Barter is another strategy for cash flow

I was talking to a retailer the other day, and she expressed frustration at her lack of cash for new accessories, advertising, and other services. She had tried to get a bank loan, but we all know how little banks love retailers. I started to tell him about another answer to his problems ...

If I have your attention, I need an open mind now. What if I told you that you could get a new stack of additional customers and sales that you don't have now? Sounds good so far? What if I told you that you can take those additional sales and turn them into the things you need? Do you need advertising, printing, vehicle repair, cleaning services and even accessories?

Consider barter seriously to improve cash flow!

Any business with a healthy margin of at least 40% or more (meaning its cost is 60% or less of its selling price) should seriously consider barter. Service companies in which you have a healthy profit, or the working part of your bill could be reduced by your own physical work as an owner, should also consider this strategy.

Barter is not a new concept. The typical exchange between two people or two companies has been going on for hundreds of years and even organized exchange has been popular for more than two decades.

Barter means additional sales

But barter today is better and more important than ever. Today there are organized Las Vegas Barter exchanges that open up many more options and make finding business partners much easier. In my own business when I joined my first barter organization, I was skeptical at first. I joined around October and in late November I had barter buddies I had never heard of showing up in my business and asking me for thousands of dollars worth of products. I literally had thousands of dollars worth of products coming out of stores without getting paid a dime. I got really nervous and prayed that I hadn't gotten involved in some kind of scam. As I got closer to Christmas, I had over $ 15,000 in business credits because of me. My immediate concern was, "What if I couldn't spend these credits? I would be sitting there with $ 15,000 worth of business credits." My natural reaction was to cut any other commercial business, which I was told was within my rights as a member. After Christmas, when the dust had settled and I had time to do more research, I actually started trying to spend my business credits and was amazed at how easy it was and how much extra spendable money I would never have allowed myself to buy. advertising and other things that I needed for my business. I had my floors clean and waxed. I repaired my air conditioning. I had my personalized delivery van painted and lettered. I even started a regular service with a new exterminator where I had previously been paying cash each month. Everything seemed like a godsend.

Although I did not fully understand at the time, my barter or business organization acted as a broker and bank. They were finding me new clients that I had never had before and were providing me with a trading platform or vehicle with an accounting system to track all transactions for my business and other members. The trade or "exchange" organization really plays an important role because they provide record keeping, brokerage expertise, and monthly statements to each member ... Members of the organization buy and sell products and services from each other using a internal currency (therefore to speak of) known as barter or dollar trading. And each participating member has an account that is charged when purchases are made and credited when sales are made. Just like a charge account. The most important part for me was that they actually served as a new sales arm for my business, while they charged me a percentage for their additional sales transactions.