One Entrepreneur On Money: Brad Versteegh

This is part of a series called "The Entrepreneurs On Money."  This interview is with Brad Versteegh.

Knowing what you know now, what do you think you might have done differently where money is concerned, if you were just starting your business?

Barter. For every dollar I barter for, I keep the equivalent dollar in the bank where I need it. A barter exchange is the best way for a new business to get the goods, products and/or services they will need without spending a nickel of their available cash.  I can give numerous examples.

What were your biggest mistakes when it came to managing your money as a business owner?

Spending it. This is my fourth business venture. From my experience, most business owners want to run out and begin buying the things they “think” they’ll need. Do not begin your business life in a consumer mentality. Your job is to produce, not consume. My next thought is, negotiate. Many business owners are afraid to haggle. They assume the price quoted is the best they can do. Shop around, compare pricing. I think you’ll be amazed at how much you can save by putting a little effort in to it. And the most important is to barter when ever possible. Sometimes you can trade one to one. But the best way is to locate a reputable barter exchange. This allows you to leverage your business (at your cost) and receive full retail value to buy the things you need.

What were your smartest moves when it came to managing your money as a business owner?

Stop spending. And if it isn’t working, stop doing it. (On the flip side…If it is working, KEEP doing it) I’ve seen many business owners continue to buy yellow page ads and newspaper ads for years. When I ask how much traffic or customers they have gotten from those sources, they usually say, “I don’t know”.  I ask, “Then why are you doing it?” and they say, “The rep said repetition was the key. The longer I advertised the more business I’ll get.” WRONG. If you aren’t going to track it, or if they don’t track it for you, don’t do it. It’s all about tracking, period.

What are your best suggestions for new business owners when it comes to managing money?

Keep as much of it as you can. This sounds biased, but it is true. How much easier would it be if you could get everything you needed to run your business and your life for free or at your COST of doing business? I am a member of a barter exchange. I do consulting work, therefore my cost of business is virtually zero. When I want a vacation, I volunteer my consulting into the exchange. I help another business “for free” in exchange for my normal retail rate. I then trade that “credit” for a week in a private condo on the beach in Hawaii. Credit card or frequent flyer miles gets me there.  So what I have done is trade two hours of my free time for eight days on the beach in Hawaii and my only cash expense is for food while I’m there. (Some of that can be traded for as well)

Any final thoughts on money and managing it as a business owner?

I said I would give an example –

New CPA, just starting out. This person’s situation is likely: No clients, therefore has a lot of free time on their hands. Has limited funds to pay for things they need such as a logo from graphic artist, business cards, letterhead, signs, forms, office space, equipment, advertising, marketing, web-site, etc, etc.

A barter exchange send the CPA, say…six new clients. The CPA does the work “for free” in exchange for let’s just say…$3,000 worth of credit. With this they can get the logo and printing done they need with maybe a basic web-site. All of this with no cash out of pocket.

They then take on another six clients referred by the barter exchange for another $3,000. During this time they work the first the barter clients for referrals. All referrals will be cash paying customers.

If the CPA does a great job and gets just one referral from each barter client the CPA suddenly has a dozen cash paying clients, has earned $6,000 worth of needed products or services and hasn’t had to spend any of their cash reserves.

In the course of a year, a CPA could feasibly fill their business with cash customers. And then continue to barter a smaller percentage of their “excess” time to buy things they want and/or need for business or personal use.

Can you think of a better way for a business to grow from inception to success more efficiently?

Vantage Barter Exchange is a network of business owners. These owners leverage their businesses (at full retail margins) to preserve cash and receive the goods and services they want and need for themselves and their businesses. Barter – The new thousand year old economy. 

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