At Merci Milo, a children’s heirloom toy shop with brick-and-mortar storefronts in Los Angeles and Portland, a sense of wonder permeates the air. Owner Caroline Rodrigues has curated a treasure-hunting experience for young patrons, encouraging them to dig and discover the dolls, stuffies, books, and puzzles that speak to them most. The store was inspired by her daughter Milo’s creative energy. Later, a visit to a charming, traditional Parisian toy shop sealed the deal. But when it comes to the logistics of running Merci Milo, magic takes a back seat to managing cash flow and debt.
“Money’s very much going to be your number one topic running a small business and what people don’t understand is that debt is actually good in a business as long as you are expanding and growing,” said Rodrigues “A lot of small business owners that I talk to, they’re terrified to take that leap. I think debt can be a scary thing, but actually, if you understand how to utilize it, it can really benefit you and help you.”
For Rodrigues, retail and risk-taking run in the family. Her parents immigrated to the United States from Seoul, Korea in the 1980s — a leap that would ultimately lead to a burgeoning business. “They came here with only a hundred dollars in their pockets,” she said, “and they saved up money to open their very first retail store, a women’s clothing store.” By the nineties, they’d expanded and her grandfather also opened a children’s store.
It took perseverance for Rodrigues to continue the family’s legacy in entrepreneurship. “My family really did not want me to become a retail store owner,” she said. “They wanted me to become a doctor, lawyer, or CPA.” Though Caroline did pursue a business degree in college with a focus on accounting, operating her own shop was always part of the plan. “I would merchandise my father’s shop at age five,” she adds. “I always dreamed of having a shop of my own.”
What began as an online-only endeavor when Caroline and her family lived in Brooklyn in 2015 eventually manifested into a physical shop after they moved to Los Angeles. Then, when the family relocated to Portland, they opened the second Merci Milo.
Turning a lifelong dream into a reality has been eye-opening for Rodrigues. “It takes a lot of persistence, a lot of love, a lot of passion, a lot of ambition,” she said. “To be a small business owner, you have to really love what you do in order to succeed. A lot of people tend to give up early on. And what I want to say is never give up on your dreams. Do it. Go for it. Just stay on track.”
To be a small business owner, you have to really love what you do in order to succeed. A lot of people tend to give up early on. And what I want to say is never give up on your dreams. Do it. Go for it. Just stay on track. ”
Caroline Rodrigues → owner of Merci Milo
This dedication includes finding ways to use debt to your advantage. “Flexibility in capital or credit cards when times are tough or challenging is so important because we wouldn’t be able to run the actual operations,” said Rodrigues.
Caroline relies on careful budgeting to manage debt. “If you’re budgeting smart and know exactly what you need to use those funds for, you can definitely succeed,” she said, but there’s more to her continued success than that.
“I have a lot of confidence in myself,” said Rodrigues. “A lot of people are like, wow, you’re really gutsy. I can’t believe you’re racking up all this debt. And I’m like, well, I know I’m going to make that money back somehow, someday. All it takes is persistence and patience. And a lot of people don’t have that; unfortunately, they’re afraid to take that money. But what they don’t realize is that that capital you receive from Square is actually going to help you make more money in the long run.”
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