Births in California as a business: how did a Russian woman start from scratch in the USA and become successful
'09.05.2019'
Source: Invest-Forsyte
A businesswoman from Ekaterinburg, Irina Malilay, has a fighting character. In 2001, she sold her business in her hometown and moved to California. Then she was 37 years old. In the US, she began life from scratch - worked for several years in the airline, then opened the company "Births in California". Malilay helps the Russians to get to the best clinics and obtain the citizenship of the newborn (by right of birth) in the United States.
The businesswoman toldInvest-ForsytheHow 2014’s political events influenced its business, what trends are relevant in medical tourism and why California is better than Miami.
Running from 90's
My story began in Yekaterinburg. After the end of the shopping college, I got a job at the meat factory. After working there for several years, I decided to start my own business. By that time I knew all the production processes, I had the right connections. At first, I bought products in vans and delivered them to stores. Then she opened her own shop. From 1991 to 1995, entrepreneurs tried to survive as best they could. For some, dashing 90-e were the beginning of the end, for others - an opportunity to earn. I got "in the stream" - there was no money in the country, the factories were overgrown with debts and gave the goods at a discount. But in 1998, my business was shattered by the fall of the ruble. I temporarily closed the store, having pledged $ 10 thousand to repair it, and the next day the dollar took off to 29 rubles. and you had to pay $ 150 thousand.
It was a lot of stress. My country, where I was born, collapsed. It was difficult for me to adopt a new Russia. In private life, too, were not the best times - the first marriage broke up. I wanted to start a new family and build a career in another country. In 2001, at a mature age (I was 37-38 at the time) and I got married with an elementary level of English and moved to live in California with my son from my first marriage. It was very difficult for me to adapt: I had to communicate with my husband on my fingers. The change of status also painfully hit the ego - in Russia I was “on a white horse”. One call - and I got everything I wanted. I had contacts with factory directors, tax and sanitary and epidemiological stations. But one day turned my whole life - in the USA I turned out to be nothing.
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Make yourself
First of all, I entered college and began to intensively learn English. After studying, I tried to work everywhere — I sold dishes and shoes, even I was a consultant to Mary Kay. When English became better, I aimed at the airline. At first there were failures - I lacked knowledge of English. In 2005, I passed a competition at Alaska Airlines and worked for five years as a VIP customer service manager. In 2010, she transferred to Delta and retired at the end of the same year. The company offered me a special “retirement” package - life-long flights for me and my family and free medical insurance. Perfect option.
What more could you want? In retirement, I launched the project “Childbirth in California”. The idea of business was suggested by acquaintances from Russia. They contacted me in 2010, asking for help organizing childbirth in America. I then did not know anything about these services and was very surprised. Friends have cited the example of the company "Miami-mama." Later it turned out that its co-founder is my former colleague from Alaska Airlines. She and her husband launched Miami-mom in a year, and in 2014, she sold it for more than $ 1 million. Realizing that the most profitable business now was to sell the service, I took out a bank loan and opened a birth management company in California. My business law is simple - never invest your money in business. You need to take good loans at a good percentage. If you go bankrupt, the US state systems will definitely support you, as was the case in 2008.
Before and after
My starting capital in the amount of $ 15 thousand went mainly to the creation and promotion of the site. If in 2010, I was more versed in Internet marketing and website creation, I would not overpay for Ukrainian IT specialists. Now the main stream of clients comes from Instagram, and only then from the site. California Births offers a variety of packages - economy costs from $ 17 900, comfort from $ 23 000, and premium from $ 29 990. Each of these packages includes housing search, doctor selection, my commission, pediatrician, clinic services, car rental, document translations, shopping excursion, etc. For the first four years, the business brought a good income - 5-6 people came to the United States per month. I kept the staff.
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Problems began after 2014: Russia closed its American consulates throughout the country. The ruble fell heavily. I will never forget the words of one client: “I came to America as a dollar billionaire, and am leaving for a ruble millionaire.” Over the past few years, an average of 5-6 people have come to us per year. For American visas we send clients to consulates located in Riga, Finland, Poland, Tel Aviv. Many are denied a visa, and some do not want to bother with getting a Schengen.
The Russians clearly had problems with money - earlier, medium and small business came to us not only from capitals, but from million-plus cities (Moscow region, Siberia, the Far East). Now, only owners of plants and large restaurant business from Moscow, St. Petersburg and the Crimea can afford birth in the United States. In the new environment, we have become more flexible - the package “Childbirth without intermediaries” costs $ 1500. It includes a meeting at the airport and a story about doctors and clinics. Customers decide for themselves whether to continue working with us or acting on their own.
This option is suitable for two categories of clients - those who travel a lot and speak good English and want to save money. Often, people with poor English and ignorance of the specifics of the medical system of the United States try to organize everything themselves and eventually overpay for childbirth. The hospital bills them for the bill, thinking that the costs are covered by the insurance company. Instead of finding out what the matter is, Russians pay for everything. They are afraid to speak English. They are afraid to make debts - otherwise the consulate will not give a visa next time.
Why is california better
California's main competitor in medical tourism is Miami. It is usually considered warmer there. Russians go to California to give birth from April to November, and from November to April they fly to Miami. Getting there 3 hours less than to Los Angeles. Some customers choose Miami because of the familiar environment - now there are so many Russians living there! Miami turned into a ruble. In California, there are not so many of our compatriots - an ideal place for those who want to “pull up” English. There is an opinion that giving birth in California is more expensive. This is not true - I do not advertise my clinics openly, because I do not want them to raise prices. The large influx of Chinese has already done its job - before the clinic cost $ 2800, but in 2014, prices rose to $ 5800, a doctor’s consultation went up to $ 4000. Even so, California is cheaper. For comparison: the Miami clinic costs $ 7000-8000, and the doctor’s services cost about $ 5000-6000.
My main difference from competitors is an individual approach. Each client receives a separate machine and translator from us. Recently, interest in in vitro fertilization (IVF) has grown. People after 40 years want more children. Prices for this procedure are much higher, but they do not care about our customers. They are more important than guarantees and confidentiality. Part of the request goes to the search for a surrogate mother. Surrogacy is prohibited in Germany, France and Sweden. In the US, it is fully regulated. There are differences in the legislation of some states: if during a pregnancy a surrogate mother becomes attached to a child, she has the right to keep it. In California, the law is on the side of biological parents.
Rely on yourself
Now the future of my business depends on the state. No matter how much I want, I cannot influence the political situation between countries. I hope that Russia's position will change, the consulates will open again in Moscow. I have no fear for the company: “Birth in California” is a business for the soul. At one time I bought several houses in Hawaii, Tennessee and California, and I receive income from their rental. During 19 years of living in the USA, I have never regretted my decision to move. I like that business lives honestly here.
I do not close the door in California, as I did in Russia. I pay taxes and I know for sure - nobody will come to me tomorrow and will not offer their “roof”. In the US, a cult of service reigns, and in Russia only traditions of quality service are laid. A domestic entrepreneur has to spin, sometimes wriggle, to stay afloat. In America, my life depends on me, not on circumstances or connections. She wanted to - and just opened a business, without ties or a rich dad.
