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.