- Personal Finance
Bartering – Trading Your Way to Wealth
When there is a finite amount of cash coming into your business during any one month, it is amazing how the outgoings continue to increase in number. It seems that despite the best planning and budgeting, there are always more costs to account for and extras to allow for. And then you start to take a look around you at others who seem to be in the same game. How are they getting ahead and you’re not?
Maybe the answer is simpler than you thought. Maybe they have access to a secret stash of dollars that you’re not aware of – until now. The truth is that many businesses these days take advantage of the added extra benefits of barter – where barter dollars equivalent in value to a real dollar/pound/yen etc, are used in transactions so that precious cash reserves can be put to better, more efficient use.
There have been countless tales of equivalent businesses starting out with one succeeding and the other failing dismally. It’s not all about poor business skills, or poor craftsmanship. A lot of the time, it’s about knowing what others don’t know. In this case, it’s about using barter dollars to leverage your existing cash reserves.
Did you know by bartering you can use barter dollars to pay for a myriad of assorted things such as renovations (including plumbers, electricians, materials, labour), holidays, restaurants, book-keeping, accounting, advertising, office equipment and even flowers? This is how start-ups go from being novices to achieving accomplished entities.
It doesn’t take Einstein to figure out that if you have $10000 in cash and that’s all you have, then there’s not a lot left over to inject into improving and promoting the business. But if you have the same amount again available to you in barter dollars, then a whole new world of opportunities starts to open up. Imagine the impact that $10k worth of advertising would have on a small business! Intelligently used and applied, this could take your business to a whole new level overnight. And who wouldn’t want that kind of improvement.
Trading your way to wealth is a real possibility. You can pay staff rewards and incentives with barter dollars and send your hard working people on 5 star holidays – even better, go yourself and give your family the type of lifestyle they deserve. You can refurbish your premises with professional expertise and present as a top class business. You can pay for accounting services, financial advice and book-keeping all with barter dollars. What better way to keep an eye on your cash without paying cash?
When times are tough, that’s when you really need to conserve your cash reserves. And when the economic climate looks like it’s going into freefall, that’s the time when your business will outshine all competitors, if you have the added advantage of barter.
The number one reason for businesses going bust, is the lack of capital to keep things going. When you have access to extra funds for things like advertising and business improvements, then your future can only look brighter. Why not try it out for yourself?
Bartering – The Edge You’ve Been Looking For
Edward and Miranda have just bought the Dental Prosthetics business in the south of the city. It is already established and has been well looked after. But, Edward and Miranda want to differentiate themselves from the previous owner and want to spruce up the offices and add a little flair to what was a functional but drab affair.
Keen to continue making a profit, they were careful not to tamper with the cash-flow side of things, and to preserve the funds they had put aside from the sale. They had heard about the idea of barter before, but were unsure about the way it could work for their business.
This is what they learned. A barter dollar is equal in value to the currency of the participating country – that is: a barter dollar is equal to the dollar/pound/ euro etc of the country in which you are doing business. There is a group of participating businesses who all agree to exchange goods and services with each other to the value of barter dollars. So, if a hairdresser wants to buy accounting services, each transaction will take place using barter dollars and not hairdressing or accounting appointments.
Bartering by using barter dollars, Edward and Miranda found out they could pay for all sorts of things they hadn’t even considered such as renovations, improvements, furniture, plants, office equipment, stationery, staff incentives and much more.
Once they were armed with this knowledge they were able to re-formulate their business plan so that the improvements they wanted to make could take place without tapping into their cash reserves. In this way they were able to take the business to the next level, providing specialist services to private patients and thus significantly increasing revenue.
The successful but drab and mundane business they purchased at first was now a fresh, professional, vibrant and thriving business with bookings months in advance. In fact, they were now receiving calls for appointments from patients on the north side of the city.
Without the use of barter dollars, their good business sense and an eye for an opportunity, they would never have been able to enjoy the benefits of their prosperous business so soon. And as the tough times have come and gone for other businesses, Edward and Miranda have been able to sail through unscathed.
Miranda no longer has to work as the unpaid receptionist and business manager. They have been able to employ other staff to do that. Miranda now works on promoting the business in completely new ways. The business is more profitable than ever and the huge expenses of advertising, renovating and so on, were easily absorbed with the use of barter.
There are thousands of businesses now taking intelligent advantage of barter and its business boosting ways. These are the businesses that don’t have to hold their breath when talking about interest rates, economic down turns, recessions and the like. These businesses can just get on with doing business well. Why don’t you give it a try?
About The Author
- Real Estate QLD | Commercial Property For Sale
Verne Gardiner has 35 years experience in the property industry from land subdivisions to sales