Wedding consultants Nicole Schwalge and Adrienna McDermott were working at David’s Bridal last year when they started talking about starting their own business — they knew the ins and outs of the bridal industry but didn’t know how and where to get started.
“The hardest part when you’re starting something is that you’ve worked in the industry, but how do you go from just nothing — no space, no designers — to actually opening a store and going to market?” said McDermott.
“I think we felt like we could do it, but didn’t know where to start,” said Schwalge.
McDermott and Schwalge first turned to business consultant group SCORE around July, where they were mentored by Kenneth Zapp, a former professor of economics and finance. Zapp put them in touch with the Small Business Assistance Corporation, a nonprofit business development organization supported by the city of Savannah.
By September, Schwalge said, they were able to secure a $60,000 low-interest loan, part of a Community Development Block Grant for women-owned and minority enterprises.
“We needed to go fast because we ideally wanted to be open in January,” said McDermott.
Five months later, the two say things are going well at their full-service bridal boutique, Ivory & Beau, located at 7302 Abercorn St. They say they will do approximately 20 to 25 weddings this year, which is about all they can handle.
Through Ivory and Beau, they say, they’ve created additional business for the photographers, florists, caterers and other vendors to whom they funnel brides — most of them from out of town.
Although the wedding industry is large in Savannah, McDermott says, they fill a niche for the more casual and quirky bride.
Nationwide, more women are tapping into their entrepreneurial streak, according to online financial website Biz2Credit. Their annual survey of 10,000 applications found that earnings among women-owned firms and the number of loans for which they applied had increased from 2012 to 2013.
In Georgia, the number of women seeking business loans ticked up from 26 percent to 29 percent, and their average credit score increased by one point from 594 to 595.
Locally, the city of Savannah does not collect demographic information on businesses with tax certificates, so it is harder to track stats on women-owned firms.
According to the SBAC, the number of applications submitted by women decreased from 2012 to 2013. In 2013, women made up 32.5 percent of successful applicants compared to 47 percent the year before.
However, this does not include women who may have used private lenders, banks or found backing from friends and family. Tony O’Reilly, president of SBAC, said an improving economy may bring more women to launch startups.
“Happily, we have seen an increase in women starting businesses in nontraditional sectors; construction, for example,” he said. “As the economy continues to rebound, we are optimistic that we will help more women in the region in realizing their entrepreneurial ambitions.”Out of $55.5 million in total projects funded in 2013 utilizing SBAC loans, guarantees and bank participation, $9.5 million, or 16.3 percent, went to businesses owned by women.
Over the years, O’Reilly said, the SBAC had assisted many women-owned businesses, as far back as Paula Deen’s restaurant to Red Clover Boutique and Lulu’s Chocolate Bar.
Schwalge said the business coaching and loan assistance were vital to their success.
“They (SBAC) helped back us because we’re both young and we don’t have a lot of collateral other than our cars — which aren’t worth close to what our loan is worth — so the SBAC helps connect you with the right resources,” said Schwalge.
McDermott said her advice to others is to be organized. She said they now have a huge binder that contains their five-year business plan, complete with details on everything from financing to dresses to designers.
They said they have a friend who works in the industry who now wants to start her own wedding-consulting business, and are able to help guide her through some of the initial steps.
“In terms of getting a loan, one thing we learned was to be really detailed,” said McDermott. “You have to be thorough and show your knowledge in the field, because if you don’t believe in it, why would someone else want to give you money?”