Small businesses are the backbone of our economy. They account for
99 percent of all U.S. firms, employ 57 million people in the U.S. and make up 63 percent of net new jobs. In addition to creating jobs and fostering economic opportunity, small businesses play an important role in driving innovation, competition and diversity.
In honor of
Global Entrepreneurship Week, we sat down with some of the most inspiring small businesses we work with across the globe to hear how they got started, what obstacles they’ve had to overcome and what advice they have for other aspiring entrepreneurs.
For the first in our series celebrating entrepreneurs and small businesses, we spoke with Mike Schmiedicke, the founder of
The Strong Oaks Woodshop, a small business based in Front Royal, Virginia, focused on transforming reclaimed wood into beautiful furniture.
Bill Ready: How did you come up with the idea for your business?
Mike Schmiedi>PayPal Working Capital. PayPal knew what we did in sales with them, and based off of that, they were willing to extend us a $100,000 loan all in. In a situation where nobody believed in us and we had nothing left, PayPal Working Capital was there for us. In just 10 months, we paid back the entirety of the loan and went from being on the verge of bankruptcy to a business with $1.5 million in sales. That loan made a big difference to me and my family and the families that are a part of our business and it kept our business alive.
BR: What advice do you have for other aspiring entrepreneurs thinking about starting their own business?
MS: Take a really sober look at it. It’s not the easiest road, you’ll face ups and downs, and getting started is the hardest part. Leaving predictable work and a steady paycheck for a really unpredictable world is not easy and it takes a specific type of person. But at the same time, it’s deeply fulfilling. For me, it’s hard to imagine going back and doing anything differently. Not everyone can honestly say they love what they do, but I genuinely do.
BR: Any lessons you’ve learned or tips you can share with other small businesses?
MS: When you first start your business you will likely feel compelled to say yes to everything. You just say yes because you’re so desperate do just about anything to make money and keep your business running. If there’s anything I’ve learned, it’s that I’m better off being very clear about what it is that we do and what we don’t. Be true to your vision to what it is that you really want to do and can do well.
Bill Ready, EVP, COO, PayPal