Often when you think of trendy hip clothing retailers you will think of Gap. The chain that is based in San Francisco, California was founded by Donald Fisher and Doris Fisher in 1969. Today it operates over 3,000 stores and employs over 150,000 people all over the world. In addition to its trademark brand it also owns and operates Banana Republic and Old Navy stores as well.
When Donald and Doris Fisher opened that first store in 1969 they did so in a theatre located on Ocean Avenue in San Jose, California. Early on it featured Levi's blue jeans, records and tapes. They were located near San Francisco State University and were trying to appeal to that younger hip generation. Shortly after opening though they decided to discontinue selling the records and tapes and to concentrate on selling clothes.
Gap saw a great deal of early success as they were able to hit on what the younger generation wanted to wear at the time. This look consisted of blue jeans and white cotton t-shirts otherwise known as the "basic look". By 1970 their store was doing a brisk $2 million a year in sales. They soon realized they would have to expand. And expand they did. By 1973 they had grown to 25 stores and were able to open their first of soon to be many east coast locations in Voorhees, New Jersey.
In 1974 realizing the name recognition the brand was developing the decision was made to start their own private label brands. By 1976 they were ready for their big coming out party as the company was able to go public on both the New York and Pacific stock exchanges. Their initial public offering was for 1.2 million shares.
They have two other trademark brands that operate their own stores. Banana Republic which was bought in 1983 is an upscale line of clothing but began as a catalog merchant featuring safari themed clothes. The other one Old Navy was launched in 1994 and is known as a value chain but with a specialty flair. Together the three brands make up Gap Inc. as it is known today.
Over the years Gap Inc. has had its share of problems. Everything from bad marketing and lack of focus to trademark disputes and labor issues. But they continue to work through these problems. Just imagine though the fact that a company with over 3,000 stores and 150,000 employees began as one store in an old theatre near a college. Donald Fisher and Doris Fisher had an idea and after finding some success with that idea they were not afraid to run with it. Regardless of the troubles of recent years they have left a legacy that will survive well into the future. And giving others inspiration that they if those two can build something so great why can't we all.
As a small business owner there is often times when face a cash crunch. If I were to approach a bank, there are chances that they won't give me a loan to finance my needs. This does not mean the end of the road for my business though. I can always build up the cash from factoring companies who are ready to provide me with the necessary finance. With ample help from business factoring services I have been able to grow my business to a large extent.
Small businesses generally have customers who pay after a period of 30 to 60 days or even more. There is a need for immediate cash to pay off certain bills, rents, and taxes. The cash requirement does not end with it. Funds are also required to pay salaries to employees, undertake any repairs or may be even purchase of some equipment. All these operating expenses cannot be put off to another date when the receivables are cleared.
Often you would apply for a loan from banks. The banks are generally unable to allot any loans to small businesses due to the constraints of credit ratings and the availability of assets as collateral. Moreover, the procedure is time consuming and it may be some time before you get the funds. An opportunity to grow may be lost if you have a shortfall of funds. All this can be overcome by using factoring services offered by different financial institution and even some of the banks.
Factoring involves selling of invoices or accounts receivables to the factoring companies. The factors will accept the receivables and provide you with cash, which may even is upto 80% of the invoice value. With this immediate cash in hand the bills can be paid off easily. While undertaking a new project, which needs the financial situation to be better off, factoring provides a double advantage. With receivables reduced I could impress a better financial situation and also show the availability of funds to satisfy any requirements of the project. The operational costs of the new contract can be well covered with funds in hand. This proved to be a major boost for my small business to grow.
As a small business extra efforts have to be put in for sales improvement. Innovative sales plans have to be developed to improve sales. With cash in hand I could go ahead with a few schemes that enhanced the sales. In other words you may say that with the receivables in hand to sell off you have ready cash to take up a marketing program. This helps in getting you more business, which means that you have more receivables, which you can use in a similar manner in the future. More customers means more sales that lead to increased profitability.
When I decided to use the factoring services the collection activities were taken over and completed by the factors. They relieved me from the task of collection. It allowed me to concentrate on other activities like accounting, sales and marketing.
Another advantage of using the factoring services for a small business is that the credit scores can be built up. As the receivables are reduced and cash in hand improves the balance sheet reflected a good financial situation of the business. It helps bring in more customers, as the financial situation seems sound.
Business factoring has helped my business in more ways than one. With the optimization of the cash flow, it has proved to be a morale booster for me as well as my vendors. I now have better control over the accounts receivables cycle bringing in greater discipline in my finances.
Kris Koonar has sinced written about articles on various topics from Site Promotion, Certified Public Accountants and Culture and Society. If you need a reputable Company then check out Phoenix Capital Group. They have been named one of the fastest growing c. Kris Koonar's top article generates over 550000 views. to your Favourites.