5 Successful Businesses that Started from a Loan
Having a good idea can sometimes be viewed as a curse. While the thought-upon venture can potentially bring forth inflows of sales, setting the operational cogs in motion comes as a stumbling block for aspiring entrepreneurs, as it involves plenty of cash outs. In some cases, people give up and wallow in regret. A dedicated entrepreneur, however, will find ways – many of which point to a small business loan.
The aforementioned scenario is a common occurrence in the realm of entrepreneurship, and those who fight hard to turn a fine idea into an actual business often end up doing so. Fruitful ventures have sprouted all over Australia, as their owners took the proverbial leap and secured small business funding for their prospective ventures. Now their journeys are considered inspirational tales.
Bullies patrol every school in the world and inflict terror on those unfortunate enough to catch their attention. Kim Smith was one those people. Throughout her childhood, she had bouts with oppressive schoolmates and her predisposition towards severe introversion. Instead of fighting back, she opted to just curl up in her corner and bear the brunt of abuse brought by bullies.
Smith survived her scholastic life bearing the scars of the past. She would then realise that other people don’t deserve to be subjected to such abuse, so she thought of putting up a foundation to help young girls gain more self-confidence and rise up against bullying. Backed by fourteen years of mastering behavioral science, Smith had the know-how and a newfound confidence to pull it off. Unfortunately, the same could not be said of her finances.
It was then when Smith realised she needed to pursue a means of business lending for her prospective venture. The path was relatively long and tedious for Smith, who had to go through eight weeks of business training on the New Enterprise Initiative Scheme (NEIS), but she had no qualms about the ordeal. In fact, she was thankful she went through it.
Smith would, then, get a government loan worth $14,000, which allowed her to put up PurPURE. Given her skill and determination, the organisation steadily grew and continues to do so. Her efforts managed to attract investors and a little army of volunteers. It’s just a matter of time before she completely makes a difference, not just in the lives of young Aussie women, but also on the front of non-profit organisations.
Running a farm and continually hurdling the upkeep are huge challenges for budding farm owners. Lou Moore, who witnessed his parents purchase a sizable plot of land when he was a kid, had many childhood memories of the family’s previously clandestine property. From those recollections came an idea, one that involved farm management and earning money out of raised cattle. He lacked experience (at that time), but his dreams were too powerful a force to keep him idle.
After gaining enough knowledge on the cattle industry, Moore went on to put up his dream cattle ranch. Things were expectedly tough, but he managed to eke out some growth for his enterprise. He noticed that the lack of finances was holding his business down. Doing a lot of research, he passed a comprehensive and well-detailed business plan along with other requirements to a bank.
Six months elapsed and Moore was still awaiting approval. Frustrated, he went to the government for assistance, and wound up getting business financing quickly. What started as a bold attempt is now a fast expanding business in the market. He continues to rely on business lending, instead of doling out profits, to keep his cash flow rhythmically moving to a very favorable tune.
Being in a successful business does not mean that small business funding schemes are beneath you. Take it from Greg Waldorf, former CEO of eHarmony, that a well-structured investment can unleash a proverbial dragon in the industry. The venture capitalist firm that Waldorf spearhead, Accel Partners, decided to take a chance on an invoicing app that fosters convenience and ease of use. Little did he know that Invoice2GO, upon receiving much needed cash, would later be used by more than 100,000 enterprises worldwide, and that figure is still growing.
Guess where Waldorf is working now. He is currently the CEO of Invoice2GO.
The Arcadia Group
Sir Phillip Green may not be Australian, but the products that his company handles are popular not just in Australia, but also in the entire world. The Arcadia Group owns clothing chains like Topshop, Topman, Dorothy Perkins and Burton and is now worth £3.88 billion. This is a far cry from where Green started. He probably didn’t think his retail business would grow this big.
Initially, Green imported pants from the Far East regions of the world. He acquired a mere £20,000 loan to fuel his operation, and as the story unfolded, he went on to achieve success in his field, eventually taking ownership of the Arcadia Group. Now he has more than enough money to fund multitudes of businesses.
Currently the UK’s largest sports retailer, Sports Direct has conquered the British market and has penetrated the hearts of sports fans in several different countries. Its owner, Mike Ashley, has a reported £3.75 billion worth of earnings. Life, however, wasn’t as peachy back then when Ashley dropped out of school.
He was always intrigued by sports, so much so that he took up squash and became a coach. That didn’t net ample amounts of income, thus he set his sights on putting up a ski shop but ski items still didn’t cut it. Apparently, a wider approach to sporting goods and a £10,000 business loan were what he needed to reap the rewards of his passion for sports. He founded Sports Direct and the rest is proverbial history.
Make no mistake, these five stories reflect what’s possible for any sort of business – as long as it’s fueled by unbreakable determination and some financial aid. The latter shouldn’t be too tough, since it can be secured through flexible financial packages offered by lending institutions. Just work on your drive and good things will happen.
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