'Foolish' Small Business Idea: In some countries, American clothes are considered a status symbol. Vahan realised if he purchased unwanted garments at rock bottom prices from Charity shops, he could afford to sell them in other countries.
Start-up Capital: Arrived in America 40 years ago with $20 in his pocket.
How small business idea was launched: Vahan Chamlian visited charity shop dealers like the Salvation Army and Goodwill. Bought unwanted garments.
Sales: Sold to any country where American clothes are desired as a status symbol. Today owns more than a dozen business enterprises, employing over 800 people.
Earnings: His Los Angeles-based companies, last year, earned $78 million.
Not all the garments donated to charities are sold, because even people who visit charity shops are discerning shoppers, and don't want some of the donated clothes on offer. Immigrant Vahan Chamlian, knew that in some countries, American clothes are considered a status symbol. So he turned buying rags into riches.
Vahan Chamlian, an Armenia-born entrepreneur, turned a simple idea into a highly successful business. After arriving in the United States 40 years ago with only $20, he founded a business that buys unwanted clothing from charity shops, preventing them from ending up in landfills. Through this process, Vahan not only makes a profit but also provides extra funds to charities. His ability to turn "garbage into gold" has led to a remarkable success story. Now, at 66, Vahan owns a million-dollar mansion, a private jet, and a Cadillac with a personalized license plate, 'LA RAGS.' His story highlights how a small business idea can lead to significant wealth while also benefiting communities.
His donations to charity have funded many worthy causes, and he paid for a private elementary school to be built, donating it to Glendale, California. The Armenia Fund, recently received $500,000 from Vahan Chamlian and his wife Anoush Chamlian.
All this - and $78million-a-year business empire - just from selling unwanted clothes.
p.s. Editors note- Yes this idea was a success in America, but it would also be a great idea here in the UK.