Wonderland Toys & Classroom Resources
“The SBDC has been so valuable to us as new business owners. Our advisor helped us from the very beginning with everything from getting our business started, to managing our cash flow and inventory, to recently expanding our business to a new location.”
Hannah had a goal to open a new, more visible location for her toy store, but only after she attended to the fallout of the pandemic. Connecting with her SBDC advisors helped her forge a clear path through the chaos.
Challenge
While Hannah Stubblefield, owner of Wonderland Toys & Classroom Resources in Santa Cruz, was busy figuring out how to secure funding for a new location, a whole slew of other conundrums fell on her plate. The pandemic had hit, resulting in a surplus of inventory at her pop-up store that she had to immediately manage. She also needed help filling out the EIDL application properly.
Gameplan
Connecting with the SBDC, Hannah’s team of advisors included a specialist in marketing who provided her support in creating a just-in-time inventory system that helped her liquidate inventory and increase sales. Her financial advisor helped her prepare projections and personal financial statements in anticipation of the loan application. Still interested in buying a new location, the SBDC assisted Hannah with managing the Open to Buy Plan and controlling spending to adjust inventory to account for the new space.
Results
Although she had initially been turned down for the EIDL because of misreporting financials, the SBDC’s assistance turned Hannah’s application around and she was able to obtain $94,000. She also was able to hire two new, part-time employees and experienced an increase of profits of $85,500. Hannah also accomplished her goal of expanding into a more visible, new location at the Capitola Mall which was in part, made possible by a $150K loan (capital infusion).
