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NET JOURNAL
By Scott Kucirek

8.13.99  
In This Chapter, I Learn To Love Shopping
An entrepreneur never stops buying stuff, I discover

Net JournalIf you like shopping, you'd probably love running a brand-new company. The spending just never stops. For many people, this would be a great job perk. Not for me. I am extremely budget-conscious, and I do not like to own lots of things.

The worst thing about this unavoidable spree is that in most cases you're obliged to buy items that cost thousands of dollars but only first entered your consciousness 48 hours before (if you are lucky). The decision-making process then takes up huge amounts of management time because you have so little information and you have to make up for it -- fast.

Here's a guided tour of the stuff zipRealty.com has purchased since early June.

First, the Fun Stuff -- marketing items that actually have a positive impact outside the company. You know, T-shirts, key chains, refrigerator magnets, banners, etc. This stuff is not fun, however, if it doesn't look really good. Then it's tacky junk and money wasted. The key is having a logo that works in a few different formats. That takes a good graphics person -- and we are on our third. I cannot emphasize this point enough: You get what you pay for. Price tag: $5,000 and climbing.

Then there's the Stuff You Can't See. This includes Web hosting, domain-name registration, data monitoring, business insurance, payroll services, and health insurance. Have you ever tried to understand your own health insurance policy? Now imagine comparing competing policies from five or six vendors, with only two days to make a decision. We're not talking key chains here. Get it wrong, and you'll spend a lot of time explaining to your colleagues -- not to mention your spouse -- why your policy doesn't pay for some test a sick kid needs. My best advice: Talk to one or two people you trust who have survived this, and use their advice as a guide. Did I mention that the price tag is $40,000 for the first year? The shopaholics oughta love that.

Now for the Electronic Stuff. This isn't like going down to the computer store for a cool gadget anymore. It's heavy metal -- or plastic. Think you're a tech expert? Fine. But for the rest of us mortals, there's no getting around hiring an excellent technology director to navigate this universe. The decisions are endless. Besides computers (why this vendor, not that one?), you have hosting services, software, database software, and a bunch of components from Cisco and the like. It seems that almost every day I sign a new purchase order for upgrades. Our next big one? A phone system. We've outgrown our old one and are debating the pros and cons of various systems now. Now we're talking real money: well over $100,000.

You can't run a company without paper, pens, post-its, etc. Our problem is that we are a block away from Office Depot. In the beginning everybody bought whatever they wanted. Within two weeks, we had enough surplus office supplies to outfit a small school for a year. The office coordinator we hired stopped that. Whew. Then there are the big office questions: to cubicle or not to cubicle? Who gets what furniture? Go for used, mid- priced, quality items. They don't have to look good, they just have to work. Sadly, ugly's not cheap either. Price tag: $30,000.

I realize now that this buying spree never ends. Just as I think I've bought it all, a new request comes in. Yes, I've learned to build shopping into my schedule, but it always surprises me to see how many things we need to keep a company going. Sorry, I have to go now. The new cubicles have just arrived, and the office coordinator has a check for me to sign.


Scott Kucirek is president and co-founder of zipRealty.com, an online real estate brokerage. The company's Internet site and online real estate agents let people complete the entire purchase or sale of a house via the Web. The company's Web site is www.zipRealty.com, and you can E-mail Scott at Scott@zipRealty.com.

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