Our own BizX CEO, Bob Bagga, was recently interview by Forbes Magazine about the untapped business potential of small to mid-sized companies, and how BizX can help businesses crack into revenue opportunity. Read the article recap below or link to the full article.
Small to mid-sized companies combine to account for a staggering GDP shortfall of $2 trillion, resulting from untapped and underutilized business potential.
Looking to help companies crack into this massive revenue opportunity while driving transactions for businesses of all scales across industries, one entrepreneur set out to establish an innovative solution that allows businesses to offer products and barter services without spending any cash.
Founded in 2002, BizX is a membership-based network that works with companies to promote their products and services, build new business relationships and facilitate transactions between companies that might not normally conduct business together. BizX allows members to buy and sell within the network directly using an alternative form of currency equivalent to the U.S. dollar, aptly named 'BizX Dollars'.
Agreeing to accept BizX dollars as payment from others within the network also allows members to establish additional sources of incremental revenue. This incremental money flow can be spent back within the network to fulfill other business needs.
I spoke with CEO Bob Bagga about the vision behind the company, disrupting a traditional industry, and his vision for helping businesses unlock a trillion-dollar gold mine.
What was the void or opportunity you discovered that inspired the idea behind BizX?
Bob Bagga: In most cases, small to mid-size businesses operate at around 80% of their potential capacity, meaning 20% of their services or assets go to waste. We think the best way to help maximize that capacity is by providing business owners with tools that allow them to use unutilized capacity as currency or lines of credit, without any cash requirements involved. Since cash is often limited, using unrealized business potential as capital can help improve efficiency while paying goods and services that may have been difficult to obtain due to a lack of working capital. That's why we created not only the BizX community but also the BizX dollar, which allows our members to buy and sell their extra capacity amongst the network.
Describe your business model and what was the strategic thinking behind it?
Bob Bagga: BizX is a community of thousands of business owners who support one another through buying and selling from each other without spending cash. By using the BizX dollar, they can turn extra business capacity and assets into cash flow, which in turn, can be spent at member businesses without any cash involved. The goal for us is to reduce waste, maximize member potential, and help them earn new customers through BizX members and the eventual cash based referrals that follow.
What were some of the challenges you faced early on when trying to get your business off the ground?
Bob Bagga: Initially, we had to help people understand the concept, and realize that it isn’t as complex as it may seem. Turning unused goods and services into a potential line of credit or currency was a new concept for most business owners.
What have been some of the biggest blind spots or pitfalls plaguing the space and how does your company aim to solve for them?
Bob Bagga: Business networks often fail to direct new business to member companies because they lack a practical commerce solution to encourage participation. By giving users a cashless platform, on which they can transact with other members, we’ve been able to solve that problem. Additionally, other currency alternatives or bartering options become incredibly complex, costing business owners time, which second to cash, is the most vital resource they have. We not only have a seamless web platform that members can use, we also have a mobile application that allows members to transact with one another painlessly. On top of that, we’ve provided complete transparency through dashboards that allow members to track their BizX dollar spending and their increased cash flow.
What are the criteria for becoming a part of this extensive network and what are the primary benefits businesses experience?
Bob Bagga: BizX is free to join, and any high-quality business that delivers real value is welcome to join. Businesses that have underutilized capacity, time, and so forth benefit from joining, because instead of letting those services go to waste, they can turn them into a cash-free line of credit when other members pay for them with our complimentary currency. Since they all share the motive of spending BizX dollars first, they will always choose to do business with other members over non-members.
How does BizX specifically save businesses money and how does your model make business owners rethink executing deals and transactions?
Bob Bagga: Since BizX is a B2B network comprised of members in practically every industry, members can get almost anything they need with member businesses. This results in direct savings because they can obtain goods and services without expending any cash. It doesn’t just save them money, in many cases it allows them to take on expenses that would otherwise be too cumbersome with their existing cash revenue alone.
How does your company empower the small business economy and in what ways do you see BizX setting trends in the space?
Bob Bagga: BizX is not just a business – it’s a community. A community made up of business owners, entrepreneurs, and savvy professionals looking to get ahead in an ever-changing market. We believe that we are stronger together than we are individually, and our members think the same. That’s why we exist. Our goal is to make the lives and businesses of our members better by giving them the tools they need to grow without using potentially limited cash resources.
For more details, read the entire interview with BizX CEO Bob Bagga here: https://www.forbes.com/sites/julianmitchell/2017/10/27/this-ceo-built-a-network-powering-over-700m-in-small-business-transactions/#315f65d56fea
Forbes is a global media company, focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle.
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