BANGS Shoes has evolved its business model over the last year or so to focus it’s efforts on one non-profit partner, KIVA.
From the moment Hannah first envisioned BANGS Shoes, she was devoted to helping people help themselves and making the world a better place. That vision remains firmly intact today!
KIVA is an amazing organization with vast reach. Over 3 million people have contributed to KIVA. It operates in the United States and 75 other developing and emerging countries, making “micro finance” (small) loans to more than 1.3 million entrepreneurs. Nearly 99% of the loans they make are repaid, an impressive figure for sure especially considering that the borrowers are from some of the most poverty stricken areas of the world.
See more about them on our partner page at KIVA.
Some of the things we love about KIVA include….
1) Getting to hand-select the entrepreneur! This gives us a real personal connection, and a look into the challenges they face and the optimism and determination they show in improving their lives!
2) The ability to track the success of that entrepreneur through the term of their repayment. So, we know where our money goes and can celebrate a tangible result!
3) KIVA is truly “the gift that keeps on giving.” We think that the only way to truly eradicate poverty is to have people stand on their own two feet. To empower them to change their lives, for good! But beyond that, unlike a one-time gift, the loans are repaid and then lent out again and again. Pretty cool!
So, we sometimes get asked, how much of our shoe purchase goes to KIVA. Good question so here goes.
First off, our business model is built to contribute 20% of BANGS Shoes net profits to KIVA and to be a self-sustaining company. So, the more successful we are, the more we contribute. Makes sense, right?
For some context, a REALLY successful footwear company would make about 10% of sales or at our selling prices about $5-6 a pair. As a start-up, we are aspiring to be one of those great companies.
Let’s say we are able to build to a $10 million company, still small by industry standards. If we sustain that for just ten years, we would be expecting to make about $2,000,000 a YEAR in loans. Loans can be made for as little as $25 each, which would contribute to 80,000 entrepreneurs. If we could get to $100 million, we would be making $20,000,000 in loans to as many as 800,000 entrepreneurs. And we would continue to grow from there.
Those numbers get me jumping out of bed every morning!
With your purchase of BANGS Shoes, you can become a part of making all of this a reality.
Stand with us and let’s make this happen!
BANGS Shoes, a proud partner with KIVA, the gift that keeps on giving.
Let us know what you think!
George is BANGS Shoes Chairman and has been with the company since the beginning. We think he’s the bee’s knees!