Author: Neha Gupta, Writer for Ormita Australia Limited
Date Issued: 23 January 2010
Every business small, medium or large scale has potential to grow. As they say ‘nothing is permanent except change’. With this in mind, why not “change” your spare time, depreciating inventory or excess capacity into real assets through the creative use of barter.
Bartering may be the most ancient form of commerce however, used properly; it can create additional cash revenues for you. All you need to do is expand your horizons; think out of the box.
1. Build your business - Expand your manufacturing capacity or service base. Provide q larger variety of goods or services for your customers to choose from. Add sidelines to your existing business [e.g. if you run a salon why not barter your service with a cosmetics company for their products which you can, in turn, sell on for cash – or if you run a coaching centre try adding a bookstore and stand out from the crowd.
2. Expand and diversify your customer base - Customers are the most valuable asset to a business. Attract customer attention with constant and eye catching advertising, promotions, sales and even events – all of which you can acquire through creative barter trading. You can also barter with other business owners and make their employees your customers.
3. Reinvest in your business to harvest the potential - As a business acquires more customers it also reduces the size of its competitors. More turn-over and more customers mean a healthier balance sheet. This in turn means a good credit report and easy access to getting bank loans to improve further. This is important as there is always remove for improvement.
4. Invest in new assets - Invest your capital in not just your business but other businesses as well. Bartering your product or service for direct equity / shareholding in other businesses is a great way to diversify your asset base while providing a new business a chance to learn from an experienced partner. A win-win situation!
5. Create a nest-egg - Acquire assets like houses, property, art etc. which will increase in value over time if you buy them now.
6. Add new product lines - Rather than spending cash adding complimentary or new product lines you could barter for them. This provides you with a greater range of things you can sell and services to provide your customers for very little risk.
7. Swap debts for assets – Credit is a part and parcel of commerce. So, when someone owes you money, why not take a part ownership position in their business if they truly cannot afford to pay you cash. This way you leverage your risk and can possibly help them get out of financial trouble. You will also benefit from changing from a debtor/creditor approach to a “partner” approach which may truly be beneficial to everyone.
8. Replace cash with barter as cost – Whenever possible use barter trade to pay for the cost of acquiring goods and services necessary to run your business smoothly.
9. Fight the competition and increase market share – In this competitive world it’s important to be innovative and creative to stand out from the crowd. To increase your market and to keep your existing customers it’s necessary to keep up with the technological changes in the industry. Formulate some promotion plans to keep your business in the forefront.
10. Fully utilize your workforce potential – It may sound simple but it’s very important to make the best use of your staffs’ skills and keep them happy. Also encouraging team work, creativity and leadership amongst your employees can ensure you their loyalty and hard work and the smooth operation of your business.
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