Some world-beating entrepreneurs like John Catsimatidis, owner of the Red Apple Group and aspiring mayor of New York City scared up capital by getting to know the right people.
The son of a busboy, Catsimatidis entered the grocery industry in the summer of 1966, just after graduating from high school. Befriending the owner of a Manhattan superette, he started taking on more responsibilities. Four years later, the owner offered him a 50% stake in one of his stores, to be acquired over 10 months at a rate of $1,000 per month.
Within a few months, the store's sales doubled, and Catsimatidis was earning a profit of $500 per week (not bad for a 20-year-old back then). After dropping out of New York University just eight credits shy of a degree, he launched his own grocery chain, the Red Apple Group. Lacking working capital for inventory, Catsimatidis charmed vendors to let him buy on credit, something he says "would never happen today." By the age of 25, he owned 10 stores--debt-free--netting a combined $1 million on $25 million in sales. Today the Red Apple empire includes Gristede's, Sloan's and Red Apple. (Ezv)
Within a few months, the store's sales doubled, and Catsimatidis was earning a profit of $500 per week (not bad for a 20-year-old back then). After dropping out of New York University just eight credits shy of a degree, he launched his own grocery chain, the Red Apple Group. Lacking working capital for inventory, Catsimatidis charmed vendors to let him buy on credit, something he says "would never happen today." By the age of 25, he owned 10 stores--debt-free--netting a combined $1 million on $25 million in sales. Today the Red Apple empire includes Gristede's, Sloan's and Red Apple. (Ezv)
