How three small businesses used PPP loans
Emily Loveland
Sage Healing Collective
525 S Tyler Road, Suite S, St. Charles, IL 60174
(331) 901-5672
Website: https://sagehealingcollective.com/
Email address: eloveland@elgin.edu
Q: What motivated you to start this business?
A: I was a solo chiropractor since 2009, but I always had a dream of opening my own day spa. I started working with Harriet Parker, director of the Illinois SBDC at Waubonsee Community College, about two years ago going over numbers and financial projections, the not-fun stuff. We started looking at growth opportunities. Before finding my facility, I looked at all kinds of buildings - rentals, old farms, everything. When I finally found the right location, I took my amazing business plan to the banks and I was offered an SBA loan in December 2019.
Q: Specifically, how did COVID-19 impact your business, and what's the biggest challenge you've faced this year?
A: We opened March 7. I had about 25 employees and had to tell them to go home in the first week. We're all hands-on care - nothing could be done remote. We did still see some patients during that time, but not enough to sustain the business.
Q: How did the Paycheck Protection Program help you meet that challenge?
A: When the PPP came out, I got approval right away with Byline Bank since I was an existing SBA customer. Unfortunately, the loan amount wasn't as much as I needed, because it was based on 2019 numbers that did not reflect my full payroll. But the PPP was a nice cushion for myself and other staff until we opened back up in June.
I also benefited from SBA's debt relief program, which provided six months of payments for all SBA-guaranteed loans. They automatically did it, with no application required.
I owe Harriet a world of gratitude. She made sure I didn't overextend myself. I had emergency funds - sadly I used them, but because I had them, we're going to survive and be OK as a business. I could have gone bankrupt as soon as I opened. We're going to make it and be stronger than ever. Soon it will be part of our story.
Q: What is one tip you'd offer someone starting their own business?
A: It would probably be to have a well-laid plan. Be comfortable with your plan. Go with your gut.
Devaughn Gibson
Von Lise Brand Hair Studio
2835 Aurora Ave., Suite 123, Unit 9, Naperville, IL 60540
(331) 425-4891
Website: https://vonlisebrand.com/
Email address: devaughngibson82@gmail.com
Q: What motivated you to start this business?
A: I started four years ago. I specialize in men's hair grooming, with a few women clients, as well as hair restoration. I was working in the shop and I had high aspirations of being my own boss. When I was trying to figure out my business in 2017, I signed up for a small business program at Waubonsee. I was trying to figure out what the best way to start my business. It helped me to elevate.
Q: Specifically, how did COVID-19 impact your business, and what's the biggest challenge you've faced this year?
A: I have a pretty big clientele. Shutting down put a halt on my income, but the most important thing was not being able to be there for my clients.
We've been fully open since June. I was able to get caught up on my bills and increase the value to my customers by adding new services and amenities. Now I offer a new product line of shampoo, conditioner and pomade.
Q: How did the Paycheck Protection Program help you meet that challenge?
A: Going from my typical business to nothing was a big hit. The PPP helped out with rent and replaced the income I was bringing in, so I could get ahead of my bills and extend my business.
Q: What is one tip you'd offer someone starting their own business?
A: The biggest tip is to trust the process and be patient. You have to respect the process. That's the biggest thing I had to learn. Don't take any shortcuts. Don't skip any steps.
Jason Schoepke
Vistasuite
130 W Liberty Dr., No. 200, Wheaton, IL 60187
(630) 639-0950
Website: https://www.vistasuite.com/
Email address: jason@vistasuite.com
Q: What motivated you to start this business?
A: I was born with an inherent propensity to build. I also frequently look for ways to improve things around me including processes, quality, efficiency and products.
To keep it simple, I'll narrow these down to three of the most recent main events. The first is I was a co-founding partner of PowerShares Capital Management. After a few short years, we were acquired by Invesco.
I continued to work in the business as a CMO with the opportunity to work with an amazing team. I then took a little time off quickly realizing that I had to find my next opportunity. This led me to taking a position with a financial media company, based out of New York, that was mostly technology based.
As for Vistasuite, while I was thinking of leaving the New York-based company and starting my own business, I began talking with two other people who were also contemplating starting a business.
They also had recently exited businesses they had built. Soon after, the three of us decided to work together and build a business. While discussing the consumer-based business, I would often find myself talking with people in business and simply asking them if they used photos in their business. For companies that did, I often heard the statement, "Yes we use photos, but it's a pain because… ."
After a few strategy meetings, we decided to change our business approach to build a B2B SaaS platform. This pivot involved the need for a web-based environment which we had to build from scratch along with complete rebuilds of our mobile apps that would perform better for our new targeted business users. Today, we now have Vistasuite, built to provide the easiest way for businesses to use photos and videos.
Q: Specifically, how did COVID-19 impact your business, and what's the biggest challenge you've faced this year?
A: The COVID-19 pandemic has directly affected our business in a number of ways including our target markets, tightened budgets, available time of employees and the changing environment. One of the obvious impacts that affected us is the restrictions companies placed on adding new programs or software given the reduction in their own cash flow. While we anticipate this to continue for the near future, we believe companies will adapt to the new normal and find ways to either reduce their spend (i.e., reduce real estate leases) or find ways to improve efficiencies (new software solutions for communication).
Q: How did the Paycheck Protection Program help you meet that challenge?
A: Support from the Paycheck Protection Program helped us in a few ways. First, some funds were used to pay us a minimum compensation, which basically covers our health insurance.
PPP also enabled us to adapt our business to the new market environment. Given all of the changes in early 2020, our business was faced with the new dynamics of the previously mentioned challenges. With some of the funding we engaged nine short-term hires across the country to help us to adapt our sales and marketing efforts to better position Vistasuite for distribution in the new market.
Q: What is one tip you'd offer someone starting their own small business?
A: Align and hire the right people. Very seldom does an entrepreneur build a great business by themselves. Many founders struggle with three issues: trust, pride and control. At some point you have to get over these mental obstacles. At some point you will have to trust others with responsibilities, information or finances. And as we know, pride comes before a fall so embrace confidence in who you are alone.
You don't have to prove to anyone if you truly know in your heart that you are good at what you do. Finally, you simply are not always the best person to manage every aspect of your business. Find great people who are better than you in those areas and empower them to help lead those business areas.