Biznespolska struggles in bear market

Biznespolska, an Internet start-up that specializes in business conferences and company information, is still losing money after 17 months of operation, despite a previous forecast by the firm's president that it would reach "sustained profitability" by the fall.

Thompson Barnhardt, Biznespolska's president declined to provide numbers, but said that revenue for its conference business dropped 30% this year, while revenues from the sale of local business directories was 30% below budget.

Barnhardt, former president of New World Publishing, owner of the Business Journal, said last February that Biznespolska would turn a profit by autumn as the company had switched its business plan from being a Polish-language financial news Web site to a business conference organizer and directory publisher. Barnhardt said last week that he could not predict when the firm would be profitable.

The privately owned company has organized 20 business conferences this year, including the First Tuesday Internet-networking events in Warsaw. Revenue from sponsorship - the source of income for First Tuesday conferences - fell 20-30% this year, Barnhardt said.

Demand for business services, such as pricey conferences and directories, has dropped in Poland this year as firms, especially in the IT sector, continue to cut spending. Biznespolska had to cancel one conference this year, but has three scheduled this month, Barnhardt added.

To compensate for the drop in revenue, Biznespolska reduced it staff in October from 22 to 17 employees, although Barnhardt said there would be no more job cuts. Business would be more difficult, although predictable, next year, he said.

Roseanne Gerin