Lucia Ortega, successful owner/operator of Sierra Mexican Cafe and recent CDFI loan recipient, launched her business the hard way and wants you to learn from her mistakes.
VSEDC: Can you share your journey into entrepreneurship and what inspired you to start your business?
Lucia Ortega: I actually grew up in a family full of entrepreneurs. My family was in the newspaper industry for a long time, and it was good to them until it wasn’t. Before I jumped into business myself I attended Wellesley College in Massachusetts on a full-ride and eventually became a high school chemistry teacher for five years. Going back to teach in my community was a huge passion of mine.
VSEDC: That’s a significant shift from chemistry to business. What was the catalyst for that change?
Lucia Ortega: It really hit home when my grandfather became ill. I realized the immense financial burden on first-generation individuals. We often feel responsible for supporting three generations: ourselves, our parents, and our kids. I looked at my own lack of financial literacy and the fact that I had no savings, and I had to ask myself: How was I supposed to support them?
VSEDC: So, how did you take that first step?
Lucia Ortega: I decided to open a party rental business. I figured L.A. has great weather, so it would be a great business. I secured a small credit union loan and bought out a retiring business owner. That’s where I first learned about things like invoices and customer service. I quickly fell in love with entrepreneurship, but the physical demands of party rentals inspired me to seek a venture with more potential for a lasting legacy.
VSEDC: And that legacy led you toward the food industry?
Lucia Ortega: Exactly! After five years of teaching, I pivoted to food. Initially, I was selling quesadillas at a stand, inspired by my family’s roots in Puebla, but I soon realized that while Mexican food is popular, there are niches. Since many people weren’t familiar with Poblano food, I switched to tacos de guisado.
VSEDC: Transitioning to a brick-and-mortar cafe is a big leap. How did you manage the capital for that?
Lucia Ortega: I took a significant risk. I cashed out five years of retirement savings, which wiped those saving out. We found a small location, but our equipment wasn’t enough. To reduce the required capital, I transitioned the concept to a cafe. After securing another small loan for an espresso machine, it took about nine months to fully start operating.
VSEDC: How has the response been since you officially opened the doors?
Lucia Ortega: Within two to three months of selling espresso drinks, our revenue began doubling every couple of months. It’s been incredible to see, and a lot of that growth was really fueled by the power of social media.
VSEDC: As a woman entrepreneur, what were some of the unique challenges you faced while you were launching or growing the business?
Lucia Ortega: Honestly, despite having a college degree and a professional career, the biggest challenge was overcoming generational trauma and the mental barriers that come with it. While my family is supportive, that scarcity mindset and the fear of public failure often led to discouragement. They’ll ask, “Are you sure? You might fail.” That anxiety doesn’t just disappear; you just learn how to manage it. Even successful entrepreneurs with multi-million dollar revenues can question everything after a single bad day. It’s an ongoing process of building the confidence and competence to overcome those ingrained mental hurdles.
VSEDC: Capital is usually the biggest hurdle. Were there specific moments where access to funding felt like a brick wall?
Lucia Ortega: Multiple times. The primary barrier was really a lack of knowledge. When I got my brick-and-mortar location, I poured tens of thousands of dollars into it. When I finally applied for a loan, I was denied because my cash flow was negative – even though I had a business and a location!
Had I known better, I would have applied for that loan before leaving teaching, back when I had savings and a steady income. I had to learn the hard way. There’s also the predatory nature of high interest rates. Many of us initially rely on credit cards with rates up to 30%, which means a huge chunk of your hard-earned revenue goes straight to interest payments.
VSEDC: How did things change once you connected with a community lender or CDFI?
Lucia Ortega: That funding is coming at the exact moment we are ready to scale. It feels like a weight has been lifted off my shoulders. It ensures I can take care of my staff and keep the business open for the people who count on us. It’s the support we need to grow slowly and sustainably.
VSEDC: Does that financial support change how you feel personally when you walk into your shop every morning?
Lucia Ortega: It has significantly boosted my confidence. I can finally sit down and calculate that we have enough saved for three months or more of payroll. Having that “wiggle room” helps me sleep at night. It allows me to focus on strategically moving the business forward rather than constantly worrying about covering bi-weekly payroll.
VSEDC: Given the systemic barriers women face, what changes would you actually like to see in the lending landscape?
Lucia Ortega: I’d love to see a greater focus on education and transparency. Instead of just giving a hard “no” on an application, lenders should explain why and provide the knowledge needed to improve. Show us case studies!
We also need clearer communication around the differences between CDFIs or community lenders and traditional banks. Many people don’t understand the benefits of seeking alternatives outside their existing bank.
VSEDC: Was there a specific “turning point” where funding saved the day or helped you scale?
Lucia Ortega: The end of 2023 and into 2024 was critical. I received about $20,000 to $25,000 in grants over a few months. In food service, that’s barely enough to stay afloat for a month or two, but it’s what truly helped me survive that period.
I wish more people would apply for grants, even though they’re competitive. The application itself is a great exercise because it forces you to revisit your story, where you are now, and what your goals are.
VSEDC: Finally, how do you see your business impacting the local community, and why does that matter to you as a woman in this space?
Lucia Ortega: Sometimes I feel bad charging $8 for a drink, but I have to remind myself of the value. When I ask customers where else they’d get this quality of coffee, they name places like Long Beach, Downey, or Torrance. We’re saving them a 20-minute drive, gas money, and time by providing a desirable product right here in the community.
Creating something people actually want is powerful. We provide a safe, positive space for local kids to hang out after school and use the Wi-Fi. As a woman entrepreneur, I’m a role model. Other women leave their business cards at the shop, and seeing me put myself out there on social media inspires them to do the same. I want to prove that quality businesses can thrive in South LA. If you don’t risk it, you don’t win.
Lucia Ortega’s micro loan was funded by VSEDC’s CDFI (Community Development Financial Institution). The CDFI funding originated from an EQ2 loan investment for our CDFI from US Bank, a long-time supporter of VSEDC.
Lucia’s technical assistance and business education courses were through VSEDC’s Women’s Business Center, made possible by a generous grant from Wells Fargo.
