Oswaldo says that he loves being his own boss. After a successful career for working for various companies and a large distributor, he decided that he would break out on his own. Two and a half years later, Oswaldo’s dry-goods distribution business now has two employees and serves local delis, variety stores, and grocery stores in his Queens neighborhood.
Oswaldo has requested a loan of $6,000 to increase his inventory of dry goods. Priding himself on keeping his costs to a minimum, he has identified two major areas that will allow him to reduce overhead and inventory costs to a minimum.
Now, when Oswaldo makes a sale, he immediately takes the money to a wholesaler to make his next purchase. This process requires multiple trips each day and wastes large amounts of time and money. With a bit of a cash cushion, Oswaldo will be able to reduce the number of times he will have to visit a distributor, thereby saving on gas and time. Also, Oswaldo will be able to buy sale items in bulk. With a continuously growing business, he has spent all of his earned money on expansion and will now be able to reduce his costs simultaneously.
Despite starting a small business in a difficult economy, Oswaldo has grown his business into an established, profitable venture. With his loan, he will continue to expand his business. In the next five years he plans to purchase computers, create a Web site, and set up an electronic record-keeping system. His long term plan? “Keep growing!”