Economy Office Supply Company | Application Preview
Economy Office Supply Company is seeking government grant funding to improve cash flow and stabilize operations after acquiring a business burdened by significant debt. The pandemic has severely impacted sales, causing a decline of over one-third, and many customers have shifted to remote work. However, the company retains a solid base of loyal customers, which they plan to rebuild upon while also seeking new accounts.
The company’s business plan focuses on hiring both outside and inside sales representatives to boost order flow and increase sales. Although gross profit margins have been low, efforts have been made since 2020 to enhance profitability. The company values its strong partnerships with vendors and aims to further reduce overhead costs while improving sales.
With 75 years of history in California, the business is committed to honoring its legacy. The new minority women owners, who have substantial industry experience, are determined to ensure the company’s success while caring for its long-standing employees. They seek funding to provide some financial flexibility as they navigate the current challenges.
In terms of competition, Economy Office Supply faces major players like Amazon, Staples, and Office Depot. However, the company prides itself on being a locally established entity that offers competitive pricing and outstanding customer service. By providing personalized delivery with familiar drivers and reinvesting profits into the local community, the company aims to maintain its competitive edge.
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General Information
Business Registration Number: 95-2908041
Location: Glendale, CA, United States
Length of Operation: 11plus
Number of Employees: 11-25 Employees
Annual Gross Income: $1M to $10M
Annual Gross Expense: $1M to $10M
Open to Loans: YES
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Funding Usage
We acquired this business from the previous owner with quite a bit of debt. We need cash flow to continue to stay in business. We need to hire outside and inside sales reps to increase business. The pandemic cut our business by more than 1/3. Therefore, many customers closed or now work from home. Our loyal customers are a strong foundation to get back on track with new accounts. We have longevity with our employees and feel strongly to go forward with a successful business.
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Business Plan
Hiring outside and inside sales reps we intend to increase our flow of orders and increase sales. Our gross profit is low, however, since 2020 we have worked on increasing the margins. We have very good business partnerships with our vendors and will continue to work with them. Lowering overhead, increasing sales, increasing gross profit we are determined to be a successful business again. We have been in business in California for 75 years and would like to continue the legacy. Taking over an established business in debt gives determination, integrity and hard work a good start. The two minority women who have taken on the business to continue are hard workers. We have been here for 35 and 26 years respectively. We want the business to continue to take care of the other employees who have been loyal to the company for years. We know what needs to be done to get the job done. We need some wiggle room for expenses. Our company has been owned by caring, determined, and hands on people who treated all employees fairly and made a great place to stay and work. Please know we want to keep the traditions going for future employees and families.
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Self Identified Competition
Top 3 competitors - Amazon, Staples and Office Depot. We have been in business before all of these companies and are still here able to sell to the businesses at competitive pricing and the best customer service. Our company is local to Glendale, CA and Los Angeles. All the monies spent with us goes back into the local economy and our employees live near by and spend their monies locally. We have excellent knowledgeable customer service that can help in real time. Our own trucks with our own employee delivery drivers are dependable and friendly. Most of our customers know our drivers as they are the same ones everyday.
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Contact Applicant
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