Lau and Dani's paths crossed to start a wonderful project that has impacted the lives of almost a thousand women
Leveraging what they had to start the DIY Club
When Ecuadorian Daniela Armendáriz (Dani) and Venezuelan Laura Villagómez (Lau) started the DIY Club business in 2017, it wasn't just the two of them. They were three partners. They embraced the opportunity to give women in Ecuador’s capital, Quito, the chance to learn how to sew.
Between the three of them they had almost no economic resources when they started, but they brought their human capital and a few personal assets to the table. Each one of them brought experience and knowledge, and most importantly, commitment, to the new venture. Lau–a fashion designer and garment maker–offered her living room and a sewing machine to start the business. Dani was the product designer. She dedicated her time to digital marketing and sales. The third partner, who is no longer with them because of personal reasons, provided a second sewing machine. Her biggest contribution, even after she left, was helping Lau and Dani open up channels with suppliers.
“This has been an integrated project because Dani knows what I don't know, and I know what Dani doesn't know.”
When the COVID-19 pandemic hit, Lau and Dani stopped teaching sewing courses. They had no students, so they found ways to adapt to the needs of the market at the time. They started producing personal protective equipment, mostly suits, to sell to hospitals in Quito. They did very well with sales. It was opportune, and they knew how to turn the tide to their benefit. The pandemic, which paralyzed most businesses around the world, did not stop them.
At a crossroads
Post-pandemic, however, they were not sure which direction to go. They did not have a clear vision. They wanted to be wise with the capital they had amassed by selling personal protective equipment, but they felt insecure and feared failing. They felt they needed a guide, a support that would shape and promote their business, which at the time was not yet formalized. As unsure as they were, one thing was clear: they needed business advice.
Opportunities found along the way
Though they had already participated in entrepreneurship courses, they continued to seek support from international organizations. Dani came across an advertisement for the United States Agency for International Development (USAID) Economic Integration Project through its partner, the World Council of Credit Unions (WOCCU). They reached out to WOCCU and were accepted to join the project.
The entrepreneurship training helped them review some topics they were already familiar with. Still, the biggest benefit for them was the personalized consultation services. Their advisor helped them come up with strategies, digital marketing, and graphic design.
"We developed the business model, we made changes to the business, and in the end we obtained seed capital," says Dani.
Their advisor recommended that they improve their sewing patterns and develop new courses, such as specialized courses for swimsuits and pajamas. She also encouraged them to participate in fairs and to rethink their business model and change the aspects that were necessary. Lau and Dani adjusted the payment methods available to their students to make them more accessible. Instead of asking prospective students to pay for the entire course up front, they are now offering monthly payment options. As a result, they were able to attract more students.
“You always learn something, from each person, from each course.”
Lau and Dani share how the USAID-funded project helped them see what they needed to do strategically to reactivate after the pandemic. They learned to be flexible and adapt their services according to the needs of the participants. If a student doesn't want to use expensive materials, they give her options. With the seed capital, they bought a printer to print didactic material, such as templates and sewing patterns. They also bought additional sewing machines, two for domestic use and one for industrial use.
Another benefit they obtained from the project was the opportunity to open a bank account and access credit with a cooperative. This helped their formalization and legalization process significantly. With credit from a cooperative, they bought supplies to open a store as part of the DIY Club and offer certain products to the students.
"This was the first time a financial institution gave us a loan," says Lau with a cheerful tone of voice.
Their business has grown much more since they joined the USAID-funded project. When they started, they had about 15 students enrolled in courses on a monthly basis. At the time of the interview, they had an average of 55 students per month. In terms of staffing, they went from being just the two of them to hiring four more employees. Now they are a team of six. Moreover, they have diversified their products and services. They have built new business relationships with factories and public institutions, offering specialized courses for groups.
A network of women
Lau and Dani have helped more than 900 women on their journey. They have trained them, but more so, they have been an example, a source of inspiration. They have supported women morally and encouraged them to keep going. According to Lau and Dani, out of the 900 women, 10 percent already have a business with an established brand.
“We are doing social work. We are helping people who cannot pay for the courses. We are not waiting to get rich to help, we are helping.”
Lau shares how at the DIY Club they have created a community in which they care about each other.
“If something happens to one of them, there is always someone else to offer help. If we find out that a student is going through some difficulty or bad moment, we try to cheer her up, distract her, and inject her with a dose of optimism.”
Personal growth
Lau and Dani shared what they learned together along the way, as individuals and also what they learned from each other. They learned to be resilient, be more organized, and to seek help. From Lau, Dani learned to be more assertive and self-confident. She also learned to do things with more enthusiasm. Dani says Lau’s energy, her love for others, and her optimism have influenced her.
“Though I [Dani] am the host in Ecuador and Lau is the immigrant, it was really her who opened the doors of her home to me.”
On the other hand, Lau says that she learned from Dani to be more patient, less explosive, and to take things easy. Dani has helped Lau to see things clearly, to visualize solutions to problems.
Together they have learned to be persistent, to continue working towards their goals and helping other women. With the support received they feel reassured that they are on the right track. They know that there are organizations like USAID that provide support and opportunities to those who seek them.
Values
Collaboration, association, teamwork, and inclusion are the core values at the DIY Club. Dani and Lau set an example for other women to help each other. This is seen both on a personal level and on an organizational level. Dani and Lau try to ensure that each class has a diversity of participants, of different nationalities and from different social classes.
Their advice to other women, especially migrants, is to not give up. People should make an effort to adapt, integrate into society, and learn to reinvent themselves.
Lau and Dani have plans to continue growing. They plan to open a new branch in 2024 and they hope to continue building a community of and for women to support one another. They want to continue offering safe spaces for more women and helping them achieve their goals.
About this Story
Venezuelans have been forced to emigrate due to dire political and economic conditions at home, and many need help in establishing a new livelihood in their host country. USAID supports the World Council of Credit Unions’ (WOCCU) Economic Inclusion Project. The project improves economic opportunities for Venezuelans and Ecuadorians through activities that support labor market insertion, strengthen microenterprises, and facilitate access to financial services.
USAID has supported over 40,000 Venezuelans and Ecuadorians in their efforts to launch and expand their businesses.
Photos by WOCCU
Narrative by USAID/Ecuador
Geotag/Location: Quito, Ecuador