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 Business: The Nail Salon Next Door
Owner: Millie Balducci
Start of Operations: July 14, 2007
Location: Harlem (Fifth Avenue at 111th Street)
When Millie Balducci decided to start her own business, she knew she had a lot of work ahead of her. Millie had started working on a business plan and surveying Harlem for more than a year to find the right location. So when a storefront at 1330 Fifth Avenue became available, Millie was ready to take it.
The Nail Salon Next Door opened on July 14, 2007. Millie invested much of her savings in this venture, but she still needed additional working capital for the first few months of the business' operation. A few days before the grand opening, Millie applied for a business loan with Union Settlement Federal Credit Union.
After her request was denied by other community lenders, Millie was grateful for the reception she received when se approached the credit union. According to Millie "[The staff at the credit union] know what starting a new business is about. With [USFCU] there were no surprises, no asking for documents from A-Z, and then coming back saying 'no, we can't give you a loan unless you bring a co-signer'. What you guys did, is what the other small business lenders should do."
Her $25,000 loan request was approved in August 2007. As someone who invested in her own business, Millie is convinced that getting the right financing is a good way to establish a long-lasting business relationship with a financial institution. "If the person doesn't have enough money saved to start their business, then finding a good lender not only helps them get working capital, but also build credit".
 As she recounted the many hurdles that she had to overcome before arriving at the opening day, Millie shared the lessons she learned throughout the process. "I'd definitely advise whoever opens a business to do research first on the particular business. Also to do a market analysis of the area". But most of all, she said, "to get a good lawyer who can review the lease before they sign anything". The most valuable counsel that she received, she said, was to know that she could negotiate with the landlord three months rent-free while she was doing the leasehold improvements. |
