Meet Naihma and Eric Deady, owners of The Bike Commuter shop in Southeast Portland, and recent recipients of a small business loan through Multnomah County’s innovative microloan program.
The county’s microloan program -- with expert microlenders MercyCorps Northwest and Micro Enterprise Services of Oregon -- sparks economic growth locally by granting small loans to small businesses. Nearly $1 million in loans and technical assistance has been made available so far to support local entrepreneurs of color, immigrants and women -- groups that often face extra hurdles when trying to secure small business loans.
The Bike Commuter, which opened in the Sellwood neighborhood in January 2010, employs five people and prides itself on its down-to-earth attitude toward all bike enthusiasts, regardless of their experience level.
Once they opened, the Deadys witnessed substantial growth for their business and decided to turn to county microloan partner MercyCorps Northwest for financial and technical assistance in meeting the growing demand. And in June 2012, they received a business loan of $18,663 to support their flourishing establishment.
Here’s more about Naihma and Eric’s business journey, as well as the story of their microloan:
What made you want to open The Bike Commuter?
Naihma Deady: As bikers, both Eric and I hated the "snobby" attitude and treatment we would get while purchasing bicycles and accessories at other bike shops. We wanted to open up a shop that was not snobby and treated all people with respect. We also desired to be able to educate people about the benefits of having a bicycle as a part of your life, and the love of cycling itself.
How much has your business grown since you opened at the start of 2010?
Our business has grown three to four times in size, inventory, sales and services since we opened our doors. We moved to a larger space within the same building less than a year after opening.
What has this microloan of $18,663 helped you accomplish?
With the way that the vendors handle sales, we had a large number of invoices due during the summer months from pre-ordering bike inventory during the winter months. Although the totals were a part of our budget for the summer, they tied up the cash flow with large amounts having to be "saved" each week to pay them off.
This loan served as a consolidation of all invoices due during the months of May, June, July and August; it freed up cash flow during our highest season to be able to purchase more inventory, increase our payroll to handle three full-time employees and save money for winter cash flow.
Additionally, it helped me simplify the administration of our finances, payroll and budget calculations -- One check a month is easier than seven or eight to four different vendors and with different amounts, due dates.
The loan also freed up enough cash flow that we have been able to remodel our basement and start a "Sellwood Bicycle Collective” a self-repair space where riders can pay a small fee and have access to bike tools, a bike stand and one of our mechanics helping to answer their questions or assisting them with learning about bicycle mechanics.
Besides the loan, what other kinds of assistance has microloan program partner, MercyCorps Northwest provided you with?
Mercy Corps Northwest assisted me with bookkeeping by answering questions about different aspects of keeping a budget, knowing how to project for future months, understanding taxes, payroll taxes, state taxes, etc.
If you could extend one piece of advice to other small businesses owners starting out, what would it be?
To really put time and effort to create a solid business plan. Seek advice from professionals on how to create a business plan, to learn what banks, microlenders and other financial institutions look for, etc. It took us almost one year to get the plan ready. It was the best way to really immerse ourselves and learn about the bike industry, and specifically in our Sellwood neighborhood and all of Portland.
Click here to learn more about the county’s microloan program.
For more on The Bike Commuter, visit http://www.pdxbikecommuter.com, email info@pdxbikecommuter.com or call (503) 505-9200