Behind the Business

Tailored Living is a home improvement franchise specializing in custom cabinetry and organization solutions.

Mike Stepanic, Tailored Living - Watch the story Mike Stepanic, Tailored Living - Watch the story

“Kabbage has been irreplaceable for my business.”

- Mike Stepanic

Kabbage helps Mike Stepanic expand his franchise and improve more homes

With two young children who are always on the go, Mike Stepanic says his family inspires his work in home improvement. Shaping his clients’ homes with custom cabinetry and garage storage solutions ultimately helps simplify their lives and reduce stress.

Mike has run a home improvement franchise since 2014 when he decided to pivot from a career spanning engineering, sales and product management to start his own business. He leaned toward buying into a proven business model and saw a great opportunity with Tailored Living featuring Premier Garage, the largest home organization franchise company in the U.S. and Canada. Tailored Living designs and installs custom home storage and organization systems as well as Premier One flooring options for commercial and residential properties. Mike bought his first territory serving Wilmington, Delaware, and surrounding areas in 2014. Months later, he added a second, neighboring territory after receiving numerous business inquiries. The expansion allowed Mike to service the greater Wilmington, DE and West Chester, PA areas.

Mike offered a full array of services from the beginning and, after closing his first few sales, he hired his first employee. Realizing he couldn’t sell and install at the same time, he hired another part-time employee after six months. Now, Mike employs specialists: two focused on closets and cabinetry, and two who work on garage floors.

 

Investing in marketing to generate leads and drive sales

Home installation services can be somewhat seasonal — business takes off in the spring and fall, then tapers off in winter. After becoming accustomed to the peaks and valleys of his industry, Mike began looking for an online lending option that would give him flexibility during slow months.

After hearing a Kabbage ad on the radio, Mike applied for a line of credit. He was set up within minutes. “I thought I did something wrong because of how simple it was,” he says.

Mike initially used his Kabbage account for marketing materials, such as print advertising and mailers. He increased his marketing spend by about 50 percent, which translated to a 25 percent increase in leads and a 30 percent increase in sales.

The loan “has been a lifeline,” he says. The time between the initial commitment to payment (post-installation) usually takes three to four weeks, and Kabbage helps cover unexpected costs in the interim.

 

Scaling the business

Kabbage plays an important role in Mike’s plans to scale his Tailored Living franchise. In the next year, he plans to grow by hiring a full-time salesperson, support operations by bringing on an administrative employee and grow his team of installation specialists. He also plans to use Kabbage funds to venture into commercial opportunities where the customer payment terms are longer, but materials and payroll must be paid on time.

“Kabbage has been irreplaceable for my business,” he says.

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footnotes

  1. Credit lines and pricing are subject to periodic review and change, including line and pricing reductions, line and pricing increases, or line eliminations. Individual requests for capital are separate installment loans. All loans are subject to credit approval. Frequently Asked Questions.
  2. Kabbage can approve you in minutes for up to $200,000 when we are able to automatically obtain your business data and verify your bank account. Lines of credit over $200,000 require a manual review. In some situations, errors may occur during the sign up process, or we may need to send micro-deposits to confirm your bank account for security purposes. If this is the case, it may take up to several days to provide you access to funding.
  3. The Kabbage Card is issued by Republic Bank & Trust Company, member FDIC, pursuant to license by Visa U.S.A., Inc. See the Cardholder Agreement for Terms & Conditions including fee schedule details.

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