The entrepreneur that I interviewed struck his idea while tending to his bowel movements. He was reading an article in the newspaper about eBay, the largest internet auction site. Frank Gambardella, born and raised in Auburn, New York, had some old stereo equipment in his basement, and immediately posted them on eBay. After eradicating all the extra stereo equipment in the house, video games, VCRs, and anything else he could find, Frank realized that an enormous profit could be made.
Frank began shopping around for good deals on stereo equipment, and found that the internet met that need. As Mr. Gambardella’s small business grew, and as he grew as a businessman, he found the best deals and the hugest profits were realized when he purchased through online wholesalers. Soon, Frank teamed up with with his brother, Tom, and the business began to expand.
Frank Gambardella attributes much of his success as a small businessman to the internet. Had it not been for the forum available at eBay, Frank conceded that his business would never have started or been able to grow to what it has become. As of February 8, 2001, Frank and Tom have sold over three thousand items. The internet’s rise to power as a medium in 1999 really ascribes Frank’s success. No sales tax, free registration and use of eBay, low percentages appropriated by eBay, and relative low shipping costs, allowed the business to mature towards the end of the twentieth century.
Mr. Gambardella’s keys to a successful small business are passion, a desire to succeed, and a commitment to follow through on your ambitions.
Frank Gambardella has been selling electronics on eBay for several years. He has seen his venture take hold and grow immensely. There were several hurdles that originally bogged down the growth of the young entrepreneur’s small business. These most significantly arose due to financing, shipping, and planning.
“Financing was my biggest hurdle,” Frank admitted. Mr. Gambardella stated that he had little capital when he began, and as a result, had to start off on a very small scale. Frank used his credit card to the limit, paid off the credit over the internet, and then charge more. It was only until Frank was able to build up his credit that allowed him to purchase greater amounts of goods. His small business expanded at a high rate, creating sales in the thousands every month.
When Frank entered the internet sales market, he had little knowledge of shipping costs. Every order he was to send to a customer, it was necessary for Frank to phone the United States Post Office and get an estimate based on weight. As sales grew however this process became tedious and eradicate necessary. Eventually Frank discovered the profitability and efficiency of the United Parcel Service. UPS allows customers to price their shipping needs at their web site. This made it possible for Frank to detail the shipping costs of the product at the same time that he posted the product on eBay. This saved Frank “many hours of time and effort.”
The quintessential hurdle for Frank must be the lack of a business plan. If Frank had had a business plan when he began, “that would have made things run smoother…” Frank disclosed that if he had researched earlier and realized the potential for profits, he would have borrowed money from his father, and would have jump-started his entrepreneurial venture.
Frank Gambardella, pioneer of a small business utilizing eBay and the internet, has held several roles over the life of his business. And he plans, “My role in the future will not change much I don’t think,” then added, “you never know though.”
In the beginning, Frank admits to using “arbitrage pricing theory,” buying products cheaply on the net and sold them elsewhere on the net for a profit. Eventually other entrepreneurs caught on and the profit potential decreased.
At the onset of Mr. Gambardella’s small business, Frank was new to the process, and spent a lot of time and was more involved in the stages of a sale. As the company grew, sales and profits increased, Frank learned the trade, and spent significant less time in the hour-to-hour hassle of eBay selling. Frank also hired his brother, Tom.
“My role is to make the web pages, email the auction winners, handle all the money and ship the product out. My brother just orders the stuff.”
“Are you still the boss?”
“Yeah. I’m still the boss.”
The future of Frank’s business relies on Frank creating ties with the major companies that produce the electronic goods (i.e. Sony, Pioneer, etc.) “Possibly through my fathers’ contacts; that way I will have a dealer account to purchase merchandise.” Frank stated that he also needs to get a tax identification, and “establish my business legitimately.”
The lack of a business plan for the Gambardella brothers’ business may take part of the reason for a lack of specific roles, but adds to the randomness and excitement of rearing a good idea.