7 Tips on Barter for Small Business

Barter, an $8-12 billion dollar industry, is one of the businesses that flourishes in bad economies, as it offers entrepreneurs many opportunities to acquire things they need and want for no or little cash. Here are some of the things you should know about Barter, a great Bootstrapping activity.

1. It is the exchange of goods and services for other goods and services with little or no cash involved.

 

2. Small Businesses exchange almost every imaginable product or service like medical services, media, landscaping, clothing, food, real estate, legal services, toys, cruises, cars, hotels, etc. The list goes on forever.

 

3. The advantages of Barter are:

    You receive goods or services you need without paying cash.

    You receive full retail value for what you are trading which enhances your balance sheet.

    It allows you to utilize your excess capacity or time.

    Can help you get new customers from the company you bartered with as they will continue to buy from you for cash when they run out of credits, if they are pleased with your offering and service. This satisfaction generates the most effective form of advertising: word of mouth which will get you new customers.

     

    4. Most Barter works through exchanges who locate the buyers for you and offer the huge range of products you can acquire through the trade dollars you get when you sell your product. This way you do not have to find buyers for your products as they did in the early days of Barter.

     

    5. You pay a fee of about 12% to the exchanges for their services. Most exchanges charge to join.

     

    6. All Barter transactions are taxable.

     

    7. To locate the Barter Exchange that best fits your needs, go to a major search engine and type in Business Bartering or go to www.irta.com, the Industry Association.

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      CASH SHY? TRY BOOTSTRAPPING

      This guest article with the subhead of “Try These Tips for Building a Successful Business with Little Capital,” I wrote for Entrepreneur.com was picked up and run in its entirety by 10 other websites. Those include Yahoo, Fox Business, The Washington Post, MSNBC, The Street, Business Insider, AT&T Small Business, Reuters UK, Alibaba, and Buwiz. Wow! I sure didn’t expect that exposure, but it warms my heart.

      The article covers subjects such as Barter, Free Consulting, Mentors, and Special Offers to Key Customers, Suppliers, Publicity, Outsourcing, Building Trust, and Selling.

      The article is reproduced on my website: www.bootstrapping101.com.

      I was so inspired by the coverage on this article that I wrote another one that was accepted by Entrepreneur.com and should come out within the next four weeks. I like it (surprise) as it applies to every size company, product, or service and costs the Entrepreneur no money. Yet it holds crucial ideas for a company’s success and sustainability.

      We’ll let you know when it comes out.

      7 TIPS ON BARTER FOR SMALL BUSINESS

      Barter, an $8-12 billion dollar industry, is one of the businesses that flourishes in bad economies, as it offers entrepreneurs many opportunities to acquire things they need and want for no or little cash. Here are some of the things you should know about Barter, a great Bootstrapping activity.

      1. It is the exchange of goods and services for other goods and services with little or no cash involved.
      2. Small Businesses exchange almost every imaginable product or service like medical services, media, landscaping, clothing, food, real estate, legal services, toys, cruises, cars, hotels, etc. The list goes on forever.
      3. The advantages of Barter are: 
         – You receive goods and services you need without paying cash.
         – You receive full retail value for what you are trading which enhances your balance sheet. I
        -It allows you to utilize your excess capacity and time.
        – It can help you get new customers from the company you bartered with as they will continue to buy from you for cash when they run out of credits, if they are pleased with your offering and service. This satisfaction generates the most effective form of advertising: word of mouth which will get you new customers.
      4. Most Barter works through exchanges who locate the buyers for you and offer the huge range of products you can acquire through the trade dollars you get when you sell your product. This way you do not have to find buyers for your products as they did in the early days of Barter.
      5. You pay a fee of about 12% to the exchanges for their services. Most exchanges charge to join.
      6. All Barter transactions are taxable.
      7. To locate the Barter Exchange that best fits your needs, go to a major search engine and type in Business Bartering.

      Put Up or Shut Up!

      PUT UP OR SHUT UP or Practice What You Preach. This mantra has many more implications and consequences than you think. You as the owner of your own business are the defacto leader of the company. However, real leadership must be earned. You can’t tell your employees to do one thing while you do the opposite. They will not follow or respect you. On the other hand, if your actions support your words, your people will respect and trust you and attempt to emulate your deeds. Your words will gain new credibility.

      In thinking about this, I decided to follow my own advice in my new book, Bootstrapping 101, by bootstrapping its marketing. First, I decided to self-publish the book as I was less than satisfied with the effort of the well known publisher of my first book.

      My first chapter is on Barter, “The exchange of goods and services for other goods and services.’ Usually no cash is involved. One morning while reading the local paper, I saw a feature article on a young lady, Briana Bragg and her company Business Bragger, which assists companies in  using  social media to achieve their business goals. Briana lost her first job before graduation, because her employer downsized. She decided to never let this happen to her again. She became an entrepreneur and started her own company. I contacted her to meet, and we struck up a barter deal. She was going to teach me how to use social media to sell more books, and I would mentor her through the growth of her start-up. We are both benefiting immensely.

      I also have a chapter on the Free Help available to small businesses at Universities. Knowing that professors of Entrepreneurship like to assign teams of students to real life situations, I contacted Len Green, the savvy professor at Babson College. I suggested that one of his student teams might take on the assignment of creating a business plan on marketing my book. He was enthusiastic, and I will be going to Babson the end of October to hear the students’ plans and to talk to them about the path of entrepreneurial success.

      I am using many of the book’s tips, and it is gratifying and fun to follow your own advice. It is also reinforcing my belief that it works.

      Following one’s own advice is applicable to your personal life, particularly in parenting. How many times have you seen parents enforce particular behaviors on their children while acting contrary to their advice? They then wonder why their kids don’t listen to them. Children and adults will ape the behavior of parents or leaders they respect.

      Practice What You Preach Is also very applicable to our elected officials. It will help their popularity rating which is currently dismal.

      CHALLENGE # 1–Rearrange ALL the letters and using each one only once,in the word

      DORMITORY,to form a new word or phrase that has a bearing on the original word…..
        (answer in the next blog)
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