Barter Basics
Barter, at it’s most basic and enduring level, is the exchange of goods and services between parties without the use of cash. Barter has been around since long before cash. Modern barter is the way entrepreneurial businesspeople get what they need when they need it - even if they don’t have the cash - by trading their spare capacity or inventory (what they have) for what they want and need.
Most businesses operate on the earn-save-spend model for making purchases. They earn the money. They save the money. They spend the money. This model works very well when the business is earning enough money to cover costs plus save a little for growth. But what happens when business isn’t so good or - the inevitable business Catch 22 - you need to grow now to earn more later? What happens for many businesses is barter.
Almost all businesses have excess capacity (office or press hours unused, tables unfilled, hotel rooms unoccupied) or excess inventory (discontinued, slow-moving, or over-produced). When times are slow or you need more resources to grow, the normal pattern is that these unused resources increase while your cash decreases. Barter gives you the opportunity to turn those resources into value and purchasing power when you need it the most by trading your products or services for the things you need - when you need them.