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SmallBizResource Blog -- Marketing


Equity vs. Advertising - Online

Posted by Fredric Paul Tuesday, Oct 30, 2007, 05:34 PM ET

Most small businesses don't have a lot of extra cash lying around, but still need services like accounting, advertising, and the like. The Internet makes it possible to trade some of your company's equity for those services -- if you've got the nerve.

At the Make Mine A Millionevent I attended in New York last week, everyone seemed to be pretty much on the same empowerment page. But one thing panelists did disagree on was whether it was a good idea to trade equity in your company for services you need. Some advised entrepreneurs to hold on tightly to their companies, while Susanne O'Callaghan, PhD and and professor of accounting at Pace University, recommended trading a small percentage for accounting services.

Well, if you're the kind of small business owner with the stomach to go that route, the Web offers lots of choices. A new exchange called Stock4Services.com is designed to broker these kinds of deals between media companies and small firms looking for advertising and exposure.

Risky business, to say the least, but at least you could potentially get access to a wider circle of "in-kind" investors than your own circle of friends and acquaintances. And by working through an exchange, you run less of a risk of souring personal relationships if things don't work out.

Marketing




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