* Prepare to tap debt financing. To move to the next stage of growth, the company will have to find more capital, Cooley says. He expects that the first orders from large retailers will be big, around 4,000 to 6,000 units, and cost the company $20,000 to $25,000 each to fill.
Cooley recommends that Newton apply for a $50,000 line of credit. With a line of credit, Newton uses only what she needs from the total.
The consultant, who helps other small firms find loans through the Valley Economic Development Center, says he will help her put together a loan package.
* Protect intellectual property. Cooley advises all small-business owners to be sure to protect their inventions, designs, writings and other intellectual property rights with patents, trademarks or copyrights. That protection is even more important when they step onto the national stage, Cooley says.
"The product is really good," he says. "She just needs more eyes on it."
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cyndia.zwahlen@latimes.com
If your company could benefit from a free business makeover, to be published in The Times, send a brief description of your company and its challenges to bizmakeover@latimes.com or to Business Makeover, Business Section, Los Angeles Times, 202 W. 1st St., Los Angeles CA 90012. Put your company name in the subject line, and include a daytime phone number.
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Elephants on the Wall
Business: The Altadena company designs and sells paint-by-number wall murals for children's rooms.
Owner: Patricia W. Newton
Employees: One part-timer
Revenue: $100,000 projected for 2008
Founded: July 2005
Start-up funds: $50,000 from credit cards, family and home equity loans
CHALLENGE
How to find and focus on the best direction for the business and find the money needed to grow.
GOAL
Newton wants to build a brand through more online sales (www.elephantsonthewall.com) and become a major player in stores such as Babies R Us, Target, Pottery Barn Kids and zoo gift shops.
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Meet the expert:
WARREN COOLEY
Cooley is director of retail and business services at the Valley Economic Development Center, a nonprofit organization that receives private and government funding to counsel entrepreneurs, arrange financing for businesses and foster job creation. The Van Nuys-based group has six offices in Los Angeles County and owns the Pacoima Development Federal Credit Union. Cooley has owned several businesses including an economic consulting and construction management business.
