Bartering removes the money element; thereby relieving strain on your cash flow. You are a restaurant in need of advertising? Great! You provide catering at a big morning meeting and, voila, you get barter credit which you can use to get those flyers – and maybe also a paint job.
A key side-effect (and the reason some businesses engage in barter in the first place) relates to the referral opportunity. Many businesses which barter regularly find that 10% or more of their new customers will come from referrals from other companies they bartered with.
In traditional barter, you would need to find someone who has what you need, and needs what you have. Thankfully, in today’s world, there are a number of organizations which make bartering much more efficient. See below for details.
Barter is done on a dollar credit – to dollar credit basis, and is taxable as though it was a money transaction. However, it saves you from having to dig up the cash when you need.
As already mentioned, barter can be, and is, done in a wide range of industries. Examples include: Legal services, Food Services, Healthcare, Insurance, Cleaning Services, Marketing, Auto Repair, etc.
There are about 500 bartering exchange organizations in North America. To find one near you, contact the National Association of Trade Exchanges (NATE) or the International Reciprocal Trade Association.