As a high schooler in the Dominican Republic, Daniella Senior started a catering business from her home to help fund her studies at the Culinary Institute of America.
After graduation, she leveraged her experience working at top restaurants in the Washington, DC, area to open Colada Shop. The chain of seven Cuban-inspired cafés serves specialty coffees, tropical cocktails, and seasonal food.
As the CEO of Colada Shop, Senior has been scaling the brand in Virginia, Maryland, and Washington, DC, for almost a decade.
She has six tips for setting yourself up for entrepreneurial success.
1. Build a resilient financial foundation
Senior recommends getting your finances in order before starting a business.
"This includes establishing strong credit, managing debt wisely, and creating a financial cushion for unforeseen circumstances," she said.
"The health of your personal credit does have a significant impact on your initial business credit. After you have a mature business with at least two years of credit history and formation, you can shift away from personal guarantees and personal credit."
She also highlighted the importance of understanding how your business will be taxed and seeking guidance from a financial advisor when necessary.
2. Value yourself
Senior says owners should compensate themselves with a reasonable salary as they grow their businesses — which she struggled with initially. "I had to take a big pay cut from my day job," she said. At first, she paid herself a third of what she had been making.
"You need to understand and budget your expenses," she said. "Calculate what you need to receive every month to be able to live." That includes accounting for health insurance and a retirement plan, which had been covered by Senior's former employer.
"I think I initially undersold myself of what I was bringing to the table," she said. "You must factor expenses like salary, living costs, and healthcare."
3. Plan beyond the immediate
"Don't just focus on today's bottom line," she said. "Successful entrepreneurs anticipate future challenges and opportunities. This requires detailed financial projections that go beyond immediate revenue and expenses."
"When you open your business, especially brick and mortar, the first three months will be busy, especially if you have some media buzz," she said. "Be prepared to manage that pre-opening drop that many businesses, especially restaurants, experience."
4. Seek out mentorship and collaboration
Senior encourages aspiring business owners to seek guidance from people who have already navigated the challenges of entrepreneurship. "I didn't have anyone in this country to help me out financially because my family is in the Dominican Republic," she said. "In the beginning, it was very lonely. Once I started to meet more people after I opened my business, it was easier to expand my network to secure more funding."
"If you're impressed by a business," she said, "find the owner's email and say: 'I really admire your work. I'm an up-and-coming entrepreneur and would love to have a few minutes of your time just to ask some questions.'"
Senior frequently recommends the Latino Economic Development Center to other entrepreneurs in Washington, DC. Industry-specific organizations and networking opportunities, like those offered by the center, can provide targeted support and advice.
5. Be realistic
"Create a realistic business plan," Senior said, which includes accounting for all your expenses, including the cost of maintaining areas with customers. "Some people tend to leave out things like insurance costs."
She added that forgotten costs could derail projections. "Are you accounting for your employees' taxes or payroll processing fees?" she said.
She said entrepreneurs should plan for best-, probable-, and worst-case scenarios for sales. "Sure, we all want to go to the best-case scenario — but it might take a minute."
6. Don't forget to plan for retirement
While acknowledging the temptation to reinvest everything, Senior urged entrepreneurs to prioritize long-term security by setting up retirement accounts and contributing consistently.
Senior highlighted the accessibility of retirement accounts through banks. "Even if it's a small amount," she said, "make it a priority to save and set yourself up for the future."
