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February 15, 2006
Startups On The Cheap
LOS ANGELES - When Todd Luttinger co-founded Vider Conferencing about five years ago, there was little cash for fancy offices, furniture and office equipment. Some creativity was called for.
Luttinger knew a fellow videoconferencing company had recently been acquired and was downsizing some offices and closing others. He located the facilities person and was able to snag all the excess furniture and equipment--for free.
Vider sublet office space from an Indian software company and rented its Nortel phone system on a monthly basis. "It was no money down and no long-term commitment," said Luttinger. "The best part was they credited us on our rentals when we eventually purchased a PBX (private branch exchange telephone system)."
Vider also was able to get black leather chairs from a law firm. "They said if we could pick them up we could have them for free," said Luttinger. "We still have them today and they look great."
For startups, even those that have raised venture capital, it is important to stretch the dollar. Here's how.
Look for opportunities to barter
Two UCLA law grads started LegalZoom in late 2000. And, yes, they began operations in one of the co-founder's condo. Something that proved particularly useful was barter. After all, they had valuable legal expertise.
Here's a few of the things they bartered: IT work in exchange for incorporating a company gratis and shares of the company in exchange for phone services and interns.
"Bartering is always a good way to preserve capital, enabling small companies to focus on growing their business," said Brian Lee, a co-founder and managing director of LegalZoom.com.
(Click here to read the story online.)
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