For as long as Leo can remember, he has always loved electronics, specifically consumer electronics such as stereos, smart phones and tablet computers. Leo was one of the few people who has been able to successfully transition their passion into a business, a successful one at that.
About 16 years ago, Leo set up a consumer electronics store in mid-town Manhattan. The use of mail order and his ability to source high-end and unique inventory enabled his shop to thrive.
Back in the day, when the Internet was just starting getting started, Leo used to have to spend hours on end looking for the latest and most promising hardware and technologies. For the longest time, Leo would have to make a huge number of phone calls to source his inventory. For the past several years, it has been easier for Leo to source his inventory online rather than with phone calls.
Leo’s first working capital financing
Almost four years ago, realizing he had to do something differently, Leo took the first step to build a website for his business that would streamline the sourcing process. He reached out to us and first spoke with Jerry to discuss a working capital financing for his business.
From the proceeds of the Working capital financing, Leo set about creating a new website and Internet strategy to help grow his business. From when he first applied online to when he received his financing proceeds, all but 40 hours had passed. Once the financing proceeds were posted to his bank account, he set about getting started on his new website.
Working with a professional website developer, Leo was able to design, develop and deploy his website in less than 8 weeks. Once released, it did not take Leo long to realize that the website was going to be successful. He was able to close his first deal of inventory sourced online in about three business days.
As his website matured, Leo needed help running the website in addition to managing the store. He turned to his brother Joseph for assistance. His time was split equally helping around the store and running the site.
Growth, part 2
About a year ago, Joseph started experimenting with social media marketing in order to build out a new business channel. Within no time, he was able to ‘crack the code’, so to speak in order to take the website and social media profiles to the next level.
About five months ago, after being very impressed with the results of Joseph’s experiments, Leo reached out to Esteban, his Zip Capital Group account manager. After discussing the situation with Esteban, Leo decided to apply for a second working capital financing.
From when Leo decided to apply to when he received the proceeds from Zip Capital Group, all but 32 hours had passed. Leo received the funds from his financing application on an expedited basis.
Use of the financing proceeds
With the proceeds from the Zip Capital Group financing application, Joseph was able to start the upgrade to his website. He wanted to build up the site’s ecommerce capabilities and add better social media integration. Joseph’s plan was to sell inventory online using primarily social media channels, something that was pretty new amongst his competitors.
Within about 5 weeks, Joseph was able to see results from his marketing efforts. Orders were starting to come through directly from social media channels in increasing numbers. They were also getting a following online which usually translates into additional traffic to the site and sales in the near future.
The increase in sales is enabling Leo to pay down his working capital financing on an accelerated basis. Leo is beside himself with the initial results.