Entrepreneurs Survive Amidst Tightening Credit Markets by Using Creative Methods for Holding Down Overhead and Accessing Capital and Services

The declining economy has put a stranglehold on the credit markets forcing entrepreneurs to seek out creative ways to both hold down overhead and finance their companies.  A story in Business First which also appeared in the Silicon Valley/San Jose Business Journal, profiled a number of Central Ohio based entrepreneurs who are sustaining their startups through non-traditional methods. 

Joe Metric, a startup that was born during the first Columbus Startup Weekend offers market research tools by way of iPhone applications.  The company was selected for a TechColumbus TechGenesis grant of up to $50,000.  They also received a Wheeler Entrepreneurship Enterprise Program grant from OSU which covers the costs of interns and their laptops and other equipment so that students can gain practical experience while startups can benefit from lower overhead costs for talent.  Joe Metric also set up shop at Qwirk, a co-working space in the Brewery District, to cut the fixed costs of operating an office space.   Qwirk tenants reportedly invest regularly in each others’ companies – not just with capital but with bartered services.  

Brand Thunder, also a TechColumbus portfolio company was cited for its approach to managing costs and gaining financing.  The five-employee firm has no corporate office.  All employees work from home, connecting virtually through email, SMS and phone.  They meet formally once a week.  Brand Thunder also barters services to hold down costs.  The company received $250,000 from the TechColumbus Pre-Seed Fund (formerly the Regional Commercialization Fund). 

For more ways local entrepreneurs are surviving the tight economy, see the story in Business First.