The cover story of the July issue of Inc. magazine focuses on "Great Companies Started For $1,000 or Less." And Ken Burke, who is on the cover, is an example of what can happen in these exciting entrepreneurial days!
Burke is the founder of Multimedia Live. He didn't have much money back in 1995 when he opened his doors, but he did possess ingenuity, a doggedness and some chutzpah!
He compensated for his lack of money with a barter deal. His Petaluma (CA )-based, e-commerce web design company bartered with the promoters of the Online Expo in Los Angeles.
In exchange for a booth, Burke agreed to give seminars about the Internet during the entire show. The show was packed and Burke spent all three days repeating his 15-minute talk about the Internet's potential. It was great exposure for the 29-year-old.
At the show he also picked up his first very important customer, Guthy-Renker Corp. (an infomercial/marketing company which markets Tony Robbins, etc.), as they had a fledging internet division. Burke's company may have started with $500, but with a lift from barter they got off to a fast start...this year they expect to do $25 million in sales!
Sean Debow, the regional head of valuation at Warburg Dillon Read in Hong Kong is concerned about the use of barter transactions in valuing Asian internet companies.
"We are not particularly uncomfortable about the use of barter but rather the disclosure....because we don't know how much of it is disclosed to investors."
Debow says barter "has the ability in raising the sales and therefore pushes up the valuation." And, he cautioned, "You must focus on the value drivers. Get as close to the cash flow as possible, keep an eye on the business plan and farther away from the hype."
Liquidation.com got a real boost in valuable exposure by being selected for the weekly television program "World Business Review," which is hosted by General Alexander Haig, former Secretary of State during the Reagan administration.
Liquidation.com offers buyers and sellers a complete range of business services tailored to the annual $350 billion excess inventory and surplus asset market.
According to William Angrick III, Chairman, CEO, and cofounder of Liquidation.com, "Most business managers view the task of liquidating excess inventories as a time-consuming, frustrating and expensive process that distracts from their core business. And," he continued, "there is no centralized marketplace to evaluate and purchase business surplus, resulting in fewer deals and longer transaction cycles."
Angrick aims to transform the fragmented, labor-intensive process of selling surplus business assets into a simple and convenient experience for business customers around the globe.
The services offered in this ad are exactly what you receive when you work through your trade exchange. In today's competitive economy who can't see the value of this unusual offer?
Compare the offer above to that of a typical commissioned salesman, where not only is the commission substantially more than 10%, but other costs must be shouldered too...base salary, expense accounts, perks, vacation time, etc.
Working through your exchange to make those extra sales, and then using the earned trade dollars for selected needed purchases to build your business, is the smart way to operate. Give your bartering efforts the time they deserve.
You'll be glad you did when you see how trading increases and conserves your company's cash flow. The payoff is many, many times the effort you expend.
The National Association of Trade Exchanges (NATE) has announced that a new BANC website will be developed by Daniel and Robert Kurzweil of Obvious Choices. They have also been awarded the new contract to be the BANC administrator, replacing Danny Weibling's DWW Software, which has provided the BANC with three years of excellent service.
BeautyMerchant.com has signed a strategic alliance with Network Commerce and expects to become a leading member of Ubarter.com, a division of Network Commerce. BeautyMerchant, a mega online beauty superstore, guarantees the lowest prices on the Internet and retails over 8,000 products, including the top name brand cosmetics.
Australia's Bartercard, one of the world's largest trade exchanges, has made another acquisition. This one is Bartercard's major competitor in New Zealand...ITEX Tradebanc Limited, a trade exchange which has 500 members and generates approximately NZ$6 million annually in trading activity.
The ITEX Corporation (Pink Sheets: ITEX) has filed its 2nd and 3rd quarter fiscal 2000 10-Qs. Profit for the first three quarters of fiscal 2000 totaled $921,000 on revenues of $11,243,000, compared to losses of $5,795,000 on revenues of $13,769,000 last year.
Announcement: The yearly review for the administrator and technical support for the International Reciprocal Trade Association (IRTA) Universal Currency program will be up for renewal. If you would like to submit a proposal, contact IRTA at (312) 461-0236.