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GregBaugues
debtforsale.com | baugues@uiuc.edu | Co-Founder | 01/03/2003 | Small Business Owner
Greg Baugues is a senior at the University of Illinois and co-founder of debtforsale.com.
What kind of training or education did you acquire before your venture?
In May of 2000 Ryan Pfenninger and I started an internet marketplace for distressed debt instruments. We handled all ends of this business from the technical side of designing the database driven backend to the more personal side of cold calling potential customers. Throughout the duration of our business we were able to attract over 300 debt industry profesionals until our acquisition by E-Debt Financial Services in October of 2000.
What services or products does your organization offer?
We were located in Indianapolis##comma## IN. However##comma## our acquirer##comma## E-Debt Financial Services##comma## was located in Akron##comma## OH.
What type of business or organization do you operate?
How many employees do you currently have?
0
How did you originally discover the idea for your organization?
Ryan (the real brains of the operation) was introduced to the debt resale industry through his father who is a collections attorney. The idea was to merge two existing proven business ideas: the online marketplace (such as E-Bay)##comma## and the billion dollary per year debt-resale industry.
How did you originally fund your organization?
Our company was completely self financed##comma## however the nature of our business lent itself to very low costs.
Are you the founder of your organization?
Ryan was the true founder of the company##comma## however
Do you believe there is any distinct culture within your organization? If so, please describe it.
##quote##Board Meetings##quote## while playing basketball was alot of fun. Honestly##comma## since we only ran our company for a few months before we were acquired##comma## we never had a need for other employees and thus our culture was primarily the friendship that already existed between the two of us.
What obstacles or challenges have you faced in your organization?
Explaining to our potential clients that we were only 20 at the time. Typically by the time this had come up in a conversation we were already on the right path with the customer and had already proven our concept and ability.
Did you accept any advice along the way? Do you believe new organizations should be open to such advice?
Extremely. We made some mistakes during the acquisition process that could have been easily avoided had we a) taken some more time to think out the process and b) had some advisors who had been through the process before.
Did you receive any help along the way from other businesses or organizations? If so, how and from whom?
After our acquisition I became involved with the Collegiate Entrepreneur Organization (www.ceo.com) and find their organization to be a great resource.
What have been the keys to success in your business? What do you believe are the keys to success?
Thinking big##comma## working hard##comma## and having accountability within your organization to keep you on track.
What kind of relationship do you establish with your customers or clients?
We listened extensively to our customers and defined our marketplace by their needs and not by our perception of their needs.
What types of marketing do you employ?
Getting on the phone and just plain calling people over and over again. Have you seen Boiler Room?
Do you employ any web or online marketing?
The internet has allowed for kids living out of their parent##aps##s house##aps##s to compete with large corporations for a fraction of the cost.
What role does trust play in business or in your organization?
We rushed into our acquisition and didn##aps##t take the time to really analyze the deal structure. Always have someone who##aps##s been through the process hold your hand the first time.
Did you struggle with starting your own organization or venture? Why did you decide to begin on your own?
I wouldn##aps##t have been in the position I was had it not been for my friend Ryan. But our mutual skill sets well positioned us to be a success.
What books or resources would you recommend for individuals starting off now?
##quote##How to Win Friends and Influence People##quote## by Dale Carnegie.
Do you notice any trends in the marketplace? If so, what are they?
I see more of a consumer##aps##s acceptance of the internet and thus a gradual integration of it into our everyday lives.
Do you believe networking and contacts are important? If so, how?
Essential.
What do you think about contracts and other legal obligations? Are they important in your business?
Its the people that matter. At the end of the day your revenue comes from someone. That someone has a family and a story just like you. Get to know that person##comma## what they like##comma## dislike etc. Learn their story. Know them as a person and not as a customer.
If there is one thing that would sum up your advice to new entrepreneurs, what would it be?
I##aps##ve met many succesful entrepreneurs without MBAs… I know many with MBAs. I think it depends more on the person and less on the formal check marks.
What, if any, final advice do you have for new entrepreneurs?
##quote##Whatever you can do##comma## or think you can do##comma## begin it##quote## -Someone smarter than me.
