Passion Remains Alive through Community Development Fund
Owners of UPS Store-Othello, Teferi Gebret Sadik and Abiy Tsega, have faced many challenges since they opened their business in 2006. The brothers had the right ingredients for a successful business: proper research, an extensive business plan development, and a vision to share their rich Ethiopian culture with the community. Located right in the heart of the Rainier Valley district, the cultural diversity directly benefited the brothers' visions for their business.
Everything started off smoothly, but changed quickly due to the Light Rail construction and weakening economy. Any profits that the shop had hoped to make were diminished. By the end of 2008, the brothers faced the dilemmas of declaring bankruptcy or worst yet, being forced to sell their business.
Fortunately for Sadik and Tsega, the Rainier Valley Community Development Fund (CDF) provided an operating loan in a few short months to sustain the business. “We would have closed in a matter of months had we not connected with the staff at CDF,” said Sadik. The assistance did not stop there, as the CDF staff worked diligently with the brothers to develop a cash flow protection plan and working capital restructure goal that will protect them in future periods of financial stress.
On July 16, 2009, the brothers celebrated the third anniversary of the UPS Store-Othello with families and friends. Because of CDF's assistance, the store has seen a 50% turnaround in sales, resulting in a wider range of business offerings to their customers. “We stayed in business only thanks to CDF,” said Sadik. The resources that CDF provide demonstrate the organization's commitment to preserve and honor the Valley's diverse history and its residents.
For fellow small business owners who are interested in the abundant resources from CDF, Sadik offers the following tips:
- Have a solid business plan in order for CDF to understand your goals and mission for your business.
- Be willing to do what it takes for the business to thrive (and CDF will be there alongside to support you).
- Partner with CDF. Besides the financial support, the CDF staff acts more like a partner than a lender and will constantly find opportunities to help your business succeed.
The Rainier Valley Community Development Fund provides economic development for local residents, businesses and developers through its loan programs.
Photographer: Flyright Productions