MEDIA RELEASE 02 October 2008
Thinking outside the square helps when starting a small business from
scratch
For many people, starting a new business can be a daunting task, especially when
the budget is tight. When setting up his handyman business, Simon Macdonald
thought outside the square and used reciprocal trade provider BBX and now has
the beginnings of a thriving business.
According to Macdonald there are many things to consider when starting up a new
business, plus lots of expenses that can be overwhelming. Things like business
registration, insurance, equipment and marketing can all be costly exercises.
"When I started H-Men all I really had was an idea my handyman experience, so I
literally had to start from scratch," said Macdonald. "I took out a silver
membership with BBX that gave me an interest-free line of credit for 10,000 BBX
dollars. Not only did this give me the ability to pay for the necessary start up
things but by being part of the BBX network, it gave me access to an instant
customer base," he said.
How Macdonald used BBX to get the ball rolling for his new business:
1. The company registration and ABN application was done through a tax affairs
specialist paid for with BBX dollars
2. Tools and equipment were bought using BBX dollars
3. Workcover, business and car insurance were taken out through BBX Insurance
which gave Macdonald a competitive deal plus he was able to pay 30 per cent of
his premium using BBX dollars
4. His logo, business cards, flyers and invoice template were designed by a
graphic designer and then printed, both paid for with BBX dollars
5. The website design and the hosting of the site were both paid for using BBX
dollars.
"BBX actually help to market my business to other BBX members, which in turn
helps me generate more BBX revenue to pay off my line of credit and pay for
business expenses, such as printing. About 15 per cent of my business is from
BBX paying customers," Macdonald added.
BBX director and Chartered Accountant, Tim Creasy said it's a tough time for
small businesses just starting out.
"It's become harder for new businesses to obtain credit from traditional lending
agencies. BBX is structured to help small businesses, especially in tough
economic times as we can provide an interest-free line of credit to help
facilitate growth, open up a new customer base and as a result maintain all
important cash flow," said Creasy.
BBX is a membership based trading program whose primary role is to generate new
opportunities for all types of businesses and to show business owners how to
offset many current cash expenses by utilising the down time and idle inventory
in their business.
The trade exchange uses BBX dollars, a currency unit having equivalent value to
Australian currency, to assign value to the transactions that take place between
member businesses. In essence, the exchange acts as the third party record
keeper, similar to a bank, and provides a sophisticated market where thousands
of transactions take place on a cashless basis.
BBX Holdings Limited listed on the ASX in August 2005, becoming the only
exchange in the world to be publicly listed on a main board.
BBX has offices throughout Australia and operates in New Zealand through a
master franchise. Through their BBX accounts, member businesses in these
countries traded in excess of $192 million in the financial year ending 30 June
2008, averaging over $33,000 per member.
BBX has recently expanded to Costa Rica, India and China through master
franchise arrangements and further international expansion is being pursued.
BBX can be contacted by phoning 1800 222 229 or visiting
www.ebbx.com.
H-Men can be contacted by phoning 0411 374 544 or visiting
www.hmen.com.au.
Released for BBX by Dennis Rutzou Public Relations (www.drpr.com.au)
For further information please call Joanna Gitsham or Nicola Rutzou on (02) 9413
4244.
* High res images available on request
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