Latino-owned catering company savors growth with loan from Small Business Finance Fund
David Madero’s plan for his new Mexican food catering business – Los Cabritos (meaning Little Goats) – was deliberate and mapped out. He would start slow, giving himself time to finish his bachelor’s degree at Cal State Northridge. Then he would gradually turn up the marketing heat to attract new customers.
Success has a funny way of changing the best laid plans…for the better. David and his business partner and chef Juan Reynoso started receiving a flurry of word-of-mouth referrals for corporate and residential catering jobs. Realizing they had to gear up for this new demand, David first approached the West Valley BusinessSource Center, seeking capital to cover the purchase of more equipment – including grills, canopies and drink machines – and the development of an eye-popping attractive website.
L.A.-focused Small Business Lender Banks on Entrepreneurial Spirit
The BusinessSource Center helped David with a business plan and specified the documents he would need to apply for a loan. His next step was to share his story with Small Business Finance Fund, a community development financial institution (CDFI) and affiliate of CDC Small Business Finance.
“Helping Latino-owned start-up businesses like Los Cabritos is a priority for us,” said Robert Villarreal, president of Small Business Finance Fund. “It was clear David has a strong entrepreneurial spirit. He earned our confidence.”
David was quickly approved for a $50,000 small business loan to support his company’s growth.
Differentiation and Hard Work Spice Up Word-of-Mouth Business
“We want to push beyond the typical taco bar, which is so popular and competitive these days,” said David. “That’s why we’re expanding our
offerings to include margaritas and other unique beverages to help differentiate Los Cabritos.”
Although still in his 20s, David is no novice in the business world. He grew up working in restaurants and started Los Cabritos four years ago, working home and corporate catering gigs in the San Fernando Valley, mostly on weekends. He takes great pride in the savory sauces and other innovative homemade recipes his chef partner prepares fresh daily, all of which help stimulate word-of-mouth requests.
David’s current expansion strategy is to increase visibility and demand for Los Cabritos at farmers markets in the region. Then he plans to take his fare on the road with a food truck, which he plans to buy with his next loan.
“Helping Latino-owned start-up businesses like Los Cabritos is a priority for us.”
Small Business Finance Fund
“When that time comes, I won’t hesitate to call Small Business Finance Fund for more financing to hire more employees and boost our marketing efforts,” he said. “They provided us good advice and made the loan process easy. He and Small Business Finance Fund were willing to invest in us early on; we’ll remember that.”
Key Ingredient for Success: Ya Gotta Believe
Once young entrepreneurs gain experience on the business growth path for a while, they are more open to sharing the ingredients that went into their early success.
“You gotta believe in yourself 100% and push through your fears of the unknown,” he confided. “Step by step, one customer leads to another and pretty soon you’re on your way.”
Are you a Latino or African American entrepreneur in Los Angeles — and looking for an affordable loan to grow your business? Learn more about Small Business Finance Fund, offering loan products designed specifically for you.
Let’s talk! Contact Anna Marie Cruz at 626.529.0717 or email@example.com.
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