successful bar and take care of your family without missing a beat?

There is no secret. It’s hard work and no sleep! I can’t tell you how hard it is. The guilt–when I have to leave my kids because the business needs me–is tough. But my Irish stubbornness keeps me going. It’s all blood, sweat and tears.

If you couldn’t have this job, what job would you have?

My husband is a longshoreman. Had I not opened the bar, I would’ve moved to Alaska, so my children could have the “good life.” But I wanted to have a bar–I had to give it a try! I wish I could be that 9-to-5 lady, but I’m not. When I have a bar full of people and everybody is having a good time, I thrive on that.

What part does your neighborhood/community play when it comes to the success of your business?

A very big one. We are very much a local bar, a neighborhood staple.

What makes your customers loyal?

Our customers keep coming back, not just because of our drinks and food (and it’s all excellent; Mary O’s qualifies as a true gastropub), but also because of the warm welcome and the personal connection I have with all my regular customers.

How important is social media to Mary O’s?

I use Facebook all the time, and all my customers are on it. They post pictures and learn what’s going on. Roughly half of my customers are women, maybe because of me. It’s a comfortable place to have a beer and a chat.

You were born in Ireland. Is St Patrick’s day celebrated any differently over there?

Years ago it was very different. It was more religious. You went to mass, you walked in the parade, you broke your fast. Many people would stop drinking during lent and they’d have their first beer on St Patrick’s day. Maybe that’s where the drinking tradition on St. Patrick’s day started.  Now the Irish have followed the American way and party more. In my family we still follow the Irish tradition. I am busy at work, but my two oldest sons will walk in the Parade on 5th Avenue later today. The luck of the Irish, I have a very good friend who will take them.

St. Patrick’s Day is presumably a big day for your business. Will your mix of customers be different today?

Same people, only more of them. I have baked 40 breads for today! We are possibly the only Irish bar in New York that makes home made Irish soda bread from scratch.

What’s your St Patrick’s Special?

Lots of food: Corned beef and cabbage, Irish stew, shepherd’s pie, chicken pie, Dublin style chicken curry, and beer battered fish & chips….and lots of drinks: Hot toddies, Irish coffees, Guinness, Smithwick’s, and of course, the Irish-American  "Irish car bombs"–that no one really does in Ireland.

Speaking of Guinness, how would you react if a customer complained that your Guinness is warm?

Actually they won’t, because we keep our Guinness chilled to meet local taste.  But if an Irishman had a glass of very chilled Guinness, I guarantee you, you will hear about it!

Mary O’s is located at 32 Avenue A in Manhattan’s East Village. [phone]

***

Do you find Mary’s story as inspiring as we do?

Turning your own small business dream into reality may be easier than you think. Learn more HERE.

[lendoor-blog]

Since it is St. Partick’s today, we love to re-read our favorite blogpost from last year... 

[lendoor-blog]

Lendoor joins forces with Kiva to find a funding solution for every entrepreneur’s funding needs

As crowdfunding platforms, both Lendoor and Kiva help small business entrepreneurs raise affordable loans from friends, family and communities.

We offer tailored products to the different stages in an entrepreneur’s journey. We are joining forces to find a funding solution for every entrepreneur’s funding needs.

On Kiva the loans are always 0% interest but they max out at $10,000. The majority of the loan is funded by Kiva’s community of social lenders.

On Lendoor, entrepreneurs can crowdfund loans up to $50,000 from their friends and families. They can offer their network up to 8% interest as an incentive to back their funding goal.

Here’s how our two platforms stack up:

Our goal is to connect each small business owner to the most appropriate and compelling option for the communities they’ve created.

We hope this has been helpful!

Lendoor + Kiva

* * *

Can't wait to get started?

START A CAMPAIGN ON LENDOOR

or

LAUNCH A KIVA APPLICATION

[lendoor-blog]

The best way to fund a small business?

What is the best alternative way to fund my small business? We get this question all the time. The short answer is "Depends". But that doesn't answer the question, does it?

To help small business entrepreneurs determine what is the best option for their business, we are excited to announce Lendoor's upcoming Webinar "Alternative Lending Sources".  

Alternative Lending Sources

Monday, August 29 at 11:00 AM EDT

Description: Develop a better understanding of the new alternatives: CrowdFunding, CrowdLending, P2P lending, Online loans or Title III Crowdfunding. We will compare and consider the Pros and Cons of each - one size does not fit all. You can ask your questions in a live Q&A.

REGISTER

[lendoor-blog]

The inside scoop on ice cream business success

How do you successfully grow a small business while managing a balanced lifestyle?  We get the scoop from Holiday Dmitri Kumar, co-founder of NYC’s beloved OddFellows Ice Cream Co., a brand known for their funky, unconventional ice cream that pair sweet with savory, with flavors such as Maple Bacon Pecan and Beet Pistachio Goat Cheese. OddFellows currently has locations in two of the city’s hippest neighborhoods: a flagship store in Williamsburg, Brooklyn and an ice cream sandwich shop in the East Village.

In addition to being an ice cream entrepreneur, Holiday is a writer, an aspiring martial artist in kenpo karate, and a self-described “mama bear” to a pair of precocious toddler twins and a 5-year-old schnoodle. She founded OddFellows Ice Cream in June 2013 with her husband Mohan and pastry chef friend Sam Mason.  

Your background is in media, while your husband worked in real estate finance. How did you wind up opening an ice cream company?

When I was pregnant, I was craving salty ice cream, something I couldn’t find at the grocery store. Sam came to my rescue. One night he brought over his homemade pretzel ice cream. It was like nothing I’ve ever had. Then and there the ice cream shop idea was conceived. Mohan was about to get laid off work and looking for the next thing. It kind of just fell in line - the birth of the business directly following the birth of the children.

When is the best time to start a seasonal business like yours?

Definitely the summer when demand is the greatest.

How do you stay in the black when the weather is cold?

[Laughing] We don't. But we feel that it’s important to stay open despite the fact, to build our brand and to be there for our loyal customers. I remember one day in the dead of our first winter, we had one sale the entire day.  Though summer makes up for those hard times. We draw lines out the door then. In the winter, our focus is on wholesale business.

Your first location is a traditional ice cream shop, your second location specializes in ice cream sandwiches. Why ice cream sandwiches?

Customers were asking for it. Our East Village location started out as a regular scoop shop, but in a hyper-crazed foodie market like New York City, something delectably different and interesting is always a good idea – I mean our ice cream cotton candy cones were a hit in our Williamsburg shop. In the East Village now, we still have scoops – but customers have other options like creating their own ice cream sandwich or getting one of our cold scoop on a hot brioche bun.

Commercial rent in both of your stores' neighborhoods is notoriously high, and independent businesses are disappearing. You seem to be bucking this trend. How do you do it?

Luck and a husband who knows a thing or two about commercial real estate. We started looking four years ago and were able to negotiate and secure a favorable commercial lease thanks to Mohan. To do the same today would be much more challenging since rents keep getting more ridiculous in Williamsburg.

You helm OddFellows' PR and branding strategy. How important is social media for the success of a brick and mortar business like yours?

It is tremendous. It drives traffic not only from all over the city and country, but from tourists overseas. We attract international media coverage in cities with strong foodie cultures. The Japanese especially gravitate toward our weirdness, and we get repeated inquiries about expanding abroad.

What is the secret sauce for a successful food business?

There’s no magic formula, though having a partner like Sam on board has gotten us some media love. He’s our Willy Wonka, our mad food scientist- posterboy. He made skirt steak ice cream on Iron Chefand hosted his own TV cook show (IFC’s Dinner with the Band). We started the business when there was a dearth of artisanal ice cream shops in the city. Since we started, so many fancy ice cream shops have popped up, with quite a few – ahem - in close proximity to ours.

If you were starting today, what would you have done differently?

We opened our flagship shop shortly after I had the twins. I would not recommend to anyone to become first-time business owners at the same time that they become first-time parents, in particular if they’re expecting twins. That said, I guess we’re proof that it can be done. But our first year in business was grueling. Mohan was busy tending to the shop, and I was in near tears often from the stress and emotional weight of raising two newborns with little support.

How do you find the balance in your family?

I don’t – at least not in the perfect sense. I’ve taken off four years from my career to raise my babies and focus on our family business – and I’m yearning to get back. A lot of people have this notion that starting a business and being your own boss means working when you want. Not true. Your business is like another child: It constantly needs your attention in order to grow and succeed. It is a constant struggle to keep a balance.  We use every opportunity to spend time together. For instance, I’m a big-time wanderer. I used to travel overseas quite a bit on a whim before I met my husband and before we had kids. Now as a family, we’ve made it a goal to do one international trip a year. If money weren’t an issue, my gypsy side would have us spend half the year away from home traveling, but of course we also have a business to run.

OddFellows Ice Cream Co. is located at 175 Kent Ave in Brooklyn and 75 East 4th Street in Manhattan.

***

Did this story wet your appetite for running your own successful business?

Turning your small business dream into reality may be easier than you think. TELL ME MORE

[lendoor-blog]

From Three Backpacks to a Globally Recognized Children's Brand

Started less than a decade ago, Beatrix New York has already staked out a prominent place in the kids' accessories market. Beatrix's instantly-recognizable animal character-adorned backpacks and lunchboxes are firmly established as  favorites of the celebrity set and ordinary families alike, and business continues to grow in the US as well as in overseas markets.

What are the factors behind this success?  We sat down for a coffee with co-founder Claire Theobald near Beatrix's SoHo, NY offices to gather some insights.

The children's accessories business is famously competitive. Why did you choose it?

There weren't always so many players in the market. When my twins started kindergarten ten years ago, they had no interesting backpack choices--I had to settle for cheap-looking pieces with licensed cartoon characters.  The timing was perfect, since this was right around when I reentered the workforce. I had joined a small women's accessories company and based on my hunch, we decided to make a few kids' backpack samples and bring them to a trade show. They were a hit! We narrowed our focus to children's accessories, and Beatrix was born.  

How hard was it to get off the ground?

It was challenging. My partner (cofounder Marcus Woolcott, who moved to the UK a few years ago)and I were both designers, and neither of us had traditional business experience.  We learned a lot through trial and error, but we could afford to make mistakes early on because we started very small and there was not much yet at stake.

What were your capital demands like back then versus now?

We started with very little capital and a conservative mindset--we even debated whether to spend $50 for a fax machine! We have grown very carefully and deliberately since the beginning.  Now that we're bigger, we're well positioned to manage capital for growth--focusing on new product development and inventory management in particular.

How do you and your partner divide responsibilities?

I handle the day-to-day operations, finance, sales, partnerships. Marcus takes care of design and production, and we are both involved with marketing. But no big decision of any kind takes place without the other's approval. It's a very effective long-distance "work marriage."

How has the market changed since the business started?

When we started, we relied on trade shows to meet retailers and we were very US-focused in our approach.  But once photographs of celebrities and their kids holding our products started popping up in gossip and lifestyle magazines, retailers--including many from overseas--started coming right to us! For years, we did more than 60% of our business in overseas markets. But now that the dollar is so strong, things have started to swing back the other way.  

Ten years ago, we could never have imagined that fluctuations in the global economy would be such a major factor in how we approached our business.

If you were starting today, what would you have done differently?

We definitely would have honed our brand voice sooner, because we learned that the Beatrix brand is such a big part of our success.  And we would have also been more proactive about reaching out to retailers directly, instead of relying on intermediaries like trade shows. But we have no regrets about starting small. We needed to get our mistakes out of the way before the stakes were high. I think that if we started big, we would have flopped.

What's next for you guys?

We're working on bringing some great new products to the market. We're particularly excited about our newest addition--bento boxes! They're biodegradable, made from rice husk fiber. Our goal is to add one new product to our line every year and continue our steady growth.

***

Beatrix New York started small and grew smart.

Turning your own small business dream into reality may be easier than you think. TELL ME MORE

[lendoor-blog]

Wafels & Dinges: An Iconic NYC Food Business Made from Scratch

Started during the New York "food truck boom" of the early aughts, Wafels & Dinges was one of the first food trucks to really achieve notoriety. From just a single truck, Rossanna Figuera and her husband/cofounder Thomas DeGeest built their brand and expanded their reach--to a sleek-looking cafe in the East Village, three kiosks at NYC landmark locations, five mobile cars, two more trucks, and a large catering business.

We managed to catch up with Rossanna during some rare downtime to get a few insights into what's behind the Belgian-style phenomenon.

How did your journey start? How long have you been in business?

I met my husband Thomas DeGeest in the summer of 2006. He was a handsome Belgian guy working for IBM. I was a Wall Street recruiter, a Venezuelan expat in New York. At the time, I was considering moving my business to Brazil which was experiencing tremendous growth. I told Thomas on one of our first dates, "Don't get too excited--I may be moving soon." He replied, "I will follow you. Remember, I'm Belgian. I can sell Belgian waffles in the street anywhere in the World." In my typical professional recruiter fashion I said, "Tell me more about that."

We got married in June 2007, three days after we bought our first 1968 Chevy truck! It was a love story.

Your product is unique. When you started, how did you know that New York was ready for hand-held Belgian waffles loaded with toppings served from a truck with a hard-to-pronounce name?

We didn't! We considered our options and decided that starting with a brick-and-mortar location would be too risky. After all, back then, waffles in America were made out of pancake batter.  At one point we learned that an old food truck was on sale in New Jersey. It was $18,000. We repainted it and turned it into the first gourmet food truck to roam the streets of NYC.

The "Dinges" part of our name was controversial from the get-go [NB: It's pronounced "ding-iss"].  So, we took our notebook and stood at a busy New York street corner, asking random people what they thought when they heard the word "Dinges".  By and large, most people liked the name--so we went for it.

How long was it from when your business started until you started expanding your scope? Was it all laid out in a business plan?

Actually, it all happened organically. Roughly a year and a half into the business, we were ready to add a truck.  But the old Cenecta 68 model that we had was falling apart--literally. It died on us few months before our second truck was ready and we had to literally tow it to its locations. We had managed to hire some good people and didn’t want to lose them, so we kept running despite the logistical challenge of a truck that wouldn’t start on its own!

Early on, I had read "The Art of The Start" by  Guy Kawasaki. It had a big influence on my approach to starting a business. We never really had a business plan. We always felt our time was better spent on the business itself. What we did have were "December Summits." Literally, Thomas and I will sit down every December, review what we had achieved during the year, and set up goals for the next: add a second food truck by year 2, add 5 carts by year 4, achieve 15 locations by year 10, etc.

Did you both work full time on the business from the start?

When we first started, Thomas had left his job at IBM to work full time on the business. I kept my recruiting company, and was also working at the truck business in my spare time. We needed the extra income. I finally quit recruiting in 2012. It's hard to enjoy the growth of your business when you are overextended.  

When did you face more financial pressure--when you first started, or when you started expanding your business?

Financial pressure is always there, especially when you are growing organically like we are.  Early on, the investments were smaller--it's cheaper to add a cart than to build a whole cafe. But now we have a business with a track record, so we have better access to outside capital.

If you were starting today, what would you have done differently?

Probably we would have sought outside investors sooner. You need money to grow, and the moreaccess to capital you have, the faster you can grow.

Did you start the business with a brand vision in mind, or did it develop over time?

Branding was always very important for us. Our brand identity is defined by tree words: Belgian, Quality and Quirky. It is possible of course to start with a great product and build that into a successful brand. We did a little bit of both and established real brand value for Wafels & Dinges.  

Do you think it’s possible to succeed in your business without a branding strategy?

It is possible to have a successful food truck, but in my opinion, in order to grow beyond that, you must have a unique, recognizable brand.

What’s next for Wafels & Dinges?

We want to achieve $10 million in revenue for our 10th anniversary next year. We are also exploring accelerating our growth with some outside investments.

Last, but not least, a tricky question: What is it like having your spouse as a business partner?

[Laughing]  I get that one all the time! It's very difficult--sometimes close to impossible--but at the same time it is very fulfilling. We get to build something together. We get to leave our mark on the New York landscape, and now that we have two gorgeous children, is nice to know that we are building something together for our family.

***

Wafels & Dinges started with just one truck and a lot of heart.

Turning your small business dream into reality may be easier than you think. TELL ME MORE

[lendoor-blog]

Our 3 Favorite Things about Crowdlending from Friends & Family

Whatever kind of new venture you are planning, tapping your friends and family for funding can provide unique benefits throughout the life of your business. Here are our favorites:

1. Your friends and family know what’s special about you and your business.

To a lender you’ve never met — a member of a peer-to-peer lending pool, for example — you're anonymous.  To them, your business may be little more than an abstract component of a portfolio. But your friends and family know your strengths, your character, and all the intangibles you bring to the table. When you approach them about  helping you start or improve your business, you can talk to them on a personal level and benefit from direct, honest feedback about your business concept and plan — and make your ideas even stronger.

2. Your friends and family want to support you, not just make a buck.

From a lender's perspective, there are many crowdlending options that can result in a modest profit. But when your friends and family choose to help you with a loan, they want something more than their money back (although they want that too!) — they want to see you personally succeed. Starting a business is hard work with many ups and downs, and having a network of people who care about you and also have “skin in the game” is a great motivator during the challenging times.

3. Your friends and family make up a base of customers and supporters that will give your business a leg up.

Put yourself in the shoes of a friend or a family member. Wouldn’t it be great to know you helped start a new business in your community? And wouldn’t you personally support this business and encourage people you know to do the same? By launching your business with the help of a built-in network of lender-supporters, you get access to a base of customers and fans that will be with you through every stage of your business, spreading the word and giving you a valuable leg up in a competitive marketplace.

***

When people you know have your back, turning your small business dream into reality may be easier than you think.

 TELL ME MORE

[lendoor-blog]

Ask a Small Business Advisor: Can You Start a Business for $5,000?

Lucas Martin is an Entrepreneurship Specialist with Business & Community Lenders of Texas, based in Austin. Originally from Syracuse, NY, he went to college at The State University of New York at Oswego where he studied an eclectic mix of Business Administration, Arts, and Philosophy. He believes that entrepreneurship brings all of these disciplines together through new ideas, design and processes. He is passionate about helping small business entrepreneurs bring their visions to life.

Lucas has worked with hundreds of aspiring entrepreneurs--including many with small budgets--so we asked him a few questions to get his unique perspective.

Have you worked with anyone who launched and grew a business on just $5,000?

I am working with couple of entrepreneurs right now who have with low-overhead businesses such as leadership training and live coaching. It is difficult, but possible to start with very little money. While you are building a business on a budget, you still have to pay your personal bills. It is important to remember that a single product or a service is not a sustainable business. Understanding one’s startup costs, unit price, and revenue streams are critical to generate a return on that $5,000 investment.

What other types of businesses are typically started on a small budget?

I’ve worked with many microenterprises such as: apparel (T-shirts), niche market magazines, health and wellness (massage therapy), nutrition, consultants (grant proposal writers), and interior design businesses. People typically start with what they know best and will have an impact.

What is the first advice you give to your startup entrepreneurs?

Find either a problem or a passion. Problems are the things that keep you up at night. Passions are the things that make you jump out of bed in the morning. Start a business that either helps solving a problem, or promotes a passion. Find something that people need, something where you can leverage perceived value.

What advice would you give to people that want to turn their passion into business?

Passion is great, but it is not enough. You need to discover a way to generate sustainable business profit. If your passion is to help people, building a business is a great avenue to do so. But if you cannot cover your expenses and costs, the value you offer through your product/service is going to fall through.

Is everything in Texas really Bigger and Better?

The economy is Bigger, Better and Bolder. I grew up the Northeast. I came to Texas when I joined AmeriCorps. Texas is very entrepreneur- and business-friendly. Other states certainly can learn from the business resources and small business initiatives facilitated through local government.

BCL of Texas is a nonprofit organization that provides wide range of community development services. In addition to business coaching, they improve access to capital for small business owners.

***

Turning your own small business dream into reality may be easier than you think. TELL ME MORE

[lendoor-blog]

Looking Forward to the Future but Enjoying Today

Abe Jamie Garcia, a proud native of Queens, NY, has a big personality and boundless energy--for his family, his hobbies (cooking and dancing!), and his business, Qualified Employee Benefits.

An entrepreneur on a mission, Jamie was undeterred when he learned that banks were not interested in helping him grow his business. Taking matters into his own hands, he tapped his own network and easily raised a small loan on Lendoor from friends and family. And he says this is just the first step.

What makes this entrepreneur tick? Who is the guy behind the sharp suit and the big smile? We sat down with Jamie and got to know him a little better:

What made you start your business?

I’ve had independent ideas on how things can be done better that were rarely accepted and tested by employers. "This is the only way to do it," we were told. So I set out to prove them wrong. When you’re independent and in charge, you take on all the risks of failure and success. Success meant doing what I loved despite the struggle. I liked my odds and bet on myself.

Tell us about a job that was important to you, but didn't make it onto your resume.

My very first job was stocking shelves at my local deli before and after school. I was only in seventh grade!

I also loved my first homework assignment at Baruch College: I had to go to the Career Services Office and get a part-time job. That was my assignment, and that’s exactly what I did! I had that same job throughout undergraduate and graduate school. The importance of work has always been obvious to me.

What are some things outside of work that inspire you?

As a career, I advise and navigate the winding path through the health insurance jungle. Likewise, I am inspired to help clear the city's own "jungle:" I volunteer with NYC Parks!  My kids and I love making New York parks even more beautiful. To me, there is no more exciting place in the world than a park. We even purchased a leaf rake and a Nifty Nabber so whenever two of us are playing, the other is cleaning the park just a bit. It’s about appreciation and responsibility. It’s amazing what five minutes of sprucing up can do.

What's something that you wish more people understood about entrepreneurs like you?

We are not like many people in that we don't jump from job to job in search of a better salary. We know it's our own fight, but the support and encouragement of people we know is appreciated.

Other than funding, what are some challenges that you have faced while growing your business?

Recruiting like-minded (commissioned) partners to support a growing small business portfolio takes a lot of work. Embracing technology is tough but important--branding and social media can't be ignored. Ultimately, it's all about getting prospective clients to start a relationship.

Why did you decide to try out crowdlending as a way to borrow funds for your business?

Banks just weren't interested, and my credit cards didn't give me access to the amount of funding I needed.  So I developed a plan to go to friends and family, using Lendoor as my crowdlending facilitator.

What factors led you to decide the duration of your loan?

I needed the money short term, but chose to start with a longer duration (12 months) because it’s easier to shorten than extend.

Now that you have received your loan, what's next?

With one small campaign down, another bigger campaign will follow!

What was your experience on our platform? What did you like, what can we do better?

My initial research into Lendoor started in 2015. The platform has gotten even better since then. Most importantly, the process for lenders has been simplified--which of course makes it easier to raise money.  Some lenders aren't all that tech-savvy, so it would be great if there were an option to update them via regular mail. [NB: We're working on it!]

***

Jamie is taking his business funding needs into his own hands.

Turning your own small business dream into reality may be easier than you think.

 LEARN ABOUT CROWDLENDING

[lendoor-blog]

There's Something About Mary O's

On a crisp New York morning, we stand in the kitchen of Mary O's, an Irish Pub in the heart of Manhattan's East Village. Mary O'Halloran, the owner, is rushing about--mixing dough for homemade Irish soda bread, Irish stew boiling on the stove next to a huge pot of corned beef and cabbage. It's St. Patrick's day.

How do you build a neighborhood bar in a cosmopolitan city? How do you manage a busy business and a large family? What are the challenges and the rewards of owning your own business? Here, Mary spills the beans as she cuts the carrots.

Did you always know you wanted to own a bar?

Yes, ever since I moved to America from Ireland and started working as a bartender 25 years ago. I had worked as a bartender for 18 years before I opened Mary O's in 2009.  

Do you think you would be able to get your business started the same way today that you did when you opened?

I think so, though the banks have become more difficult to deal with. Getting a line of credit was easier when I was starting, though I started my business with personal savings, not with a bank loan. Now, I get the sense that you have to jump through a lot more hoops if you were trying for a credit.

Other than when you first started the bar, when did you have the biggest need for business funding?

It takes time to build a clientele. I am a one woman show.  The financial pressure was most tangible a year, year and a half into the business. My client base was growing, but 2009 was a very difficult year to start. I was working around the clock - and of course still am.

What are some things you know now that you wished you knew when you opened the bar?

If I had to give advice to someone who is starting their business now, I would say be more cautious about what is going to happen in the first year or two. Consider that you may need backup money if things don't go as well as you hoped for.

How do you manage to run a successful bar and take care of your family without missing a beat?

There is no secret. It's hard work and no sleep! I can't tell you how hard it is. The guilt--when I have to leave my kids because the business needs me--is tough. But my Irish stubbornness keeps me going. It's all blood, sweat and tears.

If you couldn’t have this job, what job would you have?

My husband is a longshoreman. Had I not opened the bar, I would've moved to Alaska, so my children could have the "good life." But I wanted to have a bar--I had to give it a try! I wish I could be that 9-to-5 lady, but I'm not. When I have a bar full of people and everybody is having a good time, I thrive on that.

What part does your neighborhood/community play when it comes to the success of your business?

A very big one. We are very much a local bar, a neighborhood staple.

What makes your customers loyal?

Our customers keep coming back, not just because of our drinks and food (and it's all excellent; Mary O's qualifies as a true gastropub), but also because of the warm welcome and the personal connection I have with all my regular customers.

How important is social media to Mary O’s?

I use Facebook all the time, and all my customers are on it. They post pictures and learn what's going on. Roughly half of my customers are women, maybe because of me. It's a comfortable place to have a beer and a chat.

You were born in Ireland. Is St Patrick’s day celebrated any differently over there?

Years ago it was very different. It was more religious. You went to mass, you walked in the parade, you broke your fast. Many people would stop drinking during lent and they'd have their first beer on St Patrick's day. Maybe that's where the drinking tradition on St. Patrick’s day started.  Now the Irish have followed the American way and party more. In my family we still follow the Irish tradition. I am busy at work, but my two oldest sons will walk in the Parade on 5th Avenue later today. The luck of the Irish, I have a very good friend who will take them.

St. Patrick’s Day is presumably a big day for your business. Will your mix of customers be different today?

Same people, only more of them. I have baked 40 breads for today! We are possibly the only Irish bar in New York that makes home made Irish soda bread from scratch.

What’s your St Patrick’s Special?

Lots of food: Corned beef and cabbage, Irish stew, shepherd’s pie, chicken pie, Dublin style chicken curry, and beer battered fish & chips....and lots of drinks: Hot toddies, Irish coffees, Guinness, Smithwick's, and of course, the Irish-American  "Irish car bombs"--that no one really does in Ireland.

Speaking of Guinness, how would you react if a customer complained that your Guinness is warm?

Actually they won't, because we keep our Guinness chilled to meet local taste.  But if an Irishman had a glass of very chilled Guinness, I guarantee you, you will hear about it!

Mary O's is located at 32 Avenue A in Manhattan's East Village. [phone]

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Do you find Mary's story as inspiring as we do?

Turning your own small business dream into reality may be easier than you think. Learn more HERE.

[lendoor-blog]

Everyone wants to be a part, to connect …

The uplifting story of Nicole Allen, founder of Roots On Tap, an organic/local juice bar opening in Dallas this month.

Nicole partially financed her venture with a loan she crowdfunded on Lendoor. In 30 days she raised $10,000, borrowing between $100 and $1,000 from 20 friends and fans.

Green magic

How to infuse energy into your daily grind? For Nicole, the answer came in a glass. One day, a friend mixed her an energy drink. She’s never had leafy green vegetable juice before, but she drank it and bang! She was hooked.

What have you been drinking?

Nicole bought a blender and started making her own smoothies. Her skin was glowing, her energy level increased. Her co-workers started noticing. Could she make some for them too? Before she knew it, there was a following. Mornings were spent blending piles of kale and swiss chard. The costs started affecting her budget. Someone suggested she should start selling it. Roots On Tap was born.

Her organic business grew organically

First from her own kitchen, then from a commercial kitchen, Nicole started mixing her delicious organic drinks and selling at weekend fairs and through direct orders. After three years she left her job to open Roots On Tap’s first retail location in a trendy Dallas neighborhood next to concept restaurants and fresh coffee rosters.

Mr. Banker, don't tell me how to run my business  

Nicole started Roots On Tap mostly with her own savings but needed financing for equipment. The banks were willing to lend, but they wanted her to get cheap equipment. “I need to get what is right for my business: a cooler that will stay true to it’s temperature, not just cool...“ “If I don’t offer superior product, how am I going to stand out amongst the other juice bars popping up?”

With a little help from her friends

Instead of settling for second rate equipment, Nicole started a loan campaign on Lendoor to fund the equipment she needed to delight her customers. In 30 days she raised $10,000, borrowing amounts between $100 and $1,000 from 20 of her friends and fans. “Almost all of my lenders are customers.” Running a campaign has been a great experience for Nicole. “Everyone wants to be a part, to connect… Regardless of the amount they lent, they were all very excited when I hit my goal and called to congratulate me.”

The Grand Opening  

Nicole’s lenders are invited to a launch party to enjoy what they’ve helped create. For the rest of us, head to www.RootsOnTap.com where you can download an app to pre-order your fresh juice to pick up on your way to work or play. There is plenty to pick from - fruit or vegetable juices, smoothies, spa waters or cold brew tea or coffee mixed with nut milk. All organic, local and freshly made of course.

Niclole Allen

Photo: First Eye Photography

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Interested in starting your own loan project on Lendoor? Click HERE.

[lendoor-blog]

5 Reasons Crowdlending Will Become a Household Term by 2020

Considering how popular crowdlending has become today. Is there any doubt it will only continue to grow in prevalence over the coming years? While the date 2020 may be somewhat arbitrary, we know from the progress that’s been made since 2010 just how much can happen in five short years. And while yes, some bubbles do pop, and true, many trends do go sour, here we examine why the future for crowdlending is more than hopeful.

1. A new sense of maturity. If alternative finance were a human being, we could say that it is now safely out of its tricky adolescent period. While still not quite a full-fledged adult, the opportunity for stable growth is well underway as it becomes more and more recognized as the norm, as opposed to merely the alternative.

2. Venture Capitalists are on board. According to a recent Accenture study, global investments in the financial technology industry are growing significantly (201% last year). VC’s don’t make short-term bets, so when they are this significantly involved in a booming industry, you know they’ve got their sights set on the long-term.

3. People are becoming more comfortable bypassing banks. In the past, banks were the be-all and end-all in the loaning industry. Today’s lenders and borrowers, thanks to an increasing ennui with financial institutions, are more and more willing to go a different route. And with the great tools that have been set up to aid the process of peer-to-peer lending, it’s no longer seen as risky business.

4. The government’s in as well. The government has tried to incentivize banks to extend credit to small businesses. As crowdlending has gained more attention, however, the powers that be have turned their attention to this market, more recently adopting rules to permit intrastate offerings, in an effort to make crowdfunding a more viable method to raise funds.

5. Millennials. If anyone knows how to generate buzz and make something a household name, it’s this generation of social media and tech-savvy entrepreneurs. Millennials have taken to crowdlending like bees to a honeypot. Even better, they’re getting their parents and extended family on board.

Crowdlending is part of a new mentality and a new way of life for small businesses and entrepreneurs alike, not to mention their family members who want to support them. Our bold prediction for 2020?Crowdlending will be as household of a term as “bank loan” itself. Heck, it could happen a whole lot sooner. Want to discuss how Lendoor can help you to get in on this new way to fund your business? CONTACT US today.

Topics: crowdlending, funding

[lendoor-blog]

Title III Crowdfunding - what does it mean for my small business

Title III Crowdfunding (also called crowd finance) will allow small companies in the US to raise up to $1million per year by selling equity or debt "mini securities"  in crowdfunding style campaigns on the internet. In practical terms, this means that any corner coffee shop can try to raise a loan from their regular customers and local community, thus circumventing the traditional lending institutions that have become ever more restrictive in their lending requirements. The businesses can advertise freely their financial offerings to anyone. Everyone can invest,  not just accredited investors which is currently the case.   

What does a small business owner need to do to crowdfund: 

-  pick a licensed crowdfunding portal (crowdfunfding website) to conduct the offering 

- prepare disclosure statements (templates typically provided by the portal)

- conduct a successful crowdfundning campaign (it is still a crowdfunding, it is not "free money on the internet")

- provide financial update each year to his/her's investors

- registered business is required, as well as passing a background check 

Title III Crowdfunding is going to become available to small business owners starting in the second quarter of 2016. This comes after three and a half years of waiting for SEC to adopt rules for the implementation of Title III of the JOBS Act (Jumpstart Our Business StartUps Act) that was signed in April 2012.  While most of the media buzz has focused on equity financing, where everyday people can invest in fledging new startups and hope to get an equity stake in the next Facebook, the reality is that very few of the 27 million small businesses in the US today are interested or appropriate for equity investing. Most of them just need a loan.

[lendoor-blog]

Title III, not just Equity Crowdfunding

The adoption of Title III Crowdfunding Rules last Friday means that small companies in the US will finally be able to raise capital from anyone, not just accredited investors starting in the first quarter of 2016. While most of the media buzz has focused on equity financing, where everyday people can invest in fledging new startups and hope to get an equity stake in the next Facebook, the reality is that very few of the 27 million small businesses in the US today are interested or appropriate for equity investing. Most of them just need a loan.

As a crowdlending platform and crowdfunding trailblazers, here at Lendoor we are all very excited by the recent Title III Rules adoption. As soon as the new Rules are in effect and we have obtained the proper licensing, we will be able to facilitate the crowdfunding of business loans on terms offered by the borrowers. Until then, Lendoor will continue to facilitate personal loans in private, “crowdfunding style” campaigns that allow entrepreneurs to borrow small amounts from friends, relatives and other people in their social networks. Because those fundraising pitches are not opened to the general public, they are not subject to the SEC's new crowdfunding rules.

[lendoor-blog]

Title III Crowdfunding, Lendoor's perspective in American Banker

Lendoor's CEO Viktoria Krane talks frankly to American Banker Newspaper about her excitement and her concerns about Title III Crowdfunding rules that were adopted yesterday by SEC.

- - -

The new regulations would seem to impose fewer burdens on small-business owners than the agency's 2013 draft rules contemplated. Still, it remains to be seen if crowdfunding will emerge as a viable source of financing for small businesses.

One problem is that many small businesses looking to raise either debt or equity online have little in the way of money or sophistication, and that can be a problem when trying to navigate complex regulations, said Viktoria Krane, the chief executive officer of Lendoor, a crowdfunding site.

"Not necessarily the next Facebook, but the next local auto mechanic," she said, describing the typical small business that turns to crowdfunding.

For such companies, which may be seeking to raise $20,000 to $50,000 in startup capital, the costs of complying with the SEC's regulations may not make financial sense, she added.

Krane founded New York-based Lendoor in 2013 with plans to become a national crowdfunding portal operating according to the SEC's rules. But as the agency dragged its feet, Lendoor changed its strategy and started operating in Texas, which had adopted its own crowdfunding rules.

Now the company is switching gears again, repositioning itself as a place for entrepreneurs to raise money from friends, relatives and other people in their social networks.

Because those fundraising pitches will not be open to the general public, the company will not be subject to the SEC's new crowdfunding rules.

"After two years of waiting, I would have expected to be a little bit more excited," Krane said. "But my feelings are mixed."

Read the full article here: http://hubs.ly/H01lMTm0.

[lendoor-blog]

How to Ask People for Money when Crowdfunding

When you have to ask people for money, suddenly the phone weighs 50 lbs, doesn’t it? Crowdfunding a loan on Lendoor makes it MUCH easier.  

Example of How the Conversation Might Flow

Rich:

"Bob, I thought I would give you a quick call to let you know that I will be expanding (or starting or moving) Rich’s Train Shop. It is a great business and we are expanding. Instead of going to the bank, I’m trying something new - I am crowdfunding my loan. I will send you the link to my online campaign."

Bob:

"Ah, is it that thing where I send money and you send me a T-shirt?"

Rich:                      

"No, no, this is official business with an official contract. The website has a full presentation and all the terms. If you have any questions, just post them on Lendoor and we will answer.”

Bob:

"But tell me more. What are you doing with the money, for example?"

Rich:

"Bob, I can tell you more, but the presentation on the Lendoor website is really straightforward. It will only take you a few minutes to look through. Thanks for taking a look. And, thanks for being interested.”

It's That Easy, Folks!

All of your communications will be a bit different. But the basics are:

You are raising capital

You are using crowdlending website Lendoor

All the details are on your Lendoor campaign page.

LEARN MORE ON LENDOOR.COM

[lendoor-blog]

What If I Don't Have a Network for Crowdfunding?

Do you believe that crowdfunding a loan is out of your reach because you don't have a network? Most people think the same way. The truth is that everybody does: friends, family, former colleagues, old school friends, and other people you interact with daily, even the guys you don’t know that well. And with loans from as little as $100, everyone can make a difference in your campaign’s success.

Friends and Family

Naturally, you should start with your friends and family. This is the traditional source of funding for most small businesses, because they know you and will support you.

Now make a mental checklist. Better yet, put it down on paper.  Are there people that you know that you have not been in touch with lately? Reach out and re-connect. You can use social media, email, phone calls, personal visits, etc. One of the unexpected benefits of crowdfunding is realizing how many people know and care about you.

Everybody Else

Think about your advisors and associates. They know you and their interests are naturally aligned with yours. They are accountants and bookkeepers, suppliers, dog walkers and babysitters, lawyers and even your local banker. It does not hurt to ask! They would all be happy to see you succeed.

How To Reach Your Network

This is the great part. Forget time-consuming, stressful face-to-face meetings. You simply need to let people know that you are raising a loan on Lendoor and then send them a link to your campaign page. You can use the phone, email, a quick mention after or during a business meeting, social media, etc.

There is no embarrassment on either side – it’s a loan, not a gift.  There is no shame in asking, and there is no stress about saying no, since it is all done online. It’s that simple, really.

LEARN MORE ON LENDOOR.COM