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Last Update: Thursday July 29, 2021

Key Idea: Leave Profits In The Business

Most small business owners have to bootstrap their startup and that discipline tends to carry forward so the company can grow with its own cash.

Key Question:

A: 

Even as a former school teacher Jimmy was able to start his business without outside investors.  He started small and grew by reinvesting his profit.  He eventually found a banker who liked what Jimmy was doing and provided a line of credit. The banker also makes sure that Jimmy's vendors are paid on time.

You won't see business owners driving fancy cars or taking expensive vacations during the early years of running their companies.  Often it takes a decade or more before the owner can even think of buying a new car.  This is because cash is precious and can be expensive if borrowing is necessary.

A consistent quality we see in business owners is their ability to delay gratification. They can see that down the road they will be wealthy and they are willing to live on less now to build for the future.

Think about it

What new investments need to be made to move your business ahead?  What new technology is needed or what new market could be opened with a smart investment?

Clip from: Tile Connection - Jimmy Fand Sources Globally

Tampa: Meet Jimmy Fand and his wife, Maria. They were shopping for ceramic tile for a new home. Jimmy thought the selection in the USA was too limited and the prices were too high. So unlike most people, they started a business!

Their business, simply called The Tile Connection, is the largest North American importer of several tile manufacturers through Europe and South America.  Jimmy was born in Columbia (South America),  traveled the world extensively, and speaks Spanish, English, Italian and Portuguese. Jimmy came to New York City when he was 19, completed three university degrees, and became an American citizen. He met his wife, a Cuban-American.  They're a global people and they encourage us all to source globally!


The Tile Connection

Jimmy Fand, CEO

5906 Johns Rd
Tampa, FL 33634
813-885-2219

Office: 813-885-2219

Business Classification:
Construction, Specialty Retail

Year Founded: 1991

Leave Profits In The Business

HATTIE: What's the worst thing we could do as the owner?

JIMMY: Well, if the company's not properly capitalized, then, of course, the big thing will be to take those moneys out of the company. You must capitalize in order to be successful. If you live on credit, you would only have so much lifetime for that to catch up with you. And many businesses simply go under because they are undercapitalized. You always need capital. The banking institutions are there to help you, if you have a good financial report. But if you undercapitalize the company, of course, the company has nowhere to go but to go under.

HATTIE: So growing a business or amassing wealth really depends on being conservative.

JIMMY: And proper management of your moneys. That's very important.

I like adventure. I always did. I have calmed down lately because of my age and the fact that I have a family. I used to skydive. I used to practice a lot of sports that were considered dangerous. But going out there, you reach for people, you touch them, you look for them and that gives you a sense of security.

HATTIE: Is there a connection between entrepreneurship and bravery or courage?

JIMMY: Yes, I think so. And I won't call it bravery, but entrepreneur is an individual or sets of individuals who set up goals in creating things. We like to create. We normally don't like to buy things that are already created. We start from scratch many things. And that gives us so much power within ourselves. We have that willpower to create, to develop. And that's what our country's all about anyway.

A lot of people in the country have gotten used to getting things for free. Many people do not want to earn them. And if you don't earn what you have, you don't appreciate what you have. The American Dream, which is very much alive and I do believe is there, and anyone can take advantage of.

HATTIE: But it didn't happen overnight.

JIMMY: No, it did not happen overnight. I paid a very high price. I went to school, I worked while I was going to school and I worked many hours, and that is a price that you have to pay in order to be whatever you want to be.

Only those individuals, like myself, who had worked very hard to obtain what they have are able to appreciate those things even more and appreciate what the country has to offer us.

Many people in the country also believe that those of us that have come from overseas are not entitled to become successful, and that's the American way. Anyone who works for it is entitled to it. And in the process, you help the country. We create jobs. We pay very high taxes and enjoy, also, the benefits of the economy in the place we live.

HATTIE: What do you think is most important to you?

JIMMY: Your ability to be a human being, to think in terms of the needs of others as well, to create, to raise your family with very high standards and to bring them as good citizens with a very high degree of education. To me, education is very important.

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