Friday, July 12, 2013

4 Multi-million Dollar Businesses that Started from Small Loans

They say great things come from small beginnings, and businesses are no exception.

Check out four examples of different million dollar enterprises that started from a very small loan. 

Starting a small business can be a lot of hard work, but sometimes a little hard work, faith, patience, and risk-taking can really pay off in the long-run.

Subway

This popular restaurant franchise started in 1965 when 17 year-old Fred Deluca borrowed $1,000 from his friend Pete to open up his sandwich store. (note: $1,000 in 1965 equates to about $7,000 today)

He got all the tools and appliances he needed by putting out ads for used ones in the local paper, and he almost went broke when he needed a new $550 sink installed. 

After another $1,000 loan and a lot of hard work, Deluca opened up more stores year after year until it grew into the world-wide franchise we know today. 

The Body Shop

In 1977, Anita Roddick started The Body Shop with a $6,800 loan from a bank (note: that equates to about $26,000 today). She got the idea from a small naturally made skincare shop in California, and she bought the rights to the name and launched her store in the UK. 

With the help of her daughters, she made natural and unique skincare products from her home and sold them at her shop.


Her customers appreciated that she encouraged them to reuse bottles and bring them back to be refilled to be economical and environmentally conscious. 

When she switched to the franchise model, her business exploded worldwide, and she became appointed as Dame Anita Roddick in 2003 by Queen Elizabeth II for her achievements in Britain. She sold the company to L’ Oreal in 2006.

Whole Foods

This famous health food store started when college dropout John Mackey and his girlfriend Rene Lawson Hardy borrowed $45,000 from family and friends to start SaferWay (a spoof on Safeway). 

Back then, they got evicted from their apartment after their landlord became frustrated when they started storing food at home. The couple then decided to just live in the store – using a hose to take showers.

After Saferway merged with Clarkesville Natural Foods Store, it became known as Whole Foods, but that wasn't the end of their struggles. 

Soon after the merger, a flood wiped out most of the inventory and destroyed much of the store, so friends and investors came to the rescue to help clean up the mess and get the company back up and running. 

After much strife and patience, it expanded to a multitude of states. Now, it is one of the most popular health food stores in the world. 

Domino's Pizza

After a rough childhood of living in orphanages and foster homes, Tom and James Monaghan got a $500 bank loan and bought DomiNicks pizza in Ypsilanti, Michigan in 1960. 

James sold his portion of the business back to his brother for a used Volkswagen Beetle shortly afterwards...perhaps one of the most regretful decisions of his life.


Tom renamed the business to Domino's Pizza and expanded it into a franchise. Originally, the dots on the Domino's logo were supposed to correspond to all the stores opened, but he abandoned the idea as the number of stores grew at such a rapid rate. 

The three dots currently on the logo represent how many stores the company had in 1969; Domino's is now the second largest pizza company in the U.S., second only to Pizza Hut.









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