Small Business School
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Overview Transcript Case Study Video
Irene Frage loaned Lupe startup funds.
Irene Fraga loaned Lupe startup funds.
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Take The Plunge
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HATTIE: Hi, I'm Hattie Bryant. And this is SMALL BUSINESS SCHOOL. Every week right here, we tell you the truth about business, real, small business owners telling you their secrets.

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Transcript Segments
Small Business School
1. Take The Plunge
2. Stick To Your Core
3. Mine And Share The Data
4. Up Sell
5. Find The Right Mentor
6. Get A Banker Before You Need One
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7. Do Business Your Customer's Way
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8. Hire Family
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9. Use A List Professional

Step into our Master Class with Lupe Fraga and see for yourself how a bookkeeper-turned-business owner has built a company with elbow grease and love.

HATTIE: So whatever happened to the paperless office?

LUPE FRAGA: Right. Exactly. Hey, this has been one of the biggest, biggest misconceptions. We're selling more paper now than we ever have. We make your business day easier.

HATTIE: (Voiceover) ... is the slogan of Lupe's company, Tejas Office Products, which has been operating in Houston since 1961. If you need something to run your office, Tejas will find it and deliver it to your desk.

Unidentified Woman #1: One moment.

HATTIE: (Voiceover) Hundreds of customers can order via phone, fax or the Internet, and they will be taken care of by some 50 employees. While dozens of small office supply companies have either fallen off the edge or been absorbed by the big guys, this company is growing. Lupe's sales have increased 40 percent over last year, bringing the total to $7.5 million for the last 12 months.

LUPE: I was practicing as an accountant for Platoplex, Incorporated, a pipeline coating company here.

HATTIE: Are you a CPA?

LUPE: No, I'm not. I was doing accounting. And Jim Kindig, who had an office supply company, was servicing this company and he came to me and he asked me if I was interested in going into the office supply business. So being single and just having returned from the United States Army serving in France, I said, `Why not?' So I took the opportunity. He loaned me some money, co-signed the note at the bank. Had one delivery truck and one secretary, and that started me out.

HATTIE: You bought his business.

LUPE: Yes.

HATTIE: ...and he financed it for you.

LUPE: Yes. So I said to myself, `Listen, this is still not working out that well. I'm going to need a little more money.' So I had a fiancee, Irene, my wife, who was interested, of course, hopefully, in me making it. So I said, `Irene, I really need a couple of thousand dollars. That would really help me to meet my payroll this week. And could you help me out?' She did. I have never repaid the loan back, but I'm just wondering how much interest I owe her.

HATTIE: Did you think you'd ever get it back?

IRENE FRAGA: I didn't even think about it. I gave it to him.

HATTIE: You were 19 years old? IRENE: About 19, 20.

HATTIE: Where did you get $2,000 when you were 19 years old?

IRENE: I did very good in tips in what I did.

HATTIE: OK. You were a hairdresser and you earned it yourself. You earned it yourself.

IRENE: Yes.

HATTIE: So you loaned your hard-earned money to this young, handsome man that you were in love with who says, `Oh, gosh, I have a cash flow crunch. Do you have any cash?' IRENE: Yes.

HATTIE: And you loaned him your hard-earned money.

IRENE: Yes. Even when I was working, I always gave my mom some money. I didn't have everything when I was growing up. We were poor, but I saved.

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