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Shared Effort

Need goods and services but low on cash? Make vendors part owners and share the rewards.

This story appears in the February 2008 issue of Entrepreneur. Subscribe »

Last year, as Ted Farnsworth was getting his business, The Purple Beverage Company, off the ground, he devised a way to get quality services from vendors with a minimal cash outlay--and without taking on more debt. Turning to a type of corporate currency, he persuaded independent distributors and other vendors to accept shares in his company in exchange for services. As part owners of the company, these vendors are now uniquely motivated to help Fort Lauderdale, Florida-based The Purple Beverage Company succeed, says Farnsworth.

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